Access to water has become one of the most significant business risks for miners, says a report that also highlights the threat to the sector from rising energy costs in some resource-rich areas.
EY, the consultancy, said affordable water and energy should now be viewed as one of the 10 biggest problems for miners. The threat was particularly acute in South America and Africa, it said. These continents are significant in the global supply of many metals, particularly copper.
Spending by mining companies on water infrastructure amounted to almost $12bn last year, compared with $3.4bn in 2009, EY said. BHP Billiton and Rio Tinto, the two largest in the world by market capitalisation, are investing $3bn to build a desalination plant at Escondida, the Chilean copper mine that is the world’s largest by output.