Chile Seeks Argentine Water For Northern Mining Operations - Report
August 11 2009 - 11:39AM
Dow Jones News
Chile's government is exploring the possibility of importing
water from Argentina to supply local mining companies in its dry
northern region.
The two neighboring South American countries have created a
working group to analyze an agreement that would allow Chile to use
water from Argentine rivers near the border, Chilean newspaper
Diario Financiero reported Tuesday.
"We have a mining agreement with Argentina, and we have also
discussed the possibility of sharing water resources," Public Works
Minister Sergio Bitar told the newspaper after meeting with
Argentine officials last week in Buenos Aires.
The limited availability of water resources in northern Chile,
where most of its mining operations are located, has posed problems
for private companies such as Escondida, which is controlled and
operated by diversified global miner BHP Billiton Ltd. (BHP), as
well as state copper miner Codelco, leading the government to
explore alternative water sources.
Chile is the world's largest copper producer, accounting for
about 35% of global output. The South American nation is also one
of the largest producers of molybdenum, which is used to harden
steel and is often found as a byproduct in copper mining
operations.
The entire process for mineral processing requires water,
whether it be flotation, leaching or any other kind used.
Therefore, the availability and management of water is key to
mining activity sustainability.
The challenge is greater for mining in Chile since mining is
concentrated in extremely dry areas where mining companies must
compete with other production sectors that use water as well as
residential and commercial demand.
-By Risa Grais-Targow, Dow Jones Newswires; 56-2-820-4244;
Chile@dowjones.com