López Obrador Denies Vulcan Materials’ Expropriation Allegation

Following the designation of Calica's area as a Natural Protected Area, Vulcan Materials announced plans to take legal action and seek international arbitration, arguing that the Mexican government’s actions amount to an "expropriation" and violate the USMCA. President López Obrador denied the expropriation claims, arguing that the decision to designate Calica's area as a Natural Protected Area aims to protect the country’s natural resources.

López Obrador noted that the government made every effort to reach an agreement with Vulcan Materials' owners but was unsuccessful. “[Vulcan Materials' owners] are poorly advised and mistakenly believe that once we are no longer in office, they can reclaim their privileges. While a temporary closure is already in place, I want this to be permanent due to the significant environmental damage. We will simply enforce the law to prevent further destruction of the land,” says López Obrador.

Vulcan Materials Case

Vulcan Materials is a leading producer of gravel, sand and crushed stone that has mined limestone in Quintana Roo since 1986. However, in 2018, the company initiated a legal arbitration case against Mexico under the USMCA due to the revocation of its port concessions. 

In May 2022, Vulcan Materials' activities were shut down by the Mexican government due to environmental concerns regarding its underwater limestone extraction. Vulcan Materials said at the time that it had all the necessary permits to operate and would follow all legal means to defend its rights and restart its activities as soon as possible. López Obrador had warned that if Vulcan did not accept the alternatives for the project, he would declare the land as a protected natural area.

In May, US Congress members wrote a letter to Mexican Foreign Minister Alicia Bárcena, urging her to resolve the dispute. They accused the Mexican government of mistreating private companies and López Obrador's actions of being illegitimate under both Mexican and international law. Alabama Senator Katie Britt expressed concern that key infrastructure projects in Alabama and southeastern United States would be in jeopardy due to the Mexican government's intention to close the country’s largest producer of construction aggregates.