AMLO Declares Calica Mine a Protected Area: Vulcan Materials Reacts

The Calica land, owned by Vulcan Materials, is situated in the municipalities of Solidaridad, Tulum, and Cozumel, in Quintana Roo. Days before the end of his term, President Andrés Manuel López Obrador (AMLO) declared this land a Natural Protected Area.

The area, spanning 53,227 hectares, has been designated for flora and fauna protection at the Felipe Carrillo Puerto site. This declaration was published in the Official Journal of the Federation (DOF) on September 23. Consequently, the Ministry of Environment and Natural Resources is mandated to protect, manage, preserve, and restore the ecosystems of this area.

Permitted activities in this area include ecosystem preservation and conservation, research and scientific collection, environmental monitoring and education, low impact environmental tourism, forestry use, low intensity agriculture and livestock, ecosystem restoration, eradication or control of exotic species, and construction and maintenance of public or private infrastructure.

However, any activities in this area must comply with the modalities outlined in the decree, the management program of the area, and other legal provisions. Notably, the execution of exploration, exploitation, and benefit works of minerals or substances as referred to in the Mining Law is prohibited. This means that Calica will no longer be able to continue its activities on these lands in Quintana Roo.

Vulcan Materials Responds to Calica Land Declaration

Vulcan Materials, the mining company, has responded to the declaration, referring to it as a "new violation" of Mexico's commitments in trade agreements with the United States. The company has also stated its intention to defend its interests using all available legal means.

In a statement to Reuters, Vulcan said, "The expropriation of our company's land and port is another escalation and a new violation of Mexico's commitments under the North American trade agreements, including the USMCA, and other applicable investment treaties."

Earlier this year, in response to comments by U.S. Secretary of State Antony Blinken, AMLO denied that the closure of Vulcan's facilities was an expropriation, asserting that Mexico's stance was not a deterrent to attracting investments.

U.S. Senators Respond to AMLO's Declaration

Before AMLO's declaration, U.S. senators had introduced a legislative initiative to impose sanctions if the expropriation of the limestone quarry was to occur. Republican Senator for Arizona, Katie Britt, stated, "President López Obrador's plan to take over Vulcan (Materials)'s deep-water port would represent a blatant expropriation of a legally permitted US-owned operation."

Democratic Senator for Virginia, Tim Kaine, also voiced his concern, stating that "this behavior will not be tolerated". Republican Senator, Bill Hagerty, added, "No country or President, and especially one of our largest trading partners, should be allowed to intimidate a U.S. company without consequences."