José Díaz-CanejaDirector GeneralACCIONA Agua

The Future of desalination in Latin America & the

application of desalination technologies to feed

mining operations – The Chilean Example -

José GonzalezGeneral Manager, AguasCAP S.A

SECTORS & COUNTRIES

• Municipal:

Ensure water supply in large urban areas

Brazil (Rio, Sao Paolo), …

• Industrial:

Provide with fresh water to industries requiring it for

their production processes

• Oil & Gas, Petrochem & Energy

These sectors require water with specific

characteristics for the processes of their industries

(make-up, cooling, …)

� Mexico, Brazil, Peru, …

• Mining

Freash and salty water is required in large volume for

the abstraction and treatment of the mineral

� Chile, Perú, …

DESALINATION IN LATAM

Use of Water Reserves in Different Regions

LATIN AMERICA

• Largest producer of Cooper in the world & Big producer of

other minerals (gold, iron, zinc)

CHILE

• Mining is the industry that contributes most to the Chilean

GDP, accounting for 12% of the GDP in 2012

• It is the largest contributor to the country’s exports:

mining accounted for 59% of Chile’s $78.3 billion total

exports in the same year.

• Chile is the main producer of copper in the world

• Mining is an strategic industry for the country, the Chilean

economy will continue to depend on it and it is one of the

driest South America Countries

� Great potential for the desalination sector in Chile

SECTORS: MINING. The industrial sector with biggest potential for large scale desalination

Santiago and the Andes

Increasing water scarcity

• Climate, Population Increase, Economic Growth

Stricter environmental quality regulations

• Water Supply and Wastewater Discharge

Need to obtain and maintain the Social License to Operate (SLO)

• Avoiding Social Conflict that could affect Economics

Nature of the ore body

• Current and Future Operations will require larger

volume of water (decreasing ore grades + sulphide form)

Map of current and planned

mining projects in ChileKEY DRIVERS FOR WATER IN MINING

MINING WATER CONSUMPTION: MARKET POTENTIAL 2014-2025

Source: Cochilco

Some Mining Operations in Chile

WATER FOR ACTUAL AND FUTURE MINING PROJECTS

Actual Mining Projects in Chile

Mostly expansion of existing mines

• Advancements in technology make it feasible to exploit

ores of lower grades, unveiling great potential in areas

surrounding existing mines

• Large-scale exploitation is able to offset increasing costs

of existing mines taking advantage of economies of scale.

New Mining Projects

Will be develop in the next 10 years based on the

prospection which are currently being undertake

Source: Global Water Intelligence

Map of current and planned mining

Projects and desalination plants in Chile

CHILEAN SWRO PROJECTS: PRESENT & FUTURE

CHILE: DROUGHT TO STAY HERE

• The drought started in 2007 will remain in the future

• In the south January has been the driest fro years and in

the north Atacama, already the driest region in the world,

threats with enlarging desertification

• All this is heavily affecting mining operations

PLAN TO ENSURE WATER AVAILABILITY

• Gov is clear about investing in desalination

• 170mUSD will be invested during 2015

• Small % Medium SWRO facilities will be constructed in the

mid term

���� Planning and Resources need to be allocated

SWRO: A NEED & AN OPPORTUNITY

La Serena

NOT ONLY SWRO, ALSO WASTEWATER TREATMENT

THE NEED IN NOT ONLY SUPLYING FRESH WATER BUT ALSO TREATING THE WASTERWATER

• Need for supplying fresh water for mining operations

• Need for supplying fresh water for mineral transportation

• Need for treating the wastewater in operational mines

• Need for treating Acid Mining Drainage for non-operational ones

Chuquicamata Escondida

Seawater (desalinated or not)

• Large amounts of energy required to pump such water to mines

located far from the sea and up in the Andes (over 3.000masl.)

• As the cost of desalination has decreased in recent years, the

most expensive items now are pumping and the transportation

infrastructure

Treated municipal Wastewater (MF, UF, NF, RO)

• Cheaper than desalination and pumping

• Benefits the neighboring communities

• Challenges in terms of negotiations with the communities, water

sale and use of other surrounding water resources

• Actual discussion of property of wastewater. (¿who should profit?)

The use of treated municipal wastewater to feed mineral

processing will increase, although at a slow pace.

El Teniente Mine

OPTIONS FOR WATER SUPPLY FOR MINING IN CHILE

CERRO NEGRO SWRO: A NEW STANDARD IN MINING PROJECTS

CERRO NEGRO SWRO: A NEW STANDARD IN MINING PROJECTS