A consortium, led by an undisclosed U.S. anchor investor along with Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has proposed a potential financial rescue plan for Sherritt International Corp. This initiative comes in response to the challenges faced by the Canadian mining company due to U.S. sanctions against Cuba.
The consortium submitted a non-binding recapitalization proposal to Sherritt’s board of directors in late June. The proposal has been under consideration by the board, and the consortium has now made the announcement public to allow the company’s stakeholders to evaluate the proposed alternatives.
If accepted, the consortium plans to collaborate with Sherritt to enhance its financial stability and liquidity. The focus will be on safeguarding and improving the operations of its Fort Saskatchewan refinery in Alberta, as well as its nickel and cobalt processing capabilities in North America.
Sherritt had recently disclosed the need for a significant infusion of new capital to support the restart of its Alberta refinery and the Cuban joint venture, which had been impacted by heightened U.S. pressure on Cuba. The company had initiated discussions with its senior lenders and noteholders to explore recapitalization options aimed at restoring normal operations in due course.
The Fort Saskatchewan refinery had been temporarily shut down after depleting its feed inventory from the Moa mine in Cuba. Operations at Sherritt’s Moa joint venture in Cuba had also been halted earlier in the year due to fuel shortages triggered by the U.S. embargo on Venezuelan oil supplies.
The proposed partnership with the consortium signals a potential turning point for Sherritt as it navigates the challenges posed by geopolitical dynamics and seeks to revitalize its operations in both Canada and Cuba.