Canadian Miner Sherritt International Drops Plan to Dissolve Cuban Joint Venture

Canadian Miner Sherritt Reverses Decision to Dissolve Cuban Joint Venture

TORONTO — Canadian miner Sherritt International Corp. has announced that it is no longer pursuing a plan to dissolve its Cuban joint venture, reversing a decision made last week. This change comes amid expanded U.S. sanctions on the country.

Sherritt, which has a 32-year presence in Cuba, made the decision to stop the dissolution plan after ongoing consultations with its advisers, stakeholders, and governmental authorities. The company also acquired additional information, which led to this change in direction. Canada is Cuba's second-largest source of direct investment, with a significant presence in various sectors, including mining, power, oil, and gas.

The Toronto-based company has been presented with a "potential value-preserving opportunity" that it is currently evaluating. However, there is no guarantee that this opportunity will move forward. Sherritt and the General Nickel Co. S.A. of Cuba each hold a 50% interest in the Moa joint venture, which mines nickel in Cuba and ships it to Canada for refinement.

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Sherritt is maintaining its suspension of direct participation in joint venture activities in Cuba, which was announced in early May in response to the U.S. ramping up pressure on the Caribbean country. The company faces several challenges, including complying with its debt covenants, as it works to address the expanded sanctions. The U.S. has imposed new sanctions on Cuba, which have been defended by U.S. Secretary of State Marco Rubio.

Cuban authorities argue that the sanctions constitute "collective punishment" designed to strangle the island's economy, while the Trump administration's policies show a disregard for the welfare of the Cuban people in favor of political leverage. The new sanctions on Havana come under the weight of a U.S. energy blockade, which has caused sweeping water and power outages, as well as severe gas and water shortages.