mmx maio 2013 - ingles - v2

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  • MMX: CREATING CHOICES IN SEABORNE IRON ORE SUPPLY

    Rio de Janeiro | May 2013

  • This presentation relating to MMX Minerao e Metlicos 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 MMXs prior written consent.

    DISCLAIMER

  • MMX INTRODUCTION

    1

  • 59.3% Controlling

    Shareholders

    10.5% Wisco

    8.8% SK Networks

    21.4% Others

    MMX Corumb Minerao MMX Sudeste

    Superporto Sudeste

    Serra Azul

    Bom Sucesso

    100% 100% 94.52%

    5.48% EBX

    MMXM3: SOLID CONTROLLING SHAREHOLDERS

    4

  • HIGH QUALITY MINING ASSETS IN TRADITIONAL

    MINING DISTRICTS

    Sudeste System Serra Azul Unit

    Bom Sucesso Unit Corumb System

    Sudeste Superport

    Two operating systems: Serra Azul and Corumb

    Current Capacity: 10.8 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

    5

  • 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.

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

    Experience management team with implementation and operational expertise

    Installed Capacity of 10.8 Mtpy (Serra Azul and Corumb sites)

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

    Low stripping ratio

    Competitive scale New beneficiation plant

    Energy supply contract with MPX

    Infrastructure with integrated logistics

    Resource Base

    Secured Off-take

    Operational Track Record

    Guaranteed Logistics

    Competitive Production Cost

    Structure

    INGREDIENTS FOR A SUCCESSFUL IRON ORE

    BUSINESS

    6

  • 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 Itagua 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

    April 2013

    January 2012

    A LOT HAS BEEN DELIVERED

    7

  • FINANCIAL HIGHLIGHTS

    8

  • SUDESTE SYSTEM

    2

  • SERRA AZUL UNIT

    2.1

  • 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 CSNs port and the Sudeste Superport, both located in Itagua.

    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 (9%).

    SK and Wisco will together offtake 64% of total production

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

    11

  • QUADRILTERO FERRFERO Iron ore Quadrangle

    12

  • RAILWAY

    Railway access connecting MRS to the Sudeste Superport

    13

  • 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

    14

  • 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%

    SiO2: 3.23% Mn: 0.018%

    AL2O3: 0.54% LOI: 0.75%

    15

  • SERRA AZUL

    Growth through consolidation while leveraging existing infrastructure

    16

  • SERRA AZUL

    Serra Azul Unit Expansion Project

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

    Pit

    17

  • Serra Azul Expansion

    Beneficiation Plant 18

  • Primary Crusher Grinding

    Construction Site

    Beneficiation Main Access

    Water Storage Tank

    Grinding

    Primary Crusher

    Pump House, Sump and Thickeners

    Substation

    Piles Construction Site and Warehouse

    Water Storage Tank Inc.

    Administrative Buildings

    Maintenance Workshop

    Earthwork

    SERRA AZUL

  • SUDESTE SUPERPORT

    2.2

  • Sudeste Superport

    Location 21

  • Nautical Access

    Offshore

    Tunnel

    Stockyard 32

    Stockyard 06

    Railway Access

    Sudeste Superport

    Artistic View 22

  • 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)

    23

    Sudeste Superport - Itagu