Sherritt International Corp. announced it has obtained a rare license from the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) to ship fuel, fuel oil, and sulfur to its Moa nickel operations in Cuba. This marks a crucial first step toward restarting production and securing a financial rescue.
The authorization follows a suspension of joint venture activities in Cuba in May and a halt at its Canadian refinery in June, after the U.S. expanded sanctions. The disruption severely deepened Sherritt's financial troubles and liquidity constraints.
The license was secured in cooperation with Gillon Capital, the family office of former U.S. presidential adviser Ray Washburne, which is seeking to acquire a controlling stake in Sherritt. Additionally, Sherritt reached an interim agreement with Moa Bay Mining Co. to resolve a certified U.S. legal claim under the Helms-Burton Act, clearing a major legal hurdle for potential buyers.
However, the current license does not yet authorize mining or processing to resume. Sherritt is seeking further emergency approvals and long-term capital to execute its broader recapitalization, while a rival consortium including Glencore Plc competes for control of the company.
