Sherritt International Corp. has made the decision to halt operations at its refinery located in Fort Saskatchewan, Alberta. This action was taken due to the depletion of the feed inventory it typically receives from its Moa mine in Cuba. The company has indicated that the refinery shutdown will persist until mining and processing activities resume at the Moa site and the refinery feed pipeline is reconstructed.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were put on hold as the country grappled with fuel shortages following the U.S. discontinuation of oil access from Venezuela in January. The company’s joint venture in Cuba involved the extraction and processing of ore into a mixed sulphide precipitate containing nickel and cobalt, which was then transported to the refining facilities in Alberta.
Amidst these developments, Sherritt has disclosed ongoing discussions with its lenders. However, the company has expressed concerns about its ability to fully repay its debt if accelerated by its creditors before its stated maturity. The company’s prospects for refinancing or extending its debt under the current circumstances remain uncertain.
In a notable move, Sherritt has entered into a non-binding agreement with Gillon Capital LLC, a family office associated with a former Trump administration adviser. This agreement outlines a potential majority stake acquisition by Gillon in the company through a preliminary private placement deal. As per the agreement, Gillon would hold a warrant enabling the purchase of enough shares to secure a 55 per cent ownership stake in Sherritt.
Sherritt’s refinery facilities in Fort Saskatchewan boast an annual combined production capacity of approximately 38,200 tonnes of nickel and cobalt.