Vulcan Materials (NYSE:VMC) said Friday that the Mexican government suspended the permit previously granted to its Mexican subsidiary and has launched proceedings that could result in revoking the permit.
Since receiving shutdown orders on May 5 to immediately halt underwater quarrying and extraction operations, Vulcan (VMC) has shut down the operations of its SAC TUN unit in Quintana Roo, Mexico.
Vulcan (VMC) said if it is unable to fully operate in Mexico for the rest of 2022, adjusted EBITDA would be reduced by $80M-$100M, or ~5% of full-year guidance of $1.72B-$1.82B.
The company, which said it has quarried limestone legally in Mexico for more than 30 years, reiterated its assertion that the government’s actions are arbitrary and illegal.
Earlier this year, the Mexican government sought a settlement of Vulcan’s $1.1B lawsuit over an attempt to shutter its limestone mine near Playa del Carmen.