Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Mexican President Andres Manuel Lopez Obrador on Wednesday ruled out expropriating US construction company Vulcan Materials’ mine but said the land where it operates would remain closed until at least the end of his term.
Speaking at his regular press conference, Lopez Obrador accused the company, which extracts limestone in southern part of the country, of environmental damage, accusations it has denied.
“As long as I’m president, we’re not going to allow the environment to be destroyed,” Lopez Obrador said. “The site is closed now and they’ll not be able to work.”
Mexican officials had ordered a halt to limestone quarrying at Vulcan’s mining unit in the coastal state of Quintana Roo in 2022, alleging environmental damages by the company.
The state is located on the Yucatan Peninsula and is home to popular tourist destinations such as Cancun and Cozumel.
Vulcan Materials called the shutdown orders “unexpected” and illegal. Since then, it has been unable to export its production and is demanding over $1.5 billion in compensation through the International Centre for Settlement of Investment Disputes (ICSID).
The company did not immediately reply to a request for comment on the president’s fresh remarks. In its most recent quarterly report, it had highlighted “recent actions taken by the Mexican government” with respect to its property and operations as a risk.
Tensions rose last year, when the company announced Mexican security forces took possession of its port terminal in southern Mexico.
Last year, Lopez Obrador laid out plans to offer 6.5 billion pesos ($391.20 million) to buy the land where Vulcan Materials operates and solve the dispute. On Wednesday, he reiterated that he did not want the land in question to be “gifted”.
($1 = 16.6154 Mexican pesos)
(By Valentine Hilaire, Raul Cortes Fernandez and Kylie Madry; Editing by Stefanie Eschenbacher and Josie Kao)
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OSCAR REYES
VULCAN MATERIAL COMPANY IS CARRYING OUT AN ECOCIDE IN MEXICO, ENDING OUT IN A ENVIROMENTAL DAMAGE