Beyond drought: How water management is reshaping Chilean mining

Key Takeaways

• Desalination and water reuse have become essential for ensuring the long-term sustainability of Chilean mining in the face of increasing water scarcity and growing competition for water resources.
• The development of new water infrastructure requires a clear regulatory framework that reduces risks for investors, authorities, and local communities.
• Incorporating non-continental water alternatives into early project discussions help create projects that are more resilient from a technical, environmental, and social perspective.
• Effective water management requires an integrated approach that considers the entire mining project lifecycle.

Water availability has become one of the most significant factors shaping how mining projects are planned and developed in Chile. The prolonged drought affecting much of the country, combined with higher project development standards across environmental, regulatory, and social dimensions, has driven a fundamental shift in the way this strategic resource is sourced and managed.

In this context, desalination, water reuse, and water infrastructure development are no longer simply operational requirements. They have become strategic considerations that influence the viability of new projects and the continuity of existing operations. This article explores the key trends driving this transformation, the challenges Chile still faces, and why an integrated approach to water management will be critical to the sustainable development of the country's mining industry in the decades ahead.

The current water landscape

Access to inland water sources has historically been one of the mining industry's main challenges, particularly in northern Chile, where climatic and geographic conditions have constrained water availability. The country's prolonged drought and increasing pressure on freshwater resources have intensified this situation, prompting the industry to develop solutions capable of supporting both production needs and sustainable water supply objectives.

In response, desalination and water reuse have become increasingly important not only for mining but also for other productive sectors. According to a 2025 study conducted by the Chilean Desalination and Reuse Association (ACADES) and the Chilean Capital Goods Corporation (CBC), there are currently 64 projects at various stages of engineering or construction related to desalination plants, wastewater reuse, and seawater conveyance infrastructure, representing investments of approximately US$25.6 billion.

Building the foundations for sustainable development

The growth of desalination infrastructure depends not only on technological innovation but also on a regulatory framework capable of facilitating and supporting its development. Providing greater certainty for investors, operators, and communities will be essential to advancing these initiatives sustainably and addressing Chile's growing water availability challenges.

Regulation plays a critical role in defining clear rules regarding the benefits, impacts, and responsibilities associated with water infrastructure. In this regard, initiatives such as Law No. 21.813, enacted by Chile's Ministry of Public Works on the use of seawater in desalination projects, together with measures aimed at streamlining permitting processes, represent important steps toward balancing new investment with environmental protection and community well-being.

However, beyond simply facilitating projects, clear and predictable regulations allow environmental and social considerations to be incorporated from the earliest stages of project development, reducing risks during environmental assessments and strengthening project legitimacy within host communities. As demand for sustainable water solutions continues to grow, the combination of desalination, water reuse, shared infrastructure, and robust regulatory frameworks will become increasingly important to maintaining the competitiveness of Chilean mining.

Non-continental water: Rethinking water management

The decision to use reclaimed water, seawater, or desalinated water as a supply source cannot be made after the design of a mining operation has already been defined. Instead, it must be evaluated during the earliest planning and engineering stages, allowing water intake, treatment, pumping, storage, and distribution infrastructure to be fully integrated into the project.

When non-continental water supply is considered from the outset, companies can assess alternative technical solutions, optimise infrastructure configurations, improve capital and operating cost estimates, and identify regulatory and environmental requirements early in the process. This approach reduces project risks and helps avoid later modifications that can significantly affect schedules, budgets, and overall project viability. It also enables a comprehensive assessment of the project's area of influence, incorporating technical, environmental, and social factors to identify potential impacts and address the expectations of communities, regulators, and other stakeholders from the start.

Although non-continental water supply has become a key solution to water scarcity, its implementation continues to face significant challenges. These include an evolving regulatory environment, obtaining social license to operate, complex permitting processes, the high energy demands associated with transporting water to high-altitude operations, and the potential impacts of climate change on plant operating conditions.

In this context, technological innovation will continue to play a critical role. Improved energy efficiency, integration with renewable energy sources, advances in treatment processes, and increased reuse of treated wastewater are expanding the range of options available to strengthen long-term water security. Nature-based solutions, including wetland restoration and ecosystem rehabilitation, can further support these efforts by enhancing watershed resilience and promoting sustainable water resource management. Exploring options, such as investment in shared infrastructure is also emerging as a practical solution for serving smaller, dispersed demand centres while helping to mitigate the high costs associated with desalination plants and the infrastructure needed to connect them to mining sites.

An integrated vision for water management

The growing complexity of mining projects requires water management to be approached as an integrated system that supports the entire lifecycle of an operation, from early studies and permitting through operations and mine closure. A successful water strategy therefore depends on incorporating technical, environmental, regulatory, and social considerations from the earliest stages of project development.

With this perspective, Ausenco, with its deep mining expertise, helps mine owners address the complex water challenges arising from increasing water scarcity in Chile. Ausenco has contributed to some of Chile's most significant water infrastructure projects, bringing together expertise in hydrogeology, geophysics, water conveyance, energy, infrastructure, multidisciplinary engineering, tailings, environmental performance, social engagement, asset integrity, water and minerals laboratory services and asset performance and operability. Our experience spans the full lifecycle of seawater and desalination projects, from early trade-off studies and alternatives assessments to system integration, energy efficiency strategies, and operational optimisation, helping clients reduce risk, costs through synergies with other mining assets, and build long-term water resilience.

Ausenco has also played a key role in pioneering some of the mining industry's most significant seawater infrastructure developments, including the largest seawater system currently operating in mining for one of Chile’s key mining companies, and Quebrada Blanca Phase 2 (QBII), which delivers desalinated water to one of the highest elevations in the industry. In addition, we have supported numerous mining companies to develop resilient, long-term water supply strategies by evaluating conventional and alternative water sources, leveraging existing and planned infrastructure, and identifying opportunities to improve water security, operational flexibility, sustainability, and business continuity.

In a future where water availability will increasingly influence mining development, the challenge is no longer simply to desalinate water. The real opportunity lies in developing resilient water systems capable of managing this resource efficiently and sustainably, combining innovation, operational flexibility, and long-term thinking to support both project competitiveness and the sustainable development of the communities in which they operate.