01 September 2025

The Canadian miner Sherritt International Corporation which mines nickel and cobalt in Cuba then refines it, has reported to investors that in the six months ended 30 June 2025, the operating environment in Cuba and hardening US policies have impacted negatively on its operations.

Leon Binedell, the Executive Chairman, President and CEO of Sherritt, said in a statement, “Extensive challenges within Cuba’s operating environment spurred by the escalating US policies against Cuba are continuing unabated.” These, he reported, had “directly impacted our Cuban operations and particularly at Moa, resulting in lower-than-expected production of mixed sulphides.”

He also noted in a second quarter report and guidance, that a shortage of skilled labour, and frequent blackouts contributed to a deterioration in results causing the company to revise its production forecasts for 2025 downward, from 33,000 to 27,000 tons of nickel, and from 3,600 to 3,000 tons of cobalt.

Looking ahead, Binedell was more optimistic. Observing that the company with its Cuban partners had previously been able to address setbacks, he said that Sherritt had implemented mitigation strategies to protect its interests and operations in Cuba. “We have confidence that we will overcome the current situation; however, it may take additional time to resolve these near-term challenges and to meet our full expansion potential at Moa,” he stated.

However, noting that in the short term the company’s ability to supplement the feed of mixed sulphides from its Moa joint venture to its refinery in Canada utilising inputs from China was very limited for reasons of cost, he told investors Sherritt’s metals production guidance for 2025 was being adjusted to reflect this reality.

Speaking about the company’s actions in Cuba to address the difficulties facing the 50/50 joint venture with its Cuban partnerCompania General de Niquel, he said that in addition to the recovery plan being implemented, Sherritt would now provide additional expatriate personnel at Moa, and a replacement gas well would be drilled by CUPET to maintain power production at its Energas SA joint venture. The company would also, he noted, implement significant cost reduction measures at Sherritt‘s operations in Canada, saving approximately C$20mn (US$14.5mn) annually in addition to the C$17mn (US$12.3mn) cost reduction measures introduced in 2024.

“While the nickel price remains under pressure, we expect our corrective actions and the completion of the Moa JV’s phase two expansion to translate into stronger performance ahead,” Sherritt’s CEO told investors. It “remains confident that the strategy adopted and long-term outlook will enable it to capitalise on a market recovery,” he said.

In a press release Binedell indicated that finished nickel and cobalt production at the Moa Joint Venture in the second quarter of 2025 was 3,431 tonnes and Sherritt’s share was 389 tonnes. Electricity production in the same period by Energas SA at its Varadero facility, he noted, was 176 GWh with the facility continuing to provide frequency control to help support the stability of the Cuban national power grid. Sherritt holds a 33.3% interest in Energas SA with Unión Eléctrica (UNE) and Cubapetróleo (CUPET).

In other updates on the company’s Cuba operations, Binedell noted:

• Sherritt anticipates higher second half production on the back of the commissioning and ramp up of a sixth leach train at Moa, and the implementation of a recovery plan, with the agreement of its joint venture partners, see greater expatriate involvement in the recovery of production.

• A new tailings facility is expected to be commissioned in the second half of 2026.

• Phase two of the Moa JV expansion is in the final stage of commissioning. Ramp up is expected in the second part of 2025.

• Energas’ service to support the stability of the Cuban electricity grid is expected to be fully paid for throughout 2025.

• Cuba Petróleo (CUPET) is undertaking work to replace declining gas production from one of its legacy wells. Lower gas production from a compromised gas well is being partly offset by increased gas production from a new well that came online in the fourth quarter of 2024, with the replacement well expected to be in production in the third quarter of 2025.

• The interruption of gas supply from a legacy CUPET well is now expected to see estimated electricity production for the year at the lower end of the 2025 guidance range of 800 GWh to 850 GWh.

Highlights in this issue:

• Fall in Canadian visitor arrivals slowing but overall visitor numbers still 23% down at end of July
• Analysis suggests worst ever Cuban sugar harvest in over a century
• Unspent wages to be distributed to some state workers to retain their commitment
• Russia considering creating a logistics hub at Mariel for LAC trade
• Vietnam and Cuba agree to deepen security cooperation

01 September 2025, Issue 1291

The Caribbean Council is able to provide further detail about all of the stories in Cuba Briefing. If you would like a more detailed insight into any of the content of today’s issue, please get in touch