Sherritt International Corp. has made the decision to cease operations at its refinery located in Fort Saskatchewan, Alberta. The shutdown is a result of the depletion of the feed inventory supplied by its Moa mine in Cuba. The company has announced that operations will remain halted until the mining and processing activities at Moa recommence, and the refinery feed pipeline is reconstructed. Fortunately, no job losses have occurred due to these operational challenges.
A spokesperson from Sherritt stated to CBC News that the company is actively working on a plan to restore the feed pipeline promptly. Meanwhile, the refinery is still engaged in producing fertilizers and sulphuric acid for resale. Additionally, maintenance activities have been scheduled to fully engage Sherritt’s workforce in Alberta.
Earlier this year, Sherritt’s Moa joint venture in Cuba was put on hold due to fuel shortages in the country following the U.S. embargo on Venezuelan oil in January. Colin Fagan, representing the Fort Saskatchewan chamber of commerce, acknowledged the economic difficulties faced by Alberta’s Industrial Heartland in recent years, citing external economic forces beyond regional control.
Prior to the pause in operations, Sherritt’s joint venture involved mining and processing ore into mixed sulphide precipitate containing nickel and cobalt, which was then transported to the refining facilities in Alberta. The Sherritt refinery, recognized as one of the oldest processing projects in North America, is a key producer of high-grade cobalt in the region, according to Richard Hiller, the future materials alliance director at the Energy Futures Lab.
Sherritt is currently in discussions with its lenders regarding its financial position. The company has expressed concerns about its ability to repay its debts in full should they become due earlier than anticipated due to creditor acceleration. The uncertainty surrounding its debt refinancing or extension under the current circumstances remains a challenge.
In a strategic move, Sherritt has entered into a non-binding agreement with Gillon Capital LLC, a family office associated with a former Trump administration adviser. The agreement outlines the potential acquisition of a majority stake in Sherritt by Gillon. As per company information, Sherritt’s refinery facilities in Fort Saskatchewan have an annual production capacity of approximately 38,200 tonnes of nickel and cobalt.