US sanctions shut Canada’s only cobalt refinery

Sherritt International (TSX: S) has begun shutting down its Fort Saskatchewan refinery after expanded US sanctions on Cuba halted the feedstock supply needed to keep the facility in Alberta, Canada running.

The Toronto-based nickel and cobalt producer said the transition follows previous guidance that refinery operations would continue only until mid-June based on available inventory. The company has implemented shutdown procedures and will retain the personnel and resources required to keep the facility in a safe and secure state while operations remain suspended.

Sherritt said it is preserving cash, managing costs and preparing the refinery for a potential restart while carrying out maintenance work during the shutdown.

The shutdown marks the latest fallout from Washington’s tougher stance on Cuba and highlights the vulnerability of supply chains that depend on the island’s mining sector.

Sherritt mined nickel and cobalt at its Moa joint venture in eastern Cuba and processed the material at its refinery near Edmonton.