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Cemex Latam Holdings, a South American subsidiary of Cemex, said it would use only a portion of capacity at its new cement plant near Maceo, Colombia, after environmental authorities denied the company’s request for a larger output.

The company was seeking a permit to build the plant with a production capacity of 950,000 metric tons, but the request was denied. Cemex said in a statement that it would still continue construction of the $340 million plant, but keep output at only 250,000 mtpy.

A company source told Reuters that “in the future [the company] will request authorization again through a new delimitation of the current mining title.” 

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