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Burgundy Diamonds cuts employees in Canada due to falling diamond prices
Burgundy Diamond Mines, an Australian company, has laid off hundreds of employees and contractors at its Point Lake mine in Canada and suspended operations due to the record-low prices for diamonds. A spokesperson from the company said this on Thursday. The Ekati mine includes the Point Lake site, located in Canada's Northwest Territories. Burgundy says its remote Arctic site is still operational. Burgundy Diamond Mines has decided to suspend the open pit mining operation at Point Lake. This is a short-term shift away from surface mining operations, said Ariella Calin. Point Lake is not economically viable with global diamond prices at all-time lows. Calin stated that the underground Misery mine is not affected. The Northwest Territories has three diamond mines, Diavik owned by Rio Tinto and Gahcho Kue owned by De Beers, as well as Burgundy Ekati. Companies are either trying to survive or suspending operations due to the falling diamond sales worldwide. Rio Tinto plans to close its Diavik mine by the beginning of 2026. Anglo American, the owner of De Beers, is planning to spin off all its diamond operations. Burgundy has halted its trading on the Australian Stock Exchange in the pending of an operational update by the company. Calin stated that Misery's production rates have improved significantly in recent months. Burgundy is expected to provide an update on quarterly production at the end of July. The NWT community is pitching projects to replace the future loss of jobs as Canada's diamond mining industry reaches the end of its productive life. Karen D. Costello is the executive director of NWT & Nunavut Chamber of Mines. She said that "the Northern mining industry dates back over 90 years." It has been acknowledged that the mineral potential is enormous, but it will take robust exploration in order to find the minerals. We also need to move forward with the existing projects so they can be the inspiration for the next generation. (Divyarajagopal, Toronto; Editing done by Caroline Stauffer and Richard Chang).
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Nikkei reports that Japan and EU will explore joint procurement of rare earths
The Nikkei reported that Japan and the European Union are considering joint public-private partnership as they seek to reduce their dependence on China, for example in the procurement of rare Earths. Global manufacturers are worried that China's decision to restrict exports of rare earth alloys, mixtures, and magnets will slow down production and disrupt supply chain. Rare earth supply chains have been established globally to try and loosen China's grip over the materials that are used in electronic devices, weapons, and electric vehicles. Reports indicate that the EU and Japan will start a "two-plus-two economic dialogue" to bring their economy and foreign ministers together. The new dialogue is expected to be announced during the Japan-EU Leaders' Summit scheduled for the 23rd of July. It said that the talks aim to identify specific cooperation areas between the parties starting this summer. After the two sides agreed on a new working-level dialogue, they will develop supply chains jointly for critical minerals like rare earths. Nikkei reported that the focus of their discussions will be on how Japanese companies can participate in EU projects within the new framework which aims to strengthen Japan-EU relations. Stephane Sejourne will be added to the discussions as the executive vice-president for prosperity and industrial strategies of the European Commission. The U.S. Department of Defense has signed an agreement to establish a new e-commerce platform. multibillion-dollar deal MP Materials, the Pentagon's largest shareholder, will boost rare earths production. India Holding talks This week, the trade ministry reported that Chile and Peru will source vital minerals as part of ongoing free trade negotiations. (Reporting and editing by John Biju, Bengaluru)
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Vibra shares fall on news that Petrobras is eyeing retail fuel
Bloomberg News reported on Thursday that the state-run oil company Petrobras is considering a return to retail fuel and its board will discuss this topic next week. Vibra shares fell 2.5%. This makes the company the worst performer in the benchmark Bovespa index, which traded near flat. Petrobras' shares fell around 0.5%. Petrobras has no plans to resume retailing of fuel, according to two people who are familiar with the situation. One source noted that Vibra, an ex-Petrobras subsidiary, has a clause prohibiting the oil giant from competing with it until 2029. Source added that even if this matter was to be discussed during a board of directors meeting, the clause would prevent any action. Petrobras didn't immediately respond to a comment request. Vibra, one of Latin America's largest fuel distributors, operates a chain Petrobras-branded gasoline stations as well as selling fuel directly to businesses. BR Distribuidora was previously known as BR Distribuidora. The firm was spun-off from Petrobras in 2019 and privatized under former president Jair Bolsonaro. This state-run company sold assets so that it could focus on its oil production and exploration business. The leftist president Luiz inacio Lula da silva has called this move a grave error and criticized fuel retailers who do not lower prices at the pumps even when Petrobras cuts their prices to distributors. Reporting by Rodrigo Viga Gaier, Fabio Teixeira and Brad Haynes; editing by Chizu Nomiyama and Brad Haynes
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Canada's Indigenous Challenge accelerates mine and energy projects
Indigenous groups say laws undermine consultation right The government says it needs to change in response to U.S. tariffs The U.S. tariffs are just an excuse for the Indigenous leaders By Michael Koy The tensions between government and Indigenous communities are a reflection of long-standing concerns about consultation and environmental impacts of mining projects. Canada's leaders have said that the threat of U.S. tariffs against Canadian goods should prompt the country to accelerate its economic development so as to prepare for potential economic shocks. A group of Canada's First Nations launched this week a constitutional challenge against two laws passed by the government in June. One was in Ontario, and the other at the federal level. A notice filed with the Ontario Superior Court stated that the laws "represent an obvious and present danger to Applicant First Nations’ self-determination right". Last month, the Canadian parliament passed a bill to expedite approval of projects that are deemed in the national interest. This includes mines and oil pipes, as well as removing some trade barriers among provinces. The Ontario cabinet was given broader powers by a similar measure, and British Columbia passed a bill last month to speed up infrastructure projects. Sol Mamakwa was expelled from the Toronto assembly for accusing Ontario's Premier of "falsehoods" to First Nations about Bill 5, the provincial legislation. Ontario Premier Doug Ford, in response to Indigenous protests that took place in Toronto added a clause at the last minute to the law requiring consultation with First Nation groups prior to any mining or development projects. The details of the plan, and the way in which First Nations will consult with each other are still not clear. Ontario's new legislation allows the government declare "special economic areas" which exempt certain projects from provincial laws. It would be easier for mining and infrastructure companies to bypass state laws and environmental restrictions and accelerate development projects in a nation that is the fourth largest oil exporter in the world and a mining superpower. Gord Miller is the current chairperson of Earthroots in Toronto, an organization that promotes conservation. He was previously Ontario's environmental commissioner and former Ontario environment commissioner. "Although these zones are sparsely populated, what stops them from using the bill to affect more densely-populated areas in southern Ontario?" He asked. Canadian law says that the government is required to consult First Nations regarding projects which could have an impact on their environment and rights. Sayers, however, is sceptical about the government's promises of consultation. Fast-tracking approval of projects, say indigenous groups, sidesteps this obligation and denies the group a real voice. "Consultation is not enough." Sayers stated that "Consultation is their way of asking what we think and then doing it regardless," without listening to what we have to say. We reserve the right not to approve or reject any development. "You don't have the right to say no or yes to development in our backyards," said he. TRUMP FACTOR Ford said that the tariffs imposed by the United States on Canadian goods means it can no longer do business as usual. Ford stated in a press release that "we are cutting redtape to unlock our essential minerals and unleash our economic to create new opportunities and jobs in the North and across the Province." Indigenous leaders and environmentalists, however, say that U.S. Tariffs are an excuse. Trump announced last week that the United States will impose a tariff of 35% on Canadian imports next month. "Relating Bill 5 with Trump's Tariffs is nonsense. Miller said that American companies pay tariffs to American Government. We Canadians do not pay these. Chief Taynar Simpson of Alderville First Nation stated that governments, "no mater what colors or stripes they wear", have always sought to undermine and bypass environmental protection laws. Simpson said that citing Trump as the cause of the bill was self-serving and an attempt to hide the true reasons and causes. RISE IN TENSIONS Some Indigenous leaders say they will fight back with blockades and strikes, reminiscent of the Idle No More Movement in 2012 that saw nationwide demonstrations against a federal law aimed at allowing corporations to more easily extract resources from Indigenous lands. In 2020, Indigenous protesters in Canada shut down major roads and railways for several weeks in solidarity with a British Columbian Indigenous group that was fighting to stop the construction of a pipeline across their land. Indigenous and environmental groups are threatening protests this time, along with their legal actions. Sayer stated that Indigenous Peoples are "looking at all the options necessary to force the government to back off." "We won't be jailed like we used to in the past. We can get educated now. Sayer replied, "We can hire attorneys now."
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Petrobras CEO: US tariffs on Brazil may cause Petrobras to redirect oil to Asia
Petrobras, the Brazilian state-owned oil company, may redirect oil sold to the United States to Asia and Pacific due to increased tariffs announced by the United States on Brazil, the chief executive said on Thursday. Magda Chambriard, CEO of Petrobras, said that although oil and gas exports account for a large share of Brazil's trade with the United States it is not a vital market for the company. "We don't export much (to the U.S.). She said, "In general, we're not too worried" in her first comments to the public about the 50% tariff announced by President Donald Trump last week. In the first quarter of 2018, exports to the U.S. accounted for about 4% Petrobras total oil shipments. According to StoneX, the U.S. will also not feel any major effects if Brazil stops exporting, since the South American nation has only supplied less than 3 percent of the oil that the U.S. has consumed in 2025. Chambriard made his remarks amid Brazilian uncertainty over the impact of the new tariffs that will take effect August 1. The commodity was exempted from Trump's 10% tariffs. Petrobras exported 37% of its 209,000 barrels of oil per day to the U.S. in the first quarter. Analysts said that this volume could be easily redirected into other countries. (Reporting and writing by Rodrigo Viga Gaier, Fabio Teixeira, Editing by Gabriel Araujo Brad Haynes Lisa Shumaker).
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EU opens the door to nuclear energy funding in next budget
The European Commission is proposing to allocate a part of the proposed budget for nuclear energy in 2028-2034, which will likely divide member states. Germany rejected this move immediately, as it would cause divisions among the members. The Commission published an annex of its mammoth proposal on Wednesday that listed nuclear energy as a project countries could fund with their national budget - "new or increased fission power capacity installed in GW". These national spending plans will have access to around 865 billion Euros of EU funding. This would represent a major shift for the EU whose budget currently does not include funding conventional nuclear power plants. It reflects a long-running dispute between traditionally anti-nuclear EU countries such as Germany and Austria and pro-nuclear EU member states like France and Sweden. Carsten Schneider, the German environment minister, said that Berlin respects the decision of other countries in building reactors. Schneider stated that "respecting national sovereignty on energy matters means also not claiming EU funding for this costly path, of which a quarter comes from German taxpayers money." The French energy ministry didn't immediately respond to an inquiry for comment. Ebba busch, the Swedish energy minister, declined to comment. The budget proposal from the Commission marks the beginning of years of intense negotiation among EU nations. They must all approve of the final budget. The EU has been in a long-running dispute over whether to use atomic energy to reduce CO2 emission. This disagreement has delayed the development of policies on climate change and energies within the bloc. This dynamic appeared to be on the verge of a change earlier this year when German Chancellor Friedrich Merz announced Berlin would not object to the EU treating nuclear energy on par with renewable energies. Denmark and Italy have also indicated a change in their previous opposition to nuclear energy. Some EU diplomats, however, said that the softening in positions did not extend to support for EU financing. One EU country diplomat stated that there was no way EU money would go to nuclear new reactors. The EU budget for the current year explicitly prohibits member states from using their share in hundreds of billions euros of regional development funds to build nuclear power plants. However, it offers limited funding for nuclear research and the decommissioning old reactors.
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Gold extends decline after solid US economic data
Gold prices continued to decline and fell by nearly 1% Thursday, after positive U.S. data helped the Federal Reserve maintain its cautious stance about resuming monetary ease this year. Gold spot fell by 0.9%, to $3,315.15 an ounce at 0936 am EDT (1336 GMT), after reaching a session-low of $3,309.59. U.S. Gold Futures dropped 1.2% to $3320.80. According to the latest U.S. statistics, "there has been a slight rise in the dollar. Also, U.S. Treasury rates are higher." Bob Haberkorn is a senior market strategist with RJO Futures. Gold prices could remain high due to a strong central bank demand and ongoing geopolitical tensions. Dollars gained 0.3% making gold priced in greenbacks more expensive for holders of foreign currencies. The number of Americans who filed new claims for unemployment benefits dropped last week. This indicates that there was a steady increase in jobs in July. Retail sales in the United States rose more than expected last month, with an increase of 0.6% after a 0.9% decline in May that was not revised, but some of this increase is likely due to higher prices of some goods subjected to tariffs. Fed Governor Adriana Kulgler stated that the Fed shouldn't cut rates for "some time" because the tariffs of the Trump administration are beginning to affect consumer prices. Gold is a popular hedge against inflation and uncertainty, but its appeal has been diminished by higher interest rates. Ryosei Acazawa, Japan's chief trade negotiator, met with U.S. Secretary of Commerce Howard Lutnick to discuss U.S. Tariffs. Tokyo is racing to avoid a 25% tax that will be levied if a deal cannot be reached by the August 1 deadline. Palladium increased by 0.1%, to $1,232.02 after reaching its highest price since October 2023. Haberkorn stated that fears of an escalating conflict in Russia, which is a major exporter of palladium, fuel supply concerns, driving prices up. Silver fell 0.8%, to $37.64 an ounce, and platinum dropped 0.6%, to $1,408.00. (Reporting by Sarah Qureshi in Bengaluru; Editing by Tasim Zahid)
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The oldest climate fund in the world targets wildlife bonds to every country in Africa
Global Environment Facility (GEF), the oldest multilateral climate change fund in the world, plans to issue a new round of wildlife conservation bonds as a way to assist African countries with saving endangered species and eco-systems. In 2022, the World Bank backed rhino bond was the first of many wildlife bonds that provide low-cost funding in exchange for reducing poaching and other measures. Last month, the GEF approved a conservation plan for lemurs in Madagascar. Fred Boltz is the head of programming for the GEF which is affiliated with the World Bank. He told African environment ministers on the sidelines a meeting that the GEF aims to provide one project per 54 African countries. He said that such a move would need an investment of 150 million dollars from GEF. This would be leveraged ten times, providing a total amount of $1.5 billion through borrowing. Climate finance experts claim that because wildlife bonds do not usually go into the government's books, they can provide much needed financing to developing countries. The payouts are directly related to the conservation of the species. The better the results, the less money the government is required to pay. Boltz stated that GEF hopes to expand the program so as to cover entire ecosystems, such as wetlands. Funding cuts from the United States, other major economies, and international aid agencies are threatening some conservation projects. Boltz stated that "many countries ask, suggest that it may be difficult to maintain the last level (of species) replenishment in this challenging official development assistance environment" and that we could need to do more with a smaller budget. The GEF invested $7.7 billion total in Africa for various projects. One of these was an $85million effort to combat desertification in Sahel. The organisation is currently asking donors to replenish their cash reserves for the next four-year programme cycle, which will begin next year. The last fundraising campaign for the current cycle raised $5.3billion, an increase of over 30% from its previous operating period. This is due to a rise in support for international efforts aimed at meeting nature and climate goals. The U.S. was the largest donor, with $700 million. Reporting by Duncan Miriri, Editing by Marc Jones and Alison Williams
US retail sales exceeded expectations in June
Retail sales in the United States increased more than anticipated in June. However, some of this increase was likely due to higher prices on some goods that were subjected to tariffs.
The Commerce Department's Census Bureau reported on Thursday that retail sales rose 0.6% in June after a 0.9% decline unrevised in May. Retail sales, which are mainly goods and not adjusted for inflation but are a major part of retail sales, were expected to increase by 0.1%, according to economists polled.
The rise in retail sales could have been due to price increases driven by tariffs rather than volume. Inflation data released this week shows that the prices of goods affected by tariffs, such as household goods, appliances, sporting equipment, and toys, rose significantly in June.
Retail sales, excluding automobiles and gasoline, building supplies, food services, and building materials, increased by 0.5% in June after a downwardly-revised 0.2% increase in May. The core retail sales component, which is closest to the consumer spending component in the gross domestic product, was previously reported as having increased by 0.4%.
Sam Bullard is a senior economist with Wells Fargo. He said: "The household sector appears to still be holding up but there appears to have been a moderated in consumer spending." (Reporting and editing by Nick Zieminski, Lucia Mutikani)
(source: Reuters)