Sherritt International Corp. has decided to halt its plans to dissolve its Cuban joint venture, a reversal from its recent announcement due to increased U.S. sanctions on the country. The Trump administration has been intensifying pressure on Cuba since January, implementing a de facto fuel blockade and escalating sanctions, causing foreign companies like Sherritt to exit.
The Canadian mining firm has received a potential opportunity to preserve value, which it is currently assessing. Sherritt and General Nickel Co. S.A. jointly operate the Moa venture in Cuba, mining nickel destined for refining in Canada, serving as a crucial source of foreign exchange for the island nation.
Following consultations with advisors, stakeholders, and relevant authorities, Sherritt has paused its dissolution plans. The company has also suspended direct involvement in joint venture activities in Cuba in response to increased U.S. pressure. Sherritt continues to face operational, financial, and legal challenges, including meeting debt covenants amidst the expanded sanctions.
