Mexican president rules out expropriating Vulcan's mine but maintains land closure (updated)

Vulcan Materials Co

22/05/2024 19:17

(Adds quote from president in paragraph 3 and 9, context from
company filing in paragraph 7)
       MEXICO CITY, May 22 (Reuters) - Mexican President Andres
Manuel Lopez Obrador on Wednesday ruled out expropriating U.S.
construction company Vulcan Materials' mine but said the land
where it operates would remain closed until at least the end of
his term.  
    Speaking at his regular press conference, Lopez Obrador
accused the company, which extracts limestone in southern part
of the country, of environmental damage, accusations it has
denied.
    "As long as I'm president, we're not going to allow the
environment to be destroyed," Lopez Obrador said. "The site is
closed now and they'll not be able to work."
    Mexican officials had ordered a halt to limestone quarrying
at Vulcan's mining unit in the coastal state of Quintana Roo in
2022, alleging environmental damages by the company. 
    The state is located on the Yucatan Peninsula and is home to
popular tourist destinations such as Cancun and Cozumel.
    Vulcan Materials called the shutdown orders "unexpected" and
illegal. Since then, it has been unable to export its production
and is demanding over $1.5 billion in compensation through the
International Centre for Settlement of Investment Disputes
(ICSID).
    The company did not immediately reply to a request for
comment on the president's fresh remarks. In its most recent
quarterly report, it had highlighted "recent actions taken by
the Mexican government" with respect to its property and
operations as a risk. 
    Tensions rose last year, when the company announced Mexican
security forces took possession of its port terminal in southern
Mexico.
    Last year, Lopez Obrador laid out plans to offer 6.5 billion
pesos ($391.20 million) to buy the land where Vulcan Materials
operates and solve the dispute. On Wednesday, he reiterated that
he did not want the land in question to be "gifted". 

($1 = 16.6154 Mexican pesos)

 (Reporting by Valentine Hilaire and Raul Cortes Fernandez;
Additional reporting by Kylie Madry
Editing by Stefanie Eschenbacher and Josie Kao)
 ((Valentine.Hilaire@thomsonreuters.com;))