Sherritt International Corp. has made the decision to halt operations at its Fort Saskatchewan refinery in Alberta due to the depletion of feed inventory supplied from its Moa mine in Cuba. The company has stated that the shutdown will persist until mining and processing activities resume at the Moa site and the refinery feed pipeline is reconstructed. Despite the operational challenges, Sherritt assured that no jobs were impacted by the shutdown.
A spokesperson for Sherritt informed CBC News that the company is actively working on a plan to restore the feed pipeline at the earliest opportunity. In the interim, the refinery continues to produce fertilizers and sulphuric acid for resale, with maintenance activities scheduled to fully engage Sherritt’s workforce in Alberta.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were paused in light of fuel shortages faced by the country, following the U.S. restriction on Venezuelan oil access. Colin Fagan from the Fort Saskatchewan chamber of commerce acknowledged the region’s economic challenges over the past decade, impacted by external economic factors beyond local control.
Sherritt’s joint venture in Cuba involved the extraction and processing of ore into mixed sulphide precipitate containing nickel and cobalt, which was subsequently transported to the refining facilities in Alberta. Richard Hiller, from the Energy Futures Lab, highlighted the strategic significance of the Sherritt refinery as a key producer of battery-grade cobalt in North America.
The refinery shutdown coincides with Sherritt’s discussions with its lenders regarding debt repayment uncertainties. The company disclosed that it could face difficulties repaying its debt if accelerated by creditors, with uncertainties surrounding debt refinancing or extension under the current conditions.
Sherritt has entered a non-binding agreement with Gillon Capital LLC, a family office associated with a former Trump administration adviser, to potentially acquire a majority stake in the company. A preliminary private placement deal outlines Gillon’s opportunity to hold a warrant allowing the acquisition of enough shares to secure a 55% ownership stake in Sherritt.
The Fort Saskatchewan refinery facilities under Sherritt’s management boast an annual production capacity of approximately 38,200 tonnes of nickel and cobalt, as per information available on the company’s website.
