Rio Tinto axe sparks divestment call
10 September 2008
War on Want today urged ethical fund chiefs to review investment in British mining giant Rio Tinto after Norway excluded the multinational from its pension fund over controversial Indonesian operations.Only 10 months ago the Norwegian finance ministry, with $13 million worth of shares in another UK mining corporation, Vedanta, dropped the firm from the fund over human rights violations and environmental abuse.
War on Want’s call followed the decision by Norway to sell off the £500 million stake held in Rio Tinto through its sovereign wealth fund because of problems concerning the company’s joint venture with Freeport McMoran.
The fund’s ethics council judged that Rio Tinto was directly connected with environmental contamination linked to operations at the Grasberg complex, the world’s biggest gold mine and the third largest for copper in West Papua.
War on Want, in its report Fanning the Flames last November, said Rio Tinto earned $122 million in 2006 from its Grasberg copper mine stake, amid local people suffering years of serious human rights and environmental abuse.
Norway has deemed other UK firms as too unethical, including arms maker BAE Systems and support services group Serco, which was removed from the fund last year due to its involvement in the UK's Atomic Weapons Establishment.
War on Want also questions Gordon Brown’s move to include Rio Tinto in a business anti-poverty coalition with other firms the charity has cited for dubious records, such as mining giant Anglo American, Wal-Mart and Coca-Cola.
These companies signed a declaration which will go to the UN Millennium Development Goals summit this month.
Ruth Tanner, Campaigns and Policy Director at War on Want, said: "After Norway’s decision to exclude Vedanta from its pension fund, we welcome the government’s move to eject Rio Tinto for similar reasons. The Norwegian government has again put its money where its mouth is to ensure a real ethical investment policy. More and more funds are withdrawing investment in notorious mining corporations. Now other funds should follow Norway’s example. It also underlines the need for the UK government to make all British firms accountable for their operations abroad."
NOTES TO EDITORS
* War on Want’s report Fanning the Flames can be downloaded here.
* The charity’s film on Anglo American profiting from abuse in Colombia can be viewed by clicking here.
* The Business Call to Action signatories can be seen here.
CONTACT: Paul Collins, War on Want media office (+44) (0)20 7549 0584 or (+44) (0)7983 550728
Comment:
