CUBA · SANCTIONS
Key Facts
- —The country Cuba, an island under tightened US sanctions, hosts the Moa nickel and cobalt operation that Canadian miner Sherritt holds through a joint venture.
- —Why it matters A US-licensed fuel shipment is the first concrete step toward restarting Moa, and a US investor is in talks to take control of the miner.
- —Why now Sherritt announced the fuel license on Tuesday 20 October 2026, and a second license is still needed before mining and processing can restart.
- —What happened The US Treasury sanctions office issued a specific license for fuel, fuel oil and sulfur deliveries to Moa Nickel, with the first shipment due in the fourth quarter of 2026.
- —The numbers The fuel license is the first of a series of emergency licenses, and Gillon Capital’s term sheet targets up to 55% of Sherritt’s shares.
- —What it means for you US investors and companies see Washington licensing Cuba business step by step, with each stage needing its own approval.
- —Still open When the second license arrives, how large the consent fees are, and whether Gillon Capital’s wider deal wins US approval.
- —Power Index Cuba ranks 14th of 14 in The Rio Times Latin America Power Index, with 22.5 points (October 2026 edition).
The Sherritt fuel license lets the Canadian miner ship fuel, fuel oil and sulfur to its Moa Nickel operation in Cuba, the company said on Tuesday 20 October 2026. It is the first of a series of emergency licenses from the Office of Foreign Assets Control (OFAC), the US Treasury office that enforces sanctions, that Sherritt says it needs to restart the mine.
For US readers the story shows Washington licensing Cuba business one step at a time, with a US investor working alongside the miner. It also shows how a claim under Title III of the Helms-Burton Act, the 1996 US law on property seized in Cuba, can be handled by consent so that fuel can move.
We covered the rival bids for the miner in Cuba’s Nickel Giant Draws Rival US Takeover Bids and its first reaction to the sanctions in Canadian Miner Sherritt Reviews Cuba Future After New US Sanctions. Tuesday’s announcement moves the story from talks to a license for a shipment that is still being prepared.
What the Sherritt Fuel License Allows
Sherritt describes the document as a specific license from OFAC. It authorizes the purchase and delivery of fuel, fuel oil and sulfur to Moa Nickel, the mining and processing operation inside its Moa Joint Venture.
The license covers the sale, transport, export, delivery and payment for those goods, together with related services. It extends to Sherritt’s licensed fuel supplier and people acting for it, including banks, vessel operators and insurers.
Sherritt says the license and the related shipment should let Moa Nickel meet its essential fuel needs and prepare for a restart. The company is finalising the initial shipment, which it expects to sail in the fourth quarter of 2026.
The fourth quarter runs to Thursday 31 December 2026, so the sailing date is still open. The Cuban outlet 14ymedio summarised the same terms on the same day.
Why a Second License Still Matters
Sherritt states that the actual restart at Moa Nickel remains subject to a second OFAC emergency license. It says it is working to obtain that license with the support of Gillon Capital.
Sherritt suspended its direct participation in the joint venture on Thursday 7 May 2026, after a US executive order widened sanctions on people and companies doing business in Cuba. Sherritt cites that order as Executive Order 14404 and dates it 1 May 2026.
It also stopped metals refining at its Fort Saskatchewan facility in Alberta, Canada, on Monday 22 June 2026. Its own 2025 production report ties the two sites together, because mixed sulphides from Moa feed that refinery.
Writing on Monday 19 October, 14ymedio described the Moa operation as paralysed since Sherritt stepped back in May. That is the outlet’s description, and Sherritt’s statement says only that the restart depends on the second license.
The Helms-Burton Consent Deal
To make the shipments possible, Sherritt signed an interim consent agreement dated Wednesday 23 September 2026. The counterparty, Moa Bay Mining Co., holds a certified claim relating to Moa Nickel under Title III of the Helms-Burton Act.
Under the agreement, Moa Bay consents to interim fuel shipments in return for consent fees paid by or for Sherritt. It also agreed not to bring Helms-Burton claims against the covered participants over those authorized shipments.
Sherritt and Moa Bay obtained a separate OFAC authorization, needed to carry out the agreement, at the same time as the fuel license. The statement gives no size for the fees, so no figure can be reported.
14ymedio wrote that lawyers had expected such a deal and that a legal solution could set a precedent for other US investment in Cuba facing claims from former owners. That is the outlet’s account of legal opinion, and Sherritt does not make that claim.
The Gillon Capital Link
Sherritt says it prepared its OFAC requests in close coordination with Gillon Capital, LLC, which is in talks to acquire a controlling interest in the company. The two signed a non-binding term sheet dated Tuesday 19 May 2026.
Under that term sheet, Sherritt said on 20 May, Gillon Capital would receive a warrant that could lift its holding to 55% of the shares. The exercise price was still to be agreed, and the deal needs final documents and approvals, including from the Toronto Stock Exchange.
The US State Department told Sherritt it did not object to those talks and did not see them as contrary to US law, the company said in May. Any later transaction would need approval from the State and Treasury departments.
OFAC issued the fuel license while Sherritt and Gillon Capital apply for review of a wider deal, in which a US-based investment fund would acquire control. Sherritt calls the fuel license the first of a series that Gillon Capital would need to complete that purchase.
Sherritt’s Finances and the Sanctions Backdrop
Sherritt says it still operates under constrained liquidity and faces a material uncertainty that may cast significant doubt on its ability to continue as a going concern. It says paying suppliers depends on new financing and a broader recapitalization, which it is pursuing.
The company is in active talks with lenders and potential government and other strategic capital sources, including Gillon Capital. It adds that there is no assurance that any financing or transaction will be completed on acceptable terms.
In a statement of Monday 14 September, Sherritt said the May order entitled its lenders’ agent to call an event of default under a credit facility maturing on 30 April 2027. No demand for repayment had been made at that date, the company said.
Moa matters to the group because the joint venture produced 25,240 tonnes of finished nickel and 2,729 tonnes of cobalt in 2025 on a 100% basis, Sherritt reported in January. Both sat at the lower end of revised guidance, and Sherritt blamed fourth-quarter feed shortfalls in part on below-plan ore volumes, lower leach train availability and grid power outages.
Sherritt describes nickel and cobalt as metals deemed critical for the energy transition. It also says its Alberta refinery is the only significant cobalt refinery and one of three nickel refineries in North America.
What It Means for You
US investors in nickel, cobalt or Canadian miners can see that Washington is issuing narrow licenses for Cuba, though each step still needs OFAC approval. Sherritt trades on the Toronto Stock Exchange under the symbol S, and its own statement warns of going-concern doubt, so this is a licensing step and not a financing deal.
US companies and individuals should not read the Sherritt fuel license as a general opening for Cuba business. Sherritt calls it a specific license, which covers the activity described and the participants named, and its statement shows how many separate licenses a single restart needs.
Our guides Cuba Geopolitics 2026: Who Backs Havana, Who Presses It and Cuba in Latin America, Its Role, Weight and Alliances explain the wider US pressure on the island. The license concerns one mine, and nothing in Sherritt’s statement addresses fuel supplies for the rest of Cuba.
What Is Not Known
The price, volume and supplier of the fuel are not stated, and no ship has been named. The sailing is dated only to the fourth quarter of 2026.
Sherritt has not said when it expects the second OFAC license or whether it will be granted. Its statement also does not say how long Moa would need to restart once fuel arrives.
The size of the consent fees owed to Moa Bay is not disclosed. We found no statement from the Cuban government or its mining partner on Tuesday’s announcement in the sources reviewed.
Whether Gillon Capital’s wider deal wins US approval, and on what terms, is open. Sherritt itself says there is no assurance that any financing or transaction will be completed.
Frequently Asked Questions
What did the US license for Sherritt cover?
It authorizes the purchase and delivery of fuel, fuel oil and sulfur to the Moa Nickel operation in Cuba. It also covers the supplier, banks, vessel operators and insurers involved.
Can Sherritt restart the Moa mine now?
No, because Sherritt says the restart still needs a second OFAC emergency license. The company says it is working to obtain it with Gillon Capital.
Who is Gillon Capital?
Gillon Capital, LLC is a US investor that signed a non-binding term sheet with Sherritt on 19 May 2026. The term sheet envisages a warrant that could give it 55% of Sherritt’s shares, subject to approvals.
What is the Helms-Burton consent agreement?
It is an interim deal of 23 September 2026 under which Moa Bay Mining Co. consents to the fuel shipments in return for fees. Moa Bay also agreed not to sue the covered participants over those shipments.
When will the first fuel shipment sail?
Sherritt expects the initial shipment to sail in the fourth quarter of 2026. It has not given a date, a vessel or a volume.
What does the Sherritt fuel license mean for US readers?
It shows Washington licensing Cuba-related business in narrow steps, with a US investor involved. It does not signal a general easing of sanctions.
Sources: Sherritt International, press release of 20 October 2026; 14ymedio, 20 October 2026; 14ymedio, 19 October 2026; Sherritt International, statement of 14 September 2026; Sherritt International, statement of 20 May 2026; Sherritt International, 2025 production results of 19 January 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief