The use of desalinated water in copper mining is no longer an option, but rather a structural factor for operations in the driest desert in the world, where currently 41% of the sector’s water demand is supplied by seawater.
However, according to a study conducted by consultancy Plusmining and the Chilean Desalination and Reuse Association (Acades), lengthy permitting processes, energy costs, and regulatory uncertainty are currently the main factors driving up the unit cost of desalinated water in the country.
One of the study’s main findings indicates that between 80% and 90% of the total cost of producing and transporting desalinated water is explained by the combination of initial investment (Capex) and energy costs. In fact, in projects that combine desalination and pumping systems, the energy associated with pumping can account for more than half of total operating costs, and may even triple — compared to the cost at the coast — in systems that must transport water over long distances to high-altitude mining operations.
“Desalination itself is only one part of the system; water competitiveness depends on how that system is integrated into the country’s institutional and productive environment,” states the report accessed by DF.
According to the study, one of the critical variables affecting the cost of desalinated water is project development time, which can range from eight to twelve years, including engineering, environmental assessment, and the obtaining of sectoral permits. This “significantly increases project costs by keeping capital tied up and increasing exposure to regulatory uncertainty and litigation, which ultimately directly affects the feasibility and pace of desalination adoption in the industry,” says Juan Carlos Guajardo, CEO of Plusmining.
Likewise, in financial terms, the study highlights that an increase of just one percentage point in the discount rate can compromise a project’s viability.
Regarding operations, the study identifies electricity as the main determining factor: electricity costs represent between 20% and 30% of the final cost of water. Therefore, “the competitiveness of desalination is tied to the national electricity system’s ability to provide stable base prices and reduce transmission or congestion charges.”
Overall, considering that by 2034 around 66% of the water used in copper mining is expected to come from the sea, the analysis argues that strategic management of these variables could reduce unit costs by between 10% and 30%. Currently, 11 mining operations are supplied 100% by seawater, and four desalination plants are under construction.
Download the report at the following link 202605 – Cost of Desalinated Water in Chile – Plusmining – ACADES
Source: Plusmining