Toronto, October 21, 2026: Canadian mining company Sherritt International Corporation has secured a US government licence allowing it to arrange fuel and essential material shipments to its nickel mining operations in Cuba, marking a significant development in its efforts to restart production and stabilise its financial position.
The licence, granted by the US Treasury Department’s Office of Foreign Assets Control (OFAC), authorises the purchase and delivery of fuel, fuel oil and sulphur to the company’s Moa Nickel mining and processing operations. It also covers associated transportation, banking, insurance and other services required to facilitate the authorised shipments.
The approval comes after Sherritt suspended its direct participation in Cuban joint venture activities in May 2026 and halted metals refining at its Fort Saskatchewan facility in Alberta in June. Fuel shortages and disruptions to supplies following expanded US sanctions against Cuba had placed significant pressure on its operations. US Licence Offers Hope for a Mining Restart
The newly granted licence represents an important step towards restoring operations at Moa Nickel, a joint venture in which Sherritt holds a 50% interest alongside Cuba’s state-owned General Nickel Company.
The project produces nickel and cobalt, metals used in stainless steel, batteries and other industrial applications. The interruption to mining and processing in Cuba also affected the supply of material to Sherritt’s Canadian refining facility.
According to reports, the company is working to finalise its initial fuel shipment, which is expected to be dispatched in the fourth quarter of 2026. However, the fuel licence alone does not authorise a full restart of mining and processing activities. Sherritt is seeking an additional emergency licence from US authorities for that purpose.
Gillon Capital Involved in Rescue Efforts
Sherritt has been coordinating its licence applications with Gillon Capital LLC, a US investment firm seeking to acquire a controlling interest in the Canadian miner.
The proposed transaction forms part of broader efforts to recapitalise the company, restore operational stability and address its financial difficulties. The fuel authorisation is also an early regulatory step towards the potential investment transaction, which would require further approvals.
Sherritt continues to face liquidity constraints, and the company has indicated that its ability to meet obligations to suppliers, service providers and other stakeholders depends on securing additional financing and completing a wider recapitalisation plan.
Legal Challenges and Sanctions Complicate Recovery
The company’s recovery efforts also face legal complications linked to claims over property confiscated by the Cuban government following the 1959 revolution.
Sherritt has entered into an interim consent agreement with Moa Bay Mining Company, which holds a certified claim relating to the Moa Nickel operations under the US Cuban Liberty and Democratic Solidarity Act, commonly known as the Helms-Burton Act. The agreement allows authorised fuel shipments to proceed under specified conditions, including consent fees and protections for parties involved in the shipments. Separate US authorisation was also obtained for the arrangement.
Despite the progress, the company’s long-term prospects remain uncertain. Further regulatory clearances, dependable supplies, operational funding and a successful recapitalisation will be crucial to restoring production.
Outlook for the Nickel Industry
The development highlights how geopolitical tensions and economic sanctions can disrupt mineral supply chains, even when mining assets and processing infrastructure remain in place.
For the global nickel market, a potential restart at Moa could help restore a source of supply, although the timing and scale of any production recovery remain uncertain. The outcome will depend on additional US approvals, the availability of fuel and other inputs, and Sherritt’s ability to secure the capital needed to resume operations.