Cement and building materials maker Cemex USA said on Tuesday that it has won a legal ruling over $558 million in mineral royalties sought by the state of Texas.
Cemex said Judge Carlos Villa ruled from the bench that the state and the General Land Office cannot require Cemex to pay royalties for the removal of sand, gravel, limestone, granite, caliche and soil from its quarry in McKelligon Canyon. Villa, a state court judge, ruled on Thursday.
Cemex said the General Land Office had tried to get it to pay for sand and gravel removed from the site over the past 60 years by Cemex and its predecessors. Cemex said the state wanted $558 million in royalties as well as the full value of the sand and gravel removed from the site, which Cemex acquired in 2006.
"We're going to appeal. This is round one," General Land Office spokesman Jim Suydam said.
Cemex USA is part of Mexican cement maker Cemex SAB de CV. Its American Depositary Receipts rose 12 cents to $11.82 in morning trading on the New York Stock Exchange.