The Minister of Energy and Mines, Vicente de la O Levy, expressed the Cuban regime's willingness to maintain its mining partnership with Sherritt International if a venture succeeds that would allow U.S. capital associated with 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 to operate under the existing rules of the joint venture, although he conditioned any restart of production on resolving the obstacles affecting the business.
We have always made it clear that what the American company would be purchasing would be 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 place Havana in a politically uncomfortable position: to maintain a strategic business relationship with capital associated with the very 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 firm from Dallas associated with Ray Washburne, a businessman who chaired the U.S. Overseas Private Investment Corporation during Trump's first term.
The proposal would allow Gillon to acquire 55% of the common shares of Sherritt. 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 buying shares of Sherritt and directly acquiring the joint venture, the operation would give the investor control of the Canadian company that participates 50% in the Moa business with the state-owned General Nickel Company.
Gillon is not the only interested party. CiberCuba reported in August about a rival 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 participation 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 aims to remain in the nickel and cobalt business, but acknowledged that the arrival of a new investor alone would not resolve the paralysis.
Any restart would require discussions about 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 confirm its closing. Reuters noted that Sherritt and Gillon did not immediately respond to requests for comments regarding the official's statements.
Filed under: