Sherritt International Corp., a Canadian firm with a long-standing investment history in Cuba, has announced its intention to dissolve its nickel mining joint venture with Cuba’s General Nickel Company SA. This decision is a direct response to recent US sanctions.
The company is looking to expedite the breakup of its partnership in the Moa nickel mine and a Canadian metals refinery. Sherritt has indicated that the dissolution process could be lengthy, potentially taking months or years, and is therefore pursuing a court order to accelerate the timeline.
In the proposed arrangement, Sherritt intends to relinquish its 50% stake in the Cuba mine in exchange for full ownership of the refinery located in Fort Saskatchewan, Alberta. Additionally, the company is requesting a C$277 million equalization payment from its Cuban partner, citing the higher value of mining assets. Sherritt also plans to divest its interest in Energas, an energy venture in Cuba.
Following the announcement, Sherritt's shares experienced a rise of 4.6%, reaching 11.5 Canadian cents by early afternoon trading in Toronto.
The turmoil for Sherritt began earlier this month when US President Donald Trump signed an executive order targeting non-US entities conducting business in Cuba, which has been under extensive US sanctions since the 1960s. This has led to significant upheaval within the company, including the resignation of three board members and the chief financial officer, as well as a drastic decline of over 50% in its stock price.
Sherritt, which has operated in Cuba since the 1990s, has also announced that it will not be able to release its first-quarter results as scheduled.
