Sherritt International Corp. has ceased operations at its refinery in Fort Saskatchewan, Alberta, as it has depleted its feed inventory supply from the Moa mine in Cuba. The company stated that the shutdown will persist until mining and processing activities resume at Moa and the refinery feed pipeline is reconstructed. Fortunately, no jobs were affected by the operational issues.
A spokesperson for Sherritt mentioned to CBC News that the company is actively working on rebuilding the feed pipeline promptly. During this period, the refinery continues to generate fertilizers and sulphuric acid for sale, with maintenance plans in place that will fully engage Sherritt’s workforce in Alberta.
The pause in operations at Sherritt’s Moa joint venture in Cuba occurred earlier this year due to fuel shortages in the country following the U.S. halting oil access from Venezuela in January. Colin Fagan from the chamber of commerce in Fort Saskatchewan noted the challenges faced by Alberta’s Industrial Heartland in recent years, emphasizing external economic influences.
Before the suspension, Sherritt’s joint venture involved mining and processing ore into mixed sulphide precipitate containing nickel and cobalt, which was then sent to Alberta’s refining facilities. Richard Hiller, the future materials alliance director at the Energy Futures Lab, highlighted the strategic importance of the Sherritt refinery, being one of the primary producers of battery-grade cobalt in North America.
Amid discussions with lenders, Sherritt acknowledged potential difficulties in repaying its debts earlier than scheduled, raising uncertainties about refinancing options under the current conditions. Additionally, the company has entered a non-binding agreement with Gillon Capital LLC, a family office associated with a former Trump administration adviser, to acquire a majority stake in Sherritt.
Sherritt’s Fort Saskatchewan refinery facilities boast an annual combined production capacity of around 38,200 tonnes of nickel and cobalt, as per information on the company’s website.