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  • 1. PROGRESS REPORT PRESENTATION RIOsources Conference Merrill Lynch February 1-2, 2007
  • 2. DISCLAIMERThis presentation relating to MMX Mineração e Metálicos S.A. (“MMX”) includes “forward-looking statements”, as that term is defined in thePrivate Securities Litigation Reform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities ExchangeAct of 1934. All statements other than statements of historical facts are statements that could be deemed forward-looking statements and areoften 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-lookingstatements 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 statementsmay not be indicative of results or developments in future periods. We caution participants of this presentation not to place undue reliance onthese 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 timelybasis or at all, exploration for mineral resources and reserves, difficulty in converting geological resources into mineral reserves, and changesin economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying on forward-lookingstatements 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 (whichcan only be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any otherjurisdiction. 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 absentregistration 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 withoutMMX’s prior written consent. Investor Relations Rodolfo Landim – Investor Relations Officer Elizabeth Cruz – Manager Gina Pinto - Analyst Tel. 55 21 2555-5634 / 5558/ 5563 ri@mmx.com.br http://www.mmx.com.br/ri
  • 3. PROGRESS REPORT PROJECTS PERMITTING SINCE IPOConstruction License granted on August 16, 2006 Leveling and barrage works started on September 26, 2006 Acquisition of 100% of the equipment for the operationConstruction License granted on August 17, 2006 Earth movements and civil works started on August 26, 2006 First blast furnace operating in May 2007Environmental License granted on August 22, 2006 Authorization for construction and operation granted by ANTAQ (National Agency of Waterway Transportation) on January 10, 2007 1
  • 4. PROGRESS REPORT PROJECTS PERMITTING SINCE IPOOperating License granted on August 16, 2006 Renovation of equipment and railwayEnvironmental License granted on December 27, 2006 Construction License to be granted in March 2007Construction License granted on January 14, 2007 Comprises sintering plant, steel and rolling mill 2
  • 5. PROGRESS REPORT STRATEGIC PARTNERS Cleveland-Cliffs agrees to purchase Centennial Asset’s 30% stake in MMX Amapá for US$ 133 million Final closing expected for March 2007 3
  • 6. PROGRESS REPORT LONG-TERM SUPPLY AGREEMENTSSigned: Gulf Industrial Investment Co. 20-year supply contract signed on November 9, 2006 6.5 Mtpy of iron ore fines from Amapá Option for additional supply of 6.5 Mtpy of pellet feed from Minas-Rio to be exercised in March 2007 Supply agreement signed in January 2007 100% export production (excludes South America) - 308.000 tons / year of pig iron from CorumbaFinal Negotiation: Advanced negotiations under existing MOU for Minas-Rio 4
  • 7. PROGRESS REPORT LONG-TERM SUPPLY AGREEMENTSTrial Cargoes:LUCCHINI (Italy) – Received 40,000 t lump ore from Corumbá which is being tested as 23%input in the blast furnace burden and has been presenting very good performanceVOESTALPINE (Austria) – 40,000 t lump ore from Corumbá will be sent early February fortesting in the blast furnaceACEPAR (Paraguay) – Received 13,000 t lump ore from Corumbá which is being tested as100% input in the charcoal blast furnace burden and has been presenting very good performance 5
  • 8. PROGRESS REPORT CAPEX CAPEX – Distribution by System CAPEX AND PRODUCTION (in US$ million) (in million t) 1.800 38 38 38 40 1.600 1.538 35 31 6% 1.400 30 1.200 1.158 25 25% 1.000Corumbá 19 20Amapá 800Minas-Rio 15 600 69% 9 440 10 400 308 4 5 200 1 66 25 25 25 - - 2006 2007 2008 2009 2010 2011 2012 2013 TOTAL: US$3,602 million CAPEX Iron Ore Production 6
  • 9. PROGRESS REPORT FINANCING US$ 82 million US$ 200 million US$ 1 BillionMine -> US$ 32 million Mine & logistic -> US$ 200 US$ 50 million bridge loandisbursed @ Libor + 2.7% - million to be signed in mid disbursed-> increasing debt maturity February US$ 310 M -> 8-yearMetallics -> US$ 50 million financing for the acquisitionbridge loan disbursed – to of Mining Rightsbe converted in long-term US$ 675 direct credit fromdebt totaling US$ 150 Unibanco and Itaú BBAmillion 7
  • 10. PROGRESS REPORT MMXM3 IN NOVO MERCADO - BOVESPA Performance MMXM3 X IBOV (in US$ million) Volume TradedPrice (US$) 60,0 MMXM3: US$246 56,2 270 Market Cap: US$1,870 million IBOV: 43,573pts 250 50,0 230 40,0 38,1 210 31,6 30,0 24,1 190 20,0 170 12,6 10,0 150 5,3 3,9 4,6 08-Aug-06 22-Aug-06 14-Nov-06 28-Nov-06 3,0 25-Jul-06 05-Sep-06 19-Sep-06 03-Oct-06 17-Oct-06 31-Oct-06 12-Dec-06 26-Dec-06 09-Jan-07 23-Jan-07 1,7 1,2 0,6 0,2 0,2 - Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 IBOV MMXM3 Total Daily Average Capital Stock – 7,607,756 common shares Geographic DistributionControlling FreeFloat 20% 26%Shareholder and BrazilManagement United States 11% Canada EU 43% 8
  • 11. PROGRESS REPORT MMX IN THE CAPITAL MARKETListing in Canada – Toronto Stock Exchange: Auditing of MMX Systems´ resources and mineral reserves under way – Canadian Standard NI-43.101 – disclosure is expected for 1Q07; USGAAP Financial Statements to be reported in 1Q07; Level I Global Depositary Receipts (GDR) Program approved by CVM in December 2006 - GDR per Common Share ratio of 20:1 - estimated GDR CAD$14.5 (Jan 29, 2007 prices). Stock Split Program Date Ratio January 2007 2 → 1 share July 2007 2 → 1 share January 2008 10 → 1 share 9
  • 12. PROGRESS REPORT MMX INTEGRATED SYSTEMSMMX Integrated Systems develop and operate ironore mines, pig iron and semi-finished plants and apelletizing plant. MMX Amapá System Iron Ore Fines: 6.5 Mtpy Pig Iron: 2.0 Mtpy Semi-finished: 0.5 Mtpy MMX Minas-Rio System Iron Ore: 26.6 Mtpy Pellets: 7.0 Mtpy MMX Corumbá System Iron Ore: 4.9 Mtpy Pig Iron: 0.4 Mtpy Engineer Eliezer Batista Semi-finished: 0.5 Mtpy Natural Reserve 10
  • 13. PROGRESS REPORT MMX CORUMBÁ SYSTEM Mine currently operating under FederalEnvironmental License Tests performed by Lucchini (Steel Mill, potentialofftaker) – lump ore quality improves blast furnaceoperational performance. Mine 63 – Industrial Plant 11
  • 14. PROGRESS REPORT MMX CORUMBÁ SYSTEMPig Iron Plant Construction 12
  • 15. PROGRESS REPORT MMX CORUMBÁ SYSTEM Certified Charcoal Supply Program Acquisition of two farms in 2006 as the first step towards self-sufficiency in charcoal production • Correntes Farm: 8,975 acres for eucalyptus plantation (CVRD) • Jatiuca Farm: 500 acres for the construction of nursery Hired the most renowned eucalyptus planting company in Brazil – Plantar- to plant 48,250 acres in 5 years – in own and third-party lands 13
  • 16. PROGRESS REPORT MMX AMAPÁ SYSTEM Primary Crushing 14
  • 17. PROGRESS REPORT MMX AMAPÁ SYSTEM Primary Screening 15
  • 18. PROGRESS REPORT HIGH QUALITY IRON ORE Additional iron ore resources from Serra do Sapo Pelletizing tests performed by SGA/Germany stated: • high quality direct reduction (DR) grade pellets can be produced with Minas-Rio fines • high potential for the Minas-Rio pellets will match the requirements for a DR- feedstock in all aspects as indicated by the comparison of the chemical, physical and metallurgical properties of the Minas-Rio- DR-pellets to the quality of other DR-pellet grades of the world and to the target data; • Chemical analysis proves that the Fe content is high at 68.84%, guangue contents are low at about 0.9% (SiO2+Al203) 16
  • 19. PROGRESS REPORT HIGH QUALITY IRON ORE Tests performed by Outokumpu – Lurgi/Germany • preliminary test results indicates excellent chemical, physical and metallurgical properties as well as excellent productivity in the pilot plant – final report to be concluded by mid February 17
  • 20. PROGRESS REPORT MMX MINAS-RIO SYSTEM Pipeline with approximately 525 km, passing by 32 municipalities; Environmental impact study in approval process by IBAMA, Preliminary Licenseexpected for 1Q07; Detailed topography concluded, right of way to be concluded in mid 2007. 18
  • 21. SUPER AÇU PORT PROGRESS REPORT A CONCEPTUAL PLAN SIZE OF RETROAREA – 15,000 ACRESFiltering Iron ore Offshore Pelletizing Petroleum Power Steel Tankingarea storage area support Plants processing Plants Plants facilities infrastructure plants
  • 22. FILTERING AREA voltar
  • 23. IRON ORE STORAGE AREA voltar
  • 24. OFF-SHORE SUPPORT INFRASTRUCTURE voltar
  • 25. PELLETIZING PLANTS voltar
  • 26. PETROLEUM PROCESSING PLANTS voltar
  • 27. POWER PLANTS Coal and LNG 3,500 megawatts voltar
  • 28. STEEL PLANTS voltar
  • 29. TANKING FACILITIES voltar
  • 30. PROGRESS REPORT RAILWAY INTERCONNECTIONPossibilities to interconnect MMX Systems to the existing railway systems Option 1 Option 2 To be constructed by MMX 45km
  • 31. PROGRESS REPORT ENVIRONMENTAL RESPONSABILITY Eliezer Batista Natural Reserve – MMX´s commitment with environmentalpreservation, 50 thousand acres in the most preserved area in South Pantanal. 29
  • 32. APPENDIX
  • 33. PROGRESS REPORT IRON ORE RESOURCES AND RESERVESMMX Corumbá SystemMine 63 – lump (85%) and sinter feed (15%) production initiated in 2005Drilling performed: 3,611 meters as of November 2006Of the 21 mining rights, 3 were researched as of September 2006 (2 measured) GEOLOGICAL RESOURCES – as of ÁPROJECT RESOURCES CORUMB 31, 2006 MarchMMX Amapá System Resource Drilling performed: 28,254 meters as of November 2006 Area AREA Classification Tonnage (MT) Of the 18 mining rights, 3 were researched and measured Mine 63 Indicated 65 Taboca and Indicated 220MMX Minas-Rio System Vila do Meio Inferred 155 Pellet feed production to begin in 2009 Indicated 408 Itapanhoacanga Inferred 159 Drilling performed: 19,736 meters as of November 2006 Of the 27 mining rights, 12 were researched as of November João Monlevade Inferred 1472006 (5 measured) TOTAL 1,154 30
  • 34. PROGRESS REPORT PRODUCTION CAPACITY BY SYSTEM CORUMBÁ AMAPÁ Iron Ore 6.500 6.500 (1000 t) Pig Iron Semi Finished 4.870 4.870 4.300 3.260 2.000 AMAPÁ 1.3001.000 810 375 400 452 490 196 309 56 55 2006 2007 2008 2009 2007 2008 2009 2010 MINAS-RIO 26.600 26.600 20.000 Iron Ore Pellets 8.000 7.000 7.000 3.000 2009 2010 2011 2012 31
  • 35. PROGRESS REPORT CAPEX DISBURSEMENT TIMETABLE CAPEX – By System (US$ million) CAPEX – By Activity (US$ million) 2006 2007 2008 2009 - 2013 Total (*) 2,377Corumbá 88 93 23 - 220 Mine 42 13 - - 72 Metallics 46 80 23 - 148Amapá 87 294 382 153 915 1,225 Mine 60 54 38 - 152 Logistics 21 59 40 - 120 995 828 Metallics 5 181 304 153 643 543Minas-Rio 134 772 1,133 427 2,466 330 283 297 254 Mine 100 282 348 241 971 54 Logistics 31 420 569 42 1,062 Pellet Plant 3 70 216 144 433 2006 2007 2008 2009 - 2013 Total (*)Total 308 1,158 1,538 580 3,602 Mine & logistics Metallics(*) includes 2005 figures As of September 2006, expenditure of US$ 64.5 million. Disbursement timetable under review, payments carried over to 2007 (approximately US$129 million). 32
  • 36. PROGRESS REPORT FINANCINGFinancing in progress to carry out execution of Business Plan US$ million Project CAPEX Financing (1) Lenders Status (1) Status Term Mine 2,378 1,744 ABC/Unibanco/ Corumbá 72 26 Itaú BBA/BNDES Disbursed 3 years Amapá 273 200 Itaú BBA, ABC Firm Commitment 7/10 years Minas-Rio 2,033 1,518 Unibanco/Syndicate/BNDES US$ 50 mm 12 years Bridge Loan Metallics 1,224 985 US$50 mm Corumbá 148 150 Credit Suisse Bridge Loan 7 years Amapá 643 510 Itaú BBA/BNDES - 10 years Minas-Rio (Pellet Plant) 433 325 Itaú BBA/BNDES - 10 years TOTAL 3,602 2,729(1) Expected Weighted Average Cost of Borrowing: Libor + 1,5%, assuming 50% funding by BNDES. Potential lending institutions: BNDES, JBIC, Itaú BBA, Citibank, Votorantim, Santander, BNP Paribas, Bradesco, Banco do Brasil, Caixa, ABC 33