Holguin/The collapse of nickel and cobalt mining in Cuba advances without brake, with direct consequences in both the economy of the island and the Canadian Sherritt Internationalits historical partner in the extraction of minerals. According to its most recent quarterly report, the company experiences multimillion -dollar losses, a drastic reduction in production, and important cuts in its workforce in Canada, while the operational conditions in the country deteriorate.
Sherritt’s income in the second quarter of 2025 fell to 43.7 million dollars, from 51.4 million of the same period of 2024
Pitt Wasmer is the member of one of the own -owned families confiscated by the Cuban government in 1960
The businessman William Pitt Wasmer, heir to one of the own -owned families confiscated by the Cuban government in 1960, shared with 14ymedio A detailed analysis of the crisis that the nickel industry on the island is going through. The document reveals that the production of mixed sulfides – base for the refinement of nickel and cobalt – did not meet expectations due to the worsening of conditions in the Cuban territory. The renewed pressure measures by the US, the scarcity of qualified labor and frequent blackouts have contributed to the degradation of the results.
The situation led Sherritt to fire more than 10% of its staff in Saskatchewan (Canada), where the refinement plant operates, and another 10% in its Toronto corporate office. The executive dome has also been reduced, seven to five members, and several expansion plans have been postponed both in Cuba and Canada.
After these ads, the value of the shares fell 3.45%, closing by 0.14 Canadian dollars, very close to its minimum in the last 52 weeks (0.12). This figure represents a 63% drop compared to the previous year, reflection of sustained deterioration.
Environmental sanctions in Indonesia and the closure of operations in Congo could reduce global competition
Sherritt reviewed its production forecasts by 2025, from 33,000 to 27,000 tons of nickel, and 3,600 to 3,000 tons of cobalt. Even so, the company clings to moderate optimism, based more on external factors than on local improvements. The imposition of environmental sanctions in Indonesia and the closure of operations due to working conditions in the Congo could reduce global competition, and thereby offer a respite.
The company has admitted, for the first time in direct terms, that the situation in Cuba is critical. The lack of trained workers has forced to import technicians from the outside to guarantee maintenance in the MOA mine, while electrical instability has forced to operate with limited resources. Sherritt maintains its own generation capacity, but the availability of diesel and gasoline remains uncertain, and a total system unemployment would seriously affect the chemical refinement process.
Nickel revenues fell 15% in prices and 14% in volume
The situation harms not only the Pedro Soto Alba plant, in Moa, but also to operations in Punta Gorda and the Ernesto Commander Plant Che Guevara, where university students have been used to cover technical positions.
Nickel revenues dropped 15% in prices and 14% in volume. The cobalt reported a 27% increase in prices, but failed to compensate for losses for less volume. According to Yasmin Gabriel, Financial Director of Sherritt, the combined income was lower mainly due to the decrease in Nickel sales, which has pushed the company to an aggressive policy of cost containment.
Gas availability has also been limited due to problems in extraction wells
In the electricity sector, plants operated by Sherritt in Consortium with Energas continued to face setbacks. In particular, the Varadero plant worked with frequency control to stabilize the national network, which reduced production, although it maintained stable income thanks to agreed compensation. However, gas availability has also been limited due to problems in extraction wells.
In parallel, the Canadian government announced that it will contribute with food aid to more than 78,000 people in areas where Sherritt maintains energy and mining operations on the island. The decision raises questions: why now? Why right in these locations? Pitt Wasmer suggests that Ottawa seeks to cushion social rejection towards Sherritt for the polluting effects of its activities, and avoid greater erosion of the Canadian image among the Cuban population.
