Cuba: The last of the three big revenue earners to topple

[El Presidente]

The three biggest revenue earners for Cuba are tourism, medical services and mining, specifically the Moa Nickle-Cobault mine.  Moa is one of the largest Nickle Cobault mines in the world. 

 

https://www.aa.com.tr/en/world/canadian-mining-company-pauses-cuba-operations-due-to-fuel-shortages/3832806

Canadian mining company pauses Cuba operations due to fuel shortages

Sherritt International Corporation to 'place the processing plant on standby within the next week,' says statement.

Merve Aydogan  |17.02.2026 - Update : 17.02.2026

 

 

     

 

HAMILTON, Canada

Canadian mining company Sherritt International Corporation announced Tuesday that it will pause mining activities at its joint venture in Moa, Cuba, due to fuel supply constraints affecting the country.

"The Corporation expects to pause mining operations and place the processing plant on standby within the next week during which time, planned maintenance activities will be performed," it said in a statement.

Noting that it had been notified that planned fuel deliveries to Moa will not be fulfilled, and that the timeline for resumption remains unknown, the company stated that it is "actively engaging with relevant counterparts and evaluating all options for sourcing input commodities."

"Currently, there is no immediate impact on operations in Fort Saskatchewan, Alberta," it added, stating that the refinery continues to produce finished nickel and cobalt for sale.

But available feed inventory is expected to last until mid-April, said the statement.

Sherritt is a world leader in hydrometallurgical processes to mine and refine nickel and cobalt, and operates what it describes on its website as the only significant cobalt refinery and one of just three nickel refineries in North America.

The announcement comes as Cuba's fuel crisis worsened after the US cut off oil supplies from longtime ally Venezuela, which had been shipping tens of thousands of barrels daily to the island.

US President Donald Trump also threatened to impose tariffs on any country that sells oil to the island.

Since the Trump administration's Jan. 3 military operation to capture Venezuelan President Nicolas Maduro, a longtime supporter of Cuba's government, it has sought to strengthen the US position on Cuba.

In a late January executive order, Trump described the Cuban government as posing "an unusual and extraordinary threat," saying that a declaration of a national emergency was necessary.

Cuba meets about one-third of its energy demand with domestic production, according to sources cited by the Spanish wire service EFE. For the remainder, it depends on imports, primarily from Mexico and, to a lesser degree, Russia, with Venezuela accounting for around 30% of total supplies in 2025

[yuppie]

The situation is grim and getting worse. Sadly this is a slow and painful bleed out. I'd rather just rip the band-aid off!

[Vetteman]

If the current regime falls, which looks more possible than ever, what do you think will happen with the 50% stake of Habanos SA held by the state?

[El Presidente]

1 hour ago, Vetteman said:

If the current regime falls, which looks more possible than ever, what do you think will happen with the 50% stake of Habanos SA held by the state?

The extremes of the possible scenarios.  

• Regime falls. Habanos no longer exists. 12 months for dust to settle in the cigar world as the new paradigm takes shape. 
• Regime does a Venezuela. Nothing changes in the Habanos cigar world. 

[ATGroom]

3 hours ago, Vetteman said:

If the current regime falls, which looks more possible than ever, what do you think will happen with the 50% stake of Habanos SA held by the state?

I think the more interesting question is what happens to the rest of the Cuban tobacco industry.

Tabacuba is the manufacturing arm. They own the factories, the warehouses, the escogidas, the stripping facilities, the state farms (which grow 70% of Cuban tobacco production), the Research Institute (which produces 100% of the seed, applies any chemicals needed, and generally supervises all production on the island.) The other 30% of production is the family farms. They are required by law to produce tobacco on their land. If the economy liberalises and they can grow whatever they want, most of them would probably switch to food production at the moment. The big state farms are mostly the former foreign owned plantations that were nationalised.

Cubatabaco is the IP arm. They own the brands and have a few other functions like training. Most of the brand issues are settled everywhere in the world aside from the US, but even in the US many of the non-Cuban versions of the Cuban brands are owned by Altadis USA, so it's likely not that big of a deal.

Habanos S.A. is marketing and distribution. It's a bit mercurial what they actually own. Cuba owns 50% or more of most of the distributors, but it's an investment company, not Habanos SA. Habanos owns the LCDH franchise, but that has been devalued a bit now that they all sell non-Cubans as well. The main thing they own is the contracts they have with everybody else.

The whole thing is a pretty juicy cherry for anybody picking the bones of Cuba, so it's hard to imagine "the state" letting it go easily, whether the state is the current regime, a military strongman, a US puppet, a democratically elected government, or whoever.

If it leaves state control, the most likely outcome is probably that it all ends up in the hands of a Cuban oligarch, possibly in partnership with Altadis and whoever owns that.

If your aim is free-market capitalism then you'd really have to break up Tabacuba and privatise each of its many components separately, same with Cubatabaco and its assets. Habanos could continue to exist as long as it continued to make distributor deals with the new factory owners.

[Ryan]

There is probably more to this. Nickel and cobalt are sought after and stories of big reserves here. Somebody said recently ,”Nobody knows more about magnets than I do.” And in the next breath said “Nobody knows how magnets work.” The same person wanted Greenland “for defense”.

Botswana got independence in 1966. They “discovered diamonds” there in 1967.

[El Presidente]

5 hours ago, Ryan said:

There is probably more to this. Nickel and cobalt are sought after and stories of big reserves here. Somebody said recently ,”Nobody knows more about magnets than I do.” And in the next breath said “Nobody knows how magnets work.” The same person wanted Greenland “for defense”.

Botswana got independence in 1966. They “discovered diamonds” there in 1967.

Marty K is an Aussie and a good friend of mine. He was mine manager at the Moa Nickel mine for two years. 

Oh the stories I could tell of Moa mine efficiency "Cuba style"!  

[Ryan]

I met a woman from Brisbane here after the gala dinner in about 2018. A mining engineer, here for the nickel. A lovely person. One of the most open minded people I ever met. She dove right in with us.