Sherritt International Corp. has decided to suspend operations at its refinery in Fort Saskatchewan, Alberta. The halt is a result of the depletion of the feed inventory supplied from its Moa mine in Cuba. The company stated that the shutdown will be in effect until mining and processing activities resume at Moa, and the refinery feed pipeline is reconstructed. Fortunately, there have been no job losses due to these operational challenges.
A spokesperson for Sherritt mentioned to CBC News that efforts are ongoing to rebuild the feed pipeline promptly. In the meantime, the refinery is still actively producing fertilizers and sulphuric acid for resale. Plans are also in place for maintenance activities that will engage Sherritt’s workforce in Alberta to the fullest.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were put on hold due to fuel shortages in the country following the U.S. sanctions cutting off access to Venezuelan oil. Colin Fagan from the Fort Saskatchewan chamber of commerce acknowledged the region’s economic struggles over the past decade, largely influenced by external economic forces.
Before the temporary pause, Sherritt’s joint venture involved mining and processing ore into mixed sulphide precipitate containing nickel and cobalt, which were then transported to the Alberta refining facilities. The Sherritt refinery is recognized as one of the oldest processing projects in North America, producing high-grade cobalt. Richard Hiller, the future materials alliance director at the Energy Futures Lab, emphasized its strategic importance in the current industry landscape.
Sherritt is currently in discussions with its lenders as uncertainties loom over its ability to repay a significant portion of its debt if accelerated by creditors. The company’s prospects for refinancing or extending its debt under the prevailing conditions remain uncertain.
Furthermore, Sherritt has entered into a non-binding agreement with Gillon Capital LLC, the family office of a former Trump administration adviser, for a majority stake acquisition. The preliminary deal entails Gillon holding a warrant to purchase sufficient shares to secure a 55% ownership stake in Sherritt.
The refinery facilities in Fort Saskatchewan have an annual production capacity of approximately 38,200 tonnes of nickel and cobalt, according to Sherritt’s official website.
