CAP

SUSTAINABILITY
REPORT
2016

4


ENVIRONMENTAL
PERFORMANCE

WATER

Water remains a critical input of maximum concern for the steel industry and for iron ore mining. Moreover, it is a highly fragile resource. Consequently, our emphasis has been in incorporating 100% desalinated sea water into our mining processes and in seeking the maximum efficiency possible in the use of water.

According to the OECD environmental evaluation, during the last decade Chile has consumed more water and climate change effects have been manifested that are bound to worsen the structural deficit of this resource.

Additionally, excessive water allocations and the overexploitation of some aquifers are generating a scarcity of this element in various rural areas, with the consequential ensuing conflicts among users. On the other hand, Congress is still debating a reform of the Water Act.

The environment of the companies

CAP Mineria operates in environments of greater water scarcity, particularly in the area of Copiapo. Nevertheless, the care of water resources is considered an across-the-board strategic issue in all the companies of the Group.

CAP Mineria uses 28% of all the water consumed by the CAP Group; it is supplied from groundwater, surface waters, and in the Copiapo Valley it does so from desalinated sea water. CAP Acero uses 71.8% of all the water consumed by the CAP Group; it is supplied from surface water sources, extracting the water from the final segment of the Biobio River, in an area that, historically, has now presented scarcity problems; with the sole exception of the year 2015. The processing area6 consumes 0.2% of all the water consumed by the CAP Group and it is supplied from industrial and drinking water sources.

6The processing figures only include Cintac, not TUPEMESA or TASA.

The companies of the Group move forward in different ambits in order to achieve a greater efficiency in the use of their water resources, by reducing water losses, increased efficiency of use, or by introducing structural measures such as the recirculation of water. Efficiency changes often entail changing processes or changing equipment for more efficient ones.

Despite the steel crisis in recent years, CAP Acero has designed a series of efficiency plans, which include measures to recirculate a greater volume of water.

On the other hand, CAP Mineria continued to innovate in its processes. It designed a pilot plan to recover a greater volume of water from the waste thickeners of the Huasco Pellet Plant, as well as from five “Design thinking” projects: a) Reduction of humidity from the Pellet Feed; b) Online water monitoring and control system; c) Humidification of roads; d) Evaporation reduction; and, e) Reduction of sanitary water consumption.

In the case of Cintac’s galvanizing plant in Chile, work has been done to reduce the consumption of groundwater through two projects: a) the elimination of the steam boiler; and, b) A decrease in the use of rinsing tubs. This has reduced water consumption by 307 m3 per year (45%).

WATER CONSUMPTION

Minería

Acero

Procesamiento

 

2014

2015

2016

2014

2015

2016

2014

2015

2016

Volume of water consumed (thousand m3)

7,630

18,523

14,742

41,444

39,507

37,350

178

80

76

% Of sea water

29%

73%

77%

0%

0%

0%

0%

0%

0%

% Of water from surface sources

28%

14%

21%

100%

100%

100%

0%

0%

0%

% Of water from underground sources

43%

13%

18%

0%

0%

0%

100%

100%

100%

% Of water recycled or reused

47%

89%

96%

62%

61%

63%

0%

0%

0%


Climate change presents not only risks, but also opportunities. Thus, the desalination plant built by CAP’s infrastructure area in 2014, has been consolidated in the Atacama Region by supplying not only the operations of CAP Mineria (Cerro Negro Norte and Planta Magnetita) but also by marketing it to another mining company (Caserones)

The goal is to grow, both in the productive capacity of the existing plant as well as in installing other plants where we might find synergies with the operations of the Group (ports, mining operation). The production of desalinated sea water continues to be a business enable for mining projects. Although the cost of this water is higher, the context in the northern part of the country makes desalinated water feasible for mining projects.


Production and extraction of seawater at desalination plant

deslice

Infraestructura

DESALINATION PLANT

2014

2015

2016

Volume of water extracted from the sea (thousands m3)

n.a.

15,000

17,712

Volume of desalinated water produced (thousands m3)

n.a.

7,500

7,326