The U.S. government has exceptionally authorized the supply of fuel and other inputs to the nickel and cobalt mining facilities in Moa, Holguín, operated by the Canadian company Sherritt International in partnership with the Cuban state, despite the sanctions imposed by the Trump administration.
The authorization was granted by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury and will allow the purchase, transport, and delivery of fuel, oil, and sulfur intended for mining operations.
According to Sherritt's report this Tuesday, October 20, the license represents the first step in a process that could allow for the resumption of mining operations in Cuba, which have been halted since late June, after the company suspended its direct participation in May due to the tightening of U.S. sanctions.
However, the permit does not yet authorize the resumption of nickel and cobalt production. The company needs to obtain a second emergency license from Washington, which is still being processed.
What exactly did the United States authorize?
The license granted by OFAC allows for the necessary commercial operations to supply fuel, oil, and sulfur to Moa Nickel, the company linked to the mining complex that Sherritt shares with the Cuban state-owned General Nickel Company.
The authorization also extends to banks, maritime operators, insurance companies, and other suppliers involved in the supply operations.
The Canadian mining company explained that it is already working on organizing the first shipment, which is scheduled for the last quarter of 2026.
However, the statement does not specify the amount of fuel authorized, its country of origin, the supplier, or the exact date it will arrive in Cuba.
The authorization does not imply a general lifting of U.S. sanctions, nor does it allow for the extension of those supplies to other sectors of the Cuban economy.
Sherritt expects that the fuel will cover essential needs for its facilities and create the conditions for a potential reactivation.
The company also needs to restore production at its Fort Saskatchewan refinery in Alberta, Canada, where part of the material from Moa was processed.
Sherritt agrees to pay a U.S. company that claims confiscated properties in Cuba
In the announcement, Sherritt stated that it reached an agreement with Moa Bay Mining Co., a company that holds a certified claim in the United States for mining properties confiscated by Fidel Castro's regime in 1960.
Sherritt revealed that both companies signed a provisional agreement on September 23, whereby Moa Bay Mining agrees to the shipments of fuel to the Cuban facilities.
In return, you will receive payments for that consent, which will be assumed by Sherritt or by third parties on its behalf.
The claiming company also agreed not to file lawsuits under the Helms-Burton Act against participants in the authorized supplies.
The OFAC granted an additional authorization to allow for the compliance with that agreement.
Understanding is particularly important because the mining facilities in Moa are linked to properties that were nationalized during the early years of the Cuban Revolution.
The certified claim of Moa Bay Mining for those properties amounts to approximately 88.3 million dollars, excluding accrued interest.
Sherritt did not disclose how much it will pay the company for authorizing the shipments, nor whether the agreement includes future negotiations regarding the confiscated properties.
An investor linked to a former Trump official is behind the negotiations
The acquisition of the license took place in coordination with Gillon Capital, an American investment firm associated with Texas businessman Ray Washburne, who headed the Overseas Private Investment Corporation during Donald Trump's first term.
In May of last year, Sherritt announced negotiations with Gillon Capital for a deal that would allow the American firm to acquire control of 55% of the common shares of the Canadian mining company.
The company has now confirmed that the license applications to the OFAC were prepared and submitted in close collaboration with that potential investor.
According to the statement, Washington granted the fuel permit while both parties continue to seek the necessary approvals for a broader financial operation.
If finalized, the agreement would mean the entry of U.S. capital into the Canadian company that has had a mining partnership with the Cuban state for over three decades.
The Canadian company acknowledged in its new statement that it continues to face serious liquidity problems and needs additional funding to meet its obligations to suppliers and creditors.
He also warned of significant uncertainty regarding its ability to remain operational if it does not secure recapitalization.
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