Glencore joins battle for Cuba-linked cobalt refiner

GLENCORE has entered the contest to recapitalise Sherritt International, pitting the mining giant against a family office with ties to Donald Trump for control of a Canadian company that owns North America’s only significant cobalt refinery.The Financial Times reported on August 10 that the battle centres on securing non-Chinese refining capacity for strategic metals. Sherritt is at the heart of the context because of its 50% stake in the Moa joint venture, held alongside Cuba’s state-owned General Nickel Company. That venture owns both the Fort Saskatchewan refinery in Alberta and the Moa nickel-cobalt mine in Cuba, said the FT.Sherritt’s troubles began in May, when Washington widened Cuba sanctions to cover Moa, forcing Sherritt to pull back from direct involvement, repatriate staff and lose access to cash held in the venture. Its CFO, auditor, and three directors have since resigned. The sanctions leave it exposed to demands for early repayment of a $57m loan, the newspaper said. Fort Saskatchewan halted production in June once feedstock ran out.Glencore’s consortium, which includes Kyma Capital, Brevan Howard co-founder Trifon Natsis and an undisclosed US family office investor, has proposed injecting fresh equity via a US-based vehicle taking at least 55% of Sherritt, while working around the sanctions. Glencore itself is expected to seek marketing and offtake rights rather than a large equity stake, said the FT.It rivals a non-binding proposal from Gillon Capital, run by Republican fundraiser and former Trump official Ray Washburne, which would also secure 55% via warrants. Washington has told both sides it does not object to negotiations, though that falls short of approving any deal. Sherritt says it welcomes all expressions of interest.The post Glencore joins battle for Cuba-linked cobalt refiner appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com