MIAMI, United States — Canadian mining company Sherritt International Corporation has once again voiced concern over the ongoing financial and operational difficulties it faces in Cuba, despite progress in the second phase of the expansion of its joint venture in Moa.
In its financial report for the second quarter of 2025, the company warns of payment delays, the Cuban government’s limited access to foreign currency, and structural risks affecting the sustainability of its operations on the island.
According to the document, between April and June of this year Sherritt recovered only $6 million out of the $14 million billed to its Cuban partner. This situation raised the company’s outstanding debt balance to $344.1 million at the close of the quarter, compared to $368.4 million recorded in December 2024.
“The company continues to face restrictions on the Cuban government’s access to foreign currency, which has limited payments on its receivables,” the report emphasizes. It also warns that, despite a payment plan having been established with the island’s authorities, “the pace of recovery remains uncertain.”
Sherritt explains that cash payments from Cuba are used primarily to cover immediate operating commitments, such as “plant maintenance, the purchase of supplies, and servicing local debts,” while transfers to cover dividends and loans owed to its foreign partners have fallen behind. The company notes that its ability to repatriate funds from Cuba “is subject to the availability of foreign currency in the country and to government decisions.”
Added to this is operational fragility. During the quarter, Sherritt’s attributable production was only 1,700 tons of nickel and 200 tons of cobalt, a decline compared to the same period in 2024. The company attributes the drop to “scheduled maintenance shutdowns and operational bottlenecks,” including the installation of new systems as part of its expansion program, delays in which have hurt performance.
Although the company reports a reduction in unit production costs at the Moa plant — from $7.21 to $5.38 per pound of nickel — it does not hide its concern about the volatility of the Cuban context. In its own words: “Any operational improvement is conditioned on the stability of the country’s economic conditions and on the state partner’s ability to meet its financing and foreign currency commitments.”
In this regard, Sherritt acknowledges that local inflation, the devaluation of the Cuban peso, and logistical challenges pose constant threats to the continuity of the project. Despite its partnership with the Cuban state-owned General Nickel Company, Sherritt makes it clear that the economic risks of the environment are beyond its control and directly affect the planning and execution of its operations.
Another critical point in the report is that the outstanding debt owed to the company from Cuba “does not accrue interest and is not secured by specific assets,” which represents a significant financial risk. Although the company has continued to receive partial payments, it states that it cannot guarantee when — or even if — the full amount owed will be recovered.
Regarding the second phase of the Moa expansion — which includes an ammonium sulfate plant and acid recovery systems — Sherritt announced that startup has begun but has not yet reached commercial production, something it expects to achieve in the third quarter of the year. However, it warns that any further delay could affect projected annual volumes, which would intensify tensions with its partners and creditors.
Despite these warnings, the company is, for now, maintaining its production guidance of between 6,800 and 7,200 tons of nickel and between 800 and 900 tons of cobalt for 2025. Nevertheless, the tone of the report is clear: the continuity and profitability of its operations in Cuba depend on factors beyond corporate control and directly tied to the country’s deep economic crisis.
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