The Minister of Energy and Mines, Vicente de la O Levy, expressed the Cuban regime's readiness to maintain its mining partnership with Sherritt International if a deal succeeds that would allow U.S. capital connected to a businessman close to Donald Trump to enter the Canadian company.
In an interview with Reuters published this Monday, the official stated that Cuba could continue operating under the existing rules of the joint venture, although he conditioned any resumption of production on resolving the obstacles affecting the business.
We have always made it clear that what the American company would be buying are shares of Sherritt, not of the joint venture, he stated. The Canadian company is publicly traded and any investor has the right to buy its shares.
His statements put Havana in a politically uncomfortable position: maintaining a strategic business relationship with capital connected to the same U.S. president whose sanctions he denounces.
A businessman close to Trump and a pending operation
Sherritt announced in May a non-binding preliminary agreement with Gillon Capital, a Dallas-based firm associated with Ray Washburne, a businessman who led the U.S. International Development Finance Corporation during Trump's first term.
The proposal would allow Gillon to acquire 55% of Sherritt's common shares. In June, both parties formalized a 120-day exclusivity period to negotiate the transaction, subject to regulatory approvals.
Although De la O Levy distinguishes between purchasing shares of Sherritt and directly acquiring the joint venture, the transaction would give the investor control of the Canadian company that holds a 50% stake in the Moa business with the state-owned General Nickel Company.
Gillon is not the only interested party. CiberCuba reported in August about a competing offer, backed by the Texas magnate Albert Huddleston along with Glencore, Kyma Capital, and other investors.
Havana wants to move forward, but the conditions are lacking
Sherritt suspended its direct involvement in Cuban operations on May 7, following the expansion of U.S. sanctions. The crisis also affected its refinery in Fort Saskatchewan, Canada, which halted operations in June.
De la O Levy insisted that Cuba intends to remain in the nickel and cobalt business, but acknowledged that the entry of a new investor alone would not resolve the stagnation.
Any restart would require discussions on how to supply fuel and spare parts, as well as how to manage payments for exports and production inputs, he stated to Reuters.
The minister's statement does not constitute formal approval of the acquisition nor does it confirm its closure. Reuters noted that Sherritt and Gillon did not immediately respond to their requests for comments on the official's statements.
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