Norwegian govt pension fund excludes SAfrican gold miner DRD Gold UPDATE |
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Published
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Wed, 11 Apr 2007 13:23
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(Updating to add previous exclusions, background)OSLO (Thomson Financial) - Norway's massive government pension fund excluded South African gold miner DRD Gold from its investment universe, the government said.The Ministry of Finance said in a statement that DRD Gold had been excluded from the Norwegian Government Pension Fund - Global, after a recommendation of the ethics council for the fund.The offshore pension fund, set up by Norway to invest its oil revenues from the North Sea, has this year seen its value surge to a whopping 300 bln usd on surging oil prices.Occasionally, the fund bars investments in certain companies based on ethical investment considerations.The Ministry of Finance statement said that the fund ran an 'unacceptable risk' of contributing to severe environmental damages by continuing to invest in the company.'This is the second time that the Council on Ethics advises the Ministry of Finance to exclude a company whose activities entail an unacceptable risk of the Fund contributing to severe environmental damages under the Ethical Guidelines,' the statement said.'DRD Gold causes severe environmental damages as a direct consequence of their mining operation at Tolokuma on Papua New Guinea. We cannot hold shares in such a company,' announced Norwegian Minister of Finance Kristin Halvorsen.Norway's pension has been barred from investing in some huge companies on ethical grounds -- prompting other funds to follow suit.In September last year, the 195 bln skr Swedish second national pension buffer fund, AP2, withdrew its bond and equities investments in Wal-Mart Mexico, claiming the firm breaches human rights.The Swedish fund's move to offload bond and equity securities worth 200 mln skr followed a similar one made by the Norwegian fund.The Norwegian Ministry of Finance said in June that it had decided to exclude Wal-Mart Stores Inc and Freeport-McMoRan Copper and Gold Inc from the Norwegian Government Pension Fund Global's investment portfolio after recommendations from the Council on Ethics.Wal-Mart was excluded by the Norwegians because of serious/systematic violations of human rights and labour rights, while the exclusion of Freeport-McMoRan was based on serious environmental damage.The ministry said Norway's Central Bank, Norges Bank, was asked to disinvest from the two companies and added that the disposal of stocks and bonds is now completed.As of Dec 31, 2005, the fund's investment in Wal-Mart totalled about 2.5 bln nkr, while its investment in Freeport came to about 116 mln nkr.Norway's pension fund is due to announce a change in its allocation mix for equities and other asset classes on Friday.patrick.mcloughlin@thomson.compm/ambCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Norwegian govt pension fund excludes SAfrican gold miner DRD Gold 