Nearly two-thirds (65.7%) of mining and metals facilities worldwide are located in areas facing significant physical water risk, according to new analysis by ICMM. The report maps where these facilities intersect with water stress, depletion, drought, flood and interannual variability risks.
“Our research shows that water is already a material issue for the mining and metals sector. 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,” said ICMM’s Director of Data and Research Dr. Emma Gagen.
The analysis found that water risk in mining and metals is global in scope but diverse in nature, differing according to geography and commodity. Some facilities face chronic competition for water; others face drought, flooding or unpredictable annual supply. In some regions and supply chains, these risks overlap, creating vulnerabilities that must be addressed through water stewardship and coordinated action across governments, industry, investors and the companies that use these materials.
Further, the findings show that water risk exposure is not evenly distributed across the sector. In Chile, 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.
“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,” said Gagen. “This dataset is a starting point for others to explore, use and collaborate with us to continue improving the collective picture of water risk across the industry.”
ICMM’s Global Mining and Metals Water Dataset was produced in partnership with the WWF’s Water Risk Team and the World Resources Institute (WRI).
Source: ICMM