Critical Resource Race: The Multi-Billion Dollar Move Toward Secure Supply Chains
Critical supply chain disruptions in Cuba force operational halt at flagship Moa JV
The most recent news release (March 19, 2026) and the preceding specific update (February 17, 2026) confirm a severe operational crisis at Sherritt’s Moa Joint Venture in Cuba. Due to interrupted fuel deliveries with no clear resumption timeline, mining operations are being paused and the processing plant is being placed on standby. While the Fort Saskatchewan refinery in Canada continues to operate on existing feed inventory, that supply is only expected to last until mid-April 2026. This follows a 2025 fiscal year characterized by missed production targets, a 75% share price decline, and a successful but hostile board renewal led by activist shareholder Pala Assets Holdings.
The impact is Material - Negative and potentially existential for the current operational model. - Operational Paralysis: The Moa JV is Sherritt's primary cash-generating asset. A full standby status halts the production of mixed sulphides (MSP), which is the lifeblood of the Canadian refinery. - Liquidity Strain: The company was already struggling with "critically strained liquidity" in Canada ($43.7M available as of Feb 2026). Without MSP production, the refinery will run out of feed by mid-April, leading to a total cessation of finished nickel/cobalt sales. - Guidance Withdrawal: The 2026 guidance provided just days prior (Feb 11, 2026) is now effectively obsolete, and the company has stated updated guidance is pending "greater certainty," which is a euphemism for an indefinite suspension. - Geopolitical Risk Realized: The "maximum pressure" policies and Cuban infrastructure failures (fuel/power) have moved from "risks" to "active disruptions."
Sherritt is a world leader in hydrometallurgical refining of nickel and cobalt. Its flagship asset is the Moa Joint Venture (50% ownership with Cuban partners), which has a 25-year mine life. The company also operates Energas, a power generation business in Cuba, and a refinery in Fort Saskatchewan, Alberta. The strategy was to expand Moa (Phase 2) to fill the refinery to nameplate capacity, but this is currently stalled by the fuel crisis.