Sherritt Moves to Dissolve Cuban Joint Ventures Amid U.S. Sanctions

Event summary

  • Sherritt International will dissolve its 50/50 nickel and cobalt joint venture in Cuba (Moa JV) due to expanded U.S. sanctions, effective immediately.
  • The company expects a fair market value equalization payment from GNC, plus approximately $277 million owed, as part of the dissolution process.
  • Sherritt will also surrender its one-third interest in Energas and two production-sharing contracts without receiving consideration.
  • The dissolution process could take months or years, but Sherritt is seeking accelerated relief from the Alberta Court of King’s Bench.

The big picture

Sherritt’s exit from Cuba underscores the growing geopolitical risks for resource companies operating in sanctioned markets. The move highlights the strategic importance of domestic refining capacity amid global supply chain disruptions, particularly for critical minerals like nickel and cobalt essential to the energy transition.

What we're watching

Regulatory Headwinds
How further U.S. actions toward Cuba will affect Sherritt’s remaining operations and financial stability.
Execution Risk
Whether Sherritt can successfully navigate the dissolution process without prolonged legal or operational disruptions.
Market Access
The pace at which Sherritt can reposition its Canadian refinery to offset losses from Cuban operations.

Related topics

Mining