Mining
May 2010
The mining and water challenge
The mining industry plays a major role in the country's economy, but it faces a number of water management challenges including:
- a lack of integration of mine planning and operations in regional water planning processes
- absence of water markets in some mining areas and barriers to trading where markets are established
- uncertainty and insecurity in water supply arrangements
- differences between the mining industry's sectoral regulatory regime and the water sector's regulatory regime, including regulatory changes resulting from the national water reform agenda.
Secure access to and delivery of water are critical to the productivity and development of the minerals, petroleum, energy generation, pulp and paper (MPEPP) and other industrial sectors in Australia.
Mining and the National Water Initiative
Clause 34 of the NWI states that the Parties agree that there may be special circumstances facing the minerals and petroleum sectors that will need to be addressed by policies and measures beyond the scope of the NWI Agreement. In this context, the Parties note that specific project proposals will be assessed according to environmental, economic and social considerations, and that factors specific to resource development projects, such as isolation, relatively short project duration, water quality issues, and obligations to remediate and offset impacts, may require specific management arrangements outside the scope of the Agreement.
Progress on mining related reforms
The Commission found in its 2009 Biennial Assessment of progress in implementation of the NWI that the circumstances in which special clause 34 would apply are not defined and identified in a consistent and transparent manner. Little progress has been made in the five years since the signing of the NWI in fleshing out the special provisions for the minerals and related industries. As a consequence, there has been little integration of those industries with broader water markets and water planning processes, despite the potential for considerable benefits in many cases.
The Commission recommends that NWI-consistent water access entitlements be defined for the minerals and similar industrial sectors in order to provide those industries with secure access and the ability to trade with other users.
Particular circumstances (such as mine dewatering and return flows) and potential third-party impacts that might limit the applicability of NWI-consistent water access entitlements should be clearly identified and managed.
Future priorities for mining and water
The Commission believes that, wherever possible, mining activities should be incorporated into water planning and management regimes from their inception. Specifically:
- The interception of water by mining should be licensed to ensure it is integrated into water sharing processes from their inception.
- The regulated use and sale of any excess water should be encouraged.
- Wherever possible, mining activities should operate under the same rules and regulations as other water users.
- A standard water accounting framework should be used across the minerals industry and incorporated into the Bureau of Meteorology water reporting regulations to allow consistent reporting.
- NWI-consistent water plans should be completed to enable mining operations to secure their necessary water supplies, either through the issue of entitlements or their purchase from willing sellers.
- Mining companies should be actively engaged and encouraged to participate in water planning processes.
- Water related data held by mining companies and mining agencies should be made publicly available.
- Mining project approval processes need to reflect water management objectives and regulatory regimes.
- Efforts should be made to make legislation covering mining, water, and land use planning as compatible as possible.
- Where mining activities access low quality water, water planning regimes should be extended to encompass these resources.
