In a recent development, Vicente de la O Levy, Cuba's Minister of Energy and Mines, expressed the Cuban government's willingness to sustain its mining collaboration with Sherritt International. This openness is contingent upon a potential deal that could introduce U.S. capital associated with a businessman close to former President Donald Trump into the Canadian company.
During an interview with Reuters released this Monday, the minister highlighted that Cuba might keep operating under the current joint venture agreements. However, he emphasized that any resumption of production would necessitate addressing the existing challenges that impact the business.
"We have always been clear that what the American company would purchase are shares of Sherritt, not of the joint venture," stated De la O Levy. "The Canadian company is publicly traded, and any investor has the right to acquire its shares."
These remarks place Havana in a politically sensitive position: maintaining a strategic enterprise with capital linked to the sphere of the very U.S. president whose sanctions it criticizes.
Trump-Linked Businessman and Pending Deal
In May, Sherritt disclosed a preliminary, non-binding agreement with Gillon Capital, a Dallas-based firm linked to Ray Washburne, a businessman who chaired the Overseas Private Investment Corporation during Trump's first term. The proposal would enable Gillon to acquire 55% of Sherritt's common shares. In June, both parties formalized a 120-day exclusivity period to negotiate the transaction, subject to regulatory approvals.
Although De la O Levy differentiates between purchasing Sherritt's shares and directly acquiring the joint venture, the deal would grant the investor control over the Canadian company, which holds a 50% stake in the Moa business with the state-owned General Nickel Company.
Gillon isn't the sole suitor. In August, CiberCuba reported a competing offer backed by Texan magnate Albert Huddleston, along with Glencore, Kyma Capital, and other investors.
Cuba's Intent to Persist Despite Challenges
Sherritt halted its direct involvement in Cuban operations on May 7, following the expansion of U.S. sanctions. The crisis also affected its Fort Saskatchewan refinery in Canada, which ceased operations in June.
De la O Levy reiterated that Cuba aims to remain in the nickel and cobalt industry, yet he acknowledged that the entry of a new investor would not automatically resolve the standstill. "Any restart would require discussions on how to supply fuel and parts, as well as managing payments for exports and production inputs," he informed Reuters.
The minister's willingness does not equate to a formal approval of the acquisition nor does it confirm its completion. Reuters noted that neither Sherritt nor Gillon immediately responded to their requests for comments on the minister's statements.
Key Questions about Cuba's Mining Ventures
What is the current status of Sherritt's operations in Cuba?
Sherritt suspended its direct operations in Cuba on May 7 following the expansion of U.S. sanctions. The company is currently negotiating potential deals to resume operations.
Who is Ray Washburne, and how is he connected to this deal?
Ray Washburne is a businessman who chaired the Overseas Private Investment Corporation during Trump's first term. His firm, Gillon Capital, is involved in a potential deal to acquire a majority stake in Sherritt.
What challenges does Cuba face in restarting its mining operations?
Cuba faces challenges such as supplying fuel and parts, managing payments for exports, and addressing production inputs, which must be resolved for operations to resume.