Cuba fuel crunch clouds Sherritt’s operations

Sherritt International (TSX: S; US-OTC: SHERF), a Toronto-based miner whose fortunes are closely tied to Cuba via its Moa nickel-cobalt mine, is facing uncertainty amid a deepening fuel crisis on the island.

A U.S.-driven embargo has effectively choked off Venezuelan oil exports to Cuba, which faces its own sanctions from America. The lack of Venezuelan crude and refined products, long the island’s main fuel lifeline, threatens industrial activity, air travel and electricity supply. It’s already forced major Canadian carriers, including Air Canada, WestJet and Air Transat, to suspend or curtail flights.

Sherritt operates at Moa in eastern Cuba in a 50/50 venture with Cuba’s state partner the General Nickel Company. Sherritt also holds power generation assets on the island through Energas that have historically underpinned electricity supply.

Moa provides much of the company’s nickel and cobalt feedstock, which is processed in Alberta and sold globally. The company flagged lower output at Moa and higher costs on a conference call Wednesday about 2025 results.

No impact

“To date, our operations have not been impacted,” CEO Peter Hancock said on the call. “We continue to monitor developments and work closely with our joint venture partner to anticipate and respond quickly, proactively and decisively to risks.”

Shares in Sherritt International fell 11% to 20¢ apiece by mid-Thursday in Toronto, valuing the company at $104.4 million. They’ve traded in a 52-week range of 12¢ to 29¢.  

“Historically, resources for the country’s mining industry are prioritized in Cuba,” Hancock said. “We have a track record of navigating complex operating environments throughout the 30-year history of the Moa joint venture.”

The company cited logistical headwinds and plant disruptions as it works to restore production toward its 2026 goal of roughly 30,000–32,000 tonnes of contained nickel and cobalt on a 100% basis. Management has said operational performance last year was below expectations and stressed the need for a structured turnaround plan.

The oil crunch highlights vulnerabilities for companies like Sherritt that depend on imported fuel to run heavy-equipment fleets, generators and processing plants. It’s operating amid a confluence of geopolitical pressure, supply constraints and operational headwinds.