Sherritt Nickel-Cobalt Refinery Shutdown Exposes Cuba Feedstock Risk

Sherritt

Sherritt nickel cobalt refinery operations at Fort Saskatchewan in Alberta will enter a shutdown state after feedstock from the company’s Moa joint venture in Cuba became unavailable.

Sherritt nickel cobalt refinery production depends on mixed sulfide precipitate shipped from the Moa mine, where nickel and cobalt ore is mined and processed before final refining in Canada.

Sherritt nickel cobalt refinery shutdown highlights the vulnerability of processing facilities that rely on a single international feed source. The company has not provided a timeline for restarting nickel and cobalt refining.

The shutdown follows fuel-related disruptions at Moa and increased US sanctions on Cuba, which led Sherritt to suspend its direct participation in the joint venture.

Cuba Disruption Breaks the Mine-to-Refinery Supply Chain

The Moa joint venture is owned equally by Sherritt and Cuba’s General Nickel Company. Its operating model links Cuban mining and intermediate processing directly with Canadian refining.

Ore from Moa is processed into mixed sulfide precipitate before shipment to Fort Saskatchewan for conversion into finished nickel and cobalt products.

That structure becomes vulnerable when upstream operations stop. Sherritt had already warned that existing refinery feed inventories would last only until around mid-June.

Fuel shortages initially forced the Moa operation to suspend mining activity in February. Additional uncertainty followed after the US expanded sanctions on Cuba, prompting Sherritt to suspend its direct participation in the joint venture in May.

The refinery will remain shut until Moa mining and processing resume and enough intermediate material is available to rebuild feed supply.

This shows that refining capacity alone does not guarantee critical mineral security. A plant can remain technically capable of producing metal while geopolitical or logistical problems interrupt the upstream feed required to operate it.

Nickel and Cobalt Output Stops While Byproduct Production Continues

Sherritt will use the shutdown period to carry out maintenance at Fort Saskatchewan.

The company will continue producing fertilizer and sulfuric acid, showing that some parts of the industrial complex can remain operational even while nickel and cobalt refining is suspended.

However, the loss of finished nickel and cobalt output reduces North American availability of two important materials used across stainless steel, superalloys, batteries and other industrial applications.

Cobalt is particularly relevant to aerospace, defence and battery supply chains, while refined nickel remains important for both conventional metallurgy and selected battery chemistries.

The disruption also underlines the strategic importance of diversified feedstock. Refiners that can process material from multiple mines or jurisdictions have greater resilience when one supply route fails.

For Sherritt, the key issue is therefore not refinery maintenance but restoration of a stable Cuban feed stream.

The Metalnomist Commentary

Fort Saskatchewan shows that midstream capacity is only as secure as its upstream feed. North American critical minerals policy must address concentrate and intermediate supply alongside domestic refining capacity.

Sherritt Refinery Shutdown Exposes Canada’s Dependence on Cuban Nickel Feed

Sherritt International

Sherritt refinery shutdown plans will halt nickel and cobalt production at the company’s Fort Saskatchewan facility in Alberta after feedstock from Cuba’s Moa joint venture ran out. The move highlights how upstream disruption can strand downstream refining capacity even in a politically secure jurisdiction.

Sherritt refinery shutdown operations will remain in place until mining and processing at Moa can resume and mixed sulfide precipitate shipments to Canada are restored. The company has not given a restart timeline.

Sherritt refinery shutdown is strategically important because Fort Saskatchewan converts Cuban mixed sulfide precipitate into finished nickel and cobalt. The refinery therefore depends on continuity across mining, processing, shipping and sanctions-sensitive trade routes.

Sherritt will use the shutdown period to complete maintenance work. Fertilizer and sulfuric acid production will continue, preserving part of the site’s industrial activity while nickel and cobalt refining is suspended.

Moa Feed Disruption Strands Canadian Refining Capacity

The Fort Saskatchewan refinery relies on the Moa joint venture in Cuba for its nickel and cobalt feed. Ore is mined and processed at Moa into mixed sulfide precipitate before being shipped to Alberta for refining.

That supply chain began to weaken in February when fuel shortages forced the joint venture to suspend mining operations. Feed inventories in Canada subsequently declined, with Sherritt previously expecting available material to last only until mid-June.

The problem then became more complex in May. Sherritt suspended direct participation in the Moa joint venture after the US expanded sanctions on Cuba under the International Emergency Economic Powers Act.

The company has maintained that suspension, leaving the future of Cuban production uncertain. Without fresh MSP shipments, Fort Saskatchewan cannot continue normal nickel and cobalt refining.

This illustrates a critical supply-chain weakness. Refining assets may sit inside Canada, but their security still depends on where upstream feed originates.

For North American critical minerals policy, that distinction matters. Domestic refining capacity does not create supply independence if raw materials remain tied to politically exposed jurisdictions.

Nickel and Cobalt Supply Security Shifts Toward Feedstock Control

Nickel and cobalt remain important to batteries, superalloys, aerospace, industrial chemicals and defence-related manufacturing. Reliable refining capacity is therefore strategically valuable.

But Sherritt’s shutdown shows that feedstock security must be treated as part of refinery security. A plant without dependable concentrate or intermediate supply becomes an idle asset regardless of its technical capability.

The Fort Saskatchewan site still has value because its processing infrastructure and operating expertise remain in place. Maintenance during the shutdown may help preserve restart readiness if Moa supply resumes.

However, the absence of a clear restart timeline increases uncertainty. Sherritt must either restore the Cuban supply chain or eventually secure another viable feed route if the disruption becomes prolonged.

The situation also raises a broader question for western critical minerals strategies. Governments are investing heavily in domestic processing, but those projects need diversified and compliant raw material sources to remain resilient.

Sherritt’s experience shows why mining, intermediate processing and refining must be planned as one integrated supply chain rather than separate assets.

The Metalnomist Commentary

Fort Saskatchewan is a reminder that secure refining capacity is only as strong as its feedstock chain. Canada can host the refinery, but without reliable upstream material, geopolitical risk still determines whether nickel and cobalt actually reach the market.

Vale copper and nickel production outlook strengthens for 2025

Vale

Vale copper and nickel production outlook continues to improve as the Brazilian miner delivers a solid third quarter. The company reported higher copper output and broadly stable nickel production, keeping all base metal assets near the upper end of 2025 guidance. This Vale copper and nickel production outlook underscores the importance of Brazil and Canada within the group’s growth plan.

Copper growth keeps Vale on track with 2025 guidance

Vale copper and nickel production outlook is anchored by another strong performance from its copper division. Third-quarter copper production rose 6pc year-on-year to 90,800t, supported by consistent operations in Brazil and steady polymetallic output in Canada. Payable copper sales climbed 14.8pc to 90,000t, helped by smooth logistics and strong market demand.

In Brazil, Salobo drove copper growth with a 13pc output increase to 53,000t on robust mine-mill performance. Sossego slipped just 2pc to 19,900t after a week of planned maintenance, suggesting limited underlying weakness. In Canada, total copper production dipped 6pc to 18,400t as Vale ended copper-precipitate recovery at Thompson, even while Sudbury and Voisey’s Bay both delivered 11pc higher concentrate volumes.

Higher prices also lifted the Vale copper and nickel production outlook. Vale realised an average copper price of $9,818/t, up $833/t quarter-on-quarter, reflecting firmer LME benchmarks and lower treatment and refining charges. Nine-month copper output reached 274,300t, up 11.4pc year-on-year, keeping the group on pace for its 2025 guidance range of 340,000–370,000t.

Nickel production stable as new capacity comes online

Meanwhile, Vale copper and nickel production outlook on the nickel side remains stable despite heavy maintenance. Third-quarter nickel output slipped just 0.6pc to 46,800t, as refinery downtime offset strong mine performance. Nickel sales rose 5.4pc to 42,900t, although the realised nickel price eased 2.3pc to $15,445/t in line with softer LME levels.

In Canada, Sudbury’s finished nickel production fell 31pc to 8,500t because of work at the Copper Cliff refinery, even as ore mined jumped 45pc to 3.6mn t. Voisey’s Bay output surged 74pc to 10,700t, driven by the ramp-up of the Eastern Deeps and Reid Brook underground mines before a planned shutdown in September. Long Harbour refinery set a new quarterly production record, confirming the asset’s role as a core hub in Vale’s nickel chain.

Brazilian nickel production slipped 5pc to 5,900t, but Onça Puma held steady as it completed early maintenance linked to a second furnace start-up in late September. That new furnace adds 15,000 t/yr of capacity, lifting site capacity to 40,000 t/yr and setting the stage for growth from the December quarter onward. Nine-month nickel output reached 131,000t, up 14.4pc, allowing Vale to maintain its 2025 guidance of 160,000–175,000t and support a resilient Vale copper and nickel production outlook.

The Metalnomist Commentary

Vale copper and nickel production outlook highlights how disciplined maintenance and targeted brownfield investments can offset operational noise. Additional nickel capacity at Onça Puma and continued strength at Salobo position Vale to benefit from any upside in copper and nickel prices. For downstream users, the guidance stability signals that Vale remains a reliable anchor in an otherwise volatile base metals supply chain.

Sherritt Nickel Production Slumps as Moa Shutdown Starves Canadian Refinery

Sherritt International

Sherritt nickel production fell sharply in the first quarter after fuel shortages halted mining at the company’s Moa joint venture in Cuba. Finished nickel output dropped by 36% to 1,885t from 2,947t a year earlier.

Sherritt nickel production was hit by the collapse in mixed sulfide precipitate output at Moa, which supplies the company’s Fort Saskatchewan refinery in Canada. Finished cobalt production also fell by 34% to 213t.

Sherritt nickel production problems have now moved beyond quarterly underperformance. Feed inventories at Fort Saskatchewan were depleted on 22 June, forcing the refinery into a shutdown state with no restart date disclosed.

The disruption highlights a structural weakness in Sherritt’s supply chain. Canadian refining capacity depends on a single Cuban feed source that is exposed to fuel shortages, sanctions and political risk.

Moa Feed Collapse Cuts Nickel and Cobalt Output

Mixed sulfide precipitate production at Moa fell by 43% year on year to 1,811t in the first quarter after mining operations were suspended in February.

Moa operates as a 50:50 joint venture between Sherritt and Cuba’s General Nickel Company. Ore is mined and processed into MSP in Cuba before being shipped to Alberta for refining into finished nickel and cobalt.

Lower MSP availability forced Sherritt to reduce refinery utilisation during the quarter. The company did not secure replacement feedstock from alternative suppliers.

Finished nickel sales fell by 35% to 2,244t, while cobalt sales dropped to 203t from 456t a year earlier.

The declining volumes show how quickly an upstream interruption can affect downstream refining. Without sufficient MSP inventory, Fort Saskatchewan cannot maintain normal output regardless of its installed refining capacity.

The company exhausted its remaining feedstock on 22 June and is moving the refinery into shutdown. Maintenance will be carried out during the idle period, but Sherritt has not indicated when Moa can resume production.

Sanctions Add Strategic Risk to Sherritt’s Supply Chain

The operating disruption has been compounded by sanctions uncertainty. Sherritt suspended direct participation in the Moa joint venture on 7 May after the US expanded sanctions on Cuba.

The company initially considered fully dissolving the joint venture but later reversed that decision after consulting advisers, stakeholders and government authorities.

This leaves Sherritt in a difficult position. Its key refining asset remains operationally dependent on Moa, while its ability to participate directly in the Cuban operation is constrained.

Financial performance reflects the disruption. Sherritt reported a C$9.2mn loss in the first quarter on revenue of C$34mn, down 11% from a year earlier.

The company has also announced plans for US investment firm Gillon Capital to acquire 55% of its shares, adding a corporate restructuring element to the supply disruption.

For nickel and cobalt markets, the immediate tonnage loss is modest relative to global supply. But the case is strategically important because it shows that processing assets in Canada can still be vulnerable when their feedstock remains tied to a politically exposed jurisdiction.

The Metalnomist Commentary

Sherritt’s problem is no longer simply lower Moa production; it is a broken mine-to-refinery chain. Fort Saskatchewan shows why western refining capacity needs diversified and politically secure feedstock, not just domestic processing assets.

Jutai Nickel Cathode Production Adds Flexibility to China’s Downstream Nickel Chain

Zhejiang Jutai Plant

Jutai nickel cathode production has started at Zhejiang Jutai’s integrated refinery in Zhoushan, adding new capacity to China’s fast-expanding downstream nickel processing sector. The facility has 30,000 t/yr of nickel cathode capacity and can use mixed hydroxide precipitate or nickel matte as feedstock.

Jutai nickel cathode production strengthens the company’s ability to respond to changing nickel market conditions. The same Zhoushan site also hosts a 100,000 t/yr nickel sulphate project that was commissioned in October 2025, giving the complex around 55,000 t/yr of nickel capacity on a metal equivalent basis.

The new operation matters because China is rapidly converting imported nickel intermediates into higher-value products. Jutai nickel cathode production shows how MHP and matte supply are reshaping the country’s refining system beyond battery chemicals alone.

MHP and Matte Supply Drive New Refining Capacity

Nickel intermediates are becoming the foundation of China’s new nickel processing model. Growing supplies of MHP and nickel matte allow refiners to produce nickel sulphate, nickel cathode, and other downstream products depending on margins and customer demand.

Zhejiang Jutai’s Zhoushan complex reflects this flexible approach. The company can switch between nickel sulphate and nickel cathode output, which gives it commercial optionality across battery materials and refined metal markets. This flexibility is important when nickel prices, sulphate demand, and stainless steel-linked sentiment move in different directions.

The development also shows how China continues to capture value from Indonesia-linked nickel flows. As MHP and matte availability expands, Chinese refiners can build more diversified processing routes and strengthen their role in the global nickel value chain.

China Nickel Cathode Output Continues to Expand

China’s nickel cathode production reached 415,000t in 2025, up 24pc from the previous year. Output is expected to keep rising in 2026 as new capacity starts up, existing plants expand, and firmer nickel prices improve production economics.

Higher LME nickel prices are also supporting the sector. The average LME cash price reached $15,150/t in 2025, while the year-to-date average climbed to $17,482/t by late February, driven partly by reduced Indonesian nickel ore supply.

Shaanxi Jutai, Zhejiang Jutai’s parent company, already has experience in battery material production. Its Xi’an complex began producing nickel sulphate in 2018 and also produces cobalt sulphate, manganese sulphate, vanadium pentoxide, and molybdenum products. This gives the group a broader platform across strategic metals used in batteries, alloys, and industrial materials.

The Metalnomist Commentary

Jutai’s Zhoushan project highlights China’s strength in processing flexibility. The country is not only adding nickel capacity; it is building assets that can shift between battery chemicals and refined metal as market conditions change.

Sherritt Moa Nickel-Cobalt Suspension Deepens Cuba Supply Chain Risk

Sherritt

Sherritt Moa nickel-cobalt suspension has moved from sanctions review to direct operational action after the Canadian miner and refiner halted its participation in activities tied to the Moa joint venture in Cuba. The decision follows new US sanctions authority that could target entities operating in Cuba’s metals and mining sector.

Sherritt Moa nickel-cobalt suspension is significant because the Moa joint venture links Cuban mine and intermediate processing operations with Sherritt’s refining capacity in Alberta. Ore is mined and processed in Cuba into mixed sulfide precipitate containing nickel and cobalt, then shipped to Canada for refining.

Sherritt Moa nickel-cobalt suspension adds another layer of disruption to an already fragile supply route. The company had temporarily suspended mining operations at Moa in February because of fuel supply problems in Cuba.

Although Sherritt was not directly named in the new US sanctions, the company said the executive order is expected to create conditions that make operating in Cuba more difficult. That risk was enough for Sherritt to suspend direct participation in Moa-related activities.

Sanctions Risk Hits a Cross-Border Nickel and Cobalt Chain

The new US executive order expands sanctions authority under the International Emergency Economic Powers Act. It allows Washington to sanction entities operating in Cuba’s metals and mining sector, along with several other industries.

That broad language creates uncertainty for companies with Cuban exposure. Even without direct designation, counterparties may become more cautious around shipping, banking, insurance, payments, logistics and commercial contracts.

For Sherritt, the issue is not only legal exposure. It is the practical ability to keep a cross-border supply chain functioning when sanctions risk rises around the Cuban mining sector.

The Moa joint venture is co-owned by Sherritt and the General Nickel Company of Cuba. Its structure depends on Cuban ore mining, local MSP production and shipment to Canada for refining.

Mixed sulfide precipitate is a critical intermediate product because it carries both nickel and cobalt units into downstream refining. Any interruption in MSP flows can affect feed availability at the refinery level.

Nickel and cobalt remain important to batteries, stainless steel, superalloys, industrial chemicals and advanced manufacturing. That makes Moa strategically relevant despite its political and logistical complexity.

Alberta Refinery Continues but Feedstock Window Narrows

Sherritt said its Fort Saskatchewan refinery in Alberta has not been affected by the suspension and will continue producing finished nickel and cobalt. Existing feed at the site is expected to last until mid-June.

That timeline is now critical. If Cuban MSP flows do not resume or alternative feedstock is not secured, refinery operations could face greater pressure once inventories are depleted.

The situation shows how refining capacity can still be vulnerable when upstream feedstock depends on a politically exposed jurisdiction. A refinery may remain operational, but its production outlook depends on the continuity of intermediate material supply.

The February fuel-related suspension at Moa already showed that physical operating conditions in Cuba were difficult. The latest sanctions-driven action compounds that problem by adding policy risk to fuel and logistics constraints.

For customers, the key question is whether Sherritt can maintain finished nickel and cobalt output after mid-June. Buyers will also watch for any change in shipment schedules, inventory levels and alternative feed strategies.

For the wider market, Sherritt’s case highlights a broader critical minerals reality. Western supply security cannot be measured only by refining location. It must include mine jurisdiction, intermediate processing, sanctions exposure, energy availability and shipping routes.

The Metalnomist Commentary

Sherritt’s Moa suspension shows that critical minerals supply chains can be disrupted by policy risk even before a company is directly sanctioned. The lesson for nickel and cobalt buyers is clear: feedstock origin and political exposure now matter as much as refining capacity.

Sherritt Moa Nickel-Cobalt Pause Raises New Supply Concerns for 2026

Sherritt International

Sherritt Moa nickel-cobalt pause is now the company’s most immediate operational challenge for 2026. Sherritt said it will temporarily suspend mining at its Moa joint venture in Cuba because fuel deliveries cannot be fulfilled. The company also expects to place the processing plant on standby. As a result, Sherritt Moa nickel-cobalt pause is creating new uncertainty around upstream supply and production planning.

This matters because Moa is a key source of nickel and cobalt feed for Sherritt’s wider business. The company said it does not yet know when fuel deliveries to the site will resume. That makes the interruption more serious than a short maintenance event. Therefore, Cuba nickel-cobalt supply is now facing a disruption with no clear restart timeline.

Sherritt is using the downtime to complete maintenance activities at the processing plant. That should help the site use the pause more productively while operations remain constrained. However, the core issue is still fuel access, not plant readiness. Consequently, Sherritt Moa nickel-cobalt pause may last longer than the market would prefer.

Fort Saskatchewan Refinery Buys Some Time

Fort Saskatchewan refinery gives Sherritt some short-term protection against the Cuban disruption. The company said its Alberta refinery should see no immediate impact and will continue producing finished nickel and cobalt. Existing feed inventory is expected to last until mid-April. As a result, downstream production can continue for now.

That inventory buffer is important, but it is limited. If Moa mining and processing do not restart before the feed runs low, pressure could move downstream as well. Therefore, the Fort Saskatchewan refinery is buying time rather than fully solving the problem.

Nickel and Cobalt Output Guidance Now Looks Less Certain

Nickel and cobalt output guidance for 2026 now looks harder to defend. Sherritt had expected to produce 26,000-28,000t of finished nickel and 2,750-2,850t of finished cobalt this year. The company now says it will update guidance once it has greater certainty on a full restart. As a result, Sherritt Moa nickel-cobalt pause is directly affecting market expectations for annual output.

One part of the business remains stable. Sherritt said its power division, Energas, should continue operating without issues. That limits the disruption to the metals side of the portfolio. Meanwhile, investors and buyers will focus on how quickly fuel deliveries can return to Moa.

The Metalnomist Commentary

This disruption shows how vulnerable nickel and cobalt supply chains can remain to non-market factors such as fuel availability. Sherritt still has some downstream breathing room, but that buffer is not large. If Moa stays offline for too long, the company may need to materially reset its 2026 metals outlook.

Sherritt Moa JV Dissolution Marks Break in Cuba Nickel-Cobalt Supply Chain

Sherritt

Sherritt Moa JV dissolution marks a major break in one of the more unusual cross-border nickel-cobalt supply chains linking Cuba and Canada. Sherritt International plans to deliver a dissolution notice to its joint venture partner, the General Nickel Company of Cuba, after expanded US sanctions made continued participation commercially and legally risky.

Sherritt Moa JV dissolution will require the Canadian company to surrender its interests in the Cuban joint venture corporations. The company said immediate dissolution is the only way to preserve its ability to do business.

Sherritt Moa JV dissolution is strategically important because the Moa structure linked Cuban mining and intermediate processing with Canadian refining. Ore was mined and processed into mixed sulfide precipitate at Moa, then shipped to the Fort Saskatchewan refinery in Alberta.

Sherritt expects GNC to owe an equalization payment because it believes the Moa mine is more valuable than the Canadian refinery. That valuation issue could become a key point in the separation process.

US Sanctions Force Structural Exit From Moa

The US directly sanctioned the Moa joint venture on 7 May. The designation followed a 1 May executive order allowing Washington to sanction entities or people supporting the Cuban government across metals, mining, energy, financial services, security and other sectors.

Sherritt had already suspended direct participation in Moa-related activities earlier this month after assessing the implications of the executive order. The direct sanctions accelerated the need for a structural exit.

The company said the dissolution is necessary so it can be considered the sole owner of Canada Refinery Corporation, which owns the Fort Saskatchewan nickel-cobalt refinery. That step is central to preserving the Canadian refining business outside the sanctioned Cuban structure.

The Moa joint venture had been a 50/50 partnership between Sherritt and GNC. Its value came from combining Cuban ore and MSP production with Canadian refining expertise.

The latest move shows how sanctions can fracture supply chains even when downstream refining sits in an allied jurisdiction. Feedstock origin, ownership structure and sanctioned counterparties now matter as much as the location of final refining.

Canadian Refinery Faces Feedstock Repositioning Challenge

The Fort Saskatchewan refinery remains strategically valuable because it produces finished nickel and cobalt. These metals are used in batteries, superalloys, stainless steel, industrial chemicals and advanced manufacturing.

However, the refinery’s historic feedstock route depended on Moa mixed sulfide precipitate. Losing the Cuban joint venture means Sherritt must protect the refinery’s operating future through ownership clarity, alternative feed planning or new commercial structures.

The company had already faced operating pressure before the sanctions escalated. Sherritt temporarily suspended mining operations at Moa in February because of fuel supply problems in Cuba.

That earlier disruption showed the physical fragility of the Moa supply chain. The sanctions now add a legal and geopolitical break to an already strained operating model.

For nickel and cobalt buyers, the key issue is whether Fort Saskatchewan can remain a reliable source of refined metal without direct participation in Moa. The answer will depend on feedstock access, legal separation, inventory management and customer confidence.

The dissolution also highlights a broader critical minerals lesson. Western supply chains can still carry high exposure when mines, intermediates or partners sit in sanctioned or politically sensitive jurisdictions.

The Metalnomist Commentary

Sherritt’s exit from Moa shows that critical minerals security cannot rely on refining capacity alone. The real test is whether the entire chain, from mine ownership to intermediate feedstock and final metal, can survive sanctions, fuel disruption and geopolitical pressure.

Sumitomo Metal Mining to Take Full Ownership of Coral Bay Nickel Smelter

Sumitomo Metal Mining (SMM)

Sumitomo Metal Mining (SMM), a leading Japanese mining and trading conglomerate, has announced its intention to acquire the remaining 15.625% stake in Coral Bay Nickel Corporation (CBNC) from Nickel Asia Corporation (NAC). This acquisition will result in SMM holding 100% ownership of CBNC, solidifying its control over this crucial nickel processing facility. Currently, SMM holds an 84.375% share in CBNC.

CBNC: A Key Player in Nickel and Cobalt Production

CBNC, located in the Philippines, is notable for being the first hydrometallurgical metal processing plant in the country to utilize the High-Pressure Acid Leaching (HPAL) process. This advanced technology allows for the efficient extraction of nickel and cobalt from lateritic ores. The smelter boasts a production capacity of 24,000 tonnes per year of nickel and 2,500 tonnes per year of cobalt, making it a significant contributor to the global supply of these critical metals.

Strengthening SMM's Position in the Nickel Market

This strategic acquisition by SMM further expands its presence in the Philippine nickel sector. The company also holds a 75% stake in the Taganito HPAL nickel facility, another prominent HPAL plant in the Philippines. In addition to its Philippine operations, SMM maintains a strong nickel refining presence in Japan with its Niihama Nickel Refinery and Harima Refinery. The move to fully own CBNC reflects SMM's commitment to securing its nickel supply chain and strengthening its position as a key player in the global nickel market. Details regarding the transaction price and timeline have not yet been disclosed.

Sibanye-Stillwater Shifts Focus at Sandouville Nickel Refinery Amid European Battery Market Push

Sibanye-Stillwater, a prominent South African multi-metals mining group, announced yesterday its decision to terminate a key supply agreement at its Sandouville nickel refinery in France as part of a strategic shift to repurpose the facility. The refinery, previously focused on nickel sulphate production, will now be geared towards producing precursor cathode active material (pCAM) for the burgeoning European battery market. The termination of the supply deal is expected to be finalized by December 31, 2024.

The decision comes with significant financial implications, as Sibanye-Stillwater anticipates incurring costs of $37 million due to the termination. Despite this, the company plans to continue refining from inventory and maintaining sales through the first quarter of 2025.

The Sandouville refinery, acquired from Eramet in 2022, is undergoing a transformation driven by the GalliCam project, which focuses on shifting from nickel sulphate to pCAM production. This pivot is based on positive results from a scoping study, though a final decision will hinge on the outcomes of an ongoing feasibility study. Central to this transformation is the planned use of mixed hydroxide precipitate (MHP) in a chloride medium, replacing the current use of nickel matte. Sibanye-Stillwater has emphasized that this new process will streamline production, reduce energy consumption, lower carbon emissions, and generate fewer waste products. The company filed a patent application for the chloride-MHP process in July.

A small-scale pCAM precipitation pilot is currently underway at the Sandouville site, with testing set to begin by the end of the third quarter of this year. This initiative marks a significant step in Sibanye-Stillwater’s strategy to position itself as a key player in the European battery supply chain.

Vale Labor Deal Reduces Strike Risk at Ontario Copper and Nickel Operations

Vale

Vale labor deal discussions have produced a tentative collective agreement with United Steelworkers locals representing production and maintenance workers at Vale Base Metals operations in Ontario. The agreement could reduce strike risk at a key Canadian copper, nickel, cobalt and precious metals production base.

Vale labor deal terms still require union ratification. USW Local 6500 will hold information sessions on 27-28 May, followed by online voting from Thursday morning to Friday evening.

Vale labor deal approval would come just before the current five-year collective agreement expires on 31 May. The timing is important because union members had already voted strongly in favour of a strike mandate earlier this month.

The tentative agreement therefore matters for supply continuity. Vale’s Ontario operations remain an important source of finished nickel and copper for North American industrial and critical minerals supply chains.

Sudbury Operations Remain Strategically Important

Vale’s Sudbury operations include several mines, a mill, smelter and refinery. The complex produces copper, nickel, cobalt and precious metals, making it one of the most important integrated base metals operations in Canada.

The site’s role is especially important because nickel and cobalt remain critical to batteries, superalloys, stainless steel, defence applications and advanced manufacturing. Copper supports electrification, grids, data centres and industrial equipment.

Vale produced 59,400t of finished nickel at Sudbury in 2025. That accounted for about 34% of the company’s total finished nickel output that year.

Sudbury also produced 63,800t of finished copper in 2025, equal to about 17% of Vale’s total finished copper production. Any labour disruption would therefore carry company-level and regional supply-chain significance.

The Port Colborne refinery adds another downstream dimension. It produces electro-cobalt, processes precious metals and distributes finished nickel products.

Ratification Will Decide Supply Continuity

The tentative agreement is not yet final. Union members must approve the deal before it becomes the new labour contract.

That vote will be closely watched because Local 6500 members voted 97.64% in support of a strike mandate earlier this month. Such a strong mandate gave the union significant leverage during negotiations.

A ratified agreement would provide operational stability for Vale Base Metals in Ontario. It would also reduce uncertainty for customers that depend on Canadian nickel, copper, cobalt and refined products.

For North American critical minerals policy, labour stability matters. Governments and manufacturers are trying to build secure supply chains, but mine and refinery output still depends on workforce agreements, site reliability and downstream processing capacity.

The broader market impact depends on the vote. If workers approve the deal, Vale can avoid immediate disruption at a strategically important metals complex. If not, strike risk could quickly return as the current agreement expires.

The Metalnomist Commentary

The Vale agreement shows that critical minerals security is not only about geology, capital or policy. Labour stability at integrated mining, smelting and refining assets is just as important to reliable nickel, copper and cobalt supply.

Sherritt Cuba Sanctions Risk Clouds Moa Nickel-Cobalt Supply Chain

Sherritt

Sherritt Cuba sanctions risk has become a new uncertainty for Canadian metals miner and refiner Sherritt International after the US expanded its sanctions framework targeting Cuba. The company is consulting advisers and stakeholders to assess possible implications for its Cuban mining and refining exposure.

Sherritt Cuba sanctions risk centres on the company’s Moa joint venture with the General Nickel Company of Cuba. The operation mines and processes nickel and cobalt ore in Cuba before shipping mixed sulphide precipitate to Sherritt’s refinery in Fort Saskatchewan, Alberta.

Sherritt Cuba sanctions risk has increased after US president Donald Trump issued an executive order on 1 May broadening existing Cuba-related restrictions. The order allows the US to sanction entities operating in Cuba’s metals and mining sector, as well as energy, defence, financial services, security and other parts of the Cuban economy.

The development matters because Moa is not only a Cuban mining asset. It is part of a cross-border nickel and cobalt processing chain that links Cuban ore production with Canadian refining capacity.

Moa Joint Venture Faces Sanctions and Fuel Supply Pressure

The Moa joint venture produces mixed sulphide precipitate containing nickel and cobalt. Ore is mined and processed at the Moa site in Cuba, then shipped to Alberta for refining.

This structure gives Sherritt exposure to two different risks. The first is sanctions policy. The second is physical supply continuity from Cuba.

The company had already suspended mining operations at Moa in February because of fuel supply problems in Cuba. That disruption reduced upstream feed availability and raised concerns over refinery inventory in Canada.

Sherritt said in February that its Fort Saskatchewan refinery feed inventory was expected to last until mid-April. The new sanctions uncertainty adds another layer of pressure to an already fragile supply chain.

Nickel and cobalt remain important materials for batteries, stainless steel, superalloys, industrial chemicals and defence-related supply chains. Any disruption to feedstock or refining routes can affect customers that rely on qualified supply.

The Moa operation is therefore strategically important despite its geopolitical complexity. It supplies intermediate material that can be refined into products serving North American industrial demand.

US Policy Adds Complexity to Critical Minerals Trade

The executive order broadens the list of possible sanctions targets linked to Cuba. Metals and mining are now explicitly included, raising compliance risk for companies with Cuban operations or Cuban-linked material flows.

For Sherritt, the immediate issue is clarity. The company must determine whether its ownership structure, product flows, financing relationships, logistics providers or customers could be affected by the expanded sanctions framework.

This matters because sanctions risk can affect more than direct operations. It can influence shipping, banking, insurance, payment processing, customer contracts and counterparty willingness to handle material.

The case also highlights a difficult reality in critical minerals policy. Western governments want secure nickel and cobalt supply, but some existing supply chains run through politically sensitive jurisdictions.

Canada’s refining capacity at Fort Saskatchewan is valuable, but its feedstock connection to Cuba creates exposure to US policy decisions. That makes Sherritt’s position more complicated than a conventional mining or refining business.

The outcome will depend on how broadly Washington applies the new order and whether Sherritt’s activities become directly targeted. Until then, customers and investors are likely to watch for guidance on operational continuity, legal exposure and feedstock availability.

The Metalnomist Commentary

Sherritt’s situation shows that critical minerals security is not only about mine reserves or refining capacity. Political jurisdiction, sanctions exposure and feedstock logistics can determine whether a nickel-cobalt supply chain remains bankable.

Sherritt Stake Sale Plan Follows Cuba Nickel-Cobalt Exit

Sherritt

Sherritt stake sale plans have emerged as the Canadian metals firm faces a major strategic reset after moving to dissolve its Moa nickel-cobalt joint venture in Cuba. The company has entered into a non-binding agreement that could allow US investment firm Gillon Capital to acquire 55% of its shares.

Sherritt stake sale terms have not yet been finalised. The company expects the purchase price to be set at a discount to the current share price, with Gillon able to complete the acquisition no later than nine months from closing.

Sherritt stake sale discussions come directly after the company chose to dissolve the Moa joint venture with the General Nickel Company of Cuba. That decision followed new US sanctions authority targeting Cuban entities and sectors, including metals and mining.

The transaction would mark a major ownership shift for Sherritt at a time when its core nickel and cobalt supply chain is under sanctions, fuel and feedstock pressure.

Cuba Sanctions Push Sherritt Toward Strategic Restructuring

Sherritt’s Moa joint venture has been central to its nickel and cobalt business. Ore is mined and processed into mixed sulfide precipitate at Moa in Cuba, then shipped to Canada for refining at Fort Saskatchewan in Alberta.

That cross-border structure has become increasingly difficult. The Moa operation was already affected by fuel supply problems in Cuba, forcing a temporary mining suspension in February.

The situation worsened after the US issued an executive order on 1 May expanding sanctions powers against Cuban entities. Although Sherritt was not directly named, the order allows sanctions on companies operating in Cuba’s metals and mining sector.

Sherritt suspended direct participation in Moa joint venture activities on 7 May. It then announced plans to send a dissolution notice to its Cuban partner on 15 May.

The decision shows how sanctions risk can disrupt critical minerals supply chains even without a direct designation. Shipping, banking, insurance, financing and counterparty confidence can all be affected when operating exposure becomes politically sensitive.

Fort Saskatchewan Refinery Faces Feedstock Uncertainty

Sherritt’s Fort Saskatchewan refinery remains strategically valuable because it can produce finished nickel and cobalt in Canada. However, its feedstock link to Cuba is now the central weakness.

The Moa joint venture supplied mixed sulfide precipitate to the Alberta refinery. If that feedstock route remains disrupted or is dissolved permanently, Sherritt will need alternative material sources to keep refining operations stable.

This matters for North American supply chains. Nickel and cobalt are important for batteries, superalloys, industrial chemicals and defence-linked manufacturing.

The possible Gillon Capital transaction could give Sherritt a new ownership and financing path, but it will still require regulatory approval. The US Departments of State and Treasury do not oppose Gillon’s participation in negotiations, but any later transaction would need their approval.

That condition underlines the political sensitivity of Sherritt’s restructuring. The company’s future will depend not only on investor appetite, but also on sanctions compliance, government approval and feedstock strategy.

For the wider nickel and cobalt market, Sherritt’s situation is a warning. Refining capacity in a secure jurisdiction is not enough if upstream feedstock remains tied to a politically exposed source.

The Metalnomist Commentary

Sherritt is becoming a case study in how sanctions can force a critical minerals company into ownership and supply-chain restructuring. The key issue is whether a new investor can help rebuild the business around secure feedstock for Fort Saskatchewan.

Westwin Signs $350mn Nickel Supply Deal with Turkey’s Golden Age FZE

Westwin Elements

Expanding US Nickel Refining Reach

US nickel firm Westwin Elements has secured its first binding supply deal worth $350mn with Turkey’s Golden Age Free Zone Establishment (FZE). The Oklahoma-based company will provide 2,600 t/yr of carbonyl-nickel powder and class 1 nickel briquettes under the agreement. Golden Age FZE, a subsidiary of Apex Group-Turkiye, will serve as Westwin’s exclusive distributor and marketing partner across Turkey and neighboring regions.

Boosting Domestic Refining and Global Partnerships

Westwin operates the United States’ first nickel refinery and plans to expand output significantly. Production is set to grow from 18,000 t/yr to a nameplate capacity of 68,000 t/yr by 2034. The Turkish deal represents part of Westwin’s wider strategy to diversify its customer base and build supply contracts with original equipment manufacturers. Meanwhile, the agreement aligns with broader US government efforts to strengthen domestic critical minerals processing, with President Donald Trump backing accelerated refining in Oklahoma since taking office.

The nickel supply deal not only reinforces US-Turkey trade ties but also demonstrates Westwin’s ambition to establish a global footprint in nickel refining. By pairing domestic capacity growth with targeted international partnerships, the company is positioning itself as a long-term supplier of high-purity nickel products essential for advanced manufacturing and clean energy applications.

The Metalnomist Commentary

Westwin’s $350mn nickel deal highlights the importance of expanding US refining capacity while building global partnerships. With Turkey acting as a gateway to surrounding markets, Westwin gains both regional influence and strategic diversification. This agreement also underscores how nickel is becoming central to both geopolitical strategies and industrial supply chains.

China's Share of LME Nickel Stock Rises to Nearly 30%

China's share of nickel warrants in global London Metal Exchange (LME) warehouses surged to almost 30% at the end of June, according to the LME's latest country of origin stock report. This marks a significant increase from 10% at the end of the previous quarter and 11% at the start of 2024.

Chinese-origin nickel on-warrant stocks totaled 25,152 tons at the end of June, accounting for 27.9% of total on-warrant LME stocks. Overall, total on-warrant LME stocks reached 90,294 tons by the end of June, representing an increase of 28.3% from the end of March and 56.3% since the beginning of the year. Inventories were last reported at 95,982 tons, the highest level since October 2021.

The LME has approved the warranting of 171,600 tons per year of new Chinese nickel capacity over the past year. Major producers Huayou and CNGR have been sending shipments of Class 1 metal to the exchange's Asian warehouses. Additionally, China has utilized excess Class 2 capacity to convert low-grade nickel into LME-deliverable nickel cathode, positioning itself as a significant player in the European market.

Meanwhile, Russian-origin Class 1 nickel, which has traditionally been the largest source of LME warrants, declined from 30% at the end of 2023 to 26.7% at the end of June amid geopolitical tensions. In April, the LME banned all Russian metals, including nickel produced on or after April 13, from its global warehouse system following new sanctions by the UK and US governments. Nickel produced prior to this date, labeled as Type 1 warrants, remains eligible for delivery and currently makes up all 24,180 tons stored. The LME also suspended the delivery of nickel products from the Finland-based Harjavalta refinery, owned by Russia's Norilsk Nickel, affecting the producer's cathode and briquette brands. Finland-origin nickel made up 1,308 tons of LME on-warrant stocks at the end of June.

Australia was the largest source of LME on-warrant nickel stocks in June, with 26,322 tons. However, China is expected to take the lead in the coming months as its Class 1 output accelerates and Australia's loss-making operations increasingly enter care and maintenance.

South African-origin nickel in LME warehouses totaled 7,734 tons at the end of June, while Canadian material amounted to 2,388 tons.

Nickel Production Halted at Ambatovy Plant Following Pipeline Damage

Sumitomo Nickel

Nickel and cobalt production at Madagascar's Ambatovy plant has been suspended after damage to a slurry pipeline, a crucial component for transporting ore from the mine to the refinery. The suspension, announced by the plant’s majority owner, Japanese trading group Sumitomo, comes as a setback for one of the few remaining active producers of nickel briquettes.

Damage Sparks Concerns Over Ambatovy's Viability

On September 25, Sumitomo revealed that the pipeline damage led to an ore discharge, prompting the decision to halt operations. While there were no injuries reported, an investigation is underway to determine the cause of the incident. The disruption has raised concerns, particularly as Ambatovy is already grappling with high production costs and market pressures.

Ambatovy is one of the few facilities still capable of producing nickel briquettes, a key form of refined nickel used in various industries. With BHP no longer actively producing briquettes and Russia's Norilsk Nickel resuming production at its Harjavalta refinery after a temporary suspension by the London Metal Exchange, the global supply chain has faced volatility. However, trading firms report that the ban on Norilsk's production has been lifted, and output is ramping up, offering some relief to the market.

Despite this, the long-term future of Ambatovy remains uncertain. Trading companies have pointed out that the plant's high production costs significantly exceed current benchmark nickel prices, by as much as $10,000 per tonne, raising questions about its economic viability. "Sumitomo must be considering the mounting losses right now," a trading source remarked. "They have a reputation for being slow decision-makers, likely hesitating to halt production because they could absorb the losses against profits elsewhere."

The financial challenges facing the project have been underscored by a recent debt restructuring plan filed in a London court, as confirmed by Sumitomo Metals Mining representatives. This move suggests that the company is actively seeking solutions to mitigate the financial strain caused by declining nickel prices and operational inefficiencies.

In terms of output, Ambatovy's nickel production for April to June was around 8,000 tonnes, marking a 20% decline from the same period last year. The suspension of production due to the pipeline damage adds to existing concerns over the plant's future, and it remains to be seen how Sumitomo will navigate these mounting challenges.

BHP exits Kabanga nickel project as Lifezone assumes full control

BHP

BHP exits Kabanga nickel project, selling its 17% stake to Lifezone Metals for up to $83mn. The transfer gives Lifezone 100% of Kabanga Nickel Ltd and full offtake rights. The move reflects BHP’s broader nickel retrenchment during a prolonged market slump.

Deal terms and strategic reset

Lifezone now owns KNL, which holds 84% of Tembo Nickel in Tanzania. The Tanzanian government retains a 16% stake in Tembo Nickel. Lifezone targets a 2026 final investment decision on the $2.49bn complex. The design pairs a mine with a hydrometallurgical refinery for battery-grade material. Nameplate output targets 50,000 t/yr of nickel in concentrate after ramp-up.

Project outlook and market headwinds

Nickel prices remain under pressure from Indonesian surpluses and softer demand. LME cash prices have fallen over 40% since early 2023. Economics across new projects have therefore tightened materially. BHP earlier placed Nickel West on care and maintenance. It plans a decision on that asset’s future by early 2027. Against this backdrop, BHP exits Kabanga nickel project to sharpen portfolio focus.

Lifezone frames Kabanga as a premier undeveloped sulphide deposit. Hydromet refining could deliver cleaner, higher-quality battery feed. The project aims to support EV supply chains with secure, traceable nickel. However, six years to full ramp leaves execution risk. Financing, power, and permitting will be decisive for timelines.

The Metalnomist Commentary

This handover trades super-major capital for specialist focus. If Lifezone proves its hydromet route at scale, Kabanga could reset African nickel. Yet market discipline and offtake financing must align before shovels truly matter.

Vale Nickel Output Rises 11pc in Q1 After Furnace Rebuild

VALE

Strong Recovery from Onça Puma Supports Global Nickel Supply

Brazilian mining giant Vale reported an 11pc year-on-year increase in nickel production for the first quarter of 2025, reaching 43,900 metric tonnes (t). This growth comes as the company completed the furnace rebuild at its Onça Puma mine, which had hindered production during the same period last year.

Production in Brazil reached 5,400t, up from zero a year earlier. Meanwhile, Canadian operations also performed strongly, delivering 20,000t, an 18pc rise. This included a 47pc increase at Voisey’s Bay and a 51pc surge at Thompson, driven by efforts to build inventory ahead of refinery maintenance later in the year.

Planned Maintenance and Nickel Price Pressure

Vale announced up to five weeks of scheduled maintenance at Creighton mine in Q3, with additional short-term outages planned at Thompson and Long Harbour through Q4.

Despite strong output, nickel sales volumes lagged behind production at 38,900t, though still up 18pc year-on-year.

However, average nickel prices dropped 4.4pc year-on-year to $16,100/t, reflecting a weaker London Metal Exchange (LME) nickel market. As a result, revenue gains from increased volume were partially offset by lower pricing.

The Metalnomist Commentary

Vale’s output rebound underscores its operational resilience, especially as Canada strengthens its role in nickel supply. However, sustained LME price pressure may challenge margins, particularly during refinery maintenance later this year.

BHP to Temporarily Suspend Nickel Operations in Australia

BHP, a leading Australian resources firm, announced today its decision to temporarily suspend operations at its Western Australia nickel businesses starting October, with a review planned for February 2027. This suspension affects the Kwinana nickel refinery, Kalgoorlie nickel smelter, and the Mt Keith and Leinster mines. Additionally, the development of the West Musgrave project will be paused. A care and maintenance program will be implemented to ensure the mines' and infrastructure's safety and integrity during this period.

The decision comes amid an oversupply in the global nickel market, which has led to significant price drops. Benchmark prices for class 1 nickel on the London Metal Exchange have plummeted by approximately 20% over the past year, reaching $16,737 per ton on July 10, down from over $20,000 per ton in early July 2023.

"Like others in the Australian nickel sector, we have not been able to overcome the substantial economic challenges driven by a global oversupply of nickel," stated BHP President Geraldine Slattery.

This suspension raises concerns about the impact on the company's workforce and local communities. In response, BHP has committed to a A$20 million ($13.5 million) community fund to support local communities. The company will offer its frontline workers alternative roles within BHP or redundancy options. The Western Australia Labour government has introduced measures to assist affected workers, including training, upskilling, and job matching.

Following the transition period, BHP plans to invest around $300 million annually to support a potential restart of the facilities. This investment will focus on exploration to extend the resource life and preserve operational flexibility. The transition will begin in July, with operations ceasing in October and halting completely by December.

In February, BHP announced a review of its nickel operations and reported a non-cash impairment charge of $3.5 billion pre-tax on its Western Australia nickel business. With the temporary suspension, an additional $300 million pre-tax non-cash impairment charge will be sustained.

IGO lithium hydroxide refinery faces hurdles as Greenbushes lifts spodumene output

IGO

IGO lithium hydroxide refinery performance weighed on fiscal results despite a group profit. IGO lithium hydroxide refinery output rose year on year, but remained below guidance. As a result, management flagged more impairments and a cautious production outlook.

Kwinana update: IGO lithium hydroxide refinery under pressure

IGO reported a A$62.3mn profit for FY2024-25. However, the IGO lithium hydroxide refinery at Kwinana lost A$28.7mn. Equipment failures kept April–June production well below nameplate. Quarterly output reached 2,126t, up 60pc year on year. Full-year lithium hydroxide totaled 6,782t, almost doubling last year. Management expects further impairments of A$70–90mn for its 49pc JV stake. An earlier write-down of A$524.6mn already reduced the asset’s value. Train 2 construction remains halted while options are reviewed.

Upstream strength: Greenbushes delivers, Nova trims guidance

Greenbushes lifted second-quarter spodumene output to 340,203t, up 2.4pc on the year. Full-year production reached ~1.48mn t, within 1.35–1.55mn t guidance. Site cash costs averaged A$325/t in FY2024-25, with A$366/t in April–June. Spodumene sales rose 12pc on the quarter to ~411,855t after port delays eased. Guidance for FY2025-26 is 1.5–1.65mn t, with a third chemical grade plant due by late 2025. That plant could add up to 500,000 t/yr of concentrate. Nova produced 5,107t of nickel in April–June and 16,371t for the year. Next year’s guidance targets 15,000–18,000t nickel and 600–700t cobalt.

The downstream landscape in Kwinana is tightening. Covalent Lithium completed its 50,000 t/yr refinery, underscoring competitive pressure. Meanwhile, CEO Ivan Vella emphasized focus on Greenbushes with partners Tianqi Lithium and Albemarle. IGO guided 9,000–11,000t of lithium hydroxide for FY2025-26, reflecting operational caution. Therefore, the path to stable downstream margins remains challenging.

The Metalnomist Commentary

Kwinana’s setbacks confirm how hard first-wave hydroxide plants must fight for reliability. Upstream strength at Greenbushes helps cushion earnings, but downstream scale and uptime will decide value capture. Watch the Train 1 impairment, Train 2 timing, and IGO’s offtake strategy as prices and unit costs converge.