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MMX: CREATING CHOICES IN SEABORNE IRON ORE SUPPLY Rio de Janeiro | June 2013

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Page 1: Mmx   junho 2013 - ingles - vfinal

MMX: CREATING CHOICES IN SEABORNE IRON

ORE SUPPLY

Rio de Janeiro | June 2013

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This presentation relating to MMX Mineração e Metálicos S.A. (“MMX”) includes “forward-looking statements”, as that term is defined in the

Private Securities Litigation Reform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities

Exchange Act of 1934. All statements other than statements of historical facts are statements that could be deemed forward-looking

statements and are often characterized by the use of words such as “projects”, “expects”, “anticipates”, “intends”, “plans”, “believes”,

“estimates”, “may”, “will”, or “intends”, or by discussions or comments about our objectives, strategy, plans or intentions and results of

operations. Forward-looking statements include projections regarding our operating capacity, operating expenditures, capital expenditures

and start-up dates.

By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and

specific. The risk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in

such statements may not be indicative of results or developments in future periods. We caution participants of this presentation not to

place undue reliance on these forward-looking statements as a number of factors could cause future results to differ materially from these

statements.

Forward-looking statements may be influenced in particular by factors such as the ability to obtain all required regulatory approvals on a

timely basis or at all, exploration for mineral resources and reserves, difficulty in converting geological resources into mineral reserves,

and changes in economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying on

forward-looking statements to make decisions, investors should carefully consider these factors as well as other uncertainties and events.

MMX does not undertake to update our forward-looking statements unless required by law. This presentation is neither an offer to sell

(which can only be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States,

or any other jurisdiction. The securities referred to herein have not been registered in any jurisdiction, and in particular, will not be

registered under the U.S. Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the

United States absent registration or an applicable exemption from such registration requirements.

This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part

without MMX’s prior written consent.

DISCLAIMER

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MMX INTRODUCTION

1

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MMXM3: SOLID CONTROLLING SHAREHOLDERS

Superporto Sudeste

MMX Corumbá Mineração MMX Sudeste

100% 100% 94,52%

5,48% EBX

4

Controlling Shareholders

59,3%

Wisco

10,5%

SK Networks

8,8%

Outros

21,4%

Serra Azul

Bom Sucesso

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HIGH QUALITY MINING ASSETS IN TRADITIONAL

MINING DISTRICTS

5

Sudeste System Serra Azul Unit

Bom Sucesso Unit

Corumbá System

Sudeste Superport

Two operating systems: Serra Azul and Corumbá;

Current Capacity: approximately 8 Mtpy;

Mining rights in traditional iron ore districts: Brazil (Minas Gerais and Mato Grosso do Sul);

Production committed with strategic consumers – China and South Korea – through long-term contracts;

Brownfield start up in Brazil;

Expanding up to around 40 Mtpy in Brazil, through fully integrated systems: Private port;

Strategic port location.

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INGREDIENTS FOR A SUCCESSFUL IRON ORE

BUSINESS

6

Resource Base SRK and Coffey Mining certifications (Serra Azul, Pau de Vinho e Bom Sucesso): 3,6 billion tons of mineral resources. Reserves of 1 billion tons in Serra Azul.

Competitive Production Cost

Structure

Low stripping ratio Competitive scale – New beneficiation plant Energy supply contract with MPX Infrastructure with integrated logistics

Guaranteed Logistics

Sudeste Superport at 50 Mtpy, expandable to 100 Mtpy, provides gateway to seaborne markets Long Term Railway Contract with MRS

Secured Off-take

64% of future production already committed through long-term contracts

Operational Track Record

Experience management team with implementation and operational expertise Current Capacity of 8 Mtpy (Serra Azul and Corumbá sites)

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New certification of mineral resources (SRK and Coffey Mining) totaling 3.6 billion tons considering Serra Azul Unit, Mina Pau de Vinho and Bom Sucesso;

Conclusion of the contracting of supplementary long term funding for the Sudeste Superport with BNDES, in the sum of R$ 935 million;

Renewal of the lease contracts for mineral rights with the CEFAR, extending the terms of validity from 2021 to 2034;

Arrival of 2 Ship Loaders in the Sudeste Superport ;

Conclusion of the capital increase in the amount of R$ 1.4 billion;

BNDES approves eligibility for a long term financing for Serra Azul;

Conclusion of the offshore civil works at the Sudeste Superport;

Issuance of debentures at the amount of R$ 600 million;

Public hearings in Itaguaí and Mangaratiba for the expansion of the Sudeste Superport to 100 Mtpy;

Beginning of construction of the Serra Azul Unit expansion;

Installation License authorizing the Serra Azul Unit expansion.

June 2013

January 2012

A LOT HAS BEEN DELIVERED

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FINANCIAL HIGHLIGHTS

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SUDESTE SYSTEM

2

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SERRA AZUL UNIT

2.1

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UNIQUE INTEGRATED LOGISTICS

Since Iron ore is a bulk commodity, an integrated logistic (mine railway port) is the key factor for a successful operation

Mine Superport Railway

Serra Azul unit is near to the MRS railway - 10 km from the mine, a distance currently traversed by trucks.

MMX has a long term contract with MRS railway, which connects the mine with the CSN’s port and the Sudeste Superport, both located in Itaguaí.

Sudeste Superport will have 50Mtpy iron ore shipping capacity. The Superport will have a depth of 20 meters, enough to handle Capesize vessels.

Offtakers (Shareholders)

Long-Term contract (20 years) to trade iron ore. SK will take-off part of the Sudeste System yearly production equivalent to its participation in MMX Capital (14%).

Long-Term contract (20 years). Wisco will off-take at least 50% of MMX Sudeste production.

SK and Wisco will together offtake 64% of total production

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QUADRILÁTERO FERRÍFERO Iron ore Quadrangle

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RAILWAY

Railway access connecting MRS to the Sudeste Superport

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Contract signed on December 28th 2011;

Long term contract through 2026;

Provides for a volume of up to 36 million tons of iron ore per year.

MRS CONTRACT

MMX signed a long term contract for railway services

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SERRA AZUL

Expansion project with integrated logistic and pellet feed iron ore

Highlights

Production target: 29 Mtpy;

64% of production already committed through long-term contracts;

997.4 million tons of reserves already secured by SRK.

Execution Update

Beginning of construction of Serra Azul Unit expansion;

Construction license issued in April, 2012;

Acquisition of stirrers, thickeners, gyratory crushers, ball mills, SAG mills and vertical mills for the new beneficiation plant;

Contract with CNEC WorleyParsons;

Contract with MPX to supply power for 15 years at a base-price of R$125/MWh.

Expected Quality – Ouro Preto pilot plant test work

Fe: 66,65% P: 0,025% AL2O3: 0,54%

SiO2: 3,23% Mn: 0,018% LOI: 0,75%

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SERRA AZUL

Growth through consolidation while leveraging existing infrastructure

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SERRA AZUL

Serra Azul Unit Expansion Project

New Beneficiation Plant, transmission line and water pipelines, Stockyard and Loading Terminal

Cava

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Serra Azul Expansion

Beneficiation Plant

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Earthwork

SERRA AZUL

1 Pump House, Sump and Thickeners

2 Construction Site

1 1

3 Beneficiation

2

3

4 Grinding

4

5 Substation

6 Grinding

7 Piles

8 Primary Crusher

5 6

7

8

9 Primary Crusher

10 Water Storage Tank

11 Construction Site and Warehouse

12 Water Storage Tank Inc.

9 10

11

12

13 Main Access

14 Administrative Buildings

15 Maintenance Workshop

13 14

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SUDESTE SUPERPORT

2.2

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Sudeste Superport

Location

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Nautical Access

Offshore

Stockyard 32

Stockyard 06

Railway Access

Sudeste Superport

Artistic View

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SUDESTE SUPERPORT

Overview

Licensed to 50 Mtpy, expandable to 100 Mtpy;

Licensing for 100 Mtpy underway, public;

Hearing held on May, 2012;

Navy Approval to 100 Mtpy;

Loading: 2 ship loaders of 25 Mtpy each;

Construction works for the tunnel and offshore infrastructure completed;

Fully funded (BNDES).

Sudeste Superport - Itaguaí

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USIMINAS AGREEMENT

SRK resources audit : 805 million tons;

Pau de Vinho target production: 8 Mtpy;

Significant synergies with current mining operations at Serra Azul;

13.5% of production at Pau de Vinho will be delivered to Usiminas;

MMX will be responsible for the licensing, CAPEX and operation for 30 years.

.

Volumes:

■ 12 Mpta

80% Take-or-Pay;

Usiminas can renew the contract in 2016 for 1 to 5 years.

Pau de Vinho Joint Mining

Sudeste Superport Handling

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Sudeste Superport

Road&Railway Access

Railway Access to Itaguaí Port

Road & Railway Access to MMX

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Sudeste Superport

Road&Railway Access

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Sudeste Superport

Stockyard Elevation 6 m

Road Access

Car Dumpers

Car Dumpers Control Room

Stacker Reclaimer Infrastructure

Stockyard 32

Stockyard 6

Stacker Reclaimer Rolling Way

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Sudeste Superport

Stockyard Elevation 6 m

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Sudeste Superport

Car Dumpers

Train Positioners

Control Room of Car Dumpers

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Sudeste Superport

Stockyard Elevation 32 m 30

Electric Substation Infrastructure

Tunnel Entrance

Transfer House Structure

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11 m

20.5 m

Sudeste Superport

Tunnel entrance 31

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Sudeste Superport

Tunnel

32

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Sudeste Superport

Offshore Structure

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Sudeste Superport

Substation Structure

Tunnel Exit

Bridge 1 (430 m)

Electric Substation Building

Plataform

Bridge 2 (270 m)

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Sudeste Superport

Offshore Structure

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Superporto Sudeste

Estrutura Offshore

Bridge 270 m

Bridge 430 m

Pier 766 m

Sudeste Superport

Offshore Structure

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Superporto Sudeste

Estrutura Offshore

37

Sudeste Superport

Ship Loaders

Ship Loaders

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Superporto Sudeste

Estrutura Offshore

38

Sudeste Superport

Ship Loaders

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Superporto Sudeste

Estrutura Offshore

39

Sudeste Superport

Ship Loaders

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CORUMBÁ

3

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CORUMBÁ

Highlights

Current Capacity: 2.1 Mtpy;

Long-term contracts signed with local and

international barge operators;

SRK audit resources report: 192 million

tons plus a potential of an additional 123

million tons.

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Investor Relations | MMX

Carlos Gonzalez, CEO and IRO

Adriana Marques, Manager

Daniella Maia, Analyst

Phone: + 55 21 2163-6197

+ 55 21 2163-4366

E-mail: [email protected]