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Www.icmm.com Adapting to a changing climate John Drexhage, Director, ICMM 28June 2013, London Inaugural Institute of Materials, Minerals & Mining Fellows.

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Presentation on theme: "Www.icmm.com Adapting to a changing climate John Drexhage, Director, ICMM 28June 2013, London Inaugural Institute of Materials, Minerals & Mining Fellows."— Presentation transcript:

1 Adapting to a changing climate John Drexhage, Director, ICMM 28June 2013, London Inaugural Institute of Materials, Minerals & Mining Fellows Breakfast Club

2 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

3 A changing climate in context – climate change and sustainable development

4 A changing climate in context – a changing climate and the mining and metals sector 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

5 A changing climate in context – what is mining’s contribution to land and water use? Land use (Australia) [1] Consumptive water use [2,3,4,5]

6 Emerging drivers for adaptation

7 Implications of climate change for the mining and metals sector 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]

8 Implications of climate change – a framework for evaluating risks

9 Implications of climate change – arid or water-stressed environments 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]

10 Implications of climate change – arid or water-stressed environments 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]

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. Source: [18]

12 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 Sources: [15,16, 17]

13 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. Sources: [13,14]

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 Credit: Capstone Mining Corp. Queensland, Australia Heavy flooding in 2010, to 6-week rail closures 12-week disruption on West Moreton Line Credit: Oprel

15 Adapting to a changing climate – a framework for adaptation Adapted from [7,8,9,10,11]

16 Adapting to a changing climate – what is being done

17 Adapting to a changing climate – what is being done Credit: Vale, BHP Billiton

18 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.

19 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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