2008 Minerals Yearbook Cuba

U.S. Department of the Interior U.S. Geological Survey Th e Mi n e r a l In d u s t r y o f Cu b a By Omayra Bermúdez-Lugo

Nickel was the most important mineral commodity to the prospecting, exploration, marketing, and refining. Table 2 is a Cuban economy, accounting for about 50% of export earnings list of major mineral industry facilities. in recent years, followed by cobalt, which was produced as a byproduct of the mining of nickel. Other minerals produced in Commodity Review the country included asphalt, bentonite, cement, chromium, clay, crushed stone, feldspar, gypsum, lime, limestone, marble, salt, Metals sand, steel, sulfuric acid, volcanic ash, and zeolite. Cuba also produced ammonia, natural gas, petroleum, petroleum products, Cobalt and Nickel.—Annual production reached a record and sulfur as a byproduct of the refining of petroleum (Frank, of 35,119 t of contained nickel and cobalt in mixed sulfides 2009). at the Pedro Soto Alba Mine despite the loss of about 600 t of In 2008, Hurricane Gustav and Hurricane Ike caused output as a result of minor damage (not specified) to the mine significant damage to the country’s infrastructure, including to by Hurricane Ike. The increase in production was owing to the cobalt and nickel mining facilities. About 200,000 people were commissioning of phase 1 of Sherritt International Corp. of estimated to have lost their homes. The estimated $5 billion in Canada’s expansion project. Phase 1 added 4,000 t of nickel material losses, including buildings, general infrastructure, and plus cobalt contained in mixed sulfide, which brought the mine’s crops, represented about 10.5% of the country’s gross domestic total production capacity to 37,000 metric tons per year. The product (GDP). Petroleum producing facilities, however, were company announced that infrastructure at the Moa facilities reportedly not affected by the hurricanes (Frank, 2008b, c; had suffered minor damage owing to precautionary measures Sherritt International Corp., 2008a, b). taken in anticipation of Hurricane Ike. The Moa facilities were temporarily idled during September. Sherritt announced the Production suspension of phase 2 of the expansion project and reported that a restart would be subject to cash flow, which, according Production of cobalt, which included ammoniacal liquor to the company, was tied to the future prices of nickel and precipitate, oxide, oxide sinter, and sulfide, decreased by cobalt. The Moa Mine is a 50-50 joint venture between Sherritt 28.5% to 3,597 metric tons (t) in 2008 compared with a and the Government. Cuba’s other two nickel plants were also revised 5,029 t produced in 2007. Nickel production, which closed temporarily after the passing of Hurricane Ike. The included ammoniacal liquor precipitate, oxide, oxide sinter, Ernesto Che Guevara nickel plant, which is located in Holguin and sulfide, decreased by 9.0% to 67,265 t from 73,934 t in Province, reportedly suffered the most damage. The plant 2007. The decrease in the production of cobalt and nickel was lost 12,000 square meters of roofing and walls (Frank, 2008a; mostly attributable to the temporary shutdown of all three of Sherritt International Corp., 2008a, b; 2009, p. 8, 43). the country’s cobalt and nickel mines. Among the industrial Gold.—Central Geo Mining Co. of Cuba conducted minerals, production of gypsum, silica sand, zeolites, lime, feasibility studies in the Province of Villa Clara during the year salt, asphalt, and limestone increased by 37.5%, 36%, 25.9%, to determine the possibility of developing gold and copper-zinc 17.3%, 11.3%, 10.2%, and 7.0%, respectively; production of deposits with the assistance of the Government of Venezuela calcareous sand decreased by 29% to about 1.9 million cubic (World Gold Council, 2008). meters. Production of hydraulic cement decreased by 5.4% to about 1.7 million metric tons (Mt) from about 1.8 Mt in 2007. Mineral Fuels Production of natural gas decreased by 4.7%; production of crude petroleum increased by 3.4%, and that of petroleum Petroleum.—Sherritt held an indirect working interest refinery products increased by 84.4%. The significant increase that varied from 40% to 100% in various petroleum in petroleum refinery output was owing to the reopening of the production-sharing contracts in Cuba. The company produced Cienfuegos refinery, which came online in late December 2007. petroleum from near-shore reservoirs off the northern coast of Data on mineral production are in table 1. Cuba, which were explored and developed from land-based drilling locations. In 2008, about 95% of the company’s Structure of the Mineral Industry worldwide net petroleum output came from Cuban oilfields. Sherritt planned to drill two exploratory petroleum prospects in The Ministerio de la Industria Básica was the Government 2009 (Sherrit International Corp., 2009, p. 6, 12, 24). entity responsible for the mineral and petroleum sectors. The Governments of Cuba and Venezuela planned to expand Unión Geológico Minera S.A. was the company in charge capacity at the Cienfuegos and the Hermanos Diaz petroleum of prospecting, exploration, and mining of all metallic refineries and to construct a new refinery in the port city of and nonmetallic minerals with the exception of cobalt and Matanzas. The Cienfuegos refinery, which was owned by a joint nickel, which were overseen by Unión del Níquel S.A. venture between Government-owned Cuba Petróleo (CUPET) Cubapetróleo S.A. was the company in charge of petroleum and Petróleos de Venezuela S.A. (PDVSA), was closed in

Cuba—2008 9.1 the mid-1990s following the collapse of the Soviet Union. Frank, Marc, 2008c, Storm damage may speed Cuba reforms: Thomson Reuters, The refinery reopened in December 2007. The joint-venture September 16. (Accessed November 30, 2009, at http://www.reuters.com/ article/GCACuba/idUSN1636641120080916.) partners planned to build four new storage tanks at Cienfuegos, Frank, Marc, 2009, Cuba says all nickel plants remain open: Thomson Reuters, which would increase the refinery’s storage capacity to April 20. (Accessed April 24, 2009, at http://www.reuters.com/article/ 80,000 cubic meters, and to increase the processing capacity to idUSN2038675720090420.) 150,000 barrels per day (bbl/d) from the existing 65,000 bbl/d. Petroleum Economist, 2008, News in brief—Cuba: Petroleum Economist, v. 75, no. 8, August, p. 36. In addition to the refinery expansion projects, CUPET and Sherritt International Corp., 2008a, Minimal impact of Hurricane Ike on PDVSA planned to reactivate a 189-kilometer pipeline that links Sherritt operations: Toronto, Ontario, Canada, Sherritt International Corp., Cuba’s northern and southern coasts to facilitate distribution September 8, 2 p. from Cienfuegos. CUPET and PDVSA also planned to Sherritt International Corp., 2008b, Update on the impact of Hurricane Ike on Sherritt operations: Toronto, Ontario, Canada, Sherritt International Corp., increase the production capacity at the Hermanos Diaz refinery September 9, 1 p. to 65,000 bbl/d from the existing 22,000 bbl/d at a cost of Sherritt International Corp., 2009, 2008 annual report: Toronto, Ontario, Canada, $860 million. The planned Matanzas refinery, which was to be Sherritt International Corp., 124 p. managed by Cuvenpetrol S.A. (a new joint venture company of Watkins, Eric, 2008, Cuba Petróleo—PDVSA to reactivate Cuban pipeline: Petroleumworld.com, September 23. (Accessed April 28, 2010, at CUPET and PDVSA), would have a capacity of 150,000 bbl/d http://www.petroleumworld.com/story08092308.htm.) and would cost about $4.3 billion. The refinery was expected to World Gold Council, 2008, Cuba to open gold mines in 2009: World Gold be operational by 2015 (Petroleum Economist, 2008; Watkins, Council, January 25. (Accessed December 1, 2009, at http://www.gold.org/ 2008; Your Industry News, 2008). news/2008/01/25/story/8509/cuba_to_open_gold_mines_in_2009/.) Your Industry News, 2008, Cuba and Venezuela ratify construction of refineries: Your Industry News, December 19. (Accessed December 2, 2009, at References Cited http://www.yourindustrynews.com/cuba+and+venezuela+ratify+construction+ of+refineries_18976.html.) Frank, Marc, 2008a, Cuban nickel industry still not at capacity: Thomson Reuters, September 29. (Accessed November 30, 2009, at http://www.reuters.com/ article/rbssIndustryMaterialsUtilitiesNews/idUSN2936446520080929.) Frank, Marc, 2008b, Hurricane devastation in Cuba may lead to economic reforms: Havana Journal, September 17. (Accessed November 27, 2009, at http://havanajournal.com/business/entry/hurricane-devastation-in-cuba-may- lead-to-economic-reforms.)

9.2 u.s. geologicAl survey minerals yearbook—2008 TABLE 1 CUBA: PRODUCTION OF MINERAL COMMODITIES1, 2, 3

(Metric tons unless otherwise specified)

Commodity 2004 2005 2006 2007 2008 Asphalt 47,400 43,300 49,900 55,900 61,600 Bentonite 444 191 355 401 382 Cement, hydraulic 1,401,300 1,566,900 1,704,700 1,805,300 1,707,200 Chromite 40,300 34,000 27,900 25,000 e 25,000 e Cobalt, mine output, Co content:4 Oxide, oxide sinter, sulfide, ammoniacal liquor precipitate 4,055 5,277 r 6,081 r 5,029 r 3,597 Sulfide and ammoniacal liquor precipitate 3,580 4,798 r 5,602 r 4,540 r 3,175 Feldspar 10,500 8,000 5,500 5,600 4,300 Gypsume thousand metric tons 85 73 73 80 110 Iron ore: Gross weight 19,700 18,900 7,800 3,300 -- Fe contente 8,900 8,500 3,500 1,500 -- Kaolin clay 4,100 3,500 1,700 2,000 r 2,000 e Lime 53,600 34,000 36,300 42,800 50,200 Limestone thousand metric tons 3,100 3,900 1,700 1,400 r 1,500 Marble cubic meters 4,400 4,700 5,500 4,200 3,800 Natural gas, marketed thousand cubic meters 704,200 743,300 1,090,600 1,217,900 1,161,000 Nickel, Ni content:4 Mine output, oxide, oxide sinter, sulfide, ammoniacal liquor precipitate 71,944 73,753 73,371 73,934 67,265 Metallurgical products: Granular oxide, oxide sinter, powder 38,824 39,121 39,121 39,911 34,478 Sulfide 30,999 32,354 30,967 31,116 32,465 Ammoniacal liquor 2,121 2,278 3,283 2,907 322 Total 71,944 73,753 73,371 73,934 67,265 Nitrogen, N content of ammonia 51,300 27,900 42,300 47,400 41,700 Petroleum: Crude5 thousand 42-gallon barrels 20,979 18,928 18,702 18,734 19,366 Refinery products:6 Petroleum coke do. 72 96 78 76 34 Gasoline, motor do. 2,826 3,475 2,707 3,345 8,333 Kerosene do. 1,691 2,045 973 536 325 Liquefied petroleum gas do. 735 950 719 681 374 Lubricants do. 342 302 316 350 360 Naphtha do. 721 602 690 496 686 Total do. 6,387 7,470 5,483 5,484 10,112 Salt thousand metric tons 408 351 266 141 r 157 Sand, calcareous thousand cubic meters 1,643 1,651 1,977 2,730 1,938 Silica sand cubic meters 33,100 14,300 9,000 21,400 r 29,100 Stone, crushed thousand cubic meters 2,400 2,437 3,044 3,815 3,579 Steel 193,200 245,100 257,200 262,400 273,800 Sulfuric acid thousand metric tons 449 427 406 428 412 Volcanic ash 14,600 12,900 3,500 38,000 r 34,600 Zeolites 28,600 17,200 14,000 16,200 20,400 eEstimated; estimated data are rounded to no more than three significant digits; may not add to totals shown. rRevised. do. Ditto. -- Zero. 1Table includes data available through August 11, 2009. 2In addition to commodities listed, crude construction materials (sand and gravel, and so forth) may also be produced, but data on such production are not available, and information is inadequate to make reliable estimates of output. 3Statistical data reported by the Cuban Government in Anuario Estadístico de Cuba, unless otherwise specified. 4The Government of Cuba reports figures of nickel-cobalt content of granular and powder oxide, oxide sinter, and sulfide production. The cobalt content of reported nickel-cobalt production was determined to be 1.16% of granular and powder oxide, 1.21% of oxide sinter, 7.56% of sulfide, and 33% of ammoniacal liquor. The remainder of reported figures would represent the nickel content. 5Production has been converted from metric tons to barrels by using the U.S. Energy Information Administration's factor of 6.449 barrels per metric ton of crude petroleum. 6Production has been converted from metric tons (t) to barrels (bbl) by using the U.S. Energy Information Administration's factor of 5.51 bbl/t for petroleum coke; 8.53 bbl/t for gasoline; 7.73 bbl/t for kerosene; 11.63 bbl/t for liquefied petroleum gas; 7.00 bbl/t for lubricants; and 8.22 bbl/t for naphtha.

Cuba—2008 9.3 TABLE 2 CUBA: STRUCTURE OF THE MINERAL INDUSTRY IN 2008

(Thousand metric tons unless otherwise specified)

Annual Commodity Major operating companies and major equity owners Location of main facilities capacity Cement Cementos Cienfuegos S.A. (Government, 50%, and Cienfuegos 1,500. Las Pailas de Cemento S.A., 50%) Do. Fábrica de Cemento 26 de julio Nuevitas 600. Do. Fábrica de Cemento Mártires de Artemisa Artemisa 600. Do. Cementos Curazao N.V. Barrio Mujica, Mariel Province 1,110. Do. Fábrica de Cemento Siguaney Sancti Spiritus 300. Chromite Grupo Empresarial Cubaníquel S.A. (Government, 100%) Moa, Holguin Province 30. Cobalt Metals Enterprise S.A. (Government, 50%, and Sherritt do. 3. International Corp., 50%) Copper Mina Grande El Cobre (Government, 100%) Santiago de Cuba Province Closed in 2001. Do. Matahambre Mine (Government, 100%) Pinar del Rio Province Closed in 1997. Gold kilograms Castellanos Gold Mine Santa Lucia, Pinar del Rio 550. Province Do. do. Gold Mine Isla de la Juventud Closed. Nickel Empresa Niquelífera Ernesto Che Guevara Ernesto Che Guevara Mine 33. Punta Gorda, Holguin Province Do. Moa Nickel S.A. (Government, 50%, and Sherritt Pedro Soto Alba Mine, Holguin 37. International Corp., 50%) Province Do. Empresa Niquelífera Comandante René Ramos Latour Rene Ramos Latour Mine, Nicaro 12.4. (Government, 100%) Holguin Province Petroleum: Crude: thousand Empresa de Perforación y Extracción Northern coast between 12. 42-gallon barrels de Petróleo del Centro (Government, 100%) Havana and Cardenas Do. Sherrit International Corp. (indirect working interests Near shore oilfields located at 7,000. varying from 40% to 100% in 10 production-sharing Yumuri, Varadero, Canasi, contracts with the Government) and Puerto Escondido Refinery products thousand PDV-Cupet S.A. (Government, 51%, and Cienfuegos refinery, Cienfuegos, 23,725. 42-gallon barrels Petróleos de Venezuela S.A., 49%) 250 kilometers from Havana Do. do. Hermanos Díaz Santiago de Cuba 8,000. Do. do. Ñico López Refinery (Government, 100%) Havana NA. Sand Algaba quarry Sancti Spiritus 50. Do. Malabe quarry NA 32. Do. Cajobabo Imias NA. Steel Grupo Metalúrgico Acinox (Government, 100%), including: Cotorro, Havana Province 600. Antillana de Acero Do. Empresa de Aceros Inoxidables Las Tunas, Las Tunas Province 370. Do. 4 other steel plants NA NA. Zeolite Empresa Geominera Oriente Holguin Province 58. Do., do. Ditto. NA Not available.

9.4 u.s. geologicAl survey minerals yearbook—2008