An international arbitration tribunal has ruled that Mexico violated international law in its treatment of Vulcan Materials Company (NYSE: VMC) and its investments in the Mexican state of Quintana Roo, according to a statement from the company.

The International Centre for Settlement of Investment Disputes (ICSID) Tribunal published its decision finding that Mexican environmental authorities improperly used regulatory powers to target Vulcan, shut down its operations, and prevent the company from defending itself in Mexican proceedings. The tribunal also declared Mexico's counterclaims of environmental harm inadmissible.

"Mexico violated international law, acted arbitrarily, without good faith and transparency, and denied Vulcan basic due process," the company said in a statement.

Vulcan noted that during its operations in Quintana Roo, the company received six Clean Industry Awards from PROFEPA, Mexico's environmental enforcement agency, and planted more than 80,000 native trees. The company also said that after its operations were shut down, the Mexican government allowed at least 12 nearby quarries to operate without the permits and environmental reviews that had been imposed on Vulcan.

The tribunal's decision does not cover all of the conduct Vulcan has cited. Actions including a May 2022 military shutdown, a March 2023 occupation of Vulcan's port, and a September 2024 decree depriving Vulcan of the use of its property remain unresolved.

Vulcan Materials, headquartered in Birmingham, Alabama, is a member of the S&P 500 and describes itself as the largest U.S. producer of construction aggregates. The information in this article is based on a press release issued by the company.