Trump Sanctions Push Another Mining Company in Cuba Toward a U.S. Buyer

Another foreign mining company is trying to save its Cuban operation by selling off its stake to a U.S. buyer in an effort to appease the Trump administration.

Antilles Gold, an Australian company developing the Nueva Sabana gold and copper mine in central Cuba, has proposed selling a controlling stake in its Cuban joint venture to a U.S. investor. The company's chairman submitted the plan to the State Department after the Trump administration sanctioned Antilles' Cuban partner, state-owned GeoMinera, forcing the joint mining venture to suspend its Cuban operation.

Under the proposal, U.S. investors would take a majority stake in the joint venture's holding company, a structure Antilles hopes could unlock an OFAC license or lift the sanction altogether. 

The company says it's "encouraged" by the administration's response so far.

Two months ago, Canada’s Sherritt International announced it would dissolve its 50/50 joint nickel mining venture with the Cuban government. Just days after the decision, Sherritt reversed course when a former Trump adviser signed a pre-agreement to acquire a majority stake in the company. 

The cases suggest that the economic war on Cuba is serving to force the country’s mineral wealth to be handed over to U.S. investors, and in at least one case, to a Trump ally.