When international lenders and offtakers begin technical due diligence on a Mongolian mining project, one of the first documents they request is not the emissions inventory — it is the site water balance. Water is the most socially and environmentally sensitive resource a mine touches in a semi-arid climate, and how a company accounts for it signals the maturity of its entire ESG programme.
Why the water balance matters
A credible water balance reconciles all inflows (precipitation, groundwater inflow, surface runoff) with outflows (evaporation, reuse, discharge, seepage) across seasonal extremes. When it is missing or based on assumed figures, reviewers read it as a proxy for weak environmental management overall.
What strong practice looks like
- Metering at key abstraction and discharge points, calibrated at least annually
- Seasonal monitoring that captures both spring thaw and winter conditions
- A documented reuse strategy with measurable targets
- Community-relevant disclosure: what the mine takes, returns, and recycles, in plain language
Practical first steps
Start with a gap review of existing monitoring data, install or verify metering at the top five water flows, and build a first-pass monthly balance. Most operations can produce an initial credible water balance within one quarter — and it immediately strengthens permit negotiations, lender diligence, and herder community conversations alike.