Canada's Sherritt Obtains U.S. License to Procure Fuel for Cuba's Moa Nickel Mine

en.Wedoany.com Reported - On October 20, Canadian mining company Sherritt International announced that it had obtained a specific license from the U.S. Department of the Treasury's Office of Foreign Assets Control authorizing the procurement and transportation of fuel, fuel oil, and sulfur for the Moa nickel-cobalt mining and processing facilities in Cuba. The license covers the sale, export, delivery, settlement, and associated logistics services for the relevant goods. The company plans to ship the first batch of fuel in the fourth quarter of 2026 in preparation for resuming operations at the suspended mining and processing operations.

The license also applies to Sherritt's designated fuel suppliers, banks, vessel operators, insurers, and other necessary service providers. The company is organizing the procurement and transportation of the first batch of fuel and has not yet disclosed the cargo volume, procurement amount, suppliers, or loading ports.

The Moa nickel-cobalt project is held 50% each by Sherritt International and Cuban state-owned enterprise General Nickel Company. After the United States expanded sanctions on Cuba-related industries in 2026, Sherritt suspended its direct participation in the Cuban joint venture on May 7 and ceased metal refining operations at its Fort Saskatchewan facility in Alberta, Canada, on June 22.

This fuel supply license is the first emergency authorization required for the mine's resumption. Sherritt is applying for a second emergency license to resume Moa nickel mining, processing, and subsequent refining operations in Canada.

Regarding asset rights issues related to fuel transportation, Sherritt signed a temporary consent agreement with Moa Bay Mining Co. on September 23. The latter agreed to the relevant fuel transportation arrangements, and Sherritt or relevant parties will pay the agreed fees. Both parties also obtained approval from the U.S. Department of the Treasury to perform the transactions and service arrangements under the agreement.

Sherritt is also advancing the license application together with U.S. investment firm Gillon Capital. The two parties signed a non-binding term sheet in May 2026 concerning a potential transaction in which Gillon Capital would acquire a controlling interest in Sherritt. The company is still discussing financing and recapitalization plans with lenders and potential investors.