Sherritt International Corp. has announced the temporary closure of its Fort Saskatchewan refinery in Alberta due to the depletion of feed inventory from its Moa mine in Cuba. The company stated that operations will remain halted until mining and processing activities resume at the Moa mine and the refinery feed pipeline is reconstructed. Notably, no jobs were lost as a result of these operational challenges.
A spokesperson from Sherritt mentioned to CBC News that efforts are underway to restore the feed pipeline promptly. In the meantime, the refinery continues to produce fertilizers and sulphuric acid for resale, with maintenance plans in place to fully engage the Alberta workforce.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were put on hold due to fuel shortages in the country following the U.S. embargo on oil from Venezuela. Colin Fagan, of the Fort Saskatchewan chamber of commerce, acknowledged the economic difficulties faced by Alberta’s Industrial Heartland in recent years, citing external economic pressures.
Before the suspension, Sherritt’s joint venture saw the extraction and processing of ore into mixed sulphide precipitate with nickel and cobalt, which was then transported to Alberta for refining. The Sherritt refinery, a prominent processing facility in North America, is known for producing high-grade cobalt.
Amid discussions with lenders, Sherritt cautioned that it may not be able to repay its debt if accelerated by creditors before the maturity date, raising uncertainties about refinancing options. The company has entered into a non-binding agreement with Gillon Capital LLC, aiming for the acquisition of a majority stake in Sherritt.
Sherritt’s Fort Saskatchewan refinery facilities have an annual production capacity of approximately 38,200 tonnes of nickel and cobalt.
