Innovative Engineering Solutions to reduce the stress on Natural Water Resources

2. Innovative Engineering Solutions to reduce the stress on Natural Water Resources Brook HillChief Environmental Engineer Minerals & Metals WorleyParsons Services Pty Ltd

3. Why we have to act (Green) • Population: 6 billion rising to 10 billion by 2050 • Forest: over 50% of all forest cover lost • Between 1 – 1.5 billion people without access to clean water • Ocean Health: claims that 75% fish stocks destroyed worldwide • Biodiversity: largest species extinction in 75 million yrs • Climate Change: $10trillion in economic damage

4. We can’t just continue burning more coal

5. and we can’t continue wasting water ! • Fresh water use by industry, Gladstone, Central Queensland

6. and an old solution isn’t going to help Burn Coal CLIMATE CHANGE Desalination Drought OUR RESPONSE 6 5/06/2014

7. We need to develop new approaches • Which put costs against previous ‘externalities’; • Which incorporate these costs into business models; • To enable us to secure management support and ‘buy-in’; • And which drive behavioural, process design and operational changes.

8. What can we change?

9. What can we change ? 9 9 5/06/2014 5/06/2014

10. First Step to Resilience is Future Proofing Expanded Decision Window Normal Decision Window Now20 Years $8/T $20/T $85/T? Cost of CO2 emissions $0.1/m3 $ 1.0/m3 $5/m3? Cost of Water $0.05/kWhr $ 0.50/kWhr $1/kWhr? Cost of Energy Cost of Waste Disposal Cost of Compliance Future proofing of projects Move the accounting perspective (decision window) out to the future. 10 5/06/2014

11. Second step – measure and analyseGladstone Region Water Demand by End Use

12. Next steps – review all usage Do more with less – evaluate increased solids density in slurries / pastes / filter cake deposition ‘Future proofing’ means putting ‘future’ cost rather than ‘historical’ costs into water pricing models Best Appropriate Practice – value engineering examines the contribution of water in the process – and examines quality of water required. This often encourages use of lowest quality water / seawater for low value uses such as cooling ; Total Quality Management - excess material useage (incl water use) is a variance from TQM - zero defects and zero waste are now key business drivers;

13. And start to widen the perspective Sustainability Impact Reduction Efficiency Conventional project engineering: NPV focus with Strategic Economic Analysis 13 5/06/2014

14. To enable a Whole Project Cost Benefit Analysis 14 5/06/2014

15. Whether you take a social view(Green) • World is changing • Inexorably rising population • Huge stress on natural world • Massive resource demands • Species extinctions • Changing climate • Significant global risks for humanity • To meet challenge: • Build in business resilience • Facility modification • Increase efficiency • Reduce energy consumption • Clean up, reduce emissions • Engage stakeholders 15 5/06/2014

16. Or a financial view (Black) • World is changing • Increasing energy costs • Increasing resource costs (water, etc) • Tightening legislation • Public opinion and community attitudes changing • Increased costs of environmental and social compliance • Volatility • To meet challenge: • Build in business resilience • Facility modification • Increase efficiency • Reduce energy consumption • Clean up, reduce emissions • Engage stakeholders 16 5/06/2014

17. Client’s Perspective – API Sustainability Reporting New Solution Economic Growth Social Progress Eco-efficiency Socio Economic S Socio- Environ Environmental Stewardship 17 5/06/2014

18. New Paradigm Increased focus on efficiency, lower energy and water use with reduced environmental impact • Secondary Effects • Flue Gas clean up – potential CO2 recovery • Heat recycling and recovery • Solid and Liquid Waste reuse and improved disposal • Spent Chemicals recycling and recovery Side Effects Customer’s Processing Plant Inputs Products • Typical Inputs • Raw Products • Energy • Water • Chemicals • Outputs • Electricity • Refined products • Crude Oil / Gas • Plant Types • Power Stations • Refineries • Hydrocarbon production • Waste Treatment 18 5/06/2014

19. EcoNomic Evolution Long past Yesterday EcoNomics

20. Branding Eco - …from the Greek ‘oikos’ meaning house. Used as a prefix (as in ecology, ecosystems) concerned with living thing in relation to their environment. Nomics - …from the Greek ‘nomikos’ meaning law Wikipedia … Laws of logic and nature Shorter Oxford English Dictionary ‘Nomic is a game in which changing the rules is a move. - Peter Suber, the creator of Nomic, The Paradox of Self Amendment, App 3 P362 Economics… The science that deals with production, distribution and consumption of goods and services or the material welfare of human kind. The maximization of human welfare. 20 5/06/2014

21. EcoNomics is a whole new way to deliver projects Select and design for sustainability from the outset Look outside the facility limits Look over the longer term Explicitly monetise all environmental and social risks, impacts and opportunities Mandate the entire project team to achieve sustainability objectives Train wide range of staff to contribute to sustainability within a project Embed best available technical capabilities within project teams Proprietary tools and systems to support the project 21 5/06/2014

22. Working examples • Filter cake residuals

23. Working examples • Thickened tailings and central deposition

24. Working examples • Dry stack tailings

25. Working examples • Dry tailings disposal LaCoipa Atacama