2009-02-06 11:30:29
By Joyce Kisaka
The Norwegian government has withdrawn its shares from Barrick Gold due to the giant mining company`s contribution to serious environmental damage.
The announcement was made last Friday by Norway`s Ministry of Finance, following recommendations from the country`s Council on Ethics whose assessment showed that ``investing in the company entails an unacceptable risk of the Fund contributing to serious environmental damage.``
``Pursuant to the Ethical Guidelines, the Government Pension Fund – Global should not invest in companies that cause severe environmental damages.
In its assessment, the Council on Ethics concluded that Barrick Gold Corporation is causing severe environmental damages as a direct result of its operations.
I have therefore decided to follow the Council on Ethics` recommendation on exclusion of Barrick Gold Corporation from the investment universe of the Fund,`` says Norway`s Minister of Finance Kristin Halvorsen in the statement.
The Norwegian Council on Ethics` full report mentions conflicts involving Barrick in Chile, Tanzania and the Philippines however, the panel acknowledged that, ``due to limited resources,``it restricted its investigation of Barrick to the Porgera mine in Papua New Guinea.
The Porgera mine has been a prime target for criticism for its use of riverine tailings disposal, a practice banned in almost every country in the world.
Barrick Gold – Tanzania`s Public Relations and Communication Manager, Teweli Teweli told The Guardian yesterday that it is true that Norway`s Pension Fund has sold off its shares, although he said this was done last year.
He claimed that the move has no impact on Barrick because buying and selling of shares is a normal process.
However, he acknowledged that there are environmental problems at their Porgera mine.
Teweli said the problems were inherited when they bought the plant in 2006.
He added that Barrick is in a continuous process of reversing this situation.
He said both at New York and Toronto Stock Exchanges, they do not expect any serious fall.
However, he said: ``The mine in question follows a government approved Environmental Management and Monitoring Programme and we continue to operate in full compliance with legal and other requirements.``
He added: ``I also note that they did not have sufficient resources to fully review our environmental performance.``
The Commissioner of Mining in Tanzania, Peter Kafumu, said he has no knowledge of this development.
However, the minister for minerals may be aware of it, he said while talking to The Guardian yesterday, adding that since the minister was in a meeting since morning, he could not be reached for confirmation.
``Barrick Gold is a Canadian mining company and the largest producer of gold in the world, with 27 mines in operation.
The Norway`s Council points out that Barrick Gold`s mining activities in several countries have been accused of causing extensive environmental damage.
The Council provides an extensive review of the environmental problems linked to depositing waste in the river.
The Council attaches particular importance to the risk of accumulation and build up of heavy metals, especially mercury, in the environment.
Pollution from the Porgera mine will potentially have serious negative consequences for human life and health,`` Norway`s Ministry of Finance`s statement reads.
It adds: ``In the Council`s view, the company`s assertions that its operations do not cause long-term and irreversible environmental damage carry little credibility. This is reinforced by the lack of openness and transparency in the company`s environmental reporting.
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.``
In a letter dated September 30, 2008, the Ministry of Finance asked Norges Bank to sell its shares in the company, which have now all been sold.
At the end of July 2008, the Government Pension Fund – Global owned shares worth just under NOK 1 248 million in the company.
The decision to sell was made public after the shares were sold, so as not to affect the sale.
Gold mining produces an average of 79 tonnes of waste for every ounce of gold extracted, 50 percent of it is carried out on native lands, and about 80 percent of it is used for jewelry, according to the ``No Dirty Gold`` campaign, a project of Oxfam and Earthworks.
It is no wonder that in a portfolio with plenty of human rights abuses, the Norwegian Pension Fund decided to concentrate on gold miners, cluster munitions manufacturers and nuclear weapon producers first. It is time that the rest of the world catches up.
- SOURCE: Guardian
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