One of Rio Tinto’s largest shareholders has sold its £500m stake in the company over concerns about the Grasberg goldmine in Indonesia, which has been called one of the world’s worst eyesores, reports The Times. Norway’s $375bn government pension fund said Tuesday it had sold its shares after failing to persuade Rio to improve operations at the West Papua mine. The Norwegian finance minister publicly shamed Rio in a statement that accused the company of “severe environmental damage”. The Grasberg operation in West Papua, Indonesia, is the world’s largest goldmine and the third-largest copper mine, but it is notorious among human rights and environmental campaigners. Grasberg is operated by Freeport McMoRan of the US, and Rio is a 40% shareholder in the opencast pit.

This entry was posted by Gwen Robinson on Wednesday, September 10th, 2008 at 5:30 and is filed under Capital markets, M&A. Tagged with Freeport McMoRan, rio tinto. Edit this entry.