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Cuban Nickel & Cobalt — Geography, History and the Market

Why the Moa laterites matter, how the trade works, and where US law bites.

Cuba sits on one of the world's great nickel-and-cobalt endowments, concentrated in the red laterite soils of the northeast around Moa and Nicaro. This is a factual, non-commercial explainer of how that industry works — the geology, the history, the joint venture that runs it today, and the way the US embargo has shaped where Cuban nickel can and cannot be sold. It quotes no prices and brokers nothing; it explains the sector and points to where it sits on the CubaAtlas map and economy pages.

The basics

Laterite country

Cuba's nickel-cobalt resources sit in weathered, iron-rich laterite deposits in Holguín province — principally Moa, Nicaro and Mayarí (USGS).

A cobalt heavyweight

Per the USGS 2024 assessment Cuba ranks about fourth in the world in cobalt reserves (~500,000 t) and among the top handful of cobalt producers.

Sold everywhere but the US

Because of the embargo, the Moa joint venture's nickel and cobalt are marketed worldwide 'except in the United States' (Sherritt).

How it really works

The Moa laterites

The northeast of Cuba, around Moa in Holguín province, is a belt of lateritic ore — soils weathered from iron- and nickel-rich rock — that holds one of the most significant nickel-cobalt concentrations on earth. The 2019 Moa technical report cited measured tonnage of about 111.9 million tonnes at roughly 1.03% nickel and 0.13% cobalt (Sherritt). Cobalt here is recovered as a by-product of nickel, and the relatively high cobalt grades are part of what makes the deposits strategically interesting as battery demand grows.

Nicaro, and a wartime start

The island's first nickel plant was built by a United States company at Nicaro, in the Mayarí municipality of Holguín, in 1943 to feed wartime demand; that facility ran until 2012 (Britannica; Ahora). Nickel has been part of the region's economy for the better part of a century, and its towns grew up around the works — which is why the pre-1959 industrial map and the modern economy layer both trace the same ground.

Freeport, expropriation, and the joint venture

The Moa processing plant — the 'Comandante Pedro Sotto Alba' — was expropriated by the Cuban government in 1960 from the US firm Freeport Sulphur (Sherritt). Since 1994 it has been run as Moa Nickel S.A., a 50:50 joint venture between Canada's Sherritt International and Cuba's state-owned General Nickel Company (Sherritt). It is one of the longest-running foreign industrial partnerships on the island.

How the metal actually moves

At Moa, open-pit lateritic ore is processed into a mixed sulphide precipitate carrying nickel and cobalt, which is then shipped across the Atlantic to the joint venture's refinery at Fort Saskatchewan, Alberta, in Canada — a refinery with roughly 38,200 tonnes a year of combined nickel-plus-cobalt capacity (Sherritt). Contained output has run in the low-to-mid ten-thousands of tonnes of nickel-plus-cobalt a year, with an expansion under way.

The embargo, and the 'nickel rule'

US law has shadowed Cuban nickel for decades. Under the Cuban Assets Control Regulations the US Treasury historically barred entry of any product made wholly or partly from Cuban-origin material even when it arrived from a third country — an early, much-cited extraterritorial reach of the embargo often described in terms of Cuban nickel and sugar. In practice the Moa venture simply sells outside the United States. For any US-connected reader this is the threshold fact, not a footnote.

US law applies — read this first

US persons should note that the Cuban Assets Control Regulations (31 CFR Part 515) broadly restrict dealings connected to Cuban-origin goods, and the embargo's historical 'nickel rule' extended that reach to products containing Cuban nickel even via third countries. This page is information, not legal or investment advice — verify current OFAC guidance before any decision.

Where this leads on CubaAtlas

The useful next steps — the lawful ones.

The Cuban economy →Pre-1959 industrial & mining map →Explore the island map →Doing business in Cuba →

Sources

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Cuban nickel: red soils, the Moa plants and a metal in every stainless-steel kitchen

Cuba sits on some of the largest nickel resources in the world, locked in the red, iron-rich soils of its eastern mountains. The metal is mined and processed at plants on the north-east coast, and it ends up in stainless steel, alloys and batteries across the world. This guide explains the geology, the history of the industry, how the ore is processed, what the metal is used for, what drives its price, and what the environmental and legal questions are.

Red earth and lateritic ore

Nickel in eastern Cuba occurs in laterites, soils formed by the long, intense weathering of ultramafic rocks in a hot, wet climate. As rainwater leached the rock over millions of years, iron oxides accumulated near the surface, giving the soil its deep red colour, while nickel and cobalt concentrated in layers lower down. The ore bodies in the Moa region of Holguín province are among the best-known examples, and the mountains around Mayarí and Nicaro host others.

Cuba is usually ranked among the countries with the largest nickel reserves, with figures published by the US Geological Survey that put its reserves at several million tonnes of contained nickel. Estimates change as methods and prices change, because what counts as an economic reserve depends on cost and market conditions.

A history of plants

The industry has a long history. During the Second World War the United States built a nickel plant at Nicaro, on the north coast of Holguín, to secure supplies of the metal for the war effort, and the plant used an ammonia leaching method that was adapted for lateritic ore. After the revolution, the plant was nationalised and expanded with Soviet help, and new plants were built at Moa, including the Che Guevara plant at Punta Gorda and the Pedro Sotto Alba plant.

Since the 1990s, the sector has involved foreign partners. A Canadian company, Sherritt International, formed a joint venture with the Cuban state at the Moa plant, and its operations became a major source of foreign exchange. Cuban nickel and cobalt products are exported to Canada, Europe and Asia, and the industry has gone through cycles of investment and decline.

How the ore becomes metal

Processing lateritic ore is energy-intensive. In the Nicaro method, the ore is dried, reduced with a hot gas and leached with ammonia solution to dissolve the nickel, which is then recovered as a carbonate. In the Moa method, finely ground ore is treated with sulphuric acid under high temperature and pressure in a process called high-pressure acid leaching, which dissolves the nickel and cobalt, and the metals are then precipitated as mixed sulphides.

The products from Moa are intermediate, and further refining takes place in other countries. For instance, mixed sulphides are shipped to a refinery in Canada, where nickel and cobalt are separated and sold as finished metals. The process uses large amounts of sulphur, which is imported, and of energy, which makes costs sensitive to global commodity prices.

What nickel is used for

More than two-thirds of the world's nickel goes into stainless steel, where it makes the alloy resistant to corrosion and easy to form. The kitchen sink, the cutlery drawer and the chemical plant all depend on this use. Nickel is also used in alloys for aircraft engines and power stations, in plating, and, increasingly, in batteries for electric vehicles, where nickel-rich chemistries increase energy density. Cobalt, a by-product of Cuban ore, is a key ingredient in many batteries as well.

The growth of electric vehicles has changed the market, as battery producers seek reliable supplies of high-purity nickel. At the same time, producers in Indonesia and elsewhere have expanded production quickly, which has influenced prices.

Price and markets

Nickel is traded on exchanges such as the London Metal Exchange, and its price swings with industrial demand, supply disruptions and speculation. A well-known episode occurred in March 2022, when prices on the exchange spiked sharply and trading was suspended for a time. A Cuban producer sells under contract and at prices linked to market benchmarks, so its revenue follows these swings.

For readers following the industry, the most useful indicators are the quoted price, the production figures from the producers and the national statistics office, and the commentary from analysts. Production in Cuba has been affected by equipment ageing, energy supply and the availability of sulphur and other inputs.

Environment and community

Nickel mining and processing have environmental effects. Open-pit mining removes forest and soil, tailings and waste must be stored, and acid leaching creates large volumes of residue. Air emissions from older plants have affected air quality in the Moa area, and local communities and scientists have raised concerns over the years. Cuban authorities have set up programmes for reforestation and for monitoring.

Moa and its surroundings are also notable for their biodiversity. The nearby Alejandro de Humboldt National Park, a UNESCO World Heritage site, protects one of the most biodiverse areas of the Caribbean, which highlights the contrast between industry and conservation in the same region.

Sanctions and trade rules

US sanctions affect the nickel trade in several ways. US persons are generally prohibited from dealing with Cuban nickel, and US rules restrict imports of products containing Cuban-origin nickel, which means that foreign manufacturers selling into the United States sometimes need to certify that their materials do not contain it. In addition, a provision of the Helms-Burton Act allowed the United States to deny entry to executives of companies found to traffic in confiscated property, and it was applied to some executives of foreign firms in Cuba.

This page is educational and not legal advice, and it does not sell or broker nickel or cobalt.

Reading production figures correctly

Nickel statistics can be confusing because different measures are used. Contained nickel is the weight of the metal itself in a product, while product tonnes is the weight of the whole material, such as a mixed sulphide that contains roughly half its weight in nickel. Reports may give figures for mine output of ore, for intermediate products, or for refined metal. A number quoted without its basis can mislead. When comparing countries or years, use the same definition and check whether cobalt is included or reported separately.

Cuban production has fluctuated over the years with changes in equipment, energy and finance. Independent sources, including the US Geological Survey, publish annual estimates, and company reports provide data for specific plants.

Cobalt as a companion metal

Cobalt occurs together with nickel in the lateritic ores of Moa and is recovered as a by-product. It is used in alloys for jet engines and, increasingly, in rechargeable batteries. Most of the world's cobalt comes from the Democratic Republic of Congo, where it is a by-product of copper mining. Cuba's cobalt output is small by comparison but significant for the country. Cobalt prices are volatile and subject to the same market forces as other battery metals.

Cleaner processing and the energy question

Processing nickel laterite consumes large amounts of energy and generates emissions. The industry has been looking for ways to reduce its footprint, for example by using renewable power, recovering heat, capturing sulphur compounds and improving water treatment. For Cuban plants, ageing equipment and fuel costs make efficiency a priority. Changing the energy source is a long-term project that depends on investment.

Moa as a community

The town of Moa and its surroundings live by and with the nickel industry. Many families depend on the plants for work, and the town has schools, clinics and cultural life tied to the sector. The region is also known for natural beauty, with forests, rivers and the Alejandro de Humboldt National Park nearby. Balancing the economic importance of mining with environmental protection and community wellbeing is a continuing challenge.

Closing mines and restoring land

Open-pit mines leave scars unless land is restored. Good practice involves removing and storing topsoil, shaping the land, replanting native species and monitoring water quality after mining ends. Reforestation programmes in the Moa area plant trees on mined land, though recovery of the original forest takes decades. Observers who evaluate the industry look at the proportion of land restored and the survival of plantings.

This page is educational. It does not sell nickel or represent any producer.

A glossary for reading nickel news

Nickel reporting uses specialised terms. Laterite is a soil rich in iron and nickel formed by weathering. Saprolite is the lower, magnesium-rich layer used in some processes. HPAL stands for high-pressure acid leaching, a method that dissolves nickel and cobalt with acid. Mixed hydroxide or sulphide precipitate is an intermediate product. Nickel pig iron is a low-grade product used in stainless steel. Class 1 nickel is high-purity metal suitable for batteries and alloys. LME is the London Metal Exchange. Knowing these terms helps readers follow industry coverage.

The industry also talks of cut-off grades, the minimum nickel content of ore worth mining, and of cash costs, the expenses of producing a pound of nickel. Comparing costs among producers shows who is competitive.

Why Cuba's nickel matters to the world market

Cuba is not the largest producer of nickel, but its resource base is among the biggest, and its cobalt output is a meaningful by-product. Indonesia, the Philippines, Russia, Canada and Australia lead in production. Cuban output matters mainly as a source of mixed sulphides for refineries and as a contributor to supply diversity. In a world seeking battery metals, resources in politically complex jurisdictions attract attention. Whether Cuba can raise production depends on investment, energy, inputs and market access.

Common questions

Where is Cuban nickel mined?

Mainly in the Moa region of Holguín province, with other deposits near Mayarí and Nicaro.

What is nickel used for?

Mostly for stainless steel, and also for alloys, plating and batteries.

Who works with Cuba on nickel?

The Cuban state, with a Canadian partner at Moa. Check the companies' own reports for current status.

Why does nickel price matter?

Revenue depends on world prices set on exchanges such as the LME.

Do you sell nickel?

No. This page is information only.

How much cobalt does Cuba produce?

Cuba produces a few thousand tonnes of cobalt a year as a by-product of nickel, according to published estimates, which is small compared with the Democratic Republic of Congo but important for Cuba. Figures vary by year and source, so check the date and whether the number refers to contained cobalt.

Does Cuban nickel go into electric-vehicle batteries?

Most Cuban output is an intermediate product that is refined elsewhere, and refined nickel and cobalt from various sources are used in batteries, steel and alloys. It is difficult to trace a particular tonne to a particular battery. Sanctions and origin rules also affect where Cuban-origin metal can be sold.

Are nickel mines open to visitors?

Generally no. Mines and processing plants are industrial sites with safety and security rules. Visitors to the Moa area usually see the landscape, the town and the nearby protected areas, and may glimpse the plants from a distance.