Sherritt to dissolve Cuba mining venture following US sanctions

Sherritt International Corp., a Canadian company that has invested in Cuba for decades, said it will seek to dissolve its nickel mining joint venture on the island due to US sanctions.

The metals producer seeks to force the breakup of its joint venture with Cuba’s General Nickel Company SA, its partner in the Moa nickel mine and a Canadian metals refinery, Sherritt said in a Friday statement. The process could take months or even years under existing agreements, so the Toronto-based firm said it’s also seeking a court order to accelerate the breakup.

Sherritt is offering to relinquish its 50% stake in the Cuba mine in exchange for full ownership of the refinery in Fort Saskatchewan, Alberta, while also seeking a C$277 million ($202 million) equalization payment from its Cuban partner because mining assets are worth more. The company also said it will surrender its interest in Energas, an energy business in Cuba.

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

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

Sherritt, which has been mining cobalt and nickel in Cuba since the 1990s, said earlier this week it would be unable to release its first-quarter results as scheduled on May 15.

(By Sybilla Gross)