Vulcan Materials Faces Ongoing Dispute Over Mexican Operations

Vulcan Materials remains locked in struggles over Mexican operations

Vulcan Materials Faces Ongoing Dispute Over Mexican Operations

{} –Birmingham-based Vulcan Materials continues to face challenges with the Mexican government regarding its operations in Quintana Roo.

In 2022, the Mexican government shut down Vulcan’s limestone quarrying activities, citing environmental damage as the cause. Vulcan has refuted these claims.

Last year, Reuters reported that the Mexican government offered approximately $391 million for the property. However, Vulcan stated this week, "We have never received a 'generous offer' to purchase our property. We were provided with an informal appraisal lacking signatures and details, which significantly undervalues our assets, including our limestone reserves and the region's only deep draft port."

Mexico News Daily, an English-language news source, reported that the Mexican government's takeover of the property is "imminent," with plans to transform it into a natural reserve featuring rental cabins and cruise ship docking facilities.

The news outlet also noted that Mexican Navy personnel occupied the Sac Tun quarry and the Punta Venado marine terminal, located south of Playa del Carmen, for several weeks starting on March 14, 2023. Vulcan called this "an illegal takeover." Mexican President Andrés Manuel López Obrador stated that the action was authorized by judges, allowing the Mexican cement company Cemex to use the port for unloading cargo.

Earlier this month, Vulcan issued a statement saying, "The company strongly believes that this action by the Mexican government is illegal. The company has the necessary permits to operate and intends to vigorously pursue all lawful avenues to protect its rights and resume normal operations."

The statement added, "In March, Vulcan received its routine three-year customs permit, allowing the company to continue serving its customers. The company has legally quarried limestone in Mexico on its owned land for over 30 years. Vulcan maintains full ownership of its properties, owns the limestone reserves, and has always complied with Mexican law, including operational permits."