Rio Tinto, one of Britain\’s most blue-chip corporate names, has been thrown out of a sovereign wealth fund\’s investment portfolio for potentially subjecting it to "grossly unethical conduct" through its involvement in the world\’s biggest gold mine.
Norway\’s finance minister, Kirsten Halvorsen, said yesterday that it was selling off the £500m stake held in Rio Tinto by its Government Pension Fund-Global, commonly known as the "oil fund".
They\’re flogging off the stake because of an involvement in a mine in Indonesia.
OK, fair enough, their money etc.
It\’s just that I don\’t really buy into the super-cycle theory of commodity prices. If I were dabbling in the market (which I\’m not) I\’d be getting out of mining stocks myself anyway. Things which can\’t go on for ever, like ever rising commodity prices, don\’t go on for ever.
So we might actually be seeing an ethical investment decision which makes good sense for entirely non-ethical reasons.