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  • 1. MMX MINERAÇÃO Creating choices in seaborne iron ore supply January | 2014
  • 2. DISCLAIMER 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. 2
  • 3. 1. MMX INTRODUCTION
  • 4. UMA HISTÓRIA ÚNICA MMXM3 WISCO 10,5% CONTROLLING SHAREHOLDERS SK NETWORKS 8,8% 59,3% OTHERS 21,4% 5,48% EBX 94,52% MMX Corumbá Mineração 100% 100% MMX Sudeste Serra Azul Bom Sucesso Sudeste Superport 4
  • 5. MMX INTRODUCTION High quality mining assets in traditional mining districts Two operating systems: Serra Azul and Corumbá; Current Capacity: approximately 7 Mtpy; Mining rights in traditional iron ore districts: Brazil (Minas Gerais and Mato Grosso do Sul); Sudeste System | MG Serra Azul Unit Bom Sucesso Unit Production committed with strategic consumers – China and South Korea – through long-term contracts; Brownfield start up in Brazil; Sudeste Superport | RJ Strategic port location. Corumbá System | MS Sistema Sudeste 5
  • 6. MMX INTRODUCTION Ingredients for a successful iron ore business 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 OFFTAKE 64% of future production already committed through long-term contracts. OPERATIONAL TRACK RECORD Experience management team with implementation and operational expertise; Current Capacity of 7 Mtpy (Serra Azul and Corumbá sites). 6
  • 7. MMX INTRODUCTION A lot has been delivered Issuance of debentures at the amount of R$ 600 million; BNDES approves eligibility for a long term financing for Serra Azul; Arrival of 2 Ship Loaders in the Sudeste Superport ; Conclusion of the contracting of supplementary long term funding for the Sudeste Superport with BNDES, in the sum of R$ 935 million; Sale of all shares in Minera MMX de Chile S.A. to Inversiones Cooper Mining S.A. The merger of MMX Porto Sudeste S.A. by MMX JANUARY 2012 Conclusion of the offshore civil works at the Sudeste Superport; JANUARY 2014 Conclusion of the capital increase in the amount of R$ 1.4 billion; Renewal of the lease contracts for mineral rights with the CEFAR, extending the terms of validity from 2021 to 2034; 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; Hiring of financial advisors to evaluate business opportunities; Definitive agreements executed by the Company with Trafigura and Mubadala; Approval of the business plan’s revision of the Company; 7
  • 8. MMX INTRODUCTION Financial highlights Net Revenue (R$ million) 400 350 300 250 200 150 100 50 0 Gross Profit (R$ million) 250 200 150 339 284 245 100 148 50 186 231 0 3Q12 2Q13 3Q12 3Q13 2Q13 3Q13 Adjusted EBITDA (R$ million) 100 50 0 19,2% 14,6% 47 41 32% 16% -70 -50 -20,6% -100 3Q12 2Q13 0% -16% -32% 3Q13 8 Adjusted EBITDA EBITDA Margin
  • 9. 2. SUDESTE SYSTEM
  • 10. 2.1 SERRA AZUL UNIT
  • 11. UNIQUE INTEGRATED LOGISTICS Logística integrada Since Iron ore is a bulk OFFTAKERS (SHAREHOLDERS) commodity, an integrated WISCO logistic (mine > railway > Long-Term contract (20 years). Wisco will off-take at least 50% of MMX Sudeste production. port) is the key factor for a successful operation. Mine SK NETWORKS Railway Superport 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%). SK and Wisco will together offtake 64% of total production Serra Azul unit is near to the MRS railway - 7 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. 11
  • 12. QUADRILÁTERO FERRÍFERO Iron ore Quadrangle Minas Gerais
  • 13. RAILWAY Railway access connecting MRS to the Sudeste Superport
  • 14. MRS CONTRACT MMX signed a long term contract for railway services 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. 14
  • 15. SERRA AZUL Expansion project with integrated logistic and pellet feed iron ore Highlights Production target: 15 Mtpy waiting of new partner; 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; 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% 15
  • 16. SERRA AZUL Growth through consolidation while leveraging existing infrastructure N Igarapé 3 13 8 5 3 1 7 6 4 2 9 10 14 14 11 12 Brumadinho Arcelor Mittal Minerita 6 15 USIMINAS Central 4 Mario Campos MRI 5 São Joaquim de Bicas USIMINAS Western 2 Sarzedo 1 Ferrous-Santanense 7 USIMINAS Eastern 8 Comisa 9 Emicon 10 MMX 11 USIMINAS Pau de Vinho Itatiaiuçu BR 38 1 12 Ferrous – Esperança 13 Minera do Brasil 14 Vale 15 Itaminas 16
  • 17. UNIDADE SERRA AZUL Serra azul unit expansion project 1 2 6 Igarapé Itatiaiuçu 5 1 8 3 4 Mario Campos 7 9 9 4 Rail terminal connected to the MRS rail network Arch extensions 6 9 Pipeline with approximately 7km extension 5 São Joaquim de Bicas Tailings dam, about 40km away from the mine, associated with a tailings pipeline 3 2 Beneficiation Plant Waste deposit 7 Water supply 8 High voltage power station 9 Access 17
  • 18. Serra Azul Expansion Beneficiation Plant
  • 19. SERRA AZUL Earthwork 1 Pump House, Sump and Thickeners 5 Substation 2 Construction Site 6 Grinding 10 Tank 3 Beneficiation 7 Piles 11 and Warehouse 4 Grinding 8 Primary Crusher 12 Tank Inc. 9 1 3 2 13 Main Access Water Storage 14 Administrative Buildings Construction Site 5 1 Primary Crusher 15 Maintenance Workshop Water Storage 6 11 4 7 9 8 10 13 14 12 15
  • 20. 2.2 SUDESTE SUPERPORT
  • 21. Sudeste Superport Location 21
  • 22. Offshore Nautical Access Stockyard 06 Stockyard 32 Sudeste Superport Artistic View Railway Access
  • 23. 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; Construction works for the tunnel and offshore infrastructure completed; Fully funded (BNDES); Definitive agreements executed with Trafigura and Mubadala to sell 65% of the Sudeste Superport. Sudeste Superport - Itaguaí 23
  • 24. USIMINAS AGREEMENT Pau de Vinho Joint Mining SRK resources audit : 805 million tons; 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. Sudeste Superport Handling Volumes: 12 Mpta; 80% Take-or-Pay; Usiminas can renew the contract in 2016 for 1 to 5 years. 24
  • 25. Sudeste Superport Road & Railway Access
  • 26. Stockyard 32 Stacker Reclaimer Infrastructure Stacker Reclaimer Rolling Way Road Access Car Dumpers Control Room Stockyard 6 Car Dumpers Sudeste Superport Stockyard Elevation 6 m
  • 27. Sudeste Superport Stockyard Elevation 6 m
  • 28. Control Room of Car Dumpers Train Positioners Sudeste Superport Car Dumpers
  • 29. Sudeste Superport Car Dumpers
  • 30. Sudeste Superport Stockyard Elevation 32 m
  • 31. Tunnel Entrance Electric Substation Infrastructure Transfer House Structure Sudeste Superport Stockyard Elevation 32 m
  • 32. Sudeste Superport Tunnel 32
  • 33. Superporto Sudeste Estrutura Offshore Sudeste Superport Tunnel Exit
  • 34. Superporto Sudeste Estrutura Offshore Sudeste Superport Offshore Structure
  • 35. Electric Substation Building Plataform Sudeste Superport Plataform and Substation Structure
  • 36. Bridge 430 m Bridge 270 m Pier 766 m Sudeste Superport Offshore Structure
  • 37. Superporto Sudeste Estrutura Offshore Sudeste Superport Ship Loaders
  • 38. 3. CORUMBÁ
  • 39. 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; Sale of assets in progress. 39
  • 40. INVESTOR RELATIONS MMX Carlos Gonzalez Adriana Marques Phone CEO and IRO Manager + 55 21 2163-6197 + 55 21 2163-6338 E-mail ri@mmx.com.br 40
  • 41. www.mmx.com.br