Funding withdrawn from Eramet by Norway due to their mine jeopardizing Indonesian forests and a native tribe's land rights.
In a significant move, Norway's Government Pension Fund Global, the world's largest sovereign wealth fund, has divested its $6.8 million stake in French miner Eramet due to ethical concerns about the company's operations at the PT Weda Bay Nickel mine in Indonesia.
The mining concession, located in the Wallacea Biodiversity Hotspot, has already cleared about 2,700 hectares (6,700 acres) of rainforest since 2019, far exceeding its plan. The Weda Bay Nickel mine is the world's largest nickel mine and is critical habitat under International Finance Corporation (IFC) standards, home to endemic and threatened species such as the somber kingfisher, white cockatoo, and Moluccan megapode.
The Norwegian Council on Ethics criticized Eramet's insufficient measures to address the risk of serious environmental and human rights violations at the PT Weda Bay Nickel mine. The council cast doubt on the feasibility of Eramet's plan for a 'net biodiversity gain' through offsets, given the forest's high conservation value.
The council also raised alarm over the mine's impact on the O'Hongana Manyawa, or Forest Tobelo, an Indigenous group of about 3,500 individuals, with about 500 living in voluntary isolation. Deforestation poses a risk of fragmenting the land of the Forest Tobelo and increasing the risk of forced contact with outsiders, which historically has caused deadly disease outbreaks among isolated groups.
In a 2024 report, Indigenous rights advocacy group Survival International documented a case in which 50 to 60 Forest Tobelo died within two months of being forcibly contacted and settled. The council stated that it cannot see how mining operations can be undertaken without infringing on the rights of the Forest Tobelo, particularly without measures to protect their living spaces.
Indonesian authorities have revealed that PT Weda Bay Nickel was running 148 hectares (366 acres) of unlicensed mining inside state forest. The mining project plans to clear 4,200 hectares (10,400 acres) of forest over 25 years.
Eramet has argued that no conservation forests fall inside the concession and has denied the presence of uncontacted groups in or near its concession. However, earlier environmental assessments, including one in 2010, confirm such groups exist in the area.
The Rainforest Foundation Norway, an NGO that's a founding member of the Investor Initiative on Responsible Nickel Supply Chains, viewed the divestment as an important measure in aligning financial decision-making with environmental responsibility, particularly in the high-risk context of nickel mining in tropical forest areas. Eramet regretted the Norwegian fund's divestment and is reviewing the fund's report.
The mining operations' impact on the Forest Tobelo, even if they remain exclusively outside the concession area, is still a concern, according to the Norwegian pension fund's ethics council. The council's decision underscores the growing scrutiny on whether the minerals fueling the green economy can ever truly be considered ethical.
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