# Competition for water poses risks to the energy transition

- Link: https://www.thailand-business-news.com/pr-news/competition-for-water-poses-risks-to-the-energy-transition
- Published: 2026-07-22T14:00:00+07:00
- Author: PR Newswire

_ICMM report maps where mining and metals facilities intersect with water stress,
depletion, drought, flood and interannual variability risks_

LONDON, July 22, 2026 /PRNewswire/ — Nearly two-thirds of mining and metals facilities
worldwide are located in areas facing significant physical water risk, according
to new analysis by ICMM.

 [⌊Competition for water poses risks to the energy transition⌉](https://mmx.prnasia.com/media/MS1885499/ICMM.jpg?id=OA2770545&p=medium600)

Competition for water poses risks to the energy transition

Our [_Global Mining and Metals Water Dataset_ and report](https://www.icmm.com/en-gb/data/global-datasets/water),
also reveal that competition for water between mining and metals operations and 
other industrial and domestic users is the greatest physical water risk facing the
industry. It 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.

Minerals and metals are essential to the energy transition and the low-carbon economy
of the future, but this analysis shows that the conditions needed to produce them
are constrained by physical water risks.

Key findings include:

 ◦ 65.7% of mining and metals facilities globally are exposed to high levels of 
   at least one physical water risk indicator.
 ◦ 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.
 ◦ 27.4% of facilities globally are exposed to high or extremely high baseline water
   depletion.
 ◦ 27% of facilities globally are exposed to high drought risk, making drought the
   second most prevalent physical water risk analysed.
 ◦ 14% of facilities globally are exposed to high or extremely high flood risk, 
   although exposure is higher for alumina refining, aluminium smelting, molybdenum
   production and steel production.
 ◦ 16.2% of facilities globally are exposed to high or extremely high interannual
   variability in water supply, though this is geographically uneven and rises to
   74% in Oceania.
 ◦ 4.9% of facilities are exposed to high risk across three or more physical water
   risk indicators at the same time.

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; others face drought, flooding, or unpredictable annual
supply. In some regions and supply chains, these risks overlap, creating vulnerabilities
that must be addressed at through water stewardship and coordinated action across
governments, industry, investors and the companies that use these materials.

**Commenting on the findings, ICMM’s Director of Data and Research, Dr Emma Gagen,
said:**

_"Our 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. 
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."_

The findings show that water risk exposure is not evenly distributed across the 
sector. In Chile, the world’s largest copper producer and home to 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 in Oceania, 74% face high or extremely high interannual variability in water
supply.

**Dr Emma Gagen added 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._

_"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."_

The report draws on ICMM’s updated Global Mining Dataset (v1.5) of 12,000 facilities–
including mines, smelters, refineries and plants – and overlays facility locations
with global water-risk datasets to assess exposure to selected physical water quantity
risks. The Global Mining and Metals Water Dataset was produced in partnership with
the WWF’s Water Risk Team and the World Resources Institute (WRI).

**Crystal Davis, Global Director for the Food, Land & Water Programs World Resources
Institute**, said:

"_With the global surge in the mining and production of critical minerals, driven
by the energy transition, countries are grappling with how to meet the rising demand
while promoting responsible mining activities. Responsible mining starts with shared
access to credible, publicly available data on where water risks are greatest. WRI
welcomes ICMM’s contribution as a meaningful step toward providing governments, 
communities, investors and companies with a foundation data base needed to help 
plan and act across the full value chain."_

**Notes to editors **

This dataset and report are part of ICMM’s wider Global Mining Data Project that
aims to significantly improve the quality and accessibility of industry-wide information
by building robust, transparent data that can inform policy and advance wider discussions
about mining and metals’ evolving role in sustainable development.

Like all large-scale datasets, the _Mining and Metals Water Dataset_ has limitations.
The data focuses on water risks and does not provide any information on the impacts
or contribution of mining and metals to water risks. It is an intersectional analysis
between a global mining and metal layer and global water risk layers. There are 
no global datasets on facility-level water consumption, withdrawals, discharge quantities
or qualities to allow assessments of impact and contribution at this stage. See 
the Limitations section of the report for further information.

In addition, the dataset does not include data on facility-level or company level
impacts or contributions to local water systems, nor does it attempt to assess operational
performance, efficiency or progress against corporate targets. As such, the dataset
should not be used to benchmark individual assets or companies, or to draw conclusions
about the alignment of individual corporate disclosures with sector-level results.

**Methodology **

Datasets from WWF and WRI were selected for their wide recognition and comprehensive
coverage of water risk. Each offers distinct strengths and limitations, and ICMM
assessed both to identify the most relevant indicators for inclusion in the Global
Mining and Metals Water Dataset.

We also partnered with an independent peer reviewer to understand the limitations
and strengths of our methodology, datasets used, and insights. This helped to refine
our approach and data, ultimately strengthening our approach while being transparent
with our limitations.

Please see the Methodology Section of the Report for further details.

**About ICMM **

ICMM stands for mining with principles. We bring together a third of the global 
metals and mining industry, along with key partners to drive leadership, action 
and innovation for sustainable development, ultimately delivering a positive contribution
to society. Through collaboration, ICMM member companies set the standard for responsibly
produced minerals and metals in a safe, just and sustainable world.

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