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Mexico to pay $15.9 million in damages to Legacy Vulcan LLC following international arbitration ruling

The Mexican Secretariat of Economy announced that the government will pay $15.9 million in damages to Legacy Vulcan LLC, a subsidiary of Vulcan Materials Company, following an arbitral ruling by the International Centre for Settlement of Investment Disputes (CIADI). The tribunal determined that Mexico failed to comply with its obligations under the North American Free Trade Agreement (NAFTA) to provide fair and equitable treatment to the company's investments, specifically regarding the closure of operations at El Corchalito. Legacy Vulcan LLC claimed that the Mexican government acted arbitrarily and illegitimately, asserting that the accusations regarding environmental damage were false. However, the Secretariat of Economy stated that the recognized compensation represents less than one percent of the maximum amount claimed by the company. The government also noted that the ruling is limited in scope and does not resolve the entire conflict between Mexico and the company. The tribunal ordered Mexico to pay the damages plus compound interest based on the US Treasury bond rate. The Secretariat of Economy maintained that the Mexican government will continue to defend its sovereignty and natural resources while maintaining an open channel of communication with Vulcan Materials Company.

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