Linking the Values of Water to Sustainability

The value of water is defined by its marginal utility. Challenges arise where the marginal utility is difficult to estimate. Therefore, when two or more interested parties wish to access water and they cannot use commensurate units for marginal utility; other means of value comparison must be sought. It is asserted here that sustainability principles can be used to guide this valuation if this is supported by a transparent decision framework. This paper proposes that the ICMM sustainable development principles provide appropriate guidance. In addition, a generic framework for decision making is suggested as a complement. Indicators of water management are recognised widely as an integral part of the accountability of minerals companies towards meeting sustainability goals. Less widely recognised are the ways in which sustainability principles can be used to guide decisions on water management which demonstrate growing awareness of its value. This paper illustrates the use of this logic in water issues associated with global sustainability challenges. It then goes on to demonstrate, using examples, that these links exist at all levels of the minerals industry and that indicators of this type are potentially as powerful as those currently being used. The reason for this is that the path from cause to effect is transparent and direct.