New global study warns water stress could become a major constraint on the energy transition.
Nearly two-thirds of the world’s mining and metals facilities are exposed to at least one significant physical water risk, according to a new report released by the International Council on Mining and Metals (ICMM), highlighting a growing challenge for an industry that underpins the global energy transition.
Published on July 22, the report found that 65.7 per cent of mining and metals facilities worldwide face risks associated with water stress, drought, floods, water depletion or year-to-year rainfall variability. The findings underscore the increasing importance of water management as global demand continues to rise for critical minerals used in renewable energy, electric vehicles and infrastructure.
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Global Assessment Covers More Than 12,000 Mining Facilities
The report, Global Mining and Metals Water Dataset, presents what ICMM describes as the first comprehensive cross-commodity analysis of water risks across the mining and metals sector.
The assessment combines the Global Mining Dataset with global water datasets to examine how more than 12,000 mining and metals facilities across 148 countries and regions overlap with water-related hazards.
Researchers evaluated five key physical water risk indicators: floods, droughts, baseline water stress, baseline water depletion and interannual variability, which measures year-to-year fluctuations in water availability.
Water Stress Emerges as the Sector’s Most Common Challenge
Among all identified risks, baseline water stress is the most widespread challenge facing the mining and metals industry.
According to the report, 38 per cent of facilities are located in river basins experiencing either severe competition for water resources or arid conditions, making water stress the most common physical hazard affecting mining operations globally.
Drought ranks as the second most significant risk, affecting 27 per cent of mining and metals facilities worldwide.
The report found that exposure is particularly severe across Africa and the Middle East, where 81 per cent of facilities face high or very high drought risk.
Countries including Zambia, Ghana and Uzbekistan have all of their mining facilities exposed to high drought risk, while 96 per cent of facilities in South Africa face similar levels of exposure.
Flood Risk Lower but Significant for Several Commodities
Flood risk is less widespread than drought or water stress but remains a notable concern for parts of the mining and metals sector.
The report found that 14 per cent of mining and metals facilities are exposed to high flood risk.
Exposure is particularly pronounced among alumina, aluminium, steel and molybdenum production facilities, where more than 24 per cent face significant flood hazards.
Water Risk Hotspots Span Key Mining Regions
The study found that water risks are unevenly distributed across both regions and commodities.
ICMM identified clusters of compound water risk in Chile, Peru, southern Africa, northern China, central India, western Australia and the western United States, with each region facing a different combination of water-related challenges.
The report also highlighted interannual variability as an emerging concern.
According to the findings, 16 per cent of mining and metals facilities are exposed to high or extremely high year-to-year variability in water availability.
This risk is especially pronounced in Oceania, where 74 per cent of facilities experience high or extremely high interannual variability, more than double the exposure rate recorded in Africa and West Asia, where 28 per cent of facilities face similar conditions.
Growing Water Risks Raise Concerns for the Energy Transition
The report said water has become both an essential operational resource and an increasing constraint for mining activities, particularly as demand grows for minerals critical to the global energy transition.
Emma Gagen, ICMM’s Director of Data and Research, said the findings demonstrate that water risk is already a material issue for the sector.
“Our research shows that water is already a material issue for the mining and metals sector,” 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.”
She said leading mining companies, including ICMM members, have embedded water stewardship principles and practices designed to manage water resources in ways that are “socially equitable, environmentally sustainable and economically beneficial.”
Report Calls for Stronger Water Stewardship
As global demand for critical minerals continues to increase, the report calls on governments, investors and the mining industry to strengthen water stewardship and incorporate water risk into long-term strategic planning.
The findings suggest that understanding and managing water-related risks will play an increasingly important role in supporting resilient mining operations while helping ensure the continued supply of minerals needed for renewable energy, electric vehicles and infrastructure.
With nearly two-thirds of mining and metals facilities already facing at least one significant physical water hazard, the report positions water management as a central consideration for the future of both the mining industry and the broader global energy transition.
