Mexico’s decision not to allow Vulcan Materials SAC TOUN limestone operations to continue is yet another sign of increasing environmental regulatory risk for mining companies under President Andrs Manol Lpez Obrador.
Environment ministry SemarnatAfter inspectors discovered signs of damage to ecosystems, Quintana Roo’s state asset, Quintana Roo, was placed under temporary closure.
The unannounced InspectionAMLO has followed up on public criticism of Vulcan’s US-based headquarters by naming the firm as illegally operating.
However, the company that is continuing to pursue an arbitral claim against Mexico in 2018 called the closing order illegal and stated that it has been legally quarrying limestone in Mexico for over thirty years.
Vulcan stated in a statement that the company has all permits necessary to operate and plans to vigorously pursue every lawful avenue to protect its rights and resume normal operation. Release.
TOUGHER APPROACH
The Semarnats closure orders is another sign of the ministry’s stricter approach to environmental regulations and permitting. This, along with COVID-19 absenceeism has led to a SlowdownIn applications being processed.
A string of mining companies have been impacted by this stricter approach, with several projects blocked at the environmental permit stage, and others facing challenges in permit extension applications.
TIMELINE: MEXICOS MINING ENVIRONMENTAL CHALLENGES
2018
October
– Odyssey Marine Exploration announces plans for legal action after Semarnat rejects a permit application for the Don Diego phosphate sands seabed mining project in Baja California Sur due to concerns about possible impacts on wildlife, weeks before AMLO comes to office.
December
Vulcan Materials files a request for arbitration at the World Banks International Centre for Settlement of Investment Disputes. Vulcan Materials claims Mexico failed to comply with a zoning arrangement at Calica limestone quarrying operation, Quintana Roo state. This is due to unfair, arbitrary, and capricious actions taken by environmental authorities.
2019
March
AMLO: His administration will be Block Invecture Groups US$250mn Los Cardones Due to environmental risks, gold project
I say to the peoples of Baja California Sur: No to the mine. Why? The president spoke in a speech that we must care for paradise, not destroy, and for nature.
April
After Don Diego’s rejection of the permit, Odyssey files a notice to intent. This is the first step towards an arbitration claim.
Desarrollos Zapal, who controls Los Cardones owner Invecture Group confirms that it is taking Legal actionThe rejection of the environmental permit application for open pit gold projects.
November
– Semarnat rejects a permit application for Argonaut Golds San AntonioBaja California Sur’s gold project is being redeveloped. The company claims that the problem is due to a zoning dispute it claims was resolved in a prior court ruling. Argonaut claims it is looking at legal options.
2020
January
Argonaut is informed by Semarnat that the Cerro del Gallo permit application for the Cerro del Gallo Gold-Silver Project will not be approved as it stands. He requests revisions.
December
– Semarnat refuses to grant an environmental permit application Almaden Minerals’ Ixtaca (Tuligtic)Veracruz state opens open pit gold mining project.
2021
February
Almaden plans submit a RevisionEnvironmental permit application for the Ixtaca construction.
April
– AMLO claims his government has been destroyed rejectedKorea Resources has submitted a permit application for the extension of mining operations BoleoBaja California Sur state copper mine (in photo), but Semarnat denies that an application has been filed.
June
– Semarnat ApproveBoleo granted permission to extend operations after outcry about possible job losses. AMLOs previous claim had been denied.
November
Argonaut asserts it is PreparingAfter the expiration of the previous submission, a new permit application was made for Cerro del Gallo.
– Semarnat rejects a permit extension for Fortuna SilversSan Jos silver-gold mine, Oaxaca state. This is pending an evaluation of 73 ancillary infrastructures at the mine site. Fortuna promises to fight the unprecedented decision.
2022
February
Semarnat issues notice that the ministry made a Typographical errorFortunas San Jos mine was granted a 12-year extension. However, it states that the correct term is actually two years.
The company files legal proceedings to revoke notice and confirm 12-year extension period. It argues that typographical errors do not constitute legal grounds to amend terms of the permit.
May
Semarnat suspends Vulcan Materials SAC TUN limestone quarrying operations (previously Calica), due to alleged damage caused to ecosystems. The company considers the move illegal and plans to take legal action.
