Sherritt International Corp. has ceased operations at its Fort Saskatchewan refinery in Alberta due to the depletion of feed inventory from its Moa mine in Cuba. The company stated that operations will remain halted until mining and processing activities resume at Moa and the refinery feed pipeline is reconstructed. Fortunately, no jobs were affected by the operational disruptions.
A spokesperson for Sherritt mentioned that the company is actively working on re-establishing the feed pipeline. In the interim, the refinery is still producing fertilizers and sulphuric acid for sale, with maintenance plans in place to fully utilize the Alberta workforce.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were paused due to fuel shortages in the country after the U.S. halted oil access from Venezuela in January. Colin Fagan from the Fort Saskatchewan chamber of commerce highlighted the economic challenges faced by Alberta’s Industrial Heartland in recent years, attributing them to external economic factors.
Before the pause, Sherritt’s joint venture involved mining and processing ore into mixed sulphide precipitate containing nickel and cobalt, which was then sent to the Alberta refining facilities. Richard Hiller from the Energy Futures Lab noted that the Sherritt refinery is a key asset in North America, being the sole producer of battery-grade cobalt.
As Sherritt engages in discussions with its lenders, concerns have been raised about its ability to repay debts under accelerated terms. The company mentioned uncertainties regarding refinancing or extending debts given the current circumstances.
Sherritt has entered a non-binding agreement with Gillon Capital LLC, a family office associated with a former Trump administration adviser, for a potential majority stake acquisition. The preliminary deal involves Gillon holding a warrant to purchase enough shares to secure a 55% ownership in Sherritt.
The annual production capacity of Sherritt’s refinery facilities in Fort Saskatchewan is approximately 38,200 tonnes of nickel and cobalt.