The United States’ imposed sanctions on the only Canadian cobalt producer forced Sherritt International to shut down operations at its refinery located in Fort Saskatchewan. The refinery ceased its operation this month after its material suppliers ran dry as the shipment from Cuba dropped significantly.
Sherritt Halts Operations After Feedstock Runs Out
Sherritt International confirmed that its Alberta refinery has entered a shutdown phase. The Company said it ran out of feedstock needed to keep production lines active. This is one of the clearest cases where US sanctions shut Canada’s only cobalt refinery within a short window.
Sherritt International
The refinery sits in Fort Saskatchewan and processes mixed nickel and cobalt material. Sherritt stated that the shortage built up over several weeks during June. Once the stock ran low, the company had no choice but to pause processing work at the site.
Why the Plant Depends on Cuban Material
The Fort Saskatchewan site relies almost fully on feedstock shipped from Cuba. This material comes from the Moa Joint Venture, a mining project Sherritt co-runs with Cuban partners. Without steady shipments, the plant cannot keep its lines moving.
Recent US sanctions tied to Cuba created new hurdles for this supply route. Shipping and payment channels linked to the island faced added restrictions. As a result, US sanctions shut Canada’s only cobalt refinery after Moa shipments slowed sharply.
How the Moa Joint Venture Fits Into the Picture
Moa has long served as the main feedstock source for the Alberta refinery. The mine produces a mixed nickel-cobalt product that gets shipped north for final processing. This setup has worked for years under a steady supply arrangement.
Sanctions pressure changed that pattern this year. Logistics partners grew cautious about handling cargo tied to Cuban operations. That caution slowed deliveries enough that Sherritt could not maintain normal output. Industry watchers have flagged this as a clear example of how sanctions can ripple through mineral supply chains far beyond their original target.
Sherritt’s Response to the Shortage
Sherritt has not set a date for restarting the plant. The Company said future operations depend entirely on getting feedstock flowing again. Management is watching the sanctions situation closely before making further moves.
For now, the company is focused on managing the shutdown in an orderly way. Staff are working through standard procedures tied to halting a refinery. Sherritt noted it will share updates once supply conditions improve enough to support a restart.
Timeline of the Shutdown
The shutdown did not happen overnight. Feedstock levels dropped gradually before reaching a critical point in June. Below is a simple breakdown of how events unfolded.
| Date | Event |
| May 2026 | New US sanctions tied to Cuba take effect |
| Early June 2026 | Feedstock inventory begins declining at the refinery |
| Mid-June 2026 | Stockpiles reach critically low levels |
| Late June 2026 | Refinery enters full shutdown mode |
Key Dates to Watch
Market participants are now watching for any sign of new shipments from Moa. A resumption of feedstock flow would be the first signal of a possible restart. Until that happens, US sanctions shut Canada’s only cobalt refinery with no clear end date in sight.
What This Means for North American Supply
This refinery has stood as Canada’s only major cobalt processing site. It also ranks among the few nickel refineries operating in North America. Losing this capacity, even temporarily, removes a key piece of regional supply.
Cobalt is key to manufacturing batteries in electric vehicles and electronics. As that refinery is out of operation, those in North America don’t have many choices for locally refined materials. Some may need to source refined cobalt from suppliers in Asia or Europe instead.
The nickel side of the business faces the same problem. Sherritt’s refinery processed both metals using the same Cuban feedstock stream. That means US sanctions shut Canada’s only cobalt refinery while also cutting off a nickel processing source.
Traders and buyers are monitoring events for evidence of pressure on prices. Such an outage would typically result in lower supply to the region the product is targeted at. The Sherritt has not indicated how long operations will be suspended.
Looking Ahead
Sherritt says it continues to assess the sanctions situation day by day. The company wants to find a path to restore feedstock shipments from Moa. Until then, the plant stays idle and inventory remains at zero.
This case shows how a single policy change can disrupt an entire supply chain. A facility built around one feedstock source faces real risk when that source gets cut off. As things stand, US sanctions shut Canada’s only cobalt refinery, leaving the broader market to adjust.
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FAQs
- Why is the refinery shut down?
It ran out of feedstock after sanctions disrupted shipments from Cuba’s Moa mine. - Who owns the refinery?
Sherritt International owns and operates the plant in Fort Saskatchewan, Alberta. - Will the refinery reopen soon?
No restart date has been given. It depends on the feedstock supply returning. - Does this affect nickel supply too?
Yes, the same plant processes nickel from the same Cuban feedstock source.
Disclaimer
This article is solely for information purposes only and not to be construed as financial, investment, business, legal or professional advice. We have based the information provided on publicly available reports and a few sources deemed to be reliable to the best of our abilities and at the date of this publication. However, readers should do their own due diligence and use this information only as a guide in collaboration with a professional or business entity. It is the responsibility of the publisher and author of this content and its respective employees not to be held accountable for what the reader chooses to do with the contents contained within this piece.
Sources
https://www.mining.com/us-sanctions-shut-canadas-only-cobalt-refinery/
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
