Sep 11, 2008

West Papua: Norwegian Fund Pulls Out of Rio Tinto

Sample ImageAnglo-Australian mining company is allegedly involved in severe environmental damage and unethical conduct.


Below is an article published by Radio Australia :

The Norwegian government's pension fund has abandoned a $US1 billion investment in Anglo-Australian mining company Rio Tinto.

It says its decision is based on claims that the company is involved in grossly unethical conduct in Indonesia's Papua province.

Our Europe correspondent, Emma Alberici, says Norway's finance minister claims that Rio Tinto's operations in Indonesia are causing severe environmental damage, including the destruction of rain forests and marine life.

The Grasberg site in West Papua is home to the world's biggest gold mine and third biggest copper mine.

The company disposes of 230,000 tonnes of tailings into the Ajikwa river.

Rio Tinto disputes the findings of the Norwegian government report, and management says it is surprised and disappointed that Norway's pension fund has decided to withdraw its investment in the company.