Water management

The other day while I was reading Los Andes, a local newspaper in Mendoza,I found once again a front page that reflected the increasing conflict between mining projects and agricultural activities. There will be an escalating war over water use, since Mendoza is located in a desert area.

On the one hand, farmers and others oppose mining activities that use cyanide in case it contaminates the groundwater and as a consequence lowers the quality of life. In addition, mining activities demand vast amounts of water in areas where the water shortage is an ongoing problem.

On the other hand, mining companies say there is no contamination risk due to the fact that they use advanced technologies and increasing control levels. In addition, mining companies point out that their activities sustain the standard of living since household appliances and machines are made out of metals provided by mining.

What does the law have to say about this controversial issue?

In my country, many current laws govern the relationship between companies and their environmental impacts, and this is not just in Argentina. From time to time, the difficulties stem from corporate activities such as environmentally damaging practices. Unfortunately not only in Mendoza but also in Argentina there is a lack of clear ground rules. This is why problems such as the water shortage may lead to social conflicts in the near future.

Water use will be an increasingly significant issue not only in Argentina but also in other Latin American countries such as Chile. When I was working as a corporative stakeholder engagement advisor for a mining company, one of my interviewees pointed out some copper mining projects that are located in areas such as northern Chile, where the water shortage will be a real problem for years to come. People at this mining company also claimed that the firm is investing in new technologies that allow for better use of water resources, but I think technology is just a part of the solution. Conflicts over water will be increasingly complex and demanding in the future.

Water as well as climate change will give rise to extreme weather conditions more frequently, with drier summers and wetter winters. Drier summers will mean increased demand of water at the same time as decreasing river flow levels, which will have an impact on mining operations.

Unlike most business sectors, the mining industry must plan for long-term projects, 25 years or longer. However, politicians tend to focus on short-term objectives, considering only current political and financial imperatives, with the result that they sidestep more strategic considerations. The gap between companies’ needs and the government leaders’ objectives is evident in developed countries as well.

A number of key areas should be identified for improvement.

Strategy cannot exist in isolation. To deliver tangible results, it must be integrated with and build upon current policies such as corporate responsibility, water resources, wastewater management, energy, environmental, purchasing, transport, waste reduction and recycling.

Positive progress, both internally and externally, will depend on improving communications and understanding in order to change behaviours and culture. It is imperative to engage with stakeholders and regulators. The objective should be to share understanding and learn about each other’s climate change issues and concerns, and then address these concerns.