www.icmm.com Adapting to a changing climate John Drexhage, Director, ICMM 28 June 2013, London Inaugural Institute of Materials, Minerals & Mining Fellows Breakfast Club
Apr 01, 2015
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Adapting to a changing climate
John Drexhage, Director, ICMM28 June 2013, London Inaugural Institute of Materials, Minerals & Mining Fellows Breakfast Club
www.icmm.com
Outline
• A changing climate in context
• Emerging drivers for adaptation
• Implications of a changing climate on the mining and metals sector
• Adapting to a changing climate
A changing climate in context – climate change and sustainable development
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A changing climate in context – a changing climate and the mining and metals sector
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Requires climate-sensitive inputs: water, energy, land, people
Dependent on global supply
chains
Operates in challenging
geographies and climates
Relies on large, fixed assets with
long design lifetimes
A changing climate in context – what is mining’s contribution to land and water use?
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Nature conservation
7%Other protected areas including Indigenous uses
13%
Minimal use15%
Grazing natural vegetation
55%
Mining0.02%
Other10%
No data0.03%
1.3% 4.0%8.0%
1.0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Canada Chile SouthAfrica
UnitedStates
Shar
e of
tota
l con
sum
ptive
wat
er u
se
Other
Environment
Agriculture andagroforestry
Electricitygeneration
Industrial
Public watersupply
Mining
Land use (Australia) [1] Consumptive water use [2,3,4,5]
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Emerging drivers for adaptation
Implications of climate change for the mining and metals sector
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CORE OPERATIONS
physical assets, production processes, health & safety, O&M
... workforce and changing
lifestyles
... other inputs into production
... customers and demand for goods and
services
... governmentsupplied services
... customers access to product
... disruptions to supply
chain
VALUE CHAIN ... supplies of natural resources
and raw materials
BROADER NETWORK... public/private electric and water utilities
and other infrastructure
Effects of Climate on...Climate-sensitive inputs: Water, energy, people
Supply chains: transport routes, infrastructure, access to markets
Markets: demand for goods and services, competition
Exploration & construction: access to new reserves, site design, building codes, minesite water balance
Operations: equip. performance and operating thresholds, workforce health and safety, stability of impoundments, disruptions
Closure & post-closure: Long term environmental monitoring, rehabilitation Source: [6]
Implications of climate change – a framework for evaluating risks
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Exploration
Construction
Operation
Closure
Post-closure
Inputs
Supply ChainsFinancial
Higher operating expenditure or
unplanned capital expenditure
ReputationalIncreased risk of
litigation, regulatory non-compliance,
inability to operate
Description: What is the impact?
Timeframe: When will the impactoccur? When is action necessary?
Stakeholders: Who is impacted?
Primary/secondary: Does theimpact directly affect activities ordoes it trigger other impacts?
Likelihood: How certain is theimpact? How much more often isit likely to occur?
Impact Areas Impact Evaluation Business Implications
Markets
Implications of climate change –arid or water-stressed environments
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Risk of:
• Insufficient water supply for operations
• Reduced availability and reliability of electricity
• Challenges in post-closure rehabilitation and water quality management
Sources: [11,12]
Implications of climate change –arid or water-stressed environments
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• Quillagua and Copiapó in Antofagasta and Atacama, northern Chile;
• Mining operations face risks from increased conflict over water rights, regulatory changes;
• Responding by sourcing raw seawater, increasing reuse & recycling, engagement with stakeholders.
Source: [11]
Implications of climate change –tropical climates
• Workforce impacts from heat stress and more frequent periods of extreme heat;
• Changes in the spread of vector-borne diseases;
• Indirect impacts from low level of resilience in vulnerable communities;
• Impacts on biodiversity, species extinction.
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Source: [18]
Implications of climate change –tropical climates
• Boane, Mozambique
• High infection rates (~85%), health impacts to workforce and local community
• Malaria control programs dropped infection rates to below 20%
• Motivated by workforce and community safety
• Have increased resilience to malaria within the region
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Sources: [15,16, 17]
Implications of climate change – coastal areas and regions likely to become wetter
Potential for:
• Coastal flood damage;
• Changes in minesite water balance;
• Changes in timing or flow of receiving bodies.
Impacts on:
• Capacity to handle heavy rainfall & flooding;
• Stability of open pit highwalls, tailing storage ponds, embankments;
• Long-term water quality.
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Sources: [13,14]
Implications of climate change – coastal areas and regions likely to become wetter
• Minto Mine, Central Yukon• In 2008, 2009: “two 100-year water
events in a row”• Shut down extraction, emergency
releases to Yukon River• $2.5M water treatment plant,
upgrades to diversion channels
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Credit: Capstone Mining Corp. http://capstonemining.com/s/Gallery_Minto.asp
• Queensland, Australia• Heavy flooding in 2010, 2011• 3- to 6-week rail closures • 12-week disruption on West
Moreton LineCredit: Oprel 2010. http://www.oprel.co/gallery/queensland-flood-damage/8373137
Adapting to a changing climate – a framework for adaptation
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Awareness, Engagement, &
Objective Setting
Monitoring, Evaluation, and
Reporting
Partnership and Collaboration
Risk and Opportunity Assessment
Adaptation Planning
Adaptation Actions
Adapted from [7,8,9,10,11]
Adapting to a changing climate – what is being done
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Adapting to a changing climate – what is being done
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Credit: Vale, BHP Billiton
Conclusions
1. The mining and metals industry is exposed to climate risks.
2. It is also very experienced at managing risk.
3. Mining companies are already taking action on adaptation.
4. Strategies must further incorporate climate change into existing risk management and planning activities.
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Conclusions (2)
5. External expectations for climate risk management are changing.
6. Specifically, the demand for anticipating and reporting on risks is increasing.
7. Adaptation offers opportunities to engage on broader, complementary sustainable development benefits.
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