CAPE TOWN – The world’s top mining companies warned on Tuesday that assets will be stranded and investors will walk away unless they deal with water scarcity in key mining regions such as Africa, Australia and Latin America.
After the hottest global year on record in 2016, water has shot up the agenda at mining board meetings. “Investors say to us: ‘don’t talk to us about returns’; they want to know how we’re managing water,” Nick Holland, Chief Executive Officer of Gold Fields, said at an international mining conference in Cape Town.
Mining requires water at almost every stage of the process and the bulk of the assets of major mining companies are in water-stressed regions mostly in the southern hemisphere.