ICMM: Nearly two-thirds of global mining facilities face significant water risks

LONDON, July 22, 2026 (XOL Africa) — Nearly two-thirds of mining and metals facilities worldwide are located in areas facing significant physical water risks, including water stress, depletion, drought, flooding and unpredictable water supplies, according to a new analysis by the International Council on Mining and Metals.

The ICMM report, based on an assessment of about 12,000 mines, smelters, refineries and other facilities, found that 65.7% are exposed to high levels of at least one physical water risk indicator.

The report said competition for water between mining and metals operations and industrial and domestic users is the sector’s most significant physical water risk, highlighting the need for coordinated land and water-use planning as demand increases for minerals and metals needed for the global energy transition.

“Our research shows that water is already a material issue for the mining and metals sector,” said Dr. Emma Gagen, ICMM’s director of data and research.

“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.”

The analysis found that 38.2% of facilities are located in catchments with high or extremely high baseline water stress or in arid areas where water is functionally unavailable. Another 27.4% face high or extremely high baseline water depletion, while 27% are exposed to high drought risk.

Flooding poses a high or extremely high risk to 14% of facilities globally, with greater exposure reported among alumina refining, aluminum smelting, molybdenum and steel production. Meanwhile, 16.2% of facilities face high or extremely high interannual variability in water supply, a figure that rises to 74% in Oceania.

About 4.9% of facilities face high risks across three or more physical water risk indicators simultaneously.

The report said water risks vary significantly by geography and commodity. In Chile, the world’s largest copper producer and a country with a significant share of global lithium reserves, 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 74% of facilities in Oceania face high or extremely high variability in water supplies.

“Until now, there has been no comprehensive, cross-commodity global assessment of how the mining and metals sector is exposed to water risk,” Gagen said. “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.”

The report was produced in partnership with the World Resources Institute and the World Wide Fund for Nature’s Water Risk Team. ICMM said the analysis combines its Global Mining Dataset, which covers about 12,000 facilities, with global water-risk datasets to assess exposure to selected physical water quantity risks.

Crystal Davis, global director for food, land and water programs at the World Resources Institute, said the growing demand for critical minerals linked to the energy transition makes reliable information on water risks increasingly important.

“Responsible mining starts with shared access to credible, publicly available data on where water risks are greatest,” Davis said. She described the ICMM dataset as “a meaningful step” toward giving governments, communities, investors and companies information needed to plan and act across the mining value chain.

ICMM cautioned that the analysis measures exposure to physical water risks but does not assess the impact of individual mining companies or facilities on local water systems. It also does not include facility-level data on water consumption, withdrawals, discharges or water quality.

The organization said the dataset should therefore not be used to benchmark individual companies or assets or to assess corporate performance against sector-level results.

ICMM said the findings are intended to support wider discussions among governments, mining companies, investors and other stakeholders about water stewardship and the sustainable production of minerals and metals essential to the energy transition.