Scarcity and regulation send miners digging for water

By Marcelo Teixeira

SANTIAGO (Reuters) - Tougher legislation and increasingly scarce supplies are making water a growing cost component for miners who are now seeking new technologies to improve efficiency and seek new water sources.

Water supply has become a problem in many important mining regions around the world, but in Chile it is a critical one since copper operations are mainly located in the northern Atacama desert.

Professor Jacques Wiertz, a specialist on water use at Universidad de Chile, says research efforts by mining companies have focused on engineering and technical solutions to reduce water consumption and increase water reuse.

"Efficient use of water and responsible water management are the center of attention for many mining companies," Wiertz told Reuters in an interview.

"And this is mainly a problem of cost. The increasing costs related to water supply -- pumping and transport, desalination, etc. -- and with effluent treatments to reach the increasing water quality standards required are the main drivers."

Chile's state-owned miner, Codelco, the world's biggest copper producer, is also concerned.

"It is a growing challenge for the industry," Jose Pablo Arellano, chief executive of Chilean copper giant Codelco, said.

"Our efforts focus on efficiency and treatment. Codelco has secured water supply for its operations, but that does not mean we don't need to focus our full attention on the issue," added Arellano.