Sherritt Withdraws from Cuba Amidst $277 Million Debt

Sherritt International Corporation has announced it will cease all operations in Cuba, despite the substantial debt the country owes the Canadian company.

In an official statement released on their website, the mining firm cited the impact of an Executive Order signed by President Donald Trump on May 1, 2026. This order expanded U.S. sanctions against Cuba and introduced secondary sanctions targeting foreign companies working with Cuban entities under blockade.

Listed on the Toronto Stock Exchange under the symbol "S," the Canadian company explained that, "after careful consideration," it concluded that "the only way to preserve its business capabilities is to exercise its dissolution rights under the Moa Shareholders Agreement and promptly implement the related steps."

The company had already halted its direct involvement in joint operations in Cuba on May 7, just days following the executive order.

Now, Sherritt is making a decisive move to completely sever ties with the island, even though Cuba owes it $277 million.

Sherritt's Strategic Exit

Sherritt's primary asset in Cuba is the Moa Joint Venture, a 50/50 partnership with the Cuban state-run General Nickel Company S.A. (GNC), focused on the mining, processing, and refining of nickel and cobalt for global sales.

The goal of the dissolution is for Sherritt to become the sole owner of the refinery in Saskatchewan, Canada, while GNC retains the Cuban corporations involved in the joint venture.

Given that the value of the mine in Cuba exceeds that of the Canadian refinery, Sherritt anticipates receiving a market value equalization payment from GNC, in addition to the approximately $277 million already owed by the Cuban state enterprise.

The total debt owed by the Cuban government to Sherritt amounts to at least $344 million.

Impacts on Energy and Oil Ventures

Sherritt also disclosed plans to exit its one-third ownership in Energas S.A., the Cuban joint venture responsible for generating 10% to 15% of the island's electricity, as well as its interests in two oil and gas production-sharing contracts and a drilling services contract.

Regarding these assets, the company stated unequivocally: "Sherritt anticipates receiving no compensation for these interests."

To expedite a process that could last "a minimum of several months and possibly several years," Sherritt has sought interim measures from the Court of King's Bench of Alberta, with a hearing scheduled for Tuesday, May 19.

Financial and Operational Challenges

The crisis worsened with Deloitte LLP's resignation as the company's external auditor, effective May 12, amid a climate where new sanctions discourage auditing firms from working with Sherritt.

The company warned it was unable to file its first-quarter financial statements by the May 15 deadline, potentially leading to a trading suspension order by the Ontario Securities Commission.

Sherritt's departure marks the end of a three-decade presence in Cuba. The company was once dubbed "Castro's favorite capitalist" because of its willingness to invest in the island despite Washington's pressure, which included barring company executives from entering U.S. territory.

Nickel production in Moa had dropped from 34,876 tons in 2021 to 25,240 tons in 2025, and operations were already temporarily suspended in February 2026 due to fuel shortages reported by Cuban authorities.

Sherritt has informed Cuban authorities of its intention to take these steps but cautioned that "there is no certainty that these outcomes will be realized."