Water and industry
Industry has the capacity – material, human and financial –to shape and increase economic prosperity, while simultaneously influencing and improving social well-being and environmental integrity. Water strengthens industry but does not necessarily generate GDP – some industries use little water but make a significant contribution to GDP and vice versa. However, water quality and accessibility generate risks for industry, exposing it to supply chain disruptions, with direct repercussions on industrial (and economic) growth.
Where there are local disputes and confrontations over water, industry may be viewed as a perpetrator; yet on the other side of the coin, it can be a facilitator in resolving conflicts by leveraging its influence over the use of water through partnerships and cooperation.
Water scarcity or pollution frequently drives such confrontational situations where several parties, including industry, require water from limited supplies, leading to competition between unequal parties. Mining is especially prone to disputes and conflicts over water, especially in remote regions and in contexts involving Indigenous populations.
A study of 384 cases of conflicts over water with Indigenous peoples worldwide found that mining and hydropower projects (each at 31% of the total) caused the most conflicts.
Action example:
Examples of disputes over water involving the mining industry in Latin America
In Chile, violent protests over water use that killed three people stopped the TÃa MarÃa US$1 billion copper mining project in 2011.
In Peru, the projected Minas Conga open pit mine (extending the large Minera Yanacocha gold mine) would affect the people living in Cajamarca, who relied on access to groundwater from alpine lakes for agriculture. Moreover, pollution of the water from the Minera Yanacocha mine was a significant issue. After the government approved the environmental impacts assessment for Minas Conga, the community continuously protested against increasing environmental impacts. The government declared a state of emergency and, in one protest in 2012, tear gas and bullets injured 20 and killed 3 people. Continuing tension and unrest led to the closure of the project in 2016.
The El Mauro tailings dam in Chile is the largest in Latin America. The local Indigenous Caimanes community protested because of environmental concerns, using lawsuits, a long hunger strike and road blockages. The court ordered the dam’s demolition. Negotiations attempted between the mining company and the community initially met with little progress but, after more than 10 years, in 2016 an agreement was reached. This involved a desalination plant to resolve water quality issues, and resettlement compensation and land lease agreements.
Source: CDP (2022) and Oh et al. (2023).
Full chapter
Consult chapter 4 : Industry
