Sherritt halts plan to dissolve Cuba nickel mining venture amid U.S. sanctions

A dog crosses a street adorned with a Cuban flag and a 26-July movement flag in downtown Havana, Cuba. (AP Photo/Desmond Boylan)

Canadian miner Sherritt International said on Tuesday it would not proceed with plans to dissolve its Cuban interests, including a joint venture with a state-owned nickel company, reversing a decision announced earlier this month after the U.S. imposed sanctions on the joint venture.

The Trump administration has laid siege to Cuba since January, enforcing a de facto fuel blockade, issuing threats of military action and ramping up sanctions that have forced foreign businesses, including Sherritt, to flee.

• Sherritt said it would not seek approval from the Court of King’s Bench of Alberta to dissolve and disclaim its interests in Cuba, including the Moa Nickel SA joint venture between it and state-owned General Nickel Company S.A.
• However, the Toronto-based company said it would maintain its suspension of direct participation in joint venture activities in Cuba while it continues talks on how to respond to expanded U.S. sanctions.
• The company warned that, unless the situation is resolved, it faces acute operational, financial and legal difficulties, including its ability to comply with debt covenants.
• Earlier this month, the U.S. imposed financial sanctions on a sprawling business conglomerate run by Cuba’s military and the Moa Nickel SA venture.
• The sanctions aimed to ramp up pressure on the island’s communist leaders by targeting sources of foreign investment.
• Sherritt said it was also evaluating “a potential value preserving opportunity,” but there was no assurance that a transaction would hieved in a timely manner.
• The Moa Nickel SA joint venture between Sherritt International and Cuba’s state-owned nickel company mines nickel and cobalt, and is a key source of Cuba’s foreign exchange.

(Reporting by Dharna Bafna in Bengaluru; Editing by Sahal Muhammed)