Sherritt halts plan to dissolve Cuba nickel mining venture amid US sanctions

May 19 (Reuters) - Canadian miner ‌Sherritt International said ​on ​Tuesday it would not proceed with plans to dissolve its Cuban interests, including a joint venture with a ‌state-owned nickel company, reversing a decision announced earlier this month ⁠after the U.S. imposed sanctions on the joint venture.

The Trump administration has laid siege ‌to Cuba since January, ‌enforcing a de facto fuel blockade, issuing threats of military action and ramping up sanctions that have forced foreign businesses, including Sherritt, ​to flee.

• Sherritt said it would not seek approval from the Court of King's Bench of Alberta to dissolve and ⁠disclaim its interests in Cuba, including the Moa Nickel SA joint venture between it and ​state-owned General Nickel Company S.A.

• However, the Toronto-based company said it would maintain its suspension of direct participation ​in joint venture activities in Cuba while ‌it continues talks on how to respond to expanded U.S. sanctions.

• The company warned that, unless the ⁠situation is resolved, it faces acute operational, financial and legal difficulties, including its ability to comply with debt covenants.

• Earlier this month, the U.S. ⁠imposed financial sanctions on a sprawling business conglomerate run by Cuba's military and ​the Moa Nickel SA venture.

• The sanctions aimed to ramp up pressure on the island's communist leaders by targeting sources of foreign investment.

• Sherritt said it ‌was also evaluating "a potential value preserving opportunity," but there was no assurance that a transaction would hieved ‌in a timely manner.

• The Moa Nickel SA joint venture between ⁠Sherritt International and Cuba's state-owned ‌nickel company mines nickel ​and cobalt, and is a key source of Cuba's foreign exchange.

(Reporting by Dharna Bafna in Bengaluru; Editing by ‌Sahal Muhammed)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Russia downs 180 drones in Moscow region overnight, mayor says
• Vessel struck by unknown projectile in Strait of Hormuz, crew casualty reported, UKMTO says
• Australia's EQT Holdings gets $468 million takeover proposal from TPG Global