Oslo, Norway and London, United Kindom, Wednesday 10 September 2008. The Norwegian Government’s decision, announced yesterday, to exclude London-based mining multinational Rio Tinto from its massive State pension fund, is very welcome. The Ministry of Finance announced that the decision had been taken ‘due to a risk of contributing to severe environmental damage.’ The Ministry was particularly concerned about the company’s involvement with the Grasberg copper and gold mine in West Papua. It said that ‘There are no indications to the effect that the company’s practises will be changed in future, or that measures will be taken to significantly reduce the damage to nature and the environment.’
By London Mining Network member group Partizans (People Against Rio Tinto And Its Subsidiaries)
Roger Moody, of London Mining Network member group Partizans (People Against Rio Tinto And Its Subsidiaries), said:
‘This decision puts out a warning that companies can no longer hide behind their status as “merely a junior player” or “minor investor” in such a damaging enterprise as the Grasberg mine. Rio Tinto has excused its participation in this unacceptable project for thirteen years claiming that, because it doesn’t actually manage the mine, therefore it’s not responsible for its impacts. In fact, Rio Tinto’s financing proved crucial to the massive expansion of this mine a decade ago, and the company has been directly complicit in creating the unmitigated disaster it is today. The Norwegian government has recognised this . Hopefully other investors will quickly do so too. Just about every major bank, and many pension funds, also have shares in Rio Tinto.’
Richard Solly, Co-ordinator of London Mining Network, added:
‘Although the Grasberg mine is a particularly damaging project, Rio Tinto is involved in plenty of other damaging operations around the world, impacting both on the environment and on human rights. And Rio Tinto is only one of dozens of mining companies listed on the London Stock Exchange – the leading centre of world mining finance – whose operations around the world are a cause of serious concern. British investors, including pension funds and High Street banks, need to be aware of the effects of their investments and take appropriate action.’
ENDS
Notes for editors
1 The Norwegian Government’s announcement and report can be found at
http://www.regjeringen.no/en/dep/fin/Press-Center/Press-releases/2008/the-government-pension-fund-divests-its-.html?id=526030
2 The Norwegian Parliament adopted the Act relating to the Government Pension Fund in 2005. The Ministry of Finance is responsible for the management of the Fund, and has delegated responsibility for the operational management of the Fund’s international assets to NBIM (Norges Bank). The capital is invested in non-Norwegian financial instruments (bonds, equities, money market instruments and derivatives), and in 42 developed and emerging equity markets and 31 currencies for fixed income investments.
3 London Mining Network produced a background media briefing on Rio Tinto for the company’s AGM in April 2008. This can be found at:
http://www.foe.co.uk/resource/media_briefing/rio_tinto_broken_promises.pdf
4 London Mining Network is an alliance of human rights, development and environmental groups. We pledge to expose the role of companies, funders and government in the promotion of unacceptable mining projects. LMN will do this by publishing reports, participating as ‘dissident’ shareholders in company meetings, holding educational events and, where appropriate, lobbying decision makers such as investment institutions, politicians and other NGOs. Member groups include ACTSA, CATAPA, Colombia Solidarity Campaign, the Corner House, Down to Earth, Forest Peoples Programme, LAMMP, Partizans, PIPLinks, the Society of St Columban and TAPOL.
London Mining Network,
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tel: 07929 023214
email@ LMN@gn.apc.org
