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Conserving natural resources and mitigating impacts
water stewardship

We are highly reliant on water for our mining, processing and refining operations

Our management approach to water stewardship

We are highly reliant on water for our mining, processing and refining operations. Water is an increasingly scarce resource and to maintain our licence to operate we continue to manage water quality. Our approach to water management is guided by our water conservation strategy, introduced in 2010. The strategy focuses on water consumption and quality management, proposes a framework for operation-specific water conservation strategies, and defines a water consumption baseline for the period to 2020. In fulfilment of this strategy we are implementing various projects to reduce potable water consumption, optimise industrial use and increase water recycling. Water risk assessments are reviewed on an annual basis. Surface ground water monitoring programmes are in place. We are currently reviewing and updating the strategy to further strengthen our commitment to water use efficiency and conservation. In fulfilment of our commitment to transparency on performance, we have once again participated in the Carbon disclosure project for Water Disclosure (CDP).

The South African operations continue to engage with the Department of Water Affairs (DWA) and are all in the process of amending the water-use licences (WULs). Obtaining these amendments is critical to ensuring that current operations are not affected and that the proposed expansion of operating activities are not stalled. The implementation of the DWA's newly formulated water discharge system, which entails effluent discharge penalties, is pending. At our Zimbabwe operations, the Environmental Management Agency was engaged to ensure that renewed licences for 2014 were issued. Water extracted from dams and rivers is all within the set allocation limits.

All our operations are in the process of determining their site-specific water balances. This will assist in developing action plans, with measurable targets, to ensure further progress. We work closely with different stakeholders to ensure security of supply for our operations and the surrounding communities.

The management of water continues to receive a high level of focus at the Rustenburg operations. Dry conditions experienced in the north west of South Africa, together with municipal potable water supply problems, presented challenges for the operations and highlighted the need for improvements in water management. Two major projects are in progress at the Rustenburg operations, namely:

• The Ground water impact: A study commissioned by Impala Rustenburg to map the possible impact of the mining operations on ground water was completed, and the findings have been shared with the Royal Bafokeng as the land owners. Executive management are reviewing strategic solutions to mitigate reputational risks identified through the study. The deep groundwater model update, including all underground workings at the operations, has been completed. A second phase will involve the incorporation of a dynamic and static water balance simulation model that will assist with water management.
• Water quality improvement project: A ground and surface water quality treatment project has been approved and will run during the course of 2015 and 2016. The aim of the project is to remediate the pollution plume around the tailings dam, primarily by installing boreholes around the tailings dam, reusing the water at processing as well as by means of biological accumulators such as planting trees around the tailings dam and installing floating wetlands in the Rockwall dam, to improve the quality of the water.

Our 2014 performance on water

Water management has improved at all our operations this year. Total water consumption for the Group was 34 775 megalitres, including both water withdrawn and water recycled. This represents a decrease of 15% on water consumption in 2013 (40 711 megalitres) and is predominantly attributed to the closure of the Rustenburg operations throughout the five-month strike.

A 14% increase in our unit consumption rate of water (kilolitres per tonne ore milled) over the 2013 levels is due to the strike action in Rustenburg as well as the exclusion of Mimosa production numbers. This year we set a recycled water target of 40% and have seen a greater focus on recycling initiatives throughout the organisation. A total of 13 409 megalitres of water was recycled, which equates to 39% of all the water consumed for the year, which was 1% below our annual target of 40%. However, in the first half of financial year 2014 (before the strike) 41% of water was recycled. The amount of potable water consumed decreased by 15% on 2013 levels. The Refineries operation is a zero effluent site; some of the process water streams are treated to boiler quality and are reused, with no effluent released into natural water courses.