US company accuses Mexico of seizing its property on Caribbean coast

MEXICO CITY – An American quarry company raised concerns on Tuesday regarding the Mexican government’s actions, alleging a de-facto expropriation of its properties on Mexico’s Caribbean coast.

Mexico’s Interior Department issued a decree late Monday declaring the firm’s seaport and quarries as a natural protected area, effectively prohibiting the company’s activities on its own land.

Alabama-based Vulcan Materials, a quarry company, stated on Tuesday that the move by the Mexican government violated the U.S.-Mexico-Canada free trade agreement. The company voiced its concerns over a series of threats and actions taken by the Mexican administration against its operations.

The decree, published in the official gazette, demarcates a nature reserve that aligns with some of the company’s property lines. While the purpose of the park is to protect local flora and fauna, the disturbed areas of the seaport and quarries do not seem to fit the conservation effort.

The American company, already involved in a dispute resolution panel against the Mexican government, vowed to use all legal avenues to contest the decree.

President Andrés Manuel López Obrador had previously expressed intentions to expropriate the property or buy it for $385 million to convert it into a tourist attraction. However, the company rejected the buy-out offer, valuing its property at $1.9 billion.

Vulcan Materials refuted claims of damaging underground caves and archaeological sites, alleging that their operations were conducted lawfully compared to other quarries supplying materials for the Mayan Train project.

The Mayan Train, a tourism initiative by López Obrador, has faced criticism for damaging caves with ancient human remains in the Yucatan peninsula.

López Obrador had expressed plans to repurpose the company’s properties for cruise ship docks and ecotourism areas, despite the presence of protected species like crocodiles in the quarry pits.