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.
Investor Relations
Chequer Bou-Habib - IRO
Priscylla Setimi - IR
Tel. 55 21 2555-5558 / 5234
ri@mmx.com.br
6. MoU among MMX, LLX and Wuhan Steel
Non-exclusive, non-binding MoU with relevant opportunities for MMX and EBX group
The Announcement MMX potential upsides
• Off-take of the entire MMX Sudeste
• Integrated 5 million ton per year steel
production at benchmark prices;
plant at Açu Super Port;
• WISCO off-take of MMX Sudeste • Restatement of the port services
production; agreement among WISCO, MMX and
LLX; and
• Restatement of the port services
agreement among WISCO, MMX and LLX;
• Sale of a stake in MMX (9.09% for
• Acquisition of stake in MMX and US$ 120 million) and MMX Sudeste
MMX Sudeste; (23% for US$ 240 million) – cash in to
face CAPEX programs.
• Supply of steel products by WISCO
to BEX.
6
7. Who is Wuhan
The Chinese Wuhan Iron and Steel Corporation (WISCO) was created in 1955;
WISCO is the first giant iron and steel complex established after the founding of the People’s
Republic of China;
WISCO has an annual production capacity of 31 million tons, ranking the third in China and the 7th
largest steel producer in the world;
WISCO plans to expand its steel production capacity to 50 million tons per year, what will require a
supply of 80 million tons per year of iron ore;
The CEO of Wuhan happens to be also the President of CISA (China Iron and Steel Association);
WISCO is making great efforts to enter into the rank of the 500 top enterprises in the world and
become an important automobile sheets producer in China by 2010.
7
8. Sale of pig iron plant in Corumbá
The agreement:
MMX announced an agreement with Vetorial Siderurgia Ltda. ("Vetorial") for the sale of the pig iron
plant;
Vetorial will pay R$ 100 million for the Asset: 84% will be paid up front;
MMX Corumbá Mineração will supply iron ore to the facility, when owned by Vetorial;
The conclusion of the transaction is subject to due diligence;
The transaction is also subject to approval by the independent members of MMX’s Board of Directors.
About Vetorial:
Vetorial Siderurgia Ltda. is dedicated to pig iron production in Mato Grosso do Sul with a total
production capacity of 350 thousand tons per year.
8
10. The only one of its kind
MMX uniqueness:
high quality iron ore;
low cash cost, due to the high in situ ore content
and high productivity;
MMX Sudeste
Corumbá secured logistics, through long-term agreements with
System
Sudeste rail, barges and port services providers, including LLX
System
Sudeste Port, its sister company;
the unique independent operating Brazilian junior
mining company;
MMX de
Chile
experienced Management in selecting high value
mining assets, implementing and operating mining
projects;
proven ability in delivering value to shareholders.
MMX S.A. is the exclusive vehicle of EBX Group for investments in mining and metals, focusing on
the production capacity increase through organic growth and the development of new opportunities. 10
11. Since IPO (July’06), a lot has been delivered…
July
2006
MMX Amapá System, mine, railroad and port: system operational in a 14-month record time;
MMX Corumbá iron ore mine: operational in 8 months;
MMX Corumbá pig iron furnaces: implemented in 12 months;
Partnership with Anglo American and Cleveland Cliffs;
Spin off of LLX
Sale of assets to Anglo American: MMX Minas-Rio and MMX Amapá;
Development of MMX Sudeste System: acquisition of assets, logistics secured and expansion
plans to 33.7 million tons per year of iron ore;
Minera MMX de Chile: acquisition of mining rights and logistics already identified;
MoU with Wuhan: supply of iron ore and sale of stake both in MMX and MMX Sudeste;
Agreement with Vetorial: sale of Corumba’s pig iron facility.
July
2009
11
12. MMX structure
Controlling Shareholders Free Float
65.29% 34.71%
70% 100% 100% 100%
MMX Corumbá MMX Metálicos Minera MMX
Corumbá System MMX Sudeste
MMX Sudeste
Mineração Corumbá de Chile
30% Centennial
Asset Corumbá
100% 100% 100%
Bom Sucesso AVG Minerminas Sudeste System
Bom Sucesso
Bom Sucesso under basic engineering studies
Corumbá System started-up in 2005 (Mining) and 2007 (Metallics)
Assets acquired by MMX (AVG: dec-07; Minerminas: jan-08) 12
14. MMX Sudeste System: high grade iron ore, low cost
and secured logistics
Negotiation with MRS to transport 32 million tons/year.
Environmental license obtained;
Consolidation opportunity: mines in Serra Azul
can produce 60-80 million tons/year of iron ore Long term financing under negotiation;
50 million ton/year of iron ore can be
expanded to 100 million tons;
Start-up: second half 2011.
BOM SUCESSO TENEMENT
LLX SUDESTE PORT
14
18. Serra Azul site: 8.7 Mtpy of capacity reached on Oct’08
Operations Sales & Logistics
Acquisition of the assets concluded in Jan’08;
Railway capacity secured through long-term
Construction of Magnetic Concentration Plant agreement with MRS up to 15 Mtpy;
and operational enhancements: 8.7 Mtpy as
Port capacity secured with CSN Terminal de
annual installed production capacity in Oct, 2008.
Carga de Itaguaí Port: 2 million tons per year, from
2009 to 2011;
Port capacity from mid-2011 untill 2032 secured
through long-term agreement with LLX Sudeste
Port;
Long-term Off-take agreements with domestic
miners and steel makers;
Wuhan will be the main off-taker of MMX
Sudeste production.
Magnetic Concentration Plant – Start-up Oct 30’08
18
20. Bom Sucesso: outstanding magnetite content and
logistics
Expected Quality:
Fe: 67.2%
SiO2: 2.5%
AL2O3: 0.5%
P: 0.033%
PPC: 0.6%
FeO: 8.8%
View from the west hillside of the Bom Sucesso mountain ridge
Acquisition of mining rights concluded in July’08;
Unique magnetite content (close to 30%);
The closest iron ore asset to the shore – 240km (lower rail tariff);
Greenfield basic engineering studies and environmental licensing under
development;
Rail capacity under negotiation with MRS to extend current contract for
Tests
additional 17 mt up to 2032.
20
21. MMX Sudeste: aggressive expansion plan to become
an international player
Production Capacity
2009 to 2013 33.7 Expansion plan built up in 3 phases:
32.1
Bom Sucesso Phase I: the installed annual capacity to
Serra Azul 17.4
17.4 reach 8.7 Mtpy was achieve in Oct’08 upon
18.5 I D
the start-up of the Magnetic Concentration SE DE
A U
Plant; PH CL
N
8.7 8.7
18.5 CO
14.7 16.3
3.4
8.7 8.7
3.4 Phase II: Serra Azul brownfield expansion up
2008 2009 2010 2011 2012 2013 to 16.3 Mtpy – approx Capex US$360MM
PHASE I PHASE II PHASE III
Current under detailed engineering and licensing
studies
Total Capex*
492 US$ 1,026 MM
Phase III: Bom Sucesso greenfield project,
251 362 adding 17.4 Mtpy of high magnetite iron ore –
241
105
approx Capex US$640MM
168
Current under basic engineering studies
31 146 130
73 11
23
2008 2009 2010 2011 2012 21
*Capex and timeline to be confirmed upon conclusion of detailed engineering studies and analysis of market conditions; average exchange rate R$2.12
23. Iron Ore in Chile: quality & logistics
4 mining rights (2 purchase and
options agreements)
USD 44.5 million
Patrícia
Bella
50km distant from the Chilean coast
approx 1,760 hectares
Pellet feed with high magnetite
content
Fortuna- Existing railroad (FERRONOR)
Fierro
Preliminary tests in Ouro Preto pilot
plant:
- Fe: 67,50%
Teatino - SiO2: 2,5%
s
- Al2O3: 0,85%
- P: 0,015%
23
24. Logistics: Puerto Punta Cachos
EBX has 240,000 ha property in the Atacama region
Permits to develop the urban, industrial and port
zones
Water availability with permits
Guaranteed site contract for:
89 ha of premium area (port)
Puerto
Punta Cachos 782 ha of retro-area
Unlimited scalability for a long-term
development
Located close to mining players
Opportunities for industrial businesses:
Port / Thermo
24
27. MMX Corumbá Mineração
Production Capacity* Logistics
2009 to 2013
6.3
NE & Rabicho Mine
63 Mine 3.1
3.2 3.2
2.1
1.6
3.2 3.2 3.2 Ladário Port
2.1
1.6
2008 2009 2010 2011 2012
PHASE I PHASE II PHASE III
*Capex and timeline to be confirmed upon conclusion of detailed engineering
studies and analysis of market conditions
Sales
Transport is made in barges down the Paraguay River up to Rosario
Port: cargo shipment to Europe.
MMX has Long Term Supply Agreements – 5 years,
in average - with traditional steel makers in South MMX has long-term contracts with local and international barge
America and Europe. operators;
Rosario Port in Argentina: Handymax vessels 27
30. Financial Results (1Q09)
Debt vs Cash (R$ MM) Indebtedness
MMX has increased the maturity of its debt from 7 to 18
months in one year, as shown in the graph below:
Mar-08 Mar-09
3%
38%
62%
97%
Short Term Long Term
Debentures
Company is working on the improvement of its cash position for the forthcoming quarters, which will be possible with the
issuance of debentures to be underwritten by the Controlling Shareholder and related parties in the amount of US$ 200
million. These debentures shall be underwritten according to the Company’s cash requirements during a six-month period.
30
