The Sherritt mine in Cuba is set to close due to the U.S. oil blockade, causing significant disruptions to the mining and refining operations of Sherritt International Inc. The company, based in Toronto, has announced plans to halt mining activities and put its processing plant on standby within the next week due to a lack of fuel. This decision could impact the company's refinery in Fort Saskatchewan, Alberta, which relies on materials imported from Cuba for nickel and cobalt production. Sherritt's inventory can sustain production at the Fort Saskatchewan refinery until mid-April. The company's operations in Cuba have faced challenges even before the fuel blockade, including cost overruns and power outages. The U.S. oil blockade, imposed in January, has exacerbated the energy crisis in Cuba, leading to rolling blackouts, hospital closures, and trash accumulation in the streets. The blockade aims to topple Cuba's Communist government, causing a severe impact on the country's energy supply. The National Bank Financial analyst, Shane Nagle, predicts that the fuel constraints could result in lost production for the year, with each week of shutdown negatively affecting Sherritt's earnings by $300,000. Despite the challenges, Sherritt's power operations in Cuba, conducted with Energas SA, are unaffected. The company's shares experienced a 16% drop on the Toronto Stock Exchange after the announcement. Sherritt is actively managing expenditures and exploring temporary funding options to maintain financial stability during this crisis.
