EngineeringNews reports that the South African mining sector is not immune against the water crisis, and that the industry will most likely be affected by the worsening water crisis across the world.
After conducting a comprehensive analysis of approximately 3 174 mine sites, the World Wide Fund for Nature (WWF) issued a warning about the water risks facing the mining industry.
With the new information available, the WWF called on companies and investors to urgently assess and respond to the growing water risks for their businesses and assets.
The report shows that India, China, South Africa, Mexico and Peru are the countries that are most at risk, with commodities such as chromite, coal, palladium, platinum, bauxite and lead topping the risk list.
The report’s analysis is a first step towards a future in which asset-level data contributes to more advanced and accurate environmental, social and governance assessment for investors and companies dependant upon metals and mining.
“In 2018 alone, water-related issues had a financial impact of more than $20 million on the extractives sector. The report highlights on the companies, commodities, river basins and countries facing the highest overall water risks, including floods and water scarcity, as well as reputation and regulatory risks,” the WWF said in a statement last week.
The WWF also mentioned that aside from agriculture, no sector is as exposed to water risks as the mining sector.
“Our analysis underlines the scale of the risks posed by water to mining operations. The industry needs to transform its approach to mitigate these risks.”
The analysis was conducted by means of the WWF’s Water Risk Filter using the S&P Global Market Intelligence mining database.