Vale: Swedish funds cut mining giant from portfolios after dam collapse – by Rachel Fixsen and Nick Reeve (IPE.com – February 21, 2019)

https://www.ipe.com/

Swedish state pension buffer fund AP1 has begun selling SEK407m (€38.6m) worth of equities and bonds of Brazilian mining company Vale, after the AP Funds’ Council on Ethics recommended the exclusion the company from the AP funds’ portfolios.

The recommendation follows the fatal collapse of a tailings dam at one of its mining facilities in Brumadinho, Brazil, last month.

The council said it was recommending AP1, AP2, AP3 and AP4 exclude Vale because the council had lost confidence in the firm, adding that it could be linked to violations of three major international conventions.

In a statement, the council said: “It would appear that the company did not act sufficiently quickly on reported deficiencies regarding the safety of the tailings dam in Corrego do Feijao.

“The consequences of the company’s actions have had devastating and tragic consequences… for the local population, company employees and the environment around Corrego do Feijao.”

For the rest of this article: https://www.ipe.com/news/esg/vale-swedish-funds-cut-mining-giant-from-portfolios-after-dam-collapse/10029657.article

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