#USA #London #Mining Industry #ICMM #Water Risks

Competition for Water Poses Risks to Energy Transition

A newly released report by the International Council on Mining and Metals (ICMM) highlights alarming trends regarding water-related risks within the global mining and metals sector. With approximately 65% of mining operations situated in areas susceptible to significant water stress, the findings raise profound concerns over how these risks could impact the energy transition essential for a sustainable future.

Key Findings of the ICMM Report

The report reveals that as demand for critical minerals and metals increases to support the global shift towards clean energy, the competition for water becomes ever more pronounced. As mining and metals operations compete for water alongside other industrial uses and private consumers, this rivalry represents one of the largest physical risks to the sector. Here are some alarming statistics from the report:

• - 65.7% of mining and metallurgy facilities worldwide face a high risk related to at least one indicator of physical water risk.
• - 38.2% of these facilities operate in basins with high or extremely high groundwater stress, or in arid zones where water is scarce.
• - 27.4% are at risk of severe groundwater depletion, and 27% confront high drought risks, making drought the second most prevalent risk category.
• - Flooding poses high or extremely high threats to 14% of operations, particularly affecting aluminum refining and production.
• - Over 16% experience significant annual fluctuations in water supply, a risk which reaches 74% in Oceania.
• - Alarmingly, 4.9% of installations are at risk from three or more physical water risk indicators simultaneously.

Such findings suggest an urgent need for a unified approach in land and water resource planning at the regional level. The reliance of the energy transition on minerals and metals cannot be overstated, yet water availability constraints threaten their extraction.

Regional Disparities in Water Risks

While these water risks present a global concern, the impact varies by location and type of resource. For instance, in Chile—home to a majority of the world's copper and significant lithium reserves—85.8% of mining facilities are simultaneously facing extreme water stress and annual supply fluctuations. In Africa and the Middle East, 80.7% face high drought risks. Comparatively, the situation in Oceania is dire, with 74% of facilities experiencing severe annual fluctuations in water availability.

A Call for Responsible Water Management

Dr. Emma Gagen, head of Data and Research at ICMM, noted that without a comprehensive understanding and better management of water risks across the economy, the success of the energy transition could be seriously jeopardized. Many leading mining companies have already committed to responsible water management principles. This involves managing water in ways that are socially just, ecologically sustainable, and economically beneficial.

The study illuminates the uneven distribution of water risk across the sector—underscoring the necessity for targeted strategies and collaboration among policymakers, investors, and industry stakeholders to mitigate these risks. The ICMM aims to enable informed decision-making by providing reliable and accessible data, equipping stakeholders to address these water-related challenges effectively.

Importance of a Comprehensive Approach

To further this effort, the ICMM collaborated with the Water Risk Team at the WWF and the World Resources Institute (WRI) to develop a robust Global Mining and Metals Water Dataset. This resource aims to assist stakeholders in planning effective responses along the entire supply chain, meeting the growing demand while promoting responsible mining practices.

As Crystal Davis from WRI remarked, proper mining operations begin with accessible data regarding water risks, enabling more coordinated, sustainable efforts to meet the world's needs for critical minerals essential for a cleaner energy landscape.

Conclusion

In conclusion, the competition for water resources is an emerging challenge within the mining and metals industries, jeopardizing both the integrity of the operations and the sustainability goals vital for the energy transition. The ICMM report highlights the pressing need for an integrated approach in addressing these risks, emphasizing the significance of collaboration across all stakeholders to build a resilient future for the industry. Adequate data and a commitment to responsible practices are essential to ensure a balanced coexistence of water needs and mineral extraction in our pursuit of a sustainable economy.