Smaller, less-diversified mining companies in water-scarce regions such as South America are most vulnerable, Moody’s said in a report dated yesterday. Larger producers including BHP Billiton Ltd., Rio Tinto Group and Anglo American Plc will also be adversely affected given their global operations and willingness to operate in remote and arid regions, it said.
“Water scarcity is already changing the mining landscape as environmental legislation becomes more stringent,” Andrew Metcalf, a Moody’s analyst, said in the report. “Operating in some countries increases political risk as mining companies’ water supplies can be restricted if the needs of communities increase.”
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