Canadian mining company Sherritt International has announced plans to dissolve its long-running Cuban mining joint venture following the expansion of US sanctions targeting business operations linked to Cuba.
The company said it intends to exit its partnership with Cuba’s General Nickel Company, which operates the Moa nickel and cobalt venture, after the United States tightened restrictions under a new sanctions order issued earlier this month.
Sherritt stated that the growing sanctions risk has created major operational and financial uncertainty, making it increasingly difficult to continue business activities in Cuba. The company plans to invoke provisions within its shareholder agreement to dissolve the joint venture and separate ownership of assets between both parties.
As part of the proposed restructuring, Sherritt is seeking full ownership of the refinery facility in Fort Saskatchewan, Alberta, while relinquishing its 50% stake in the Cuban mining assets. The company also expects compensation payments from its Cuban partner due to the higher estimated value of the mining operations.
The Moa operation has been one of Cuba’s most significant sources of nickel and cobalt production for decades and represents a strategic supply source for battery materials used in electric vehicles and industrial manufacturing. Analysts believe the move could tighten global cobalt and nickel markets already facing supply chain disruptions and geopolitical uncertainty.
The sanctions expansion by the US government targeted key sectors of the Cuban economy, including mining, energy, and tourism. Washington has argued that the measures are aimed at increasing pressure on Cuba’s government and limiting foreign investment tied to state-controlled enterprises.
Sherritt has also suspended direct participation in other Cuban ventures, including energy and oil-related operations, while repatriating staff from the island. The company indicated it would seek legal assistance through Canadian courts to accelerate the dissolution process.
Industry observers say the development marks a major shift in foreign investment activity in Cuba and could have long-term implications for the country’s mining sector and broader economy.