The Council on Ethics’ recommendation, 23 May 2016
Zijin Mining Group Ltd is a Chinese mining company. Since May 2015, Zijin has owned 47.5% of the Porgera mine in Papua New Guinea. The waste disposal method at the mine can be linked to sever adverse environmental impact, in violation of the UN Convention on Biological Diversity, since it discharges large amounts of waste into a nearby river.
In its dialogues with different mining companies, the Council on Ethics has striven to encourage the companies to adopt a policy whereby they resolve to refrain from using the controversial method. Since 2012, the Council has endeavoured to establish a dialogue with Zijin Mining, as the company was initially part of the preventive project the Council started with regard to the mining industry. Zijin Mining was the company with the worst preventive work on all points, and the company has historically suffered severe accidents, one result being that the Norwegian Council on Ethics for the Government Pension Fund Global recommends that the company be excluded. The Council deems that continued efforts to establish a dialogue with Zijin are not meaningful, since despite countless attempts by the Council and other investors to do so, the company has not responded. It therefore seems unrealistic that the company should adopt a policy agreeing not to use the controversial waste disposal method in future projects. The Council therefore recommends that Zijin Mining be excluded.