Sherritt to Dissolve Cuba Mining Venture Due to US Sanctions

Sherritt International Corp., a Canadian company that has invested in Cuba for decades, said it would seek to terminate its nickel mining joint venture on the island because of U.S. sanctions.

Sherritt said Friday that the metals producer is trying to end its joint venture with Cuba’s General Nickel Company SA, its partner in the Moa nickel mine and a metal refiner in Canada. The process could take months or even years under existing agreements, so the Toronto-based firm also said it is seeking a court order to expedite the separation.

Sherritt is offering to relinquish its 50% stake in the Cuban mine in exchange for full ownership of the refinery in Fort Saskatchewan, Alberta, while also demanding a C$277 million equalization payment from its Cuban partner because its mining assets are worth more. The company also announced that it would divest its stake in Energas, a Cuban energy company.

The company’s shares rose 4.6% to 11.5 Canadian cents as of 1:36 p.m. Toronto time.

Sherritt has been in turmoil since U.S. President Donald Trump signed an executive order earlier this month targeting non-U.S. individuals and entities doing business in Cuba, which has faced sweeping U.S. sanctions since the 1960s. This uprising triggered a wave of departures, including three board members and the chief financial officer, and led to a more than 50% drop in the share price.

Sherritt, which has been mining cobalt and nickel in Cuba since the 1990s, said earlier this week that it would not be able to report first-quarter results on May 15 as planned.

With the help of Simon Casey.

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