A US investor group backed by commodities giant Glencore is seeking to recapitalize and take control of Canadian mining company Sherritt International, adding a new dimension to the competition for the financially troubled nickel and cobalt producer.
The consortium plans to inject fresh equity through a US-based vehicle that could ultimately give the group at least a 55% controlling stake in Sherritt. The investor group includes Glencore, Kyma Capital, investor Trifon Natsis and an unnamed US family office.
Sherritt has been facing significant operational and financial challenges, particularly after US sanctions disrupted its activities linked to Cuba. The company owns a 50% interest in the Moa nickel-cobalt joint venture in Cuba and operates a major cobalt refinery in Fort Saskatchewan, Alberta. The refinery has been affected by shortages of feedstock following restrictions on the Cuban operations.
Under the proposed transaction, Glencore is also seeking marketing and offtake rights, potentially giving the commodities trader a greater role in the commercialisation of Sherritt’s nickel and cobalt production.
The proposed deal faces competition from another US investor, Gillon Capital, which has previously negotiated a separate transaction that could also lead to control of Sherritt. Any final agreement will need to address US sanctions, regulatory approvals, Sherritt’s debt obligations and plans to restart its Canadian refinery operations.
The development highlights the growing strategic importance of nickel and cobalt, critical minerals used in batteries, energy infrastructure and other advanced technologies. It also reflects increasing efforts by US-linked investors and commodity companies to secure access to critical-mineral supply chains.