Vulcan Materials Co., a US construction materials company, has rejected what it considers the 'illegal expropriation' of its investments in Mexico [dcf0d9a0]. The company has been in conflict with Mexico's government since 2022 when officials ordered a halt to limestone quarrying at Vulcan's mining unit in Quintana Roo, alleging environmental damages [dcf0d9a0]. Mexican President Andres Manuel Lopez Obrador stated that the site had not been expropriated, only closed, and would remain closed until he leaves office in October [dcf0d9a0]. Vulcan described the suspension of their operations as 'authoritarian' and said it could not produce or sell materials due to the arbitrary actions of the Mexican government [dcf0d9a0]. Last year, Lopez Obrador offered to buy the land where Vulcan operates for 6.5 billion Mexican pesos ($391 million), but the company did not want to sell the land [dcf0d9a0]. Vulcan Materials and Senator Katie Britt have urged the Biden administration to protect the company's employees and gravel extraction pits that the Mexican government is threatening to seize [0f2fb324]. Vulcan argues that the $360 million figure calculated by the Mexican government does not accurately represent the fair market value of their investments and estimates the value of the property at $1.9 billion [0f2fb324]. Senator Britt called the Mexican government's seizure of the property 'unlawful and unacceptable' and stated that it is a scheme to bully the American company [0f2fb324]. She urged the Biden administration to stand up for the rights of American businesses and individuals operating abroad [0f2fb324].
This is the latest confrontation between businesses and the Mexican government, which has been accused of making arbitrary and unfair decisions that harm their interests [0f2fb324]. Vulcan has been involved in litigation and arbitration with Mexico since 2018 under the North American Free Trade Agreement (NAFTA) [0f2fb324].