Nearly two-thirds of mining and metals facilities worldwide are located in areas facing significant physical water risk, according to new analysis by the International Council on Mining and Metals (ICMM).
It reveals that competition for water between mining and metals operations is the greatest physical water risk facing the industry.
The analysis found that water risk is global in scope but diverse in nature, differing according to geography and commodity.
In Chile, the world’s largest copper producer and home to a significant share of global lithium reserves, 85.8% of facilities face high or extremely high baseline water stress and interannual variability at the same time. In Africa and the Middle East, 80.7% of facilities are exposed to high or very high drought risk, while in Oceania, 74% face high or extremely high interannual variability in water supply.
Commenting on the findings, ICMM’s Director of Data and Research Emma Gagen said: “If water risk exposure is not better understood and managed across the wider economy, we risk sleepwalking into a major constraint on the energy transition. This is why leading mining companies including ICMM members have embedded water stewardship principles and practices, to manage water in ways that are socially equitable, environmentally sustainable and economically beneficial”.’
“Until now, there has been no comprehensive, cross-commodity global assessment of how the mining and metals sector is exposed to water risk. By developing credible and accessible data, ICMM aims to support more informed decision-making by policymakers and investors on water risk exposure, helping to manage the demand created by the energy transition.”
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
