Norges Bank Investment Management announced plans to engage with Rio Tinto and South32. This decision follows environmental concerns about their involvement in the Mineração Rio do Norte joint venture (JV) bauxite mine in Brazil's Amazon rainforest.
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Aluminium production begins with bauxite mining, making MRN's operations central to this industry. The fund's focus on MRN underscores aluminium's environmental footprint, especially in ecologically sensitive areas like the Amazon.
MRN is a joint venture comprising Glencore (45 per cent), South32 (33 per cent), and Rio Tinto (22 per cent). The fund owns approximately 2.5 per cent of Rio Tinto, 0.13 per cent of Rio Tinto Ltd, and 2.6 per cent of South32. These stakes provide NBIM with significant influence to advocate for environmental improvements.
In its statement, NBIM said: "The executive board has decided to ask Norges Bank Investment Management to engage through active ownership with the companies Rio Tinto Plc, Rio Tinto Ltd and South32 Ltd on their work to reduce serious environmental damage over a period of five to ten years."
A South32 spokesperson acknowledged Norges Bank's decision to engage, adding the company will continue discussions on the matter. Meanwhile, Norges Bank stated it has not independently verified all details but believes the exclusion criteria are met.
Norges Bank first considered using ownership rights before exclusion, but found them unsuitable in these cases. Meanwhile, Rio Tinto, with Indium, recently extracted primary gallium from bauxite at its Vaudreuil alumina refinery in Quebec.
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