Sherritt International Corp., a Canadian company with decades of investment in Cuba, announced on Friday its intention to dissolve its nickel mining joint venture on the island, citing the impact of U.S. sanctions. The move comes after U.S. President Donald Trump signed an executive order earlier this month targeting non-U.S. entities conducting business in Cuba, which has been under sweeping American sanctions since the 1960s.
Joint Venture Dissolution Details
The metals producer is seeking to force the breakup of its partnership with Cuba’s General Nickel Company SA, which jointly operates the Moa nickel mine and a Canadian metals refinery. According to Sherritt’s statement, the process could take months or even years under existing agreements. To expedite the dissolution, the Toronto-based company is also pursuing a court order.
Sherritt is offering to relinquish its 50 percent stake in the Cuban mine in exchange for full ownership of the refinery in Fort Saskatchewan, Alberta. Additionally, the company is seeking a $277 million equalization payment from its Cuban partner, citing that the mining assets are worth more than the refinery. Sherritt also stated it will surrender its interest in Energas, an energy business in Cuba.
Impact of U.S. Sanctions
The company has been in turmoil since Trump’s executive order, which triggered a wave of departures, including three board members and the chief financial officer. The stock price dropped more than 50 percent, though shares rose 4.6 percent to 11.5 Canadian cents on Friday afternoon in Toronto. Sherritt, which has been mining cobalt and nickel in Cuba since the 1990s, also announced earlier this week that it would be unable to release its first-quarter results as scheduled on May 15.
The dissolution of the joint venture underscores the ongoing challenges faced by international companies operating in Cuba amid tightening U.S. sanctions. Sherritt’s move to seek full control of the Alberta refinery highlights its strategy to refocus on Canadian operations.
