Physical water risks have been labelled as a material issue for the mining industry, according to new analysis by the International Council on Mining and Metals (ICMM).
ICMM says the report highlights the importance of coordinated integrated land and water use planning at regional scales, as demand grows for the materials needed for clean energy systems.
According to ICMM’s data, around 66% of mining and metals facilities globally are exposed to high levels of at least one physical water risk indicator. In addition, 38% of facilities are located in catchments with high or extremely high baseline water stress, or in arid areas where water is functionally unavailable.
ICMM adds that 27% of facilities globally are exposed to high or extremely high baseline water depletion, while 27% of facilities are exposed to high drought risk, making drought the second most prevalent physical water risk analysed.
Geographies
In Chile — the world’s largest copper producer — 86% of facilities face high or extremely high baseline water stress and interannual variability at the same time.
Chile accounts for 24% of global copper output and is also the second-largest producer of lithium. The mining industry accounts for roughly 10–12% of the country’s gross domestic product, generating over half of its total export revenues.
Lodestar Minerals (ASX:LSR) is one of the many explorers with assets in Chile, including the Los Loros and Three Saints projects.
Both projects lie within one of the world’s largest iron oxide copper-gold (IOCG) belts which includes the 1.2-billion-tonne @ 0.60% copper, 0.13 grams per tonne gold, and 2g/t silver Candelaria deposit.
In mid-June 2026, Lodestar received assay results from its first diamond drill hole at the Three Saints Project, confirming the potential to host IOCG mineralisation. The hole returned grades of up to 0.77% copper, 0.38g/t gold, 449 parts per million (ppm) cobalt and 190ppm molybdenum.
CEO Coraline Blaud says the hole provides a strong indication of the project’s prospectivity and the potential scale of the mineralising system.
“These results provide increased confidence in the exploration potential of Three Saints and support our ongoing efforts to refine the geological model,” Blaud says.
“Our next steps will focus on reviewing and reinterpreting the available geophysical datasets against the new drill hole-derived geological information, with the objective of better defining the controls on mineralisation and targeting the core of the system for the next drilling campaign.”
Meanwhile in Africa and the Middle East, 81% of facilities are exposed to high or very high drought risk, while in Oceania, 74% face high or extremely high interannual variability in water supply.
Africa plays a significant role in critical minerals supply. The Brookings Institute outlines the share of global production and mineral reserves across multiple critical minerals where a significant portion of global supply comes from the African continent.
Africa accounts for 92% of global platinum group metals (PGMs) production, 56% of cobalt, 54% of manganese, 36% of chromium, and 22% of global vanadium production.
In Morocco, Zeus Resources (ASX:ZEU) owns the Casablanca Antimony Project, which has delivered rock-chip results of up to 46.52% antimony and demonstrates more than 4km of mineralised strike along the Smaala-Oulmès Fault.
As previously reported, the company acquired Casablanca in May 2025, which included six exploration licences.
Zeus said at the time of the purchase: “The global antimony market is experiencing significant supply constraints, driven primarily by China’s production decline and export restrictions. These have contributed to a tightening supply-demand dynamic and record-high prices.”
Commodities
Water risks are also dependent on commodities as exposure varies sharply by what’s being produced.
ICMM’s data highlights that for PGMs, 74% of facilities face the highest drought exposure. This is primarily because around 80% of the world’s primary PGM supply is concentrated in South Africa’s Bushveld Complex — a naturally arid region that experiences low rainfall and lacks adequate bulk water infrastructure, according to ResearchGate.
Chromite and diamonds also face the highest drought exposure, totalling 60% and 57%, respectively.
The same reasons apply to these commodities, as chromite is largely found in water-stressed regions such as South Africa, Kazakhstan, and India. Diamond facilities are largely located in Botswana, South Africa, and Canada’s Subarctic.
Meanwhile, alumina refining and steel production (both 27%) face flood risk at nearly double the sector average.
Alumina refining and steel production are highly susceptible to flood risks, due to the need for large-scale water supplies, reliance on waterborne logistics, and the danger of environmental hazards if toxic by-products overflow, as reported by World Steel.
Steel is a water-dependent industry, with concentrated physical exposure. The material uses 1.5–4m³ of water per tonne of steel produced.
ICMM’s data also highlights that manganese, copper, and chromite — which are all important to clean energy technologies — are exposed to three or more water risks at once at around double the global average.
Understanding water risks
The analysis found that water risk in mining and metals is global in scope but diverse in nature, differing according to geography and commodity. Some facilities face chronic competition for water, while others face drought, flooding, or unpredictable annual supply.
ICMM’s Director of Data and Research Emma Gagen says research shows that water is already a material issue for the mining and metals sector.
“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,” Gagen says.
“This is why leading mining companies including ICMM members have embedded water stewardship principles and practices, to manage water in ways that are socially equitable, environmentally sustainable, and economically beneficial.”
Gagen notes that until now, there has been no comprehensive, cross-commodity global assessment of how the mining and metals sector is exposed to water risk.
“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,” she says.
“This dataset is a starting point for others to explore, use, and collaborate with us to continue improving the collective picture of water risk across the industry.”
ICMM’s Global Mining and Metals Water Dataset outlines a global picture of how the sector is exposed to physical water risk, covering 12,000 facilities across 148 countries.
Write to Aaliyah Rogan at Mining.com.au
Images: ICMM
