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
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.
8.8% SK Networks
MMX Corumb Minerao MMX Sudeste
100% 100% 94.52%
MMXM3: SOLID CONTROLLING SHAREHOLDERS
HIGH QUALITY MINING ASSETS IN TRADITIONAL
Sudeste System Serra Azul Unit
Bom Sucesso Unit Corumb System
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
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
Operational Track Record
Competitive Production Cost
INGREDIENTS FOR A SUCCESSFUL IRON ORE
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
A LOT HAS BEEN DELIVERED
SERRA AZUL UNIT
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.
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.
QUADRILTERO FERRFERO Iron ore Quadrangle
Railway access connecting MRS to the Sudeste Superport
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.
MMX signed a long term contract for railway services
Expansion project with integrated logistic and pellet feed iron ore
Production target: 29 Mtpy
64% of production already committed through long-term contracts
997.4 million tons of reserves already secured by SRK
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%
Growth through consolidation while leveraging existing infrastructure
Serra Azul Unit Expansion Project
New Beneficiation Plant, transmission line and water pipelines, Stockyard and Loading Terminal
Serra Azul Expansion
Beneficiation Plant 18
Primary Crusher Grinding
Beneficiation Main Access
Water Storage Tank
Pump House, Sump and Thickeners
Piles Construction Site and Warehouse
Water Storage Tank Inc.
Artistic View 22
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 - Itagu