Sherritt International Corp. has made the decision to cease operations at its refinery located in Fort Saskatchewan, Alberta. This action follows the depletion of the feed inventory supplied from its Moa mine in Cuba.
The company has confirmed that the shutdown will persist until mining and processing operations at Moa recommence and the refinery feed pipeline is reconstructed. Notably, there have been no job losses as a result of these operational challenges.
A spokesperson for Sherritt stated to CBC News that the company is actively working on a plan to restore the feed pipeline promptly. In the interim, the refinery continues to manufacture 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 halted due to fuel shortages in the country following the discontinuation of Venezuelan oil access by the U.S. Colin Fagan, representing the chamber of commerce in Fort Saskatchewan, acknowledged the region’s economic struggles over the past decade, influenced by various external factors.
Before the pause, Sherritt’s joint venture 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. The Sherritt refinery, recognized as one of North America’s oldest processing projects, is highlighted for its production of high-grade cobalt.
Amid discussions with its lenders, Sherritt has expressed concerns about its ability to repay its debt if accelerated by creditors before its maturity date. The company also indicates uncertainties regarding refinancing or extending its debt in the current circumstances.
Sherritt has entered into a non-binding agreement with Gillon Capital LLC, associated with a former Trump administration adviser, to potentially acquire a majority stake in the company through a preliminary private placement deal. The company’s refinery facilities in Fort Saskatchewan boast an annual combined production capacity of approximately 38,200 tonnes of nickel and cobalt.
