The Canadian mining company still has its operations paralyzed and admits that there are “serious financial risks”
14ymedio, Havana, May 19, 2026 / The Canadian company Sherritt International announced Tuesday in a statement that it is suspending its plans to dissolve its interests in Cuba, including the joint venture Moa Nickel SA, which produces nickel and cobalt in mines in Holguín. The conglomerate is thus reversing the decision announced just 12 days ago to cancel all joint venture activities on the island with immediate effect and repatriate its employees.
According to a statement released at the time, Sherritt cited the executive order signed by US President Donald Trump on May 4, which targeted non-US citizens and entities doing business on the island. Just hours after the Canadians made that decision public, the US State Department added Moa Nickel to its sanctions list—along with Gaesa and the president of the military conglomerate, Ania Guillermina Lastres Morera.
The company announced that it halted the measure on Tuesday following “further consultations with advisors, stakeholders and relevant government authorities, and in light of additional information now available to the corporation.”
The measure was halted after “further consultations with advisors, stakeholders and government authorities”
The Toronto-based company said it would maintain the suspension of its direct involvement in joint venture activities in Cuba while talks continue on how to respond to the expanded US sanctions.
Sherritt stated that it was also evaluating “a potential opportunity to preserve the value of the company,” but stressed that “there is no guarantee that such measures or transactions will be completed in a timely manner.”
It also warned that, unless the situation is resolved, the company faces serious operational, financial, and legal difficulties, including its ability to meet debt covenants.
In its May 7 statement, Sherritt noted that it had not been “formally designated under the executive order. However, such a designation could occur at any time.” The mere issuance of Trump’s order, he continued, created “conditions that materially alter the Corporation’s ability to operate in the ordinary course of business, including activities related to the operations of the Cuban joint venture.”
Sherritt noted that it had not been “formally designated under the executive order. However, such a designation could occur at any time.”
According to its explanation, the US administration’s executive order contained other potential problems, such as the possibility that suppliers of any kind—financial or material—could cease supporting their operations or other activities. It also indicated at the time that advisors would continue to evaluate the implications of the measure, something ultimately taken into account for Tuesday’s announcement.
According to Cuban legislation, when there are contracts signed between a company with Cuban state participation, neither party can withdraw without taking certain prior steps, including prior notice.
The state partnership with Sherritt is a key source of foreign currency for Cuba, although the latest figures from the Canadian company reported that things on the island were not going well.
In February, the company had announced that it was pausing its mining operations
In February, the company announced it was pausing its mining operations and putting its processing plant in Moa, Holguín, on hold. The decision was made after receiving notification that planned fuel deliveries to Moa would not be met, and the timeframe for resuming deliveries was unknown.
Furthermore, last year’s earnings were significantly lower than anticipated. Sherritt expected to extract between 31,000 and 33,000 tons of nickel last year, but only managed to produce 25,240 tons, nearly 17% less than projected for 2024. For cobalt, they had projected 3,300 tons but only reached 2,729 tons by year’s end, a decrease of approximately 15% year-over-year. Additionally, Sherritt’s revenue in the second quarter of 2025 fell to $43.7 million, down from $51.4 million in the same period of 2024.
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