Mexico to Pay Vulcan Materials Less than 1% of Arbitration Claim
The tribunal found Mexico violated NAFTA in part but awarded Vulcan only a small fraction of the $1.7 billion it sought.
- On Monday, The International Centre dismissed nearly all claims from Vulcan Materials Company in its arbitration against Mexico, awarding only $15 million of the $1.7 billion sought for the 2018 closure of its Quintana Roo operations.
- Vulcan launched the 2018 arbitration under the North American Free Trade Agreement after authorities shuttered its limestone extraction sites; former Mexican President Andres Manuel Lopez Obrador had accused the company of causing severe environmental damage.
- Despite Vulcan seeking $1.53 billion in damages, the tribunal awarded only negligible compensation. Vulcan claimed the case stemmed from Mexico disregarding an agreement meant to free aggregate reserves, labeling the government's action an "arbitrary closure" of its operations.
- The government designated 53,000 hectares including the port as a protected natural area in September 2024. Vulcan stated it will discuss the ruling during its Q2 earnings call on Wednesday.
- Earlier this month, President Claudia Sheinbaum indicated that any future agreement would require the company to relocate operations to an environmentally viable site and fund remediation of the affected zone in Quintana Roo.
22 Articles
22 Articles
Mexico gets favorable ruling in Vulcan trade accord violation case — but it's far from over
The International Centre for Settlement of Investment Disputes (ICSID) — an arm of the World Bank — issued a mixed ruling in the arbitration process initiated against Mexico by U.S.-based Vulcan Materials Company. In what is being framed as a favorable ruling for Mexico, the ICSID dismissed almost all of the company’s claims, except for one measure related to the expropriation of a property operated by a Vulcan subsidiary. Vulcan had already fil…
The long dispute between Mexico and the United States over 2,000 hectares of limestone near Playa del Carmen (Quintana Roo) ended with a resolution favorable to the Mexican government. The ruling of the World Bank's arbitration body, published on Monday, orders Mexico to pay less than 1% of the US mining company's $1.5 billion in US dollars for the closure of its mining operations in the Latin American country. Claudia Sheinbaum's government str…
Mexico to pay Vulcan Materials less than 1% of arbitration claim
MEXICO CITY, July 28 (Reuters) - Mexico's government said it will compensate Vulcan Materials less than 1% of the $1.7 billion compensation the U.S. quarrying firm sought in international arbitration over the closure of its Mexican mining operations....
The Arbitral Tribunal of the International Centre for Settlement of Investment Disputes (CIADI) dismissed almost all claims that Vulcan Minerals has maintained against Mexico since 2018 under NAFTA, and only granted it the right to compensation that the company itself described as insignificant.
El Financiero
dossierpolitico.comAn international arbitration gave Mexico the right to issue the final ruling on the closure in Quintana Roo de Calica, a subsidiary of Vulcan Materials Company.
Reforma
International Center issued a final judgment against Mxico in the arbitration process initiated by a subsidiary of Vulcan Materials Company.
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