SUSTAINABILITY SUPPLEMENT The REAL cost of water in South Africa Is the world ready to pay the full price of water? Peter Shepherd, SRK Consulting partner and principle hydrologist, believes the answer is no. And he expects mining companies to be most hard hit by the rising water cost in future, writes Vicky Sidler. IN SHORT As the price of water increases, mining companies can expect to ‘bear the brunt’ of rising water costs and expensive water treatment options. W ater is generally factored into the price of commodities, with over 80% of it currently being taken from nature for free from rivers or underground. “On a global average, 70% of water is used for irrigation, about 22% of it is used for industry and the rest is used domestically,” says Shepherd. “Mining is a very big user of water,” he adds. In South Africa, mines use between 7 and 9 billion cubic metres per annum, totalling the combined amount Nigeria and Malaysia consume, which in turn equates to about R8 billion a year, including the operating cost of managing water in the mining area. “I believe this is going to double in the next five years, especially with all the treatment T C FAST FA n The cost R8 b r i p ll e i r o annum for South anies of wate ing comp ican min Afr works that are being prioritised,” says Shepherd. “The cost of water will definitely increase, and somebody eventually will have to pay for it.” He points out that “In most places, farming is not very profitable, so farmers are typically unable to pay as much as they should for water.” Shepherd believes that as the cost of extracting water increases, farmers and the communities that use the water “will buffer themselves and there will potentially be much more activism to ensure that mining water users bear the brunt of the additional cost.” This, he argues, is going to push up the cost of water in South Africa for the mining industry. Technology Many natural water sources are running dry, delaying production and development for many mines worldwide. “In South Africa, we either have too much water with a lot of flooding, or there is too little with a lot of drought. Water is very scarce in this country, so we have to manage it properly. We have to manage our water much more vigorously than we have in the past,” Shepherd emphasises. Mining houses have been forced to turn to more expensive options like sewage treatment plants, to obtain water for their needs and for the communities around them. “Our water is also often too dirty. There is a lot of pollution from our waste water treatments, mining and irrigation, all contributing to the deterioration of our water resources, something that we can’t tolerate in this country,” he reveals. Water management of tailings dams is required to minimise impacts on groundwater and surface water resources 56 MINING Liqhobong diamond mine. REVIEW AFRICA ISSUE 4 2014 In response to this, a number of technologies have been adopted to save water, such as reducing evaporation areas and maximising seepage collection facilities. “There