Sherritt International Corp. has decided to halt operations at its refinery located in Fort Saskatchewan, Alberta, due to the depletion of feed inventory supplied from its Moa mine in Cuba. The company has stated that the shutdown will persist until mining and processing activities recommence at Moa and the refinery feed pipeline is reconstructed, ensuring no job losses are incurred as a result of the operational disruptions.
A spokesperson for Sherritt informed CBC News that efforts are ongoing to reestablish the feed pipeline promptly. In the interim, the refinery continues to manufacture fertilizers and sulphuric acid for resale, with scheduled maintenance activities in place to fully engage the Alberta workforce.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were suspended amid fuel shortages within the country following the U.S. oil access termination from Venezuela in January. Colin Fagan of the Fort Saskatchewan chamber of commerce highlighted the region’s economic challenges over the past decade, influenced by external economic factors beyond local control.
Sherritt’s joint venture in Cuba involved mining and processing ore into mixed sulphide precipitate containing nickel and cobalt before transporting it to Alberta’s refining facilities. The company’s refinery, recognized as one of the oldest processing projects in North America, is a vital asset for producing high-grade cobalt in the region, noted Richard Hiller, the future materials alliance director at the Energy Futures Lab.
Concurrently, Sherritt is in discussions with its lenders concerning its debt obligations, acknowledging potential difficulties in repaying debts if accelerated by creditors. The company’s ability to refinance or extend debt remains uncertain under the current circumstances.
Furthermore, Sherritt has entered a non-binding agreement with Gillon Capital LLC, a family office associated with a former Trump administration adviser, for a majority stake acquisition in the company through a preliminary private placement agreement. The refinery facilities in Fort Saskatchewan boast an annual combined production capacity of approximately 38,200 tonnes of nickel and cobalt.