Mexican Tax Authority Audits U.S.-Owned Mining Firm Calica Over 2018-2019 Tax Years

Playa del Carmen, Quintana Roo — Mexican tax authorities are auditing the local subsidiary of U.S.-based Vulcan Materials Company for the 2018 and 2019 tax years, a review that could result in a tax liability of approximately $35 million, including $23 million in interest and penalties.

The audit targets Calica, now operating under the name Sac Tun, according to the company’s 2025 annual report. The report details the firm’s financial performance and ongoing disputes with the Mexican government.

In the document, the company states that Mexico’s Tax Administration Service (SAT) issued an observations letter in the fourth quarter of 2025 regarding the 2018 fiscal year. Among other points, the SAT argues that Calica lacked the rights to exploit its mine, leading the agency to reject deductions for cost of sales.

Calica maintains it has recognized the total tax benefit associated with that deduction, asserting its position has technical and legal support. However, it warns that failing to defend this stance could lead to significant economic impact.

“If we are unable to defend this tax position related to the 2018 audit, we could incur a cash outflow and extraordinary tax expense of approximately $35 million, which includes $23 million in interest and penalties,” the report states.

The company also references its broader conflict with the Mexican government, stemming from the unexpected closure of its operations in May 2022 and a subsequent presidential decree by then-President Andrés Manuel López Obrador that declared the area a protected natural zone named Felipe Carrillo Puerto.

In a separate note, Calica reports it had deferred tax assets totaling $37.3 million in 2025, including net operating losses. Of this amount, $3.9 million relates to effects from the appreciation of the Mexican peso, while $30.4 million could be recovered between 2032 and 2035 if utilized.

Regarding the international arbitration case it has pursued since 2019 against the Mexican state before the International Centre for Settlement of Investment Disputes (ICSID), the company argues the litigation stems from its treatment in limestone extraction operations. It alleges breaches of zoning agreements and arbitrary actions by environmental authorities, particularly the Federal Attorney for Environmental Protection (Profepa).

Vulcan Materials contends these actions violate international commitments Mexico assumed under the North American Free Trade Agreement and international law. The company expects ICSID to issue a ruling on this claim, as well as an additional one filed after the 2022 closure, during the first half of 2026.

Vulcan Materials Company operates 248 mines in the United States and has a presence in countries including Canada, the Bahamas, the Virgin Islands, Honduras, and Mexico, where it operates through Calica. Globally, it employs over 11,000 people, with about 280 working for the Mexican subsidiary.