The U.S. government exceptionally authorized the supply of fuel and other supplies 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 Donald 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 for the purchase, transportation, and delivery of fuel, 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 the resumption of its activities in Cuba, which have been suspended since 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 associated with the mining complex that Sherritt shares with the Cuban state-owned General Nickel Company.
It also protects authorized transactions from banks, maritime operators, insurance companies, and other providers involved in the supply.
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 quantity 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 hopes that the fuel will meet the essential needs of its facilities and prepare the conditions for a potential reactivation.
The company also needs to restore production at its refinery in Fort Saskatchewan, Alberta, Canada, where some 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, in which Moa Bay Mining agrees to the fuel shipments to the Cuban facilities.
In return, you will receive payments for that consent, which will be covered by Sherritt or by third parties on their 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 permit compliance with that agreement.
Understanding is especially 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 reveal 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 was coordinated with Gillon Capital, a U.S. investment firm associated with Texas businessman Ray Washburne, who led the Overseas Private Investment Corporation during Donald Trump's first term.
In May, 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 authorizations for a broader financial operation.
If finalized, the agreement would entail the entry of U.S. capital into the Canadian company that has maintained 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 issues and that it requires additional funding to meet its obligations to suppliers and creditors.
It also warned of significant uncertainty regarding its ability to remain operational if it does not secure recapitalization.
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