Sherritt Pauses Cuba Operations Over Fuel Shortage

Canadian mining giant Sherritt International, one of the largest foreign investors in Cuba, announced Tuesday that it will suspend operations on the island due to fuel shortages caused by the US oil blockade.

No Fuel, No Production

The company, which extracts nickel and cobalt at its Moa facility in Holguín province, stated it “expects to pause its mining operations and place its processing plant on standby during the coming week.” The forced downtime will be used for maintenance.

Sherritt was notified by Cuban authorities that planned fuel deliveries to Moa will not be met, with no timeline for when supplies might resume.

A Crisis That Keeps Escalating

Sherritt’s shutdown marks a new milestone in the impact of the US oil blockade on Cuba’s economy. American pressure has already been literally darkening the island, with satellite imagery showing a 50% drop in nighttime lighting.

The company had already warned in January about “adverse operating conditions” in Cuba, just days before President Donald Trump signed an executive order threatening tariffs on anyone supplying oil to the island.

Nickel: A Strategic Resource

Cuba ranks seventh or eighth globally in nickel reserves — a metal considered strategic for the green economy and essential for battery manufacturing. Sherritt has been operating in Cuba for 30 years through a joint venture with a Cuban state enterprise.

Sherritt’s nickel and cobalt refinery in Alberta, Canada, has enough stockpiled raw materials to continue normal operations until mid-April. However, if conditions in Cuba don’t improve, the company will need to revise its 2026 forecasts.

The Blockade’s Domino Effect

Sherritt’s suspension adds to an increasingly dire picture:

Prolonged blackouts affecting the entire island
Severe fuel rationing across all sectors
Diplomatic negotiations between Washington and Havana
A tanker arriving in Matanzas offering only partial relief

The pressing question is how much longer Cuba’s economy — and its international partners — can withstand this unprecedented pressure.

Frequently asked questions

Why is Sherritt suspending operations in Cuba?

Sherritt is pausing nickel and cobalt extraction in Moa because Cuban authorities notified the company that planned fuel deliveries won't be fulfilled, a direct consequence of the US oil blockade.

How long will Sherritt's Cuba operations be paused?

Sherritt hasn't set a return date. The company will use the forced downtime for maintenance and will update its forecasts once it has clarity on the supply chain.

How important is Sherritt to Cuba's economy?

Sherritt operates one of the largest foreign investments in Cuba, running a mine and processing plant in Moa in a joint venture with the Cuban state. Cuba holds the world's seventh or eighth largest nickel reserves.

Does this affect Sherritt's Canadian refinery?

The Alberta refinery has enough stockpiled raw materials to operate normally until mid-April 2026, according to the company.

How we got here

Background

The first thing we published on this topic.

Feb 10, 2026

How Cubans Are Surviving the Fuel Rationing Crisis

Neighbors unite to cook with firewood, power cuts lasting up to 18 hours, and echoes of the Special Period. Testimonies from Havana on the energy crisis.

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