Sherritt International Corp. has announced the temporary closure of its refinery located in Fort Saskatchewan, Alberta. This decision was made due to the depletion of feed inventory supply from its Moa mine in Cuba. The company stated that operations at the refinery will remain halted until mining and processing activities resume at the Moa site and the necessary refinery feed pipeline is reconstructed.
Earlier this year, Sherritt’s Moa joint venture in Cuba was put on hold as the country experienced fuel shortages following the U.S. embargo on Venezuelan oil in January. Prior to the suspension, the joint venture saw the extraction and processing of ore into mixed sulphide precipitate containing nickel and cobalt, which were then shipped to the refining facilities in Alberta.
Amid the refinery shutdown, Sherritt has disclosed ongoing discussions with its lenders. However, the company expressed concerns about its ability to repay its debts, especially if accelerated by creditors before the maturity date. Sherritt also highlighted uncertainties surrounding debt refinancing or extension in the current financial landscape.
In a strategic move, Sherritt has entered into a non-binding agreement with Gillon Capital LLC, a family office linked to a former Trump administration adviser. The proposed deal entails Gillon acquiring a majority stake in Sherritt through a preliminary private placement agreement. This arrangement would grant Gillon a warrant enabling the purchase of sufficient shares to secure a 55% ownership in Sherritt.
Sherritt’s Fort Saskatchewan refinery facilities boast an annual production capacity of approximately 38,200 tonnes of nickel and cobalt, according to information available on the company’s official website.