Background and Company Overview
Calizas Industriales del Carmen, SA de CV (Calica), a subsidiary of the US-based Vulcan Materials Company, has formally requested that Mexico’s Supreme Court hear its case to determine if it can continue extracting limestone from beneath Playa del Carmen’s subsurface.
Vulcan Materials Company founded Calica in 1986, initially as a joint venture with Grupo ICA. Vulcan Materials Company acquired full ownership of Calica from Grupo ICA in 2001. Since then, the company has produced construction aggregates for Mexican and primarily US markets, provided marine terminal and loading services for the regional industry at Punta Venado port, and created over 350 direct jobs in Solidaridad and Cozumel, Quintana Roo.
Calica’s limestone extraction primarily supplies the US market, with annual operations valued at approximately $2.6 billion, according to the company itself. The firm has invested around $300 million in Mexico, contributing significantly to the local economy.
Legal Dispute and Recent Developments
The Procuraduría Federal de Protección al Ambiente (Profepa) first halted Calica’s activities in January 2017 due to alleged non-compliance with the first, fourth, sixth, eleventh, and twelfth terms of its environmental impact authorization. Additionally, Profepa shut down underground limestone extraction for safety reasons, as the review found that it exceeded the authorized exploitation surface.
In May 2022, Calica faced another closure and subsequently sought legal protection through an amparo. When the courts denied this request, Calica petitioned the Supreme Court of Justice of the Nation to hear its case.
Current Status and Future Outlook
The case’s admission to the Supreme Court and whether current or new justices will resolve it remains uncertain. The decision will depend on the upcoming federal votes in June, which will shape the new composition of the Court.
Key Questions and Answers
- What is Vulcan Materials Company’s role in Calica? Vulcan Materials Company is the US-based parent company of Calizas Industriales del Carmen, SA de CV (Calica), which it acquired full ownership of in 2001.
- Why is Calica seeking the Supreme Court’s intervention? Calica is requesting the Supreme Court to hear its case after the lower courts denied its amparo (legal protection) and Profepa’s actions halted its limestone extraction operations.
- What is the significance of Calica’s operations in Mexico? Calica contributes significantly to the Mexican economy by producing construction aggregates for both local and US markets, providing marine terminal and loading services, and creating over 350 direct jobs in Quintana Roo.
- What led to the initial closure of Calica’s operations? Profepa initially closed Calica’s operations in 2017 due to alleged non-compliance with environmental impact authorization terms and safety concerns regarding exceeding the authorized exploitation surface.
- What is the current status of Calica’s case? Calica has petitioned Mexico’s Supreme Court to hear its case, but the admission and resolution of the case depend on upcoming federal votes in June that will shape the new composition of the Court.
