Cuba produces cobalt from the Moa Bay laterite nickel-cobalt deposit in Holguín Province, operated by Sherritt International (Canada) in a joint venture with the Cuban government. Cuba is a significant producer of mixed hydroxide precipitate (MHP), a cobalt-nickel intermediate product used in battery cathode manufacturing.
US Sanctions Implications
The United States maintains comprehensive sanctions against Cuba under the Cuban Assets Control Regulations (CACR) administered by OFAC. US persons are generally prohibited from engaging in transactions involving Cuban cobalt or MHP. Non-US companies sourcing Cuban cobalt must assess their exposure to US secondary sanctions risk, particularly if they have US operations, US investors, or US dollar-denominated transactions.
Sherritt International Joint Venture
Sherritt International is the only Western company with significant operations in Cuba. Sherritt's Cuban cobalt is processed at its refinery in Fort Saskatchewan, Alberta, Canada, producing cobalt sulfate for battery manufacturers. Sherritt executives are barred from entering the United States due to the Helms-Burton Act.
MHP Export Chain
Cuban MHP is exported to refineries in Canada (Sherritt Fort Saskatchewan) and potentially other destinations. Downstream buyers of cobalt sulfate from Fort Saskatchewan should verify that their supply chain documentation clearly identifies the origin of the cobalt content and assess their US sanctions exposure accordingly.