Sherritt International Corp. has announced the closure of its Fort Saskatchewan refinery in Alberta due to the depletion of feed inventory supplied by its Moa mine in Cuba. The company stated that operations will remain suspended until mining and processing activities resume at Moa and the refinery feed pipeline is reconstructed. Despite the challenges, no jobs were impacted by the shutdown.
A spokesperson for Sherritt informed CBC News that efforts are ongoing to restore the feed pipeline promptly. Meanwhile, the refinery continues to manufacture fertilizers and sulphuric acid for sale, with maintenance plans in place to fully engage the Alberta workforce.
Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were halted as the country faced fuel shortages following the cessation of oil supply from Venezuela. Colin Fagan from the Fort Saskatchewan chamber of commerce mentioned the economic hurdles the region has encountered over the past decade due to external factors.
The joint venture involved mining and processing ore into mixed sulphide precipitate containing nickel and cobalt, transported to Alberta for refining. The Sherritt refinery, considered one of North America’s oldest processing projects, specializes in producing high-grade cobalt, a crucial asset amidst industry expansion initiatives.
As the company engages in discussions with lenders, it acknowledged potential challenges in repaying debt earlier than scheduled, affecting its ability to refinance under current conditions. Sherritt recently entered a non-binding agreement with Gillon Capital LLC, led by a former Trump administration adviser, for a majority stake acquisition.
Sherritt’s Fort Saskatchewan refinery facilities boast an annual production capacity of approximately 38,200 tonnes of nickel and cobalt, as per company data.