Canadian mining company Sherritt International Corporation has issued a corporate alert following the signing of a new Executive Order by President Donald Trump on May 1. This order significantly broadens U.S. sanctions against Cuba, specifically targeting the metals and mining sectors where Sherritt operates.
In a statement released on Monday, Sherritt announced that it is consulting with advisors and stakeholders to assess the potential ramifications of the Executive Order. The company is also considering the next steps regarding its interests in Cuba.
The order, which was signed last Thursday under the International Emergency Economic Powers Act, sanctions various sectors of the Cuban economy, including energy, defense, metals and mining, financial services, and security.
Business Model Under Threat
Sherritt's primary concern is the threat of secondary sanctions against foreign financial institutions that conduct transactions with blocked Cuban entities. This could directly impact the company’s business model.
Sherritt operates in Cuba through two main ventures: the Moa Nickel S.A. joint venture in Holguín, which focuses on nickel and cobalt extraction, and the Energy division through Energas S.A., the largest independent electricity producer on the island. Energas has a capacity of 506 megawatts, accounting for 10% to 15% of Cuba's electrical generation.
Existing Challenges Worsen
Even before the new order, Sherritt was facing significant challenges. On February 17, the company halted its mining operations in Moa due to fuel shortages, placing the plant on standby for maintenance.
Production in 2025 had already dropped to 25,240 tons of nickel and 2,729 tons of cobalt, compared to 30,331 and 3,206 tons respectively in 2024. This decline was due to the energy crisis, supply delays, and the impact of Hurricane Melissa in October 2025.
Additionally, the Cuban government owes Sherritt at least $344 million, highlighting the regime's ongoing pattern of defaults with foreign partners.
Financial Maneuvers Amid Sanctions
In response to its financial needs, Sherritt secured a private placement of up to $50 million in April and obtained a court order to extend debt maturities.
The new May 1 order represents an unprecedented escalation in Trump's maximum pressure strategy against the Cuban dictatorship. Since January 2026, over 240 sanctions have been imposed on the regime, reducing Cuba's energy imports by 80% to 90% and worsening power outages that now affect over 55% of the national territory.
Sherritt has a long history with U.S. sanctions. It was the first company targeted by the Helms-Burton Act in 1996 when its executives received letters barring them from entering the United States for operating on expropriated Cuban properties—a ban that remains in effect to this day.
The company, whose shares are traded on the Toronto Stock Exchange under the symbol "S", is set to release its first-quarter results for 2026 on May 12, amid ongoing uncertainty about its future operations on the island.
Impact of U.S. Sanctions on Sherritt's Operations in Cuba
What are the new U.S. sanctions targeting in Cuba?
The new U.S. sanctions target several key sectors of the Cuban economy, including energy, defense, metals and mining, financial services, and security.
How might Sherritt be affected by these sanctions?
Sherritt may be affected by secondary sanctions on foreign financial institutions that deal with blocked Cuban entities, potentially impacting its business model.
What financial actions has Sherritt taken in response to its challenges?
Sherritt secured a private placement of up to $50 million and obtained a court order to extend debt maturities to address its financial needs.