A consortium of investors has stepped in to assist Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations in Cuba. The group, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a preliminary recapitalization plan to Sherritt’s board of directors in late June.
The consortium has confirmed that the proposal has been under review by the board and is now being made public to allow shareholders, employees, and other stakeholders to evaluate potential options. If approved, the investors aim to collaborate with Sherritt to strengthen its financial structure and liquidity while safeguarding its assets, including the Fort Saskatchewan refinery in Alberta and its nickel and cobalt processing facilities in North America.
Sherritt had previously disclosed the need for a substantial infusion of capital to resume operations at its Alberta refinery and Cuban joint venture, both of which were impacted by heightened U.S. pressure on Cuba. Discussions with senior lenders and noteholders are ongoing to explore a recapitalization strategy aimed at stabilizing the company’s financial position and resuming normal activities once conditions permit.
The company had ceased operations at its Fort Saskatchewan refinery due to the depletion of feed inventory from its Moa mine in Cuba. Operations at the Moa joint venture were halted earlier this year in response to fuel shortages in Cuba following the U.S. embargo on Venezuelan oil supplies.
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