Sherritt International received a US Treasury licence to buy and deliver fuel, fuel oil and sulphur to its Moa Nickel operation in Cuba, which US sanctions had forced to stop. A restart still depends on a second licence, and Sherritt faces doubts about its finances.
At a glance
- The licence comes from OFAC, the US Treasury office that enforces sanctions.
- Sherritt expects a first fuel shipment to leave before the end of the year.
- The company says there is significant doubt about its ability to continue as a going concern.
Background
Sherritt International is a Toronto-listed nickel and cobalt refiner. It owns 50% of the Moa joint venture in Cuba with the state-owned General Nickel Company, and refines Moa's output in Canada. US sanctions on Cuba earlier this year disrupted fuel supply and forced Sherritt to halt both mining in Cuba and refining in Canada.
What happened
The US Treasury's Office of Foreign Assets Control (OFAC) granted Sherritt a licence to buy and deliver fuel, fuel oil and sulphur to Moa Nickel, Mining Weekly reported on October 21. The licence also covers the companies that handle the trade for Sherritt, such as its fuel supplier, banks and ship operators.
Sherritt expects the first fuel shipment to leave before the end of the year. The fuel should let Moa meet essential needs and prepare for a restart.
Why a restart is not yet certain
This is only the first of several emergency licences Sherritt needs. Restarting mining and processing at Moa, and refining in Canada, depends on a second OFAC licence that the company is still seeking.
The applications were prepared with Gillon Capital, which signed a non-binding term sheet in May to potentially buy a controlling stake in Sherritt. The licences are also a condition of that deal going ahead.
What it means
For Sherritt, the licence is a lifeline rather than a rescue. The company says it is operating with tight liquidity and faces a material uncertainty about its ability to continue as a going concern. Paying suppliers depends on new financing and a broader recapitalisation, which it is discussing with lenders, governments and Gillon.
For the nickel and cobalt markets, Moa's restart would bring back a supplier that sanctions took offline this year. Its timing now depends on Washington, not on metal prices.
Our read
Outlook: neutral. Moa remains shut until a second licence arrives, so near-term nickel supply is unchanged.
What to watch
- Whether OFAC grants the second licence needed to restart Moa.
- The first fuel shipment, expected before the end of the year.
- Progress on Gillon Capital's proposed takeover and Sherritt's recapitalisation.
For information only, not investment advice.
Nickel price in India
metalscost.com India reference price as of 2026-10-23.
Detailed analysis
Timeline
- 2026-10-21: Sherritt announces it has received an OFAC licence to deliver fuel to Moa Nickel in Cuba.
Supply Drivers
A restart would return Moa's nickel and cobalt to the market, but only after a second licence.
Government Policies
US sanctions on Cuba halted Moa, and its restart depends on a series of emergency licences from OFAC.
What could lift prices
- Moa stays offline until a second licence is granted.
- Sherritt's financial strain could delay any restart further.
What could weigh on prices
- A second licence would bring Moa's nickel and cobalt back into supply.
- Fuel deliveries let Moa prepare for a quick restart.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Cuba | Medium | Moa is a joint venture with a Cuban state company that sanctions forced to stop. |
| Canada | Low | Sherritt's Canadian refining also depends on Moa restarting. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Mining | Positive | The licence is the first step toward restarting an idled nickel and cobalt operation. |
Who gains, who loses
- Sherritt International Corporation: Fuel deliveries let it maintain Moa and prepare for a restart.
- Gillon Capital: The licences are a condition of its proposed controlling stake.
- Sherritt's existing shareholders: A recapitalisation or takeover could dilute or replace their ownership.
Other ways this could play out
- If the second licence follows quickly, Moa could restart soon after the first fuel arrives.
- If financing fails, Sherritt's going-concern warning could become a restructuring.
Price risks
- A faster restart than expected would add nickel and cobalt supply.
- A change in US sanctions policy could cut either way.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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