The global mining industry faces growing water risk as nearly two-thirds (65.7%) of the world’s mining and metals facilities are now exposed to at least one major physical water-related threat, according to a new report by the International Council on Mining and Metals (ICMM). Published on 22 July, the report analysed more than 12,000 mining and metals facilities across 148 countries and regions, making it the first comprehensive cross-commodity assessment of water risks in the sector.

It examined five key hazards: baseline water stress, drought, floods, water depletion, and year-to-year water variability, revealing that water scarcity is becoming a major challenge for an industry critical to supplying minerals needed for renewable energy, electric vehicles, batteries, and modern infrastructure.

Water Stress Emerges as the Biggest Challenge

The ICMM report found that baseline water stress is the most widespread threat facing mining operations worldwide.

• Around 38% of mining facilities are located in river basins experiencing severe competition for water resources or naturally arid conditions.
• This means many mines are already operating in regions where water demand exceeds available supply, creating operational and environmental challenges.
• Drought is the second most common risk, affecting 27% of mining and metals facilities globally.
• The problem is particularly severe across Africa and the Middle East, where 81% of facilities face high or very high drought risk.
• Countries such as Zambia, Ghana, and Uzbekistan have all their mining facilities exposed to significant drought risk, while 96% of South Africa’s mining facilities are similarly affected.

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Regional Hotspots Face Multiple Water Risks

While the global mining industry faces growing water risk, the report shows that some regions face multiple overlapping water challenges.

Major compound water-risk hotspots include Chile, Peru, Southern Africa, Northern China, Central India, Western Australia, and the Western United States.

These regions experience varying combinations of drought, water stress, floods, depletion, and unpredictable rainfall, making long-term mining operations increasingly complex.

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Floods and Water Variability Add to the Pressure

• Although flood exposure is less widespread than drought, 14% of facilities face high flood risk.
• Flood hazards are particularly significant for alumina, aluminium, steel, and molybdenum production facilities, where more than 24% are exposed to major flooding risks.

The report also highlights increasing interannual variability, referring to large year-to-year changes in water availability.

• Approximately 16% of facilities face high or extremely high variability.
• This challenge is especially severe in Oceania, where 74% of mining facilities experience highly variable water availability, more than double the rate seen in Africa and West Asia.

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Water Security Critical for the Energy Transition

The mining industry plays a central role in producing the critical minerals required for clean energy technologies. However, growing water scarcity could become a major constraint on global climate goals.

Emma Gagen, ICMM’s Director of Data and Research, said water has already become a material issue for the mining sector and warned that failing to manage water risks could undermine the global energy transition.

The report urges governments, mining companies, and investors to strengthen water stewardship, improve long-term planning, and integrate water risk into future investment decisions.

Key Findings from the ICMM Report

As demand for critical minerals continues to rise, ensuring reliable access to water will become increasingly important for sustainable mining. The ICMM report highlights that stronger water management, responsible stewardship, and coordinated planning will be essential to protect both mining operations and the global transition toward cleaner energy systems.

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