Sherritt International Corp. has decided to halt its efforts to dissolve its Cuban joint venture, a reversal from its recent announcement in light of the escalating U.S. sanctions against Cuba. The Trump administration’s aggressive stance towards Cuba, marked by a de facto fuel blockade and threats of military intervention, as well as increased sanctions, has led to foreign companies like Sherritt having to exit the country.
The Canadian mining firm revealed that it is currently assessing a potential opportunity that could help preserve value, which was presented to them on a preliminary basis. Sherritt, along with General Nickel Co. S.A. of Cuba, jointly owns the Moa venture, responsible for nickel mining in Cuba, with the extracted nickel being sent to Canada for refining, playing a pivotal role in Cuba’s foreign exchange earnings.
Following discussions with advisors, stakeholders, and relevant authorities, Sherritt opted to suspend its plans for dissolution. The company continues to refrain from direct involvement in the joint venture activities in Cuba due to heightened U.S. pressure on the Caribbean nation. Sherritt cited various challenges, including operational, financial, and legal issues, such as meeting debt requirements amidst the expanded sanctions.