Sherritt International Corp. has announced the closure of its refinery in Fort Saskatchewan, Alberta, due to the depletion of feed inventory supplied by its Moa mine in Cuba. The company stated that operations will remain suspended until mining and processing activities at Moa resume, and the refinery feed pipeline is reconstructed. Despite the challenges, no job losses are anticipated.

A spokesperson for Sherritt mentioned to CBC News that efforts are ongoing to restore the feed pipeline promptly. In the interim, the refinery continues to manufacture fertilizers and sulphuric acid for resale, with maintenance plans in place to fully engage the Alberta workforce.

Earlier this year, operations at Sherritt’s Moa joint venture in Cuba were halted, coinciding with fuel shortages in the country following the U.S. oil access cutoff from Venezuela in January. Colin Fagan from the Fort Saskatchewan chamber of commerce acknowledged the region’s economic difficulties over the past decade, influenced by external forces beyond local control.

Before the pause, Sherritt’s joint venture processed ore into mixed sulphide precipitate containing nickel and cobalt, transported to Alberta’s refining facilities. Notably, the Sherritt refinery is a significant cobalt producer in North America, recognized for its strategic importance in the sector’s growth.

Amid discussions with lenders, Sherritt faces challenges regarding debt repayment under accelerated terms by creditors, raising uncertainties about refinancing options. The company has entered a non-binding agreement with Gillon Capital LLC, potentially leading to the acquisition of a majority stake. Sherritt’s Fort Saskatchewan refinery boasts an annual production capacity of approximately 38,200 tonnes of nickel and cobalt.

The refinery’s shutdown underscores broader industry challenges, with ongoing developments impacting Alberta’s economic landscape.