KEY POINTS
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Sherritt will temporarily lay off 280 Canadian workers.
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The cuts follow refinery shutdown and US sanctions.
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The company hopes to restart operations within three months.
Sherritt International Corporation will temporarily lay off about 280 employees in Canada as the nickel and cobalt producer struggles with liquidity challenges and works to restart its suspended refining operations in Alberta.
The planned layoffs represent approximately 47% of the company’s Canadian workforce and are expected to last three months.
The decision follows the depletion of feed inventory at Sherritt’s Fort Saskatchewan refinery, which forced the facility to suspend operations in June 2026.
The company has been facing financial pressure since then, with its liquidity position further affected by US sanctions targeting individuals and entities conducting business in Cuba.
The sanctions forced Sherritt to suspend its direct participation in joint venture activities in the country in May, disrupting operations linked to its nickel and cobalt production activities.
Company Works to Restart Operations
Sherritt said it is pursuing the regulatory, operational and financial requirements needed to resume refining activities in Canada and restart mining and processing operations in Cuba.
The company received the first of several expected emergency licences from the US Department of the Treasury’s Office of Foreign Assets Control in October. The licences are required to support the planned resumption of its operations.
Despite the layoffs, some activities at the Fort Saskatchewan facility will continue during the three-month period. These include the production and sale of ammonia fertiliser and sulphuric acid, essential maintenance work, and environmental protection and safety operations.
Employees Could Return Earlier
Interim President and CEO Dr Peter Hancock described the decision as difficult, acknowledging its potential impact on affected workers and their families.
He said the layoffs were intended to be temporary, adding that employees could be recalled before the three-month period expires if developments allow refining operations to resume sooner.
Hancock said the company remained encouraged by progress on regulatory approvals and was focused on restoring its operations.
Sherritt aims to return to its position as a significant nickel and cobalt producer and an important contributor to North America’s critical minerals supply chain.
