Rio Tinto no longer blacklisted by Norwegian wealth fund

Norway’s $1tn wealth fund has removed UK miner Rio Tinto and retailer Walmart from its blacklist, possibly paving the way for future investments in both companies.

Following the decision taken by the board of the country's central bank, the two were now again in the sovereign wealth fund's good graces, having previously been excluded from the fund’s universe of investable assets on ethical grounds.

Other companies that had their exclusions lifted were Mexican tycoon Carlos Slim’s Grupo Carso, US defense company General Dynamics and fertilizer-maker Nutrien, the fund's board said in a statement.

Reinvestments will likely take place “within an appropriately long timeframe,” said the board.

Norway's Parliament does not allow investments in companies that produce nuclear weapons, cluster munitions and tobacco, among other things.

The Council on Ethics is the watchdog charged with making recommendations on the status of the companies that are under consideration for possible investments.

Miner Rio Tinto was excluded in 2008 over the severe environmental risks extant at its Grasberg mine in Indonesia, the world’s second-largest copper mine. Rio agreed to sell its stake in Grasberg last year for $3.5bn.

“The company has made it clear for the Council on Ethics that it has signed an agreement to sell its interest in the mine,” said the statement by the central bank’s board.