Norwegian Sovereign Wealth Fund Sells Stakes in Miner

According to a report by Reuters on Mining.com, the operator of the sovereign wealth fund managed by Norges Bank Investment Management announced on the 11th that it had decided to proactively contact miners such as Rio Tinto and South32 regarding their environmental practices.

The executive board member of the world's largest sovereign wealth fund stated that the decision was made following a recommendation from the Ethics Council, an independent advisor appointed by the Norwegian government, to sell its shares in these companies.

According to data from the London Stock Exchange Group (LSEG), the fund holds a 2.5% stake in Rio Tinto Group, a 0.13% stake in Rio Tinto Limited, and a 2.6% stake in South32.

The council pointed out that the involvement of these companies in the Mineração Rio do Norte (MRN) joint venture is a cause for concern. MRN is a significant bauxite mine in the Amazon rainforest.

In a statement, the executive board member of the wealth fund said that it had decided to collaborate with these companies to mitigate severe environmental harm over the next five to ten years.

MRN is a joint venture between Glencore (45%), Rio Tinto (22%), and South32 (33%).

Additionally, the fund stated that it no longer excludes the German energy company RWE AG and acknowledges its transition to renewable energy.

Meanwhile, the fund announced that it had decided to sell its shares in Pemex, the Mexican state-owned oil company, and Paz Retail & Energy, an Israeli company, due to ethical considerations.