Will Cuban nickel production recover in 2025?
According to experts from the Ministry of Energy and Mines (MINEN), the nickel industry in Cuba has the capacity to produce more than 50,000 metric tons per year. In 2016, around that figure was produced, but currently, it barely reaches 30,000 tons due to accumulated financial, energy, and technological limitations. After the oil industry, the mining industry has suffered the most from the United States Government’s blockade.
According to information provided in mid-February by Leonardo René Rosell López, general director of Cubaníquel, production of the metal reached 83.3% of the 2024 plan, and export sales were at 68%, while the country’s income was only fulfilled at 75.6%. He indicated that these results were influenced by the decline in international nickel and cobalt prices, as well as three disconnections in the National Electric System.
Cubaníquel is the Superior Organization of Business Management responsible for the extraction, processing, and commercialization of nickel. It comprises 14 companies, including the two producers of the mineral: Comandante Pedro Soto Alba and Comandante Ernesto Che Guevara. Cubaníquel is situated in the northern part of the province of Holguín, specifically in the municipality of Moa, and has facilities in Nicaro and Mayarí. The Minister of Energy and Mines from the Council of Ministers oversees Cubaníquel.
The Comandante Pedro Soto Alba company was established in the late 1950s and began production in 1959. In April 1960, the U.S. company that operated it refused to pay taxes, as per the privileges granted by dictator Fulgencio Batista, and subsequently left the country, taking all the technical documentation with it. This situation necessitated the skill and expertise of Cuban technicians, led by engineer Demetrio Presillas, to initiate operations with new technology, which was accomplished by April 1961.
In December 1994, a joint venture was established with the Canadian firm Sherritt International. This firm focuses on producing and marketing mixed nickel and cobalt sulfides and on producing, selling, and delivering sulfuric acid to national entities. The shipments extracted in northern Holguín are sent to the Canadian plant in Saskatchewan, where the refining and separation process for both minerals occurs.
Last December, the working-class municipality of Moa celebrated the 30th anniversary of its first joint venture, Moa Nickel S.A., between Cuba and Canada.
The Comandante Ernesto Che Guevara company is 100% Cuban-owned. It was built in collaboration with the former Soviet Union and began production in 1984. Both companies use different technologies to produce the mineral.
The year 2024 was very difficult due to the instability and several total disconnections of the National Electric System, which affected the supply of energy to this important industry; the impact of two strong hurricanes, one of them precisely in the eastern zone; and the negative consequences that continued as a result of the United States’ economic, commercial, and financial blockade, such as the fuel deficit. Added to this was the decrease in the price of nickel on the world market.
However, during that period, improvements were made to the mines and metallurgical efficiency to achieve a total production of 32,000 tons, surpassing the output in 2022 and 2023.
“During 2024, the joint venture underwent an austerity process that slowed its growth and limited our investments, but it was necessary to sustain costs and continue operations,” said Rosell López.
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Environmental Impact
Environmental ImpactCubaníquel has collaborated with the Ministry of Science, Technology and Environment in the province of Holguín on various tasks to reduce the impacts that mining and factory work can have on the natural environment.
Regarding its contribution to nature preservation, the director of Cubaníquel stated that they pay special attention to the liquid, solid, and gaseous waste emitted by the two production plants, which are monitored daily to mitigate their adverse effects.
In this sense, reforestation of areas affected by mining is one of the main actions considered. In 2024, the plan was fully realized, and approximately 60 hectares were reforested, as confirmed by the director.
Cubaníquel has a relationship with the University of Moa, which allows 86 students from the Hygiene, Agronomy, and Mining programs to currently participate in the company. “This is an example of the connection and integration between university and business. For many years, our students have been working full-time in the industry. Today, we are going to start 216 students from the Geology, Mining, Electrical, Mechanical, and Metallurgy courses in the business sector, specifically in the nickel industry,” said Juan Ruiz Quintana, director of Mining at MINEM.
Mining concessions in different areas
In 2019, the General Directorate of Mining of MINEM published an analysis reporting that industries located in Moa held a mining concession (i.e., plots authorized for exploitation) that, at their current extraction rate, would allow them to extract and export nickel for 17 to 20 years, as recorded by the National Office of Mineral Resources. However, the entire nickel industry had additional mining concessions already granted both in Moa and in other areas, such as Mayarí, as well as in the provinces of Camagüey and Pinar del Río, ensuring the production of Cuban nickel and cobalt for over 50 years.
One proposed option is to transfer minerals from these regions of Cuba to the factories in Moa or to make a new investment, a matter included in the investment portfolio for the nickel industry.
According to these data, Cuba is fifth among the countries with the largest nickel reserves worldwide and third for cobalt.
Cuban experts believe that nickel and cobalt will continue to be in demand worldwide. Nickel is essential for obtaining stainless steel and corrosion-resistant alloys; cobalt, on the other hand, is used to manufacture batteries for cell phones, cars, and airplane turbines. These metals are vital for the energy transition and the so-called green or clean economies.
Projections for 2025
Sherritt International reported that it is at “full operating capacity” and “maintains” its production forecasts for this year. However, it warned in a statement about the “risks, uncertainties, and other factors” that influence its ability to “accurately” predict the outcomes of its operations while “operating at full capacity.” The company mentions power outages, fluctuations in the stock market, environmental and regulatory laws in Cuba, price volatility, and liquidity levels.
Additionally, other challenges associated with “the US government’s policy towards Cuba” are noted, including the blockade and the Helms-Burton Act, which suggest “political, economic, and other risks of operating abroad.”
The joint venture with Cuba, located in Moa, “has an estimated useful life of 25 years and has embarked on an expansion program aimed at increasing the annual production of mixed sulfide precipitates by approximately 20% of the nickel and cobalt contained.”
