Vulcan Materials reacts as Mexican operation suspended

The Mexican government ordered Vulcan Materials Co. to cease its underwater operations at its Sac Tun subsidiary in Quintana Roo, Mexico, arguing that environmental damage was caused because of mining under the water table.

Vulcan Materials issued a written statement in response to the order, insisting that the Mexican government’s action is illegal.

“The company has the necessary permits to operate and intends to vigorously pursue all lawful avenues available to it in order to protect its rights and resume normal operations,” Vulcan says in a statement. “The company currently has the ability to export inventories readily available for shipment from the port. In March, Vulcan received its routine three-year customs permit, which enabled the company to continue serving its customers.”

The Vulcan statement continues with the company detailing that it has quarried limestone legally in Mexico – on its own land – for more than 30 years.

“Vulcan has the right to maintain full ownership of its properties, owns the limestone reserves in the same, and complies and has always complied with Mexican law, including the laws and permitting regulating our operations from which we service our customers both in Mexico and abroad.”

According to Vulcan, it has been engaged in a NAFTA arbitration with Mexico since 2018 over Mexico’s repudiation of an agreement to unlock a portion of Vulcan’s aggregate reserves in the country and the arbitrary shutdown of a portion of its quarrying operations there. A hearing took place in July 2021, and Vulcan expects a decision to be made in the second half of this year. 

Vulcan says it continues to engage with government officials to pursue an amicable resolution of the dispute while awaiting the final resolution from the NAFTA tribunal.