Sherritt International Corp. announced the permanent shutdown of its nickel refinery in Fort Saskatchewan, Alberta, citing a depletion of feedstock from its Moa joint venture mine in Cuba. The closure will result in the loss of approximately 200 jobs and marks the end of a major processing operation that has been in service for decades.
Refinery closure details
The Fort Saskatchewan refinery, which processed nickel and cobalt from the Moa mine, will cease operations immediately. Sherritt stated that the mine's output has declined to levels insufficient to sustain the refinery's operations. The company will transition to toll-processing arrangements with third parties to handle remaining inventory and commitments.
According to Sherritt, the decision follows a comprehensive review of the refinery's viability. The facility had been operating at reduced capacity for several months as feedstock supplies dwindled. Sherritt CEO Leon Binedell said, "This was a difficult but necessary decision given the sustained decline in feed from Cuba. We are committed to supporting our employees through this transition."
Impact on employees and community
The closure will affect around 200 workers at the Fort Saskatchewan site. Sherritt said it will provide severance packages and transition support, including counseling and job placement assistance. The company also noted that it will work with local unions and government agencies to mitigate the impact on the community.
The United Steelworkers union, which represents some refinery workers, expressed disappointment but acknowledged the challenges. "Our members have shown incredible dedication, and we will ensure their rights are protected during this process," said a union spokesperson.
Strategic shift for Sherritt
Sherritt indicated that the closure is part of a broader strategic shift away from refining in Alberta. The company plans to focus on its mining operations in Cuba and Madagascar, as well as its power generation business in Cuba. Sherritt also said it will explore opportunities to sell or repurpose the Fort Saskatchewan site.
The Moa mine, a joint venture with the Cuban government, has been a cornerstone of Sherritt's operations for years. However, declining ore grades and logistical challenges have reduced output. Sherritt reported that feed from Moa dropped by 40% in the last fiscal year, making the refinery uneconomical.
Industry and market reaction
The closure is expected to tighten North American nickel supply, though Sherritt said it will fulfill existing contracts through toll-processing. Analysts noted that the shutdown reflects broader challenges in the nickel market, including price volatility and rising costs. Sherritt's shares fell 5% on the announcement.
The Alberta government expressed concern over job losses but acknowledged the company's decision. A spokesperson for the provincial ministry of energy said, "We are disappointed to see the closure but understand the economic realities facing the industry."
