This paper by the World Resources Institute outlines potential water-related risks facing the mining industry and highlights important gaps in water-related disclosure. The purpose is to provide information, questions, and tools to help the financial community better evaluate water-related risks facing mining companies.
Water issues are becoming a considerable factor affecting growth and profitability of companies in many regions of the world. This research focuses on global hardrock minerals operations and does not cover industrial or fuel minerals. Water risks span the minerals production cycle and occur in diverse operating environments. Water quality problems are among the most serious environmental impacts associated with mining. Toxic waste and mine effluents can be mobilized by water, resulting in regulatory, legal, and reputational risks for companies.
The paper deals with the following points -
This paper aims to address this problem by explaining how water issues and trends may create potentially costly water-related risk for companies (Section I) and by providing tools, questions, and information to help the financial community better evaluate water risks in the mining sector (Section II).