Expanded Trump Cuba Restrictions Take First Big Scalp

[El Presidente]

For those unaware, Sherritt's operate the Moa nickle mine in Cuba. I believe it was the 2nd or 3rd largest form of foreign income. 

 

https://www.msn.com/en-us/money/companies/sherritt-international-halts-venture-activities-in-cuba/ar-AA22B8BK

Canadian miner Sherritt International suspended its joint-venture activities in Cuba and directors, including Chair Brian Imrie, resigned after President Trump ramped up efforts to force regime change on the island.

Sherritt said Thursday it has suspended direct participation in venture activities in Cuba, effective immediately, and that it is taking steps to repatriate its employees. The company said it has requested partners send expatriate personnel to Canada.

Brian Imrie, Richard Moat and Brett Richards have resigned from the company’s board. Imrie was named independent chair effective late November.

The moves come after the Trump administration at the start of the month issued an executive order expanding sanctions against Cuba.

Sherritt owns a one-third interest in Energas, Cuba’s largest independent energy producer, which runs roughly 10% of the country’s national electricity-generating capacity. Sherritt’s Moa joint venture, with partner General Nickel Co. of Cuba, mines, processes and refines nickel and cobalt for sale worldwide.

The Canadian company said it hasn’t been formally designated under the executive order, though it said that could occur at any time.

“The mere issuance of the executive order itself creates conditions that materially alter the corporation’s ability to operate in the ordinary course, including activities related to Sherritt’s Cuban joint venture operations,” it said.

Sherritt said there is no immediate impact on its operations in Fort Saskatchewan, Alberta. The refinery continues to produce finished nickel and cobalt for sale, and its inventory of feed for production is expected to last until about mid-June.

The company said the order and any designation could result in financial or other providers being unable or unwilling to continue to support Sherritt’s operation or other business activities.

[Dadof3]

Why did the board members resign?  This sort of thing is out of their control.  Do they just not want to deal with it at this point?  

[El Presidente]

2 hours ago, Dadof3 said:

Why did the board members resign?  This sort of thing is out of their control.  Do they just not want to deal with it at this point?  

My understanding is that under the upgraded Trump restrictions/embargo there is a risk board members/Directors  could be found personally in breach of the restrictions which would open them up to OFAC action.