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 the activities of mining and processing at Moa recommence and the feed pipeline to the refinery is reconstructed. Notably, there have been no job losses as a result of 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 at the earliest opportunity. Meanwhile, the refinery continues its production of fertilizers and sulphuric acid for resale. Additionally, maintenance activities are 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 U.S. restrictions on oil access from Venezuela in January. Colin Fagan, representing the Fort Saskatchewan chamber of commerce, acknowledged the various economic challenges faced by Alberta’s Industrial Heartland in recent years, citing external influences beyond regional and national 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 subsequently transported to the refining facilities in Alberta. Richard Hiller, the director of the Energy Futures Lab, highlighted the significance of the Sherritt refinery as one of the oldest processing projects in North America, producing high-grade cobalt, a strategic asset in the sector’s growth.
In the midst of these developments, Sherritt is engaged in discussions with its lenders concerning its financial obligations. The company has expressed concerns about the potential inability to repay its debts if accelerated by creditors, leading to uncertainties regarding refinancing or debt extension under current conditions.
Furthermore, Sherritt has entered into a non-binding agreement with Gillon Capital LLC, a family office associated with a former Trump administration adviser, outlining a potential majority stake acquisition by Gillon in the company. Sherritt’s refinery facilities in Fort Saskatchewan boast an annual production capacity of approximately 38,200 tonnes of nickel and cobalt.
As the company navigates these challenges, the future of its operations and financial outlook remains subject to ongoing developments and negotiations.