Sherritt halts plan to dissolve Cuba nickel mining venture amid US sanctions

Reuters

Tue, May 19, 2026 at 10:08 AM EDT 1 min read

May 19 (Reuters) - Canadian miner Sherritt International said on Tuesday it would not proceed with plans to dissolve its Cuban ‌interests, including a joint venture with a state-owned nickel company, ‌reversing a decision announced earlier this month after the U.S. imposed sanctions on the joint ​venture.

The Trump administration has laid siege to Cuba since January, enforcing a de facto fuel blockade, issuing threats of military action and ramping up sanctions that have forced foreign businesses, including Sherritt, to flee.

• Sherritt said ‌it would not seek approval ⁠from the Court of King's Bench of Alberta to dissolve and disclaim its interests in Cuba, including the ⁠Moa Nickel SA joint venture between it and state-owned General Nickel Company S.A.

• However, the Toronto-based company said it would maintain its suspension of ​direct participation ​in joint venture activities in Cuba ​while it continues talks on ‌how to respond to expanded U.S. sanctions.

• The company warned that, unless the situation is resolved, it faces acute operational, financial and legal difficulties, including its ability to comply with debt covenants.

• Earlier this month, the U.S. imposed financial sanctions on a sprawling business conglomerate run ‌by Cuba's military and the Moa Nickel ​SA venture.

• The sanctions aimed to ramp ​up pressure on the ​island's communist leaders by targeting sources of foreign investment.

• ‌Sherritt said it was also evaluating "a ​potential value preserving ​opportunity," but there was no assurance that a transaction would hieved in a timely manner.

• The Moa Nickel SA joint venture ​between Sherritt International and ‌Cuba's state-owned nickel company mines nickel and cobalt, and is ​a key source of Cuba's foreign exchange.

(Reporting by Dharna Bafna ​in Bengaluru; Editing by Sahal Muhammed)