Sherritt International Corp. has announced the temporary closure of its refinery in Fort Saskatchewan, Alberta, due to the depletion of feed inventory supply from its Moa mine in Cuba. The company stated that operations will remain halted until mining and processing activities resume at the Moa site and the refinery feed pipeline is reconstructed. Despite this setback, Sherritt assured that no job losses resulted from the operational challenges.
A spokesperson for the company informed CBC News that Sherritt is actively working on restoring the feed pipeline promptly. In the interim, the refinery continues to produce fertilizers and sulphuric acid for sale, with maintenance plans in place to fully engage the Alberta workforce.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were suspended as the country faced fuel shortages following the U.S. blockade on oil from Venezuela in January. Colin Fagan from the Fort Saskatchewan chamber of commerce noted the region’s struggles over the past decade due to various economic factors beyond local control.
Before the pause, Sherritt’s joint venture involved mining and processing ore into mixed sulphide precipitate containing nickel and cobalt, which was then transported to the Alberta refining facilities. The Sherritt refinery, recognized as one of the oldest processing projects in North America, is a key producer of high-grade cobalt in the region.
The company is currently in discussions with its lenders regarding its financial situation. Sherritt acknowledges the uncertainty surrounding its ability to repay debts if accelerated by creditors before the maturity date, potentially impacting its refinancing options.
Sherritt has entered into a non-binding agreement with Gillon Capital LLC, a family office associated with a former Trump administration adviser, for a potential majority stake acquisition. Under the preliminary private placement deal, Gillon could hold a warrant allowing it to acquire a 55% ownership stake in Sherritt.
The refinery facilities in Fort Saskatchewan have an annual production capacity of approximately 38,200 tonnes of nickel and cobalt, according to Sherritt’s website.
