At the receiving end
In September 1993, Delaware-based company Metalclad bought Mexican firm Coterin. The US company planned to complete a project to build a hazardous waste landfill near the Mexican city of Guadalcazar. Coterin had already acquired a federal permit for such a venture. The site was approximately 70 kilometres from Guadalcazar in the state of San Luis Potosi. A state permit was also granted to Coterin.
Upon acquiring Coterin, Metalclad began construction on the project. But the municipality of Guadalcazar objected to the project because a study showed that it would contaminate the local water supply. San Luis Potosi declared the area an environmental preserve, thus barring the landfill.
When the local company from which Metalclad bought its toxic dump refused to obey federal orders to close down, local residents
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