Nickel and cobalt miner and refiner Sherritt International Corporation will temporarily lay off about 280 employees, representing 47% of its Canadian workforce, as part of ongoing measures to preserve liquidity while it works to restore metals refining operations at its Fort Saskatchewan refinery, in Alberta.

This follows after the feed inventory for the Fort Saskatchewan refinery was depleted, resulting in the refinery halting activities in June.

Further, the US administration's implementation of sanctions against persons conducting business in Cuba forced Sherritt to suspend its direct participation in joint venture activities in that country in May, resulting in the company operating under constrained liquidity conditions every since.

The company states that it continues to advance the regulatory, operational and financial requirements to support the restart of refining operations, including the receipt, in October, of the first of a series of anticipated emergency licenses from the US Department of the Treasury’s Office of Foreign Assets Control required to restart mining and processing operations in Cuba and refining operations in Canada.

During the temporary layoff period, which is expected to last for three months, certain activities, including the production and sale of ammonia fertiliser and sulphuric acid, necessary maintenance and ongoing environmental protection and safety activities, will continue.

“This was a difficult decision, and we recognize the impact it will have on our employees and their families. We are grateful to our employees for their dedication and hard work, particularly through this challenging period. The layoffs are intended to be temporary and employees may be recalled sooner if developments allow refining activities to resume earlier than anticipated.

“At the same time, we are encouraged by the regulatory progress being made and remain focused on the steps required to restore operations. Our objective is to return Sherritt to its position as an important producer of nickel and cobalt and a key contributor to North America’s critical minerals supply chain,” comments interim president and CEO Dr Peter Hancock.