2. 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
5. HIGH QUALITY MINING ASSETS IN TRADITIONAL
MINING DISTRICTS
5
Sudeste System
Serra Azul Unit
Bom Sucesso Unit
Corumbá System
Sudeste Superport
Two operating systems: Serra Azul and Corumbá;
Current Capacity: approximately 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.
6. INGREDIENTS FOR A SUCCESSFUL IRON ORE
BUSINESS
6
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 Off-
take
64% of future production already committed through long-term contracts
Operational
Track Record
Experience management team with implementation and operational expertise
Current Capacity of 8 Mtpy (Serra Azul and Corumbá sites)
7. 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.
May
2013
January
2012
A LOT HAS BEEN DELIVERED
7
11. 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 SuperportRailway
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 (14%).
Long-Term contract (20 years). Wisco
will off-take at least 50% of MMX
Sudeste production.
SK and Wisco will together
offtake 64% of total production
11
14. 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
14
15. 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% AL2O3: 0,54%
SiO2: 3,23% Mn: 0,018% LOI: 0,75%
15
17. SERRA AZUL
Serra Azul Unit Expansion Project
New Beneficiation Plant, transmission line and water
pipelines, Stockyard and Loading Terminal
Cava
17
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;
Loading: 2 ship loaders of 25 Mtpy each;
Construction works for the tunnel and offshore
infrastructure completed;
Fully funded (BNDES).
Sudeste Superport - Itaguaí
23
24. 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:
■ 12 Mpta
80% Take-or-Pay;
Usiminas can renew the contract in 2016 for 1 to 5 years.
Pau de Vinho Joint Mining
Sudeste Superport Handling
24
27. Sudeste Superport
Stockyard Elevation 6 m
Road
Access
Car Dumpers
Car Dumpers Control
Room
Stacker Reclaimer
Infrastructure
Stockyard 32
Stockyard 6
Stacker Reclaimer
Rolling Way
41. 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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42. Investor Relations | MMX
Carlos Gonzalez, CEO and IRO
Adriana Marques, Manager
Daniella Maia, Analyst
Phone: + 55 21 2163-6197
+ 55 21 2163-4366
E-mail: ri@mmx.com.br
