Almar Water Solutions: pioneering sustainable water supply for the Centinela Mining District
Almar Water Solutions, together with Transelec and Antofagasta Minerals, has launched a groundbreaking project to provide a sustainable water supply to the Centinela Mining District in Chile. This initiative, executed under the BOOT (Build, Own, Operate, Transfer) model, involves two key water transport systems: an existing pipeline that is already operational and a new pipeline currently under construction. This dual-pipeline system represents a significant advancement in the realm of industrial water management.
The mining industry in northern Chile faces significant challenges regarding water supply. The arid region, characterized by its scarce freshwater resources, is home to some of the world's largest copper mines. These mining operations require substantial amounts of water for their processes, putting pressure on the limited local water sources. Traditional freshwater sources have become increasingly unsustainable, leading companies to seek alternative solutions to ensure the continuity of their operations while minimizing environmental impact.
In addition to the scarcity of water, the mining sector in northern Chile also faces significant environmental and regulatory pressures. The need to balance industrial activity with environmental stewardship has driven the industry to adopt more sustainable practices. This includes the utilization of non-conventional water resources, such as seawater, and the implementation of advanced technologies to reduce water consumption and enhance efficiency. The commitment to sustainability is not only a response to regulatory requirements but also a strategic approach to securing the industry's future in a region where water is a precious and limited resource.
In response to these challenges, the Centinela water supply project has been initiated to transport seawater from Michilla Port to the Centinela Mining District. Located approximately 144 km east of the port and at an altitude of 2,220 metres, this mining district is set to benefit immensely from this innovative water supply system. The project employs the BOOT model, ensuring the acquisition and efficient lifecycle management of existing water infrastructure. This strategic approach not only secures the necessary resources but also promotes sustainable practices within the mining district.
Utilizing seawater, the project preserves valuable freshwater resources, ensuring long-term sustainability in this arid region
Central to the project's success is the transportation of seawater through two pipelines. The existing pipeline has a capacity of 110,678 cubic metres per day, while a new pipeline under construction will add a further 56,333 cubic metres per day. This dual-pipeline system is designed with the potential for future expansion, which could extend the water supply to other activities within the mine and to surrounding mining operations.
Seawater utilization and advanced filtration
The project utilizes seawater, a renewable resource, thus avoiding the depletion of finite freshwater sources. The water is first extracted and then subjected to a meticulous filtration process using 100-micron filters. To ensure the longevity and efficiency of the infrastructure, chemicals are added to prevent corrosion. The filtered and treated water is then transported through a series of pumping stations — five for the SIAM I pipeline (36''-38'' diameter) and three for the SIAM II pipeline (36'' diameter). This process is purely mechanical, focusing on solid removal, and poses no industrial processing risks.
The preventive and predictive maintenance models estimate a cost reduction of approximately USD 300 million over the 16-year concession period
Furthermore, the project’s transportation system is designed to use exclusively renewable energy sources. This not only reduces the carbon footprint of the operation but also aligns with global trends toward green energy adoption. The focus on energy efficiency is crucial, especially in an era where reducing environmental impact is paramount. In addition, the use of seawater significantly reduces the need for energy and chemicals compared to desalinated or potable water because its filtration process is simpler. Unlike typical desalination or potable water treatment processes, which require coagulation, flocculation, and the addition of various chemicals to improve water quality and turbidity and remove inorganic matter, Centinela only needs to ensure the removal of suspended solids larger than 100 microns through self-cleaning mesh filters. While anticorrosive chemicals are added to prevent pipe corrosion as part of infrastructure maintenance, the overall pretreatment process at Centinela is far simpler and consumes significantly less energy and fewer chemicals. Moreover, a significant portion of the obtained seawater will be reused, which reduces the risk of environmental contamination.
The Centinela water supply project will contribute to reducing water stress in this area of the Atacama Desert, which is one of the driest places on Earth, according to the World Resources Institute’s Aqueduct Water Risk Atlas. By using and transporting seawater instead of inland water for mining tasks, the project significantly alleviates local freshwater demands.
Economic impact
This project has raised USD 1.285 billion in debt, reflecting substantial interest from lenders. This financial backing is attributed to the robust sponsorship, the client's solvency, and the expertise of the operators and advisors involved. Notably, the project has been classified as "Green Finance" due to its sustainable approach.
From an economic perspective, the project is expected to yield significant cost savings. Through the adoption of preventive and predictive maintenance models, Almar Water Solutions estimates a reduction in costs by approximately USD 300 million over the 16-year concession period. This approach minimizes the need for corrective interventions, thereby enhancing operational efficiency. The project's BOOT model ensures that Centinela Mining can rely on expert management of its water infrastructure, allowing it to remain dedicated to its primary operations.
The partnership model enhances project efficiency, and effective collaboration with industry leaders sets a benchmark for future projects
Besides the acquisition of SIAM I, other resources are freed up from the client's balance sheet, allowing them to undertake the expansion of the mining operation and providing the client the opportunity to concentrate on strategic growth areas.
The second pipeline, currently under construction, will begin operations in 2026, following a 20-month construction process. This phase will employ around 1,500 local people, boosting the regional economy and providing significant employment opportunities. The water system operation will be managed by the Aguas Norte y Desarrollo (Nordes) consortium, comprised of Almar Water Services Latam and Transelec.
Strategic collaborations and risk distribution
The second pipeline, currently under construction, will begin operations in 2026, following a 20-month construction process
The Centinela project exemplifies effective collaboration between industry leaders. Partnering with Antofagasta Minerals, one of the world’s largest copper producers, and Transelec, a leader in power transmission, Almar Water Solutions has leveraged the expertise and resources of its partners to achieve project success. This partnership model not only enhances project efficiency but also sets a benchmark for future industry collaborations.
Risk management is a critical aspect of the project. Almar Water Solutions employs a B2B (Back-to-Back) model, which distributes risks between the project company (SPV) and the EPC and O&M contractors. This approach ensures that the SPV is shielded from certain risks, thereby securing the project's timely and efficient execution.
Environmental impact
The environmental benefits of this project are manifold. As previously mentioned, by utilizing seawater, the project preserves valuable freshwater resources, which is critical in arid regions. Additionally, the design and implementation of the project adhere to rigorous environmental standards, ensuring minimal ecological impact.
The transportation system will use exclusively renewable energy for its operations, further solidifying its commitment to sustainability. The project company has placed significant importance on obtaining all necessary environmental permits, with a dedicated team of three management personnel overseeing this aspect.
Almar Water Solutions' dedication to sustainability is at the heart of the Centinela project. The use of seawater, combined with advanced filtration and corrosion prevention techniques, underscores a commitment to preserving natural resources. Furthermore, the project's classification as "Green Finance" highlights its alignment with global sustainability standards.
The transportation system will use exclusively renewable energy for its operations, further solidifying its commitment to sustainability
The Centinela water supply project marks a significant milestone in sustainable water management for the mining industry. By leveraging advanced technology and innovative solutions, the project addresses the complex water challenges faced by the Centinela Mining District. Almar Water Solutions continues demonstrating its leadership in the global water services market, setting new benchmarks for sustainability and operational excellence.
Almar Water Solutions already operates in four of the five continents, with regional platforms in Europe, Latin America, Asia Pacific, and the Middle East and North Africa. Almar Water Solutions develops innovative models to pioneer water infrastructure projects that cater to the specific needs of its clients, reinforcing its position as a global leader in the water industry.