The ongoing fuel shortage in Cuba is further highlighting the nation's economic paralysis. This time, the crisis has affected the Canadian mining company Sherritt, the Cuban regime’s primary foreign partner in nickel and cobalt extraction in Moa, as they have announced a temporary halt to operations on the island.
According to EFE, the company, which operates in eastern Cuba, plans to suspend its mining activities and place its processing plant on standby in the upcoming week. Sherritt mentioned that it will use this downtime to carry out maintenance work.
The company revealed that Cuban authorities informed them that the scheduled fuel deliveries for the Moa plant would not be fulfilled, leaving the resumption date of the supply uncertain at this time.
Sherritt assured that its nickel and cobalt refinery in Alberta, Canada, possesses enough raw material to continue regular operations until mid-April, as reported by EFE.
Additionally, the company announced intentions to update its business forecasts for 2026 once there is more clarity on the supply chain and the timeline for fully resuming operations in Cuba.
Back in January, Sherritt had already warned about adverse operational conditions on the island.
In 2025, the production of nickel and cobalt in Cuba fell significantly below the results from 2024 and initial forecasts.
For over thirty years, Sherritt has maintained a joint venture with a Cuban state entity to operate a mine and a plant in Moa, as well as a refinery in Canada.
Cuba ranks among the leading countries worldwide in nickel reserves, a strategic metal crucial for battery production amid the global energy transition.
In January, Canadian firm Sherritt International acknowledged facing "significant operational challenges" on the island due to the economic crisis, currency shortages, and the nationwide energy deficit.
In its 2025 performance report, the company disclosed that its joint venture plant, Moa Nickel S.A., located in Holguín province, produced 25,240 tons of nickel and 2,729 tons of cobalt. These figures were notably lower than those from 2024, which were 30,331 and 3,206 tons, respectively, as reported by AFP.
Sherritt attributed the production decline to Cuba's energy crisis, delays in acquiring supplies and spare parts, and the impact of Hurricane Melissa, which in October caused operational disruptions and damage to critical infrastructure.
Impact of Fuel Shortage on Sherritt's Operations in Cuba
What challenges is Sherritt facing in Cuba?
Sherritt is contending with significant operational challenges in Cuba, including an economic crisis, currency shortages, and a lack of energy, complicating its mining operations.
How is Sherritt managing the fuel shortage in its Cuban operations?
Sherritt has temporarily halted its operations in Cuba and plans to use this time for maintenance. The company is closely monitoring the situation and will update its business forecasts as conditions improve.
What is the significance of Cuba's nickel reserves?
Cuba is among the world's top countries in nickel reserves, which are vital for manufacturing batteries crucial to the global energy transition.