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

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Page 1: Mmx   maio 2013 - ingles - v2

MMX: CREATING CHOICES IN SEABORNE IRON ORE SUPPLY

Rio de Janeiro | May 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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59.3% Controlling

Shareholders

10.5% Wisco

8.8% SK Networks

21.4% Others

MMX Corumbá Mineração MMX Sudeste

Superporto Sudeste

Serra Azul

Bom Sucesso

100% 100% 94.52%

5.48% EBX

MMXM3: SOLID CONTROLLING SHAREHOLDERS

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HIGH QUALITY MINING ASSETS IN TRADITIONAL

MINING DISTRICTS

Sudeste System Serra Azul Unit

Bom Sucesso Unit Corumbá System

Sudeste Superport

Two operating systems: Serra Azul and Corumbá

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

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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 Corumbá 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

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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

April 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 (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.

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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%

SiO2: 3.23% Mn: 0.018%

AL2O3: 0.54% 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

Pit

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Serra Azul Expansion

Beneficiation Plant 18

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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

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SUDESTE SUPERPORT

2.2

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Sudeste Superport

Location 21

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Nautical Access

Offshore

Tunnel

Stockyard 32

Stockyard 06

Railway Access

Sudeste Superport

Artistic View 22

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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)

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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:

■ Up to 12 Mtpy

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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Railway Access to Itaguaí Port

Road&Railway Access to MMX

Sudeste Superport

Road&Railway Access

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Sudeste Superport

Road&Railway Access

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Sudeste Superport

Stockyard Elevation 6 m

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Stockyard 32

Stockyard 6

Road Access Stacker Reclaimer Rolling Way

Car Dumpers

Stacker Reclaimer Infrastructure

Car Dumpers Control Room

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Sudeste Superport

Stockyard Elevation 6 m

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Sudeste Superport

Car Dumpers

Car Dumpers

Control Room of Car Dumpers

Train Positioners

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Sudeste Superport

Stockyard Elevation 32 m 30

Transfer House Structure

Electric Substation Infrastructure

Tunnel Entrance

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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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Electric Substation Building

Bridge 2 (270 m)

Bridge 1 (430 m)

Platform

Tunnel Exit

Sudeste Superport

Substation Structure

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Sudeste Superport

Offshore Structure

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Superporto Sudeste

Estrutura Offshore

36

Bridge

270 m

Bridge

430 m

Pier

766 m

Sudeste Superport

Offshore Structure 36

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Superporto Sudeste

Estrutura Offshore

37

Sudeste Superport

Ship Loader

Ship Loader

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Superporto Sudeste

Estrutura Offshore

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Sudeste Superport

Ship Loader

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Superporto Sudeste

Estrutura Offshore

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Sudeste Superport

Ship Loader

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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 Carlos Gonzalez – CEO and IRO

Adriana Marques – Manager Daniella Maia - Analyst

Phone + 55 21 2163-6197 +55 21 2163-4366

[email protected]