Sherritt International Announces Temporary Layoffs Amid Refinery Operations Challenges

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Sherritt International Corp. is laying off nearly half of its Canadian workforce as it grapples with operational challenges at its Alberta refinery due to supply chain issues linked to its Cuban operations.

Sherritt International Corp., headquartered in Canada, has announced the temporary layoff of approximately 280 employees, which accounts for 47 percent of its Canadian workforce. This decision comes as the company seeks to navigate operational difficulties at its refinery located in Fort Saskatchewan, Alberta. The refinery had to cease refining operations earlier this year after exhausting its feed inventory sourced from the Moa mine in Cuba.
The layoffs are expected to last for about 90 days, during which Sherritt will continue some limited operations. Specifically, the production and sale of ammonia fertilizer and sulphuric acid will persist, alongside ongoing maintenance and environmental protection efforts. This approach aims to mitigate the impact of the layoffs while ensuring essential operations can continue.
The challenges faced by Sherritt are exacerbated by the situation in Cuba, where the Moa joint venture has halted operations due to fuel shortages. These shortages stemmed from the U.S. government's decision to cut off access to oil from Venezuela back in January, significantly impacting fuel availability for operations in Cuba.
In a recent development, Sherritt announced that it obtained a license from the U.S. government allowing the company to purchase and deliver fuel necessary for its Moa mine and processing operations. This license represents the first in a series of emergency licenses required for Sherritt to resume full operations at the mine, which is crucial for the company's overall production capabilities.
The temporary layoffs and operational interruptions underscore the broader implications of international supply chain dynamics on local employment and production within the Canadian construction and resource sectors. As Sherritt works to stabilize its operations, the impact on the workforce and production timelines will be closely monitored by industry stakeholders.

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