In 2022, the Mexican government ordered a halt to limestone quarrying at Vulcan Materials’ mining unit in Quintana Roo, alleging environmental damages. Vulcan Materials said it rejects the “illegal expropriation” of its investments in Mexico but remains open to a negotiated solution with the Mexican government.
Mexican President Lopez Obrador said last week that the site had not been expropriated, only closed, and that it would remain closed at least until he leaves office in October. He has offered Vulcan $385 million for the property, which the company said is worth almost $2 billion.
Vulcan Materials recently released a statement, saying, “Vulcan Materials Company respects and values the people of Mexico and believes you deserve the truth about who we are, how we operate, and our commitment to you and Mexico. While we continue to await legal rulings on the Government of Mexico’s persistent unlawful actions against us, we feel compelled to dispel false allegations that continue to be made against the Company.
“In recent days, we have been subject to more of the same disparage-and-harass campaign that we have endured in recent years. The Mexican government is using these political threats and false allegations to try to justify converting our property into a “naturally protected area,” which could—ironically—be used not to protect the environment but for commercial tourism purposes and naval operations, including cruise ship activity. We will not accept this unlawful expropriation of our investments.
“Throughout our history in Mexico, we have seen indications of intensifying third-party interest in our property and port facilities. In the 1980s, Playa del Carmen was a quiet fishing village. We identified and purchased private property that had been devastated by hurricanes, fires and other events but contained valuable limestone reserves under the surface. After lengthy studies and careful consideration, Mexican authorities deemed this area ideal for the development of a long-term export project that demanded extensive investment, expertise, and work.
“Today, this coveted property is close to a world-class tourist region and includes a deepwater port, port infrastructure, freshwater lakes, reforested jungle and a large undeveloped parcel of land initially recognized for quarrying use, all a result of Vulcan’s planning, efforts, experience, investments, and stewardship.
Read the rest of its statement here.