Nearly two-thirds of mining and metals facilities worldwide are exposed to significant physical water risks, according to a new report and Global Mining and Metals Water Dataset released by the International Council on Mining and Metals (ICMM).
The analysis found that 65.7% of mining and metals facilities face at least one major physical water risk, with competition for water between industrial operations and domestic users identified as the sector’s biggest challenge. As demand for critical minerals continues to grow to support the global energy transition, the report stresses the need for coordinated land and water management to ensure sustainable resource development.
Among the key findings, 38.2% of facilities are located in catchments experiencing high or extremely high baseline water stress or in arid regions where water is functionally unavailable. Around 27.4% are exposed to high or extremely high water depletion, while 27% face significant drought risk, making drought the second most common physical water threat. Flood risk affects 14% of facilities globally, particularly alumina refining, aluminium smelting, molybdenum and steel production, while 16.2% experience high variability in annual water supply. Nearly 5% of facilities are exposed to three or more major water risks simultaneously.
The report highlights that water risks vary considerably by geography and commodity. Chile, the world’s largest copper producer, has 85.8% of its mining facilities exposed to both high baseline water stress and significant year-to-year water supply variability. In Africa and the Middle East, 80.7% of facilities face high or very high drought risk, while 74% of operations in Oceania are exposed to highly variable water supplies.
ICMM Director of Data and Research Dr Emma Gagen said water has become a critical issue for the mining and metals sector and warned that failure to better understand and manage water risks could become a major obstacle to the energy transition.
She noted that ICMM member companies have adopted water stewardship principles to manage water resources in ways that are socially equitable, environmentally sustainable and economically beneficial.
The report represents the first comprehensive global assessment of water risk exposure across multiple mining commodities and is intended to help governments, investors and industry make more informed decisions as demand for critical minerals continues to increase.
The research is based on ICMM’s Global Mining Dataset, covering approximately 12,000 mines, smelters, refineries and processing plants worldwide. Developed in partnership with the World Wildlife Fund’s Water Risk Team and the World Resources Institute (WRI), the dataset overlays facility locations with global water-risk indicators to provide a detailed picture of the industry’s exposure to water quantity risks.
World Resources Institute Global Director for Food, Land & Water Programs Crystal Davis said publicly available data on water risks is essential for supporting responsible mining and enabling governments, communities, investors and companies to plan effectively across the critical minerals value chain.