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

Vulcan Minerals

22/05/2024 17:31

(Adds quote, background on spat)
       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. The company has denied
these accusations.
    "As long as I'm president, we're not going to allow the
environment to be destroyed," Lopez Obrador said.
    Mexican officials 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. Quintana
Roo is located on the Yucatan Peninsula and includes popular
tourist destinations such as Cancun and Cozumel.
    Vulcan Minerals 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. 
    Tensions rose last year, when the company announced Mexican
security forces took possession of its port terminal in southern
Mexico.
    Last year, Lopez Obrador also laid out plans to offer 6.5
billion pesos ($391.20 million) to buy the land where Vulcan
Materials operates and solve the dispute.
    "The site is closed and they'll not be able to work," Lopez
Obrador said on Wednesday.

($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;))