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Towards a New Social Contract Environment and Conservation Association Gala Dinner 27 March 2009 Dr. Anthony Turton Director: TouchStone Resources (Pty) Ltd [email protected] www.anthonyturton.com © AR Turton, 2009 Images © National Geographic

Towards a New Social Contract Environment and Conservation Association Gala Dinner 27 March 2009 Dr. Anthony Turton Director: TouchStone Resources (Pty)

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Towards a New Social Contract Environment and Conservation Association Gala Dinner

27 March 2009

Dr. Anthony TurtonDirector: TouchStone Resources (Pty) Ltd

[email protected]

© AR Turton, 2009Images © National Geographic

Layout of Presentation

• Does SA need to grow its economy?

• What are the current natural resource constraints?

• Our management problem is ...

• Towards a New Social Contract ...

• Conclusion

Does SA need to grow the economy?

• Yes.....

• The hope of a generation of disenfranchised citizens culminated in the promise of democracy.

• That promise has largely failed....

• Revolution of rising expectations.

• If the demands of society exceed the capacity of the state to deliver, then anger is possible.

What are the current natural resource constraints?

• Energy ...• Water ...• Our energy constraint is defined by water.• The sulphur cycle is of particular importance –

but is not debated / studied.• In a future scenario where we burn more coal,

but possibly with less precipitation, what will happen to rainfall?

• Acidification is our energy limitation ...

SA’s Water Situation

Source: Peter Ashton

100200300400500600700800900

10001250150020002500

Mean AnnualRainfall (mm)

NAMIBIA(254) BOTSWANA

(400)

SOUTH AFRICA(497)

ZAMBIA(1,011)

ZIMBABWE(652)

ANGOLA(1,050)

D. R. C.(1,534) TANZANIA

(937)

MOZAMBIQUE(969)

SWAZILAND(788)

LESOTHO(760)

MALAWI(1,014)

N

500 km

© P.J. Ashton

100200300400500600700800900

10001250150020002500

Mean AnnualRainfall (mm)

100200300400500600700800900

10001250150020002500

Mean AnnualRainfall (mm)

NAMIBIA(254) BOTSWANA

(400)

SOUTH AFRICA(497)

ZAMBIA(1,011)

ZIMBABWE(652)

ANGOLA(1,050)

D. R. C.(1,534) TANZANIA

(937)

MOZAMBIQUE(969)

SWAZILAND(788)

LESOTHO(760)

MALAWI(1,014)

N

500 km

NN

500 km500 km

© P.J. Ashton

SA has a water constrained economy

In 2004 we had allocated 98% of the

national water resource at a high

assurance of supply

The significance is that SA has generally

lost its dilution capacity Propelling water

quality management to a national strategic

priority

With linkages to energy, food

security and human health

Years

1965 1975 1985 1995 2005 2015 2025 2035

20

40

80

60

Wat

er D

eman

d (1

09 m3 y

r1 )(b

illio

n m

³/yr

¹) Highest water use estimate

Lowest water use estimate

Total surface + groundwater resources (accessible with new technology)

Total surface resources (existing technology)

Q x F = Y Q = volume of water

available at national level

at a high assurance of

supply

Y = volume of water needed

at national level at a high

assurance of supply to

sustain the economy

F = Flux value of water

If Flux value of water = 1.7

38 x 1.7 = 64.6

Source: Pete Ashton, CSIR Science Scope (3)1 (200:19)

Our Management Problem is...

• Water is a flux, but we manage it as if it were a stock.

• If we can recycle our national resource once, then we double the national stock.

• The management objective should be to get the F value > 1 and ideally = 2.

• Return flow management is so bad that the Flux value is currently about .8

• 38 x .8 = 30.4 (This is our problem).

However ...

• Beware of unintended consequences ...

• EDC’s

• Partially metabolized medication

• Microcystin

• We can never forget about our historic legacy ...

• The Externalization of Costs as a legacy issue

Microcystin Contamination

Death caused by Cyanobacteria bloom partially arising as a result of attempts to neutralize acidic

water (AMD) from the coal mining industry.

This means that environmental remediation for AMD is not as simple as we thought it would be.

Microcystin Benchmark

Finland’s worst case is +- 10 ug/l

USA’s worst case is +- 60 ug/l

RSA is currently at 10,000 ug/l

The biochemistry of Microcystin was described in 1985 – it is chemically similar to Rinkhals venom – but no

significant public domain research is being done on the linkage between

chronic exposure and human health

This is a looming national crisis of

note!

Externalization of Costs Model

Value

Time

Dev Cost

Revenue

V1

V2

Profit

Mine Closure

T1

Remediation Cost

Magnitude at Closure

T2

Externalized Costs

© Adler et al., 2007

Balance Sheet Items

Off-Balance Sheet Items

Our National Dilemma is ...

• We either increase the value of Q ... • Or we lower our economic growth

aspirations ... (decrease the value of Y)• Or we increase the value of F ...• This is technology and capital intensive, so

we need to reinvent relationships between public and private sectors & environment

• In short we need a new social contract between water, energy and people.

A New Social Contract?

• Management of return flow is now VITAL• Increase the F value to the target of 1.7 by

2035 if we accept a low growth scenario.• Vigorous public debate about the Energy –

Water – Food Security – Climate Change – Human Health nexus....

• Historic legacy issues HAVE to be dealt with ...

• Corporations as Social Entrepreneurs

Cuvelai

Kunene

Zambezi

Limpopo

Pungué

Buzi

Save-Runde

Orange Maputo

Incomati

Umbeluzi

Okavango/Makgadikgadi

Congo

Nile

Lake Chad

Namibia

Botswana

SouthAfrica

Congo (DRC)

Tanzania

Zambia

Zimbabwe

Lesotho

Swaziland

Malawi

Mozambique

Angola

250

500

0

Kilometres

N

Rovuma

South Africa and Zimbabwe are listed amongst the top

twenty countries in the world in terms of the

numbers of dams built (WCD 2000)

Dams and hydraulic

inf’structure in Southern

Africa

© P Ashton

Clearly what we did in the past to manage our water scarcity constraints to development cannot be extrapolated into

the future – we can no longer use today’s science based on yesterday’s

experiences to solve tomorrow’s problems.

A Key Element of the New Social Contract ...

• Acid mine drainage ...• Estimated decant from Wits goldfields is in

order of 345 Mpd (exact value unknown)• Current decant from Harmony = ±35 Mpd• Rest will happen in the next decade• It is radioactive, toxic and highly acidic• It is an emotive issue ... • When we solve AMD we can use mine voids

for strategic storage ... So it is vital

Conclusion• Water quality management will need a new

strategic paradigm if we are to grow our economy.

• National Water Quality Science, Technology and Policy Support Program– National Council of Provinces has already

accepted this

• Q x F = Y (38 x 2 = 76) • Clever companies will re-invent themselves

and base their future viability on a New Social Contract

Thank You

Q x F = Y

F = 1.7 by 2035