Canadian firm Sherritt International faces challenges in its Cuban mining operations due to reliance on Venezuelan oil, which could be cut off by US policies. Additionally, its natural gas production for Havana is declining, impacting the capital's energy supply.
Canadian company Sherritt International operates nickel and cobalt mines in Moa, Holguín, relying on imported fuel for its activities. US businessman William Pitt notes that these mines have been the company's economic backbone, but now face severe difficulties. Pitt calls Sherritt "the best foreign investment Cuba has ever had," though he points out that its power plants and gas wells, partnered with state-owned Energas, no longer provide the country's most reliable energy services.
The firm has incurred significant losses recently. In the second quarter of 2025, it reported losses of $43.7 million, down from $51.4 million the previous year, alongside sharp production drops and cuts to its Canadian workforce. These stem from deteriorating operating conditions in Cuba, including blackouts, fuel shortages, and natural disasters.
The executive shake-up underscores the crisis: Leon Binedell, appointed in June 2021, was replaced on an interim basis by Peter Hancock, a veteran with over 35 years at Glencore plc, on December 8. Sherritt's statement highlights that Binedell navigated "one of the most challenging periods in its history," advancing efforts like the Moa joint venture expansion and debt agreements.
US President Trump's threat to halt Venezuelan oil supplies to Cuba worsens matters, particularly after the January 3 capture of Nicolás Maduro and Cilia Flores. Sherritt's plants in Boca de Jaruco and Varadero have been vital in restoring national electricity during system collapses since late 2024, but have faced repeated shutdowns due to breakdowns.
Moreover, Sherritt produces all the piped natural gas for Havana from wells near Varadero, Puerto Escondido, and Boca de Jaruco. Disruptions to the company would affect residents in areas like Plaza de la Revolución and Cerro, pushing them to cook with charcoal or wood if gas and power fail, Pitt concludes.
