Barrick dropped by Norwegian pension fund

Legal Brief

Publishing Date: 03 Mar 2009 5:42pm GMT
Author: Mining, People and the Environment

Barrick Gold Corp has become the third mining company to be dropped by the Norwegian Pension Fund in two years.

The fund excluded the company because of its involvement with the Porgera gold mine in Papua New Guinea. As of July 2008 the fund held shares worth just under NOK1,248 million (US$177 million) in the gold miner.

The fund said it had sold its shares following recommendations from the Council of Ethics, which guides the government on environmental and ethical issues. In its recommendation the council said Barrick’s practice of disposing of waste material into a river was a “breach of international norms”.

“Considering the intentions presented by the company with regard to production expansion, the Council finds reason to believe that the company’s unacceptable practice will continue in the future,” it said in a statement.

Barrick is the third large mining company to be excluded from the fund’s investments following Vedanta in 2007 and Rio Tinto, which was dropped last year because of its 40% stake in the Grasberg mine in Indonesia.