Sherritt International (TSX:S) has received a specific fuel licence from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) to supply fuel, fuel oil, and sulphur to its Moa Nickel mining and processing operations in Cuba.
The licence is the first in a series of emergency OFAC authorisations needed to restart mining and processing operations at Moa Nickel, as well as downstream processing and refining activities in Canada.
The authorisation covers Sherritt’s licenced fuel supplier, banks, vessel operators, insurance providers, and other ancillary service providers. It permits the sale, transportation, export, delivery, and payment for fuel, fuel oil, and sulphur to Moa Nickel, along with related services.
Sherritt prepared and submitted its licence requests in close coordination with Gillon Capital following a non-binding term sheet dated 19 May 2026. Under the proposed transaction, a US-based investment fund would acquire a controlling interest in Sherritt.
In connection with the licence, Sherritt entered into an interim consent agreement dated 23 September 2026 with Moa Bay Mining, holder of a certified claim relating to Moa Nickel under Title III of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996.
Under the deal, Moa Bay consented to interim fuel shipments in exchange for consent fees payable by or on behalf of Sherritt, and agreed not to bring claims against covered participants regarding authorised shipments. Sherritt and Moa Bay also obtained separate OFAC authorisation required under the agreement.
Sherritt previously suspended its direct participation in Cuban joint venture activities on 7 May 2026 following Executive Order 14404 expanding US sanctions. The company subsequently ceased metals refining at its Fort Saskatchewan facility in Alberta on 22 June 2026.
While the fuel licence and initial shipment allow Moa Nickel to meet essential fuel requirements and prepare for a restart, resuming operations remains subject to a second OFAC emergency licence.
Sherritt continues to operate under constrained liquidity conditions and faces material uncertainty that casts significant doubt on its ability to continue as a going concern. Satisfaction of supplier and stakeholder obligations remains dependent on securing additional financing and completing a broader recapitalisation transaction.
Finalisation of the initial fuel shipment is underway, with dispatch expected in Q4 2026.
Sherritt International is a Canadian mining and energy company known for mining and hydrometallurgical refining of nickel and cobalt. It is also the largest independent energy producer in Cuba.
Write to Paula Fabe at Mining.com.au
Main image: Sherritt International
