Sherritt Suspends Moa Joint Venture Operations in Cuba Over Fuel Shortage

Sherritt International said it has been notified by Cuban authorities that "fuel deliveries planned for (the plant in) Moa will not be fulfilled and that the date for resuming deliveries is unknown at the time," prompting the company to expect a pause in mining and to place the Moa processing plant on standby within the next week. The company added that it will use downtime to carry out "planned maintenance activities will be performed."

The Toronto‑based miner said the interruption follows fuel supply constraints on the island, and the company is "actively engaging with relevant counterparts and evaluating all options for sourcing input commodities." Sherritt further warned that the timeline for resuming deliveries is unknown and that it will update its 2026 business forecasts once there is greater certainty about the supply chain and the timeline for fully resuming operations in Cuba.

Sherritt stressed there is no immediate impact on its Fort Saskatchewan, Alberta refinery, saying "Currently, there is no immediate impact on operations in Fort Saskatchewan, Alberta" and that inventory there "is expected to last until about mid‑April." The company also reported that operations at its Energas SA energy joint venture in Cuba are continuing as planned with no reported effect from the fuel shortfall.

The halt at Moa affects a long‑running joint venture with a Cuban state counterpart that has operated for roughly three decades; the venture is one of the largest foreign investments on the island and runs nickel and cobalt extraction and processing in eastern Cuba. Cuba's nickel reserves are a strategic resource for battery and energy transition markets, and Sherritt operates the joint venture that feeds its North American refinery network.

Sherritt entered the pause amid a difficult financial backdrop: the company reported a net loss of US$15.8 million in Q4 2025 and a US$65.7 million loss for the full year 2025, and MarketScreener flagged that adjusted losses expanded 36% year‑on‑year in Q4. Interim chief executive Peter Hancock, who said Moa’s performance "fell well short of Sherritt’s standards," told investors the company has launched a turnaround and that "While we expect it will take time to see the full benefits, we're confident this plan will stabilize production and position us for stronger performance."

Markets reacted sharply to the news: MarketScreener showed Sherritt shares trading at 0.1650 CAD, down -19.51% at 11:40:35 AM EST on Feb. 17, with a five‑day change of -25.00% and a year‑to‑date change of -23.26%. Analysts and partners will be watching the mid‑April inventory horizon at Fort Saskatchewan and the company’s stated efforts to secure alternate fuel and input supply routes.

Key operational unknowns remain unreported: the exact start date of any pause versus an immediate suspension on the ground at Moa, the tonnage of nickel and cobalt production to be affected, the number of employees who will be stood down or reassigned for maintenance, and whether force majeure or contractual notices will be issued to offtake partners. Sherritt has said it will provide updates once it has greater certainty on resumption and supply‑chain timelines.