(Corrects to show that Shell and ENI not placed on formal
* Norway often bars sovereign wealth fund from investments
* Asks for greater scrutiny of Shell and Eni in Niger Delta
* Fund will also raise concerns with AngloGold
OSLO, Oct 14 Norway's government has told its
$790 billion oil fund to sell holdings in five companies because
of environmental issues and expressed concern over others,
including Shell and Eni, the finance ministry said on Monday.
The fund, the world's largest sovereign wealth fund, is
barred from investing in WTK Holdings Berhad, Ta Ann
Holdings Berhad, Zijin Mining Group and
Volcan Compania Minera because their activities pose
a "risk of severe environmental damage", it said in a statement.
But contrary to the recommendation of its Ethic Council, the
government did not place Royal Dutch Shell and Eni
on its watch list for possible exclusion and instead
asked the fund to place a greater emphasis on scrutinising their
activities in the Niger Delta.
"The Ministry of Finance has decided to ask Norges Bank to
include oil spills and the environmental conditions in the Niger
Delta in its ownership efforts for a period of between five and
ten years," the ministry said.
India's Zuari Agro Chemicals Ltd was also excluded
from the investment list "based on an assessment of the risk of
contributing to the worst forms of child labour", it said.
The fund usually sells its stakes in companies before the
government makes its exclusion decision public.
It often excludes companies and has dozens of tobacco and
weapons makers on its veto list. Some of the world's biggest
miners, such as Rio Tinto and Barrick Gold
are banned as they have badly damaged the environment.
The government also asked the fund to raise issues about
mining related environmental damage with AngloGold Ashanti
but has not excluded the firm from its investment list,
despite such a recommendation from its ethics council.
"We do have an ongoing dialogue with these companies and
we've had for along time, over the past two years... and they've
showed good results," oil fund spokesman Thomas Sevang said.
"We think that exercising our ownership rights is creating
positive change," he said.
The companies involved could not immediately comment or
could not immediately be reached for comment.
(Reporting by Balazs Koranyi; Editing by Louise Ireland and