Q&A with SRK: Turning pressure into practical solutions

Key Concepts

• Water Stewardship: A comprehensive approach to managing water resources, considering community, ecosystem, and operational needs.
• Tailings Management: The safe and responsible handling of waste materials from mining operations.
• Legacy Risks: Long-term environmental and financial liabilities inherited from past mining practices.
• Global Industry Standard on Tailings Management (GISTM): An international framework designed to improve the safety and sustainability of tailings facilities.
• Free and Prior Informed Consent (FPIC): A principle ensuring that indigenous peoples have the right to give or withhold their consent to projects affecting them.
• Integrated Knowledge Base: A holistic approach to understanding and managing mining operations, incorporating diverse expertise and stakeholder input.

Water as a Defining Issue in Mining

Water is presented as a critical and defining issue for the mining industry due to its essential role for communities (drinking, irrigation, spiritual significance) and natural ecosystems. Mining operations inherently demand significant water for dewatering pits and underground mines, ore processing, and material conveyance. These activities impact the natural water balance through increased evaporation from surface water features and water loss during material transport (entrainment). The core challenge for the industry is balancing the water needs of communities and ecosystems with the operational demands of mining, while mitigating impacts.

Evolution of Water Stewardship and Disclosure

The concept of water stewardship has evolved significantly over the past two decades, moving from a philosophical ideal to a practical means of disclosure and transparency.

• Early Frameworks (circa 2005-2007): The United Nations CEO Water Mandate provided an initial framework, and Australia developed water accounting frameworks to establish structured water balances, enabling communication about water inputs, use, and discharge.
• Global Reporting Initiative (GRI): Approximately ten years ago, GRI expanded its stakeholder consultation to include water inputs and outputs, initially linked to climate change reporting.
• Sustainable Accounting Standards: More recently, within the last decade, sustainable accounting standards have emerged, leading to voluntary company disclosures and reporting through international governing bodies.
• Recent Refinements (Last 5 Years): In 2021, the Climate Disclosure Board released a water reporting guideline that cross-referenced ten other disclosure standards. Similarly, the International Council on Mining and Metals (ICMM) developed a standard referencing six different standards.

Despite this convergence in methodologies, a gap persists because not all companies adhere to the same frameworks, and not all choose to disclose. Furthermore, specialists identify a need for more granular disclosure at the site or point-of-use level, rather than just regional or country-level reporting.

Engaging Communities and Co-Designing Solutions

Effective engagement with communities is crucial, especially when water security is a concern. Terry Bourne emphasizes that water availability is a strategic consideration for mining companies.

Methodology for Early Engagement:

1. Appraise Water Basins: Conduct an early, evidence-based assessment of the water basin's capacity, reliability, and the significance of water resources, including physical, spiritual, and ecosystem demands.
2. Address Data Gaps: Recognize that direct measurement of natural water availability (during periods of abundance and absence) is a significant data gap, leading to uncertainty in models.
3. Engage Stakeholders: Foster dialogue with communities, users, and understand the science of ecosystems.
4. Incorporate Indigenous Perspectives: Engage with Indigenous First Nations who have long-standing relationships with the land and water, acknowledging the spiritual significance of water.

This early and continuous dialogue is vital for building trust and ensuring a successful balance of communication, allocation of offsets, and mitigation of impacts.

Legacy Risks and Future Liabilities in Tailings Management

The mining industry faces significant legacy risks stemming from historical tailings management practices.

Examples of Legacy Risks:

• Malinma Mine (New Mexico, USA): A 50-year-old mine with a legacy of long-term water treatment obligations estimated at nearly a billion US dollars in present value. This liability, inherited by an oil company, could have influenced earlier decisions regarding waste management and production if known.
• Proposed Mine (Northern Minnesota, USA): A project that scaled back its development concept due to community sensitivity regarding watershed disturbance impacting an adjacent area. This led to a reduced footprint, lower resource and reserve estimates, and a definite economic impact, even though the project is still in the proposed phase.

These examples highlight the importance of factoring future liabilities into current decisions, whether it's avoiding commitments or managing inherited ones.

The Global Industry Standard on Tailings Management (GISTM)

The GISTM was developed as a response to a "wake-up call" regarding the increasing complexity of tailings systems, challenging engineering environments, and credible failure modes.

Key Changes and Practices Introduced by GISTM:

• Rethinking Knowledge Integration: Emphasizes integrating a comprehensive knowledge base that includes all stakeholders.
• Free and Prior Informed Consent (FPIC): Brings FPIC to the forefront to ensure a strong basis for understanding potential risks and uncertainties.
• Independent Review Panels: Establishment of independent technical and geotechnical review boards to challenge design engineers' assumptions.
• New Data Streams: Development of new data streams to assess and test for indicators of potential risk areas.
• Transparency and Reporting: Aims for annual (or more frequent) reports to the community, detailing how GISTM aids in understanding systems and the choices made to protect human health and the environment.

Optimism for Closing the Compliance-Sustainability Gap

Despite the challenges, Terry Bourne expresses optimism for the industry's ability to bridge the gap between compliance and true sustainability.

Sources of Optimism:

• Integrated Knowledge Base: Consulting firms like SRK, industry initiatives, and academic consortiums (e.g., the Tailing Center) are fostering forums for knowledge sharing and driving industry improvements.
• Innovative Concepts: Exploration of integrated landforms and co-mingling waste rock and tailings to enhance system stability.
• Water Footprint Reduction: Industry focus on technologies and strategies to reduce water usage in operations.
• Long-Term Stability: Commitment to leaving facilities that are chemically and physically stable for the foreseeable future.
• Growing Engagement: Increasing attention and engagement with local communities throughout the mining lifecycle.
• Global Collaboration: Examples like the Sustainable Minerals Institute at the University of Queensland demonstrate a global effort to address these concepts, including social transition and post-mining states.

The presence of the "right people" thinking about these critical issues globally fuels this optimism.

Conclusion

The responsible management of tailings and water is paramount for the future perception and sustainability of the mining industry. Water stewardship, driven by evolving disclosure frameworks and a deeper understanding of community and ecosystem needs, is no longer optional. Legacy risks associated with past practices necessitate a proactive approach to future liabilities. The Global Industry Standard on Tailings Management (GISTM) represents a significant step towards enhanced safety and transparency. Ultimately, optimism for closing the gap between compliance and sustainability stems from the growing integration of knowledge, innovative solutions, and a commitment to stakeholder engagement, driven by dedicated individuals and organizations worldwide.