NORWAY - The Norwegian Government Pension Fund has divested NOK4m (US$0.6m) from South African DRD Gold Limited because of ethical concerns.
The decision was made following a recommendation by the Council on Ethics for the fund, which found DRD Gold’s operations caused severe environmental damage at the Tolokuma mine in Papa New Guinea.
The council stated: “Considering the plans presented by the company regarding investment and production expansion, there is reason to believe that the company’s unacceptable practice will continue in the future.”
DRD Gold holds a 78.8% stake in Emperor Mines Limited which runs the Tolokuma mine on the island.
The Ministry of Finance wrote to Norges Bank in January requesting the divestment by the end of March 2007. This recent request was the second made by the ministry on the advice of the Council on Ethics.
Publication of the divestment was reserved to ensure an uncontaminated process.
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