MIMR Water Supply & Pricing Policy Study

Project Description

SRK Consulting (UK) Ltd was commissioned by a Governmental Ministry to develop a comprehensive water use strategy for mining and industry in their country, located in the Middle East. The project aimed to address the challenges posed by water scarcity in arid regions, where growing populations and successful expansion of mining depend heavily on a reliable water supply. SRK collaborated with Oliver Wyman (OW) and the National Economic Research Associates (NERA) to assist this client in the development of a suitable strategy. 

The project involved a holistic approach to water management, recognizing the diverse demands from agriculture, domestic use, and the potential environmental impacts. The governance structure included representatives from government, public sector, mining, and industry. SRK's work focused on estimating future water demand, appraising supply options, and assessing the economic and environmental benefits of different solutions. This evaluation was undertaken in conjunction NERA and OW who considered the regulatory framework and pricing mechanisms necessary for implementing the new water supply scheme. 

SRK utilized their in-country knowledge of mineral resources and data from previous studies to predict the location and development rate of future mines. They considered various water use options, ultimately recommending treated sewage effluent (TSE) over desalinated seawater due to its cost-effectiveness and environmental benefits. The study also examined the logistics and costs of conveying TSE to mining hubs, developing a detailed database and GIS heat maps to highlight demand and supply centres. 

The project concluded that using TSE would reduce stress on the water ecosystem and promote responsible water stewardship. SRK's recommendations included adopting water efficiency guidelines informed by the International Council on Mining and Metals (ICMM) framework. The successful outcomes of the project emphasized the importance of recycling and minimizing effluent discharge, contributing to sustainable water management in the region.