Water scarcity poses a major risk to SA’s mining and other industries and will not only delay projects but cause substantial cost increases, global ratings agency Moody’s Investors Service has warned.

Water is a vital resource in the mining industry and is used in processing ore, smelting, refining and dust suppression, among other things. In a report released on Friday, Moody's said securing reliable water sources will become challenging for mining companies that operate in areas that will face a growing water supply crunch in the next 20 years.

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