Sustainability website / Environment / Water management

Policy and approach

Policy and approach / Performance and goals

Xstrata’s Sustainable Development Policy sets out our commitment to continually improve the efficiency with which we use raw materials, energy and natural resources including water. Xstrata operates a number of sites in water-scarce regions, where a large number of industrial users together with communities rely on constrained sources of water, including coal operations in the Bowen Basin in central Queensland, some areas of South Africa and copper operations in north Chile (see Collahuasi case study). A number of other operations are located in water abundant areas where we endeavour to share water across operations and where water quality, effluent treatment and control of discharges are key issues (see Ulan water management case study).

All managed operations are assessed with regard to actual and future potential water scarcity. In total, 19 sites have been identified as operations or projects where water availability is determined to present a current or future risk, including the non-managed Collahuasi operation and Brenda Mine, a closed site in Canada. Water management plans have been implemented for 16 (84%) of these sites and further work is being undertaken in this area by Xstrata Copper’s north Chile division in 2008. Water management plans include an assessment of the requirements of communities and other users in the region and environmental factors and water balance studies. Water availability and potential impacts on water quality are key considerations in the expansion of existing operations or in the construction of new mines or metallurgical plants and are assessed through environmental impact assessments and feasibility studies. For example, the impact of confirmed and proposed expansions at Mount Isa Mines is being assessed and strategies to manage increased water requirements will be incorporated into the district’s drought management plan, known as the Critical Water Sharing Arrangement. This plan was jointly developed by Mount Isa Mines, Mount Isa City Council and the Mount Isa Water Board.

For mines with excess water, water sharing and water quality are the key considerations. For these operations, excess water is used to the greatest extent possible within the operation, extensive monitoring is conducted to ensure that any discharges offsite do not result in negative environmental impacts, including water treatment where necessary, and at some Australian coal operations, excess water is shared with mines in water-scarce regions through specially-constructed pipelines.

Performance and goals

Policy and approach / Performance and goals

Total fresh water use almost doubled to 168,700 megalitres (ML) on an absolute basis in 2007 due to the inclusion of the acquired Falconbridge operations (excluded in 2006). On a like-for-like basis, fresh water consumption declined by 5% year-on-year.

In 2007, 67% of Xstrata’s water consumption was taken from surface water (including water from rivers and lakes) and 26% from groundwater (including rainwater). Potable water sources (municipal water supplies or other water utilities) contributed 7% of the Group’s water supply.

Fresh water intensity (measured as raw ground and surface water use per tonne of product) increased by 8% due to the inclusion of a number of acquired nickel operations with higher water use in 2007 data, which altered the intensity profile of the Group. Xstrata’s commodity businesses have set a target of reducing the water intensity of our operations in water-scarce regions by 5% over 2007 performance by 2010. Xstrata Coal has set a target of 10% reduction in fresh water intensity per ROM tonne of coal on 2006 performance by 2011.

All Xstrata operations seek to increase recycling of water year-on-year. In 2007, recycled water use increased to 394,300ML from 101,300ML in 2006. The Xstrata Nickel Falcondo operation in the Dominican Republic is responsible for the majority of the increase in water recycling in 2007. This operation utilises a high volume of recycled water in the thermal power plant to condense steam from turbines and other equipment and in the process plant for cooling of large electrical motors, shaft furnace reactors, Electric Arc Furnaces transformers, slag launders, bus bars, contact pads and refractory walls. Water recycling increased at all other commodity businesses compared to the previous year as mining operations continued to increase the use of mine and recycled surface water for dust suppression.

Water discharged by Xstrata operations increased to 200,900ML, including 188,000ML from the former Falconbridge operations. A large proportion of water discharged is from the 21 closed sites acquired through the Falconbridge transaction where water is treated and discharged as a key part of post-closure obligations.

All Xstrata operations seek to increase recycling of water year-on-year. In 2007, recycled water use increased to 394,300ML from 101,300ML in 2006. The Xstrata Nickel Falcondo operation in the Dominican Republic is responsible for the majority of the increase in water recycling in 2007. This operation utilises a high volume of recycled water in the thermal power plant to condense steam from turbines and other equipment and in the process plant for cooling of large electrical motors, shaft furnace reactors, Electric Arc Furnaces transformers, slag launders, bus bars, contact pads and refractory walls. Water recycling increased at all other commodity businesses compared to the previous year as mining operations continued to increase the use of mine and recycled surface water for dust suppression.

Water discharged by Xstrata operations increased to 200,900ML, including 188,000ML from the former Falconbridge operations. A large proportion of water discharged is from the 21 closed sites acquired through the Falconbridge transaction where water is treated and discharged as a key part of post-closure obligations.