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Sudeste superport
1.
2. Your safety is our priority
Personal Protection Equipment required for the visit:
Safety Eyewear: When exposed to eye or face hazards from flying particles,
molten metal.
Safety cap: When working in areas where there is a potential for
injury to the head from falling objects.
Hearing Protection: Earplug is safe for use and to protect ear from harsh work
environment.
Dust Mask: Protection to the lungs. The masks feature an adjustable nose clip
and strap to hold them in place
Safety Shoes: When working in areas where there is a danger of foot injuries
due to falling or rolling objects, or objects piercing the sole, and electrical
hazards.
Reflect Safety Vest: Give visibility and keep safe from drivers
3. MMX Structure and Management Team
Current Shareholder Structure Senior Management Team
Roger Downey 14 years in the mining industry in Vale and Rio Tinto
Chief Executive Former equity research officer of Credit Suisse from 2005
Controlling and IR Officer until 2009, responsible for coverage of mining and steel
companies in Latin America
Shareholders
39% 17% Guilherme F. Escalhão Approximately 25 years of experience in the mining sector
Held senior executive positions in companies such as
Chief Financial Officer
29% Vale ,Caemi Group, Pará Pigmentos and MRS Logística
Free Float
15%
Alexandro A. de Moura More than 20 years of experience in the mining sector
Chief Mining Held senior executive positions in companies such as
Samarco Mineração and Vale
Operations Officer
70% 100% 100% Chequer H. B. Habib More than 24 years of experience in the mining sector
Held senior executive positions in companies such as
Chief Commercial Officer Vale, S.A Mineração da Trindade (SAMITRI), Ferteco
MMX MMX Minera MMX Mineração, Gulf Industrial Investments (Vale subsidiary)
Corumbá Sudeste de Chile and AVG Mineração
Mineração
30% More than 25 years of experience in mining, port and steel
EBX BRASIL S/A Luciano C. Ferreira
sectors
Chief Port Operations Held senior executive positions in companies such as
Officer Caemi, MBR and Vale, including Companhia Siderúrgica
100% 100% Pecém, Vale joint venture.
Antônio A. Schettino Fróes Around 30 years of experience in the mining sector
Serra Bom Held senior executive positions in companies such as
Azul Sucesso Chief Project
MBR, Odebrecht, CSN and Votorantim Siderurgia
Development and
Implementation Officer
4. MMX has never been in such a good position
Integrated company: Sudeste Superport acquisition
underway and MRS contract in final stage of negotiation
Strong Balance Sheet: ready for the expansion phase
Long term contracts: more than 60% of the production
already committed
Competitive cost structure
Cash generation: R$ 120.6 million 2010 EBITDA
5. Sudeste Superport acquisition
Transaction background
Capital increase in MMX of US$ 700 million
• Capital increase of common shares at R$13.963
• SK acquired 15% of the Company´s shares
Acquisition of Sudeste Superport, valued at US$ 2.2 billion divided into:
• (i) US$ 441 million in MMX shares or cash
• (ii) US$ 1.8 billion in royalties securities to be issued by MMX
• Potential port expansion to 100 Mtpy
Why the royalties securities were created?
• To enable MMX to pay a full NPV valuation and allow royalties securities holders to fully
capture the expansion upside to 100 Mtpy
Long-term iron ore off-take agreement granting SK Networks entitlement to:
• 50% of the production of MMX Chile’s mines
• 15% (equity % share) of the production of MMX Sudeste’s mines
6. VTO – Next steps
All subject to CVM confirmation
Estimated Date Main Events
1. November 29, 2010 LLX Spin Off withdrawal period ends
√
2. December 8, 2010 MMX board of directors’ meeting approves the OPA for the shares of PortX and
√ recommending that the shareholders general meeting approve the issuance of the
Royalties Securities and the appraisal report for PortX shares
3. December 15, 2010 Filing of the VTO Documents with the CVM
√
4. January 21, 2011 MMX general meeting approves the issuance of the Royalties Securities, the appraisal
√ report for PortX shares.
5. March 10, 2011 Comments from BM&FBovespa regarding VTO documentation received by MMX
√
6. March 25, 2011 Final comments from CVM regarding VTO documentation received by MMX
√
7. D CVM approves the VTO Documents and issues the VTO registration
8. D+3* MMX publishes the VTO
VTO acceptance term begins
9. D+26* VTO acceptance term ends
10. D+27* MMX board of directors’ meeting approves the increase of the corporate capital and the
issuance of the exact amount of Royalties Securities
11. D+28* VTO auction proceeding takes place at the BM&FBOVESPA
12. D+32* First trading day of the newly issued shares and Royalties Securities
13. D+33* Financial settlement of the BM&FBOVESPA auction
* Working days
7. MMX Highligths
Record Volumes
MMX CONSOLIDATED 2009 2010 2010 %
SUMMARY FULL YEAR Q1 Q2 Q3 Q4 FULL YEAR 10/09
Production - kt 5.179 1.827 1.844 1.898 2.107 7.675 48%
Sales - kt 4.683 1.509 1.834 1.755 2.079 7.176 53%
Net Profit/(Loss) - R$ k (214.147) 46.581
Ebitda - R$ k (463.711) 120.565
Net Average Prices - R$/t 77,25 77,28 102,78 134,54 96,32 103,32 34%
Domestic 46% 52% 74% 64% 84% 70%
Exports 54% 48% 26% 36% 16% 30%
Record production/sales with a 50% YoY growth
Continuous Q/Q improvement on both sales + production
13. Sudeste Superport
Railway Branch
MRS branch to Itaguaí Port, CSN,
VALE
Brisamar Yard to
Cação River
Railway access branch with 3 lines of 1.6 m
Bridge over
Cação River
width and 2.3 km length
Cação River Railway viaduct of 11 m width and 40 m
length
Bridge over Cação River (Overpass) of 20 m
width and 600 m length
Access to Ilha
Itaguai Port road access
da Madeira
Railway
yard
14. Sudeste Superport
Iron Ore Stockyard – Total: 2.5 MM t in the 1 st phase
Stockyard Elevation 06 Capacity= 1.2 MM t
Stockyard Elevation 32 Capacity = 1.3 MM t
20. Sudeste Superport
Tunnel
Highlights Tunnel Section
Construction started in July/2010
653 meters already done as of April, 6th
1 st phase 2 nd phase
Average speed of excavation: 7 meters per day
Section for 100 Mtpy Tunnel
Total Area 198 m2
Height 11 meters
Width 20.5 meters
Length 1.8 km
21. Sudeste Superport
Offshore Structure
Highlights
Construction started in August/2010
Berth depth: 20 m – able to load capesize vessels
Expansion potencial to 100 Mtpy
50 Mtpy 100 Mtpy – Future Expansion
Pier length: 766 meters Pier length: 766 meters
Number of berths: 2 Number of berths: 4
22. Sudeste Superport
Pier
Pier
Length: 766m
Width: 24m
Pre cast piles: Ø 90cm diameter
and 39m of length
Quantity of piles: 477
590 m – Shiploader travelling
26. Sudeste Superport
Process Flowchart
UNLOADING STOCKYARD
Car Dumper 1 160 Railway Car BELT CONVEYOR Stacker Reclaimer
160 Railway Car Line II Line II
Car Dumper2 o
Iron Ore Stockyard Elev. 6m
12,000 t/h
Line II
8.880 t/h Stacker Reclaimer
Line I Transfer Station BELT CONVEYOR
8.880 t/h
Stacker Reclaimer
Line I
o
Iron Ore Stockyard Elev. 32m
Stacker Reclaimer Line I
12,000
TUNNEL t/h
Line II
Transfer Station
Line II TUNNEL BELT CONVEYOR
12,000 t/h Transfer Station
Line I
Line I
Ship Loader 2 Ship Loader 1 12,000 t/h
PIER
27. Sudeste Superport
High flexibility in the project operation
Receiving / Storing
3 railway lines to reduce the maneuver time at the branch.
Railway lines for two independent trains in the loop.
2 car dumpers capable of feeding stockyards levels 6 and/or 32.
Possibility of iron ore relocation from stockyard level 6 to stockyard level 32.
Expedition / Loading
Possibility of direct loading from the car dumper into the ship.
Chutes at the entrance of the tunnel allow iron ore coming from either stockyard levels 6 or 32
to be loaded into any ship.
The 2 ship loaders are able to feed the same ship simultaneously.
31. Sudeste Superport
Contractors
Tunnel
Civil Construction
Offshore Structure
Stockyard
Railway + Roadway
Structure
Car dumpers (Germany)
Equipment
Stacker Reclaimer and
Conveyor Belt (Spain)
Ship Loaders (China)
32. Timeline
Construction Schedule
1H09 2H09 1H10 2H10 1H11 2H11 1H12 3Q12
Environmental Preliminary License (LP)
Environmental Implementation License(LI)
Funding BNDES FINAME-PSI
ANTAq License
Funding BNDES FINEM
Tunnel
Offshore Structure
Main Equipment already ordered:
Car dumper
Shiploader
Stacker reclaimer
Belt Conveyors
Completion of civil construction
Equipment set up
100 Mtpy: upgraded tunnel, stockyard elevation 6, rail loop, etc already underway
*
33. Sudeste Superport
CAPEX and Funding
CAPEX for 50 Mtpy : R$ 1.8 Billion Funding in place
BNDES FINAME
BNDES FINEM
– PSI
Total amount
R$ 407.1 mm R$ 805.1 mm
R$ 1.2 Bi
1.282
Interest rate per
4.50% TJLP + 2.18%
year
R$ 475 M
Amortization 8 years 10 years
286 Grace Period 2 years 2 years
86 63
40
2007 2008 2009 2010 2011/2012
BNDES disbursement 2010 – R$ 111 M
Actual ECA’s under negotiation
IFRS - Financial Highlights (Dec. 2010)
Construction at full speed Liquidity (cash+LFT’s): R$ 46 M
Permanent Assets: R$ 430 M
Capex 2010: R$ 286 M
Net Loss 2010: R$ 25 M
36. Serra Azul Complex:
Growth and proximity to existing infrastructure
MMX is the natural consolidator in the region
37. Serra Azul Expansion
Highlights
Dimension Highlights
Geology Continuation of services for drilling and geological modeling
Technological
SAG Grinding and Balls Grinding Tests in Chile (17/01 to 04/02/11).
Development
Processing Plant Basic Engineering - Apr/11.
Engineering
LDBC, Railway Terminal and Water Intake Basic Engineering - Feb/11.
Stages in the licensing process – Beneficiation Plant, LDBC, Water Intake,
Power Line, Railway Terminal – in accordance with the schedule.
Environment
Public Hearing was held on March 22nd.
Requests for Proposals have been issued for Crushers, Ball mills, SAG
Supply Chain mills, Vertical Mills, Ceramic filters, Stacker Reclaimer and Train Loading
System.
39. Serra Azul Expansion
Project Definition
The expansion project aims to increase the production capacity from 8.7 Mtpy
to 24 Mtpy of iron ore.
The project scope includes the implementation of a new beneficiation plant,
waste deposit, tailings dam, long distance conveyor belt, railway terminal and
load out station.
40. Serra Azul Expansion
Flow sheet
FLOTATION GREGRINDING
(PRE-CONCENTRATION )
PRIMARY CRUSHING
DESLIME
< 200 mm
BALL MILLS
SAG MILLS
CONDITIONING
AND COLUMN
FLOTATION ROUGHER
PEBBLES
CRUSHING
SCAVENGE
TAILINGS
CLEANER
CONCENTRAT
E THICKNER
FILTERING
TAILINGS DAM
PELLET FEED
41. Compact ore (ITABIRITES, MAGNETITES)
Ore used and processed worldwide to produce high grade products
Eg: IOC/QCM/HIGTAC/MINTAC/C.Cliffs/EVTAC, etc.
Products: high grade pellet feed
Specifications: Fe = 67%, SiO = 3,5%, P = 0,03%,
Al2O3 = 0,5%, Mn = 0,05%, PPC = 0,25%
(according to testwork performed by Ouro Preto pilot plant)
Pilot plant testwork performed in Chile
43. Serra Azul Expansion
Milestones
2H10 1H11 2H11 1H12 2H12 1H13 2H13
EIA RIMA Construction
Environment Start up
Serra Azul Expansion
Filed License
al License
Basic
Construction
Engineering
Ordering
Equipment
begins
Development
Construction
Operations
