MMX is developing integrated iron ore projects in Brazil and Chile to supply the global seaborne iron ore market. Their key assets include the Serra Azul mine and expansion project in Brazil, the Sudeste Superport, and iron ore projects in Chile and Brazil. MMX has secured long-term offtake agreements for
3. THE ONLY ONE OF ITS KIND
MMX Uniqueness
Production committed to important global
consumers – China and South Korea – through long-
term contracts
Brownfield start up
Expanding beyond 50 Mtpy in Brazil and Chile,
through fully integrated systems: own deep water
superports and pipelines
Unique port location and strong balance sheet
leverage significant value creation through
Sudeste System
consolidation of stranded iron ore resources in the Serra Azul Unit
Corumbá System Bom Sucesso Unit
Southeast of Brazil
Strong cash generation Chile System
Proven track record delivering value to
shareholders Sudeste Superport
3
5. INGREDIENTS FOR A SUCCESSFUL IRON ORE
BUSINESS
SRK certification: 3,1 billion tons of mineral resources, and further mineral
Resource Base
potential of up to 1,4 billion tons. Reserves of 1 billion tons in Serra Azul.
Low strip ratio
Competitive Competitive scale – New beneficiation plant
Production Cost
Structure Power supply contract with MPX
Integrated infrastructure with the existing MRS railway
Sudeste Superport at 50 Mtpy, expandable to 100 Mtpy, provides gateway to
Guaranteed
seaborne markets
Logistics
Long Term Railway Contract with MRS
Secured Off-take 64% of future production already committed through long-term contracts
Operational Track Experience management team with implementation and operational expertise
Record Installed Capacity of 10 Mtpy (Serra Azul and Corumbá sites)
5
6. DURING THE YEAR OF 2011, A LOT HAS BEEN
DELIVERED
January
2012
MMX signs contract for railway services with MRS through 2026
SRK certified 997,4 million tons of mineral reserves at Serra Azul Unit
EIA-RIMA filed for Sudeste Superport expansion to 100 Mtpa
Orders for long lead equipment for Serra Azul expansion
EPCM contract with CNEC Worley Parsons for Serra Azul expansion
Contract with MPX for energy supply for expansion of Serra Azul
SRK certified 2,5 billion tons of resources at Serra Azul and Pau de Vinho
Preliminary license of the Serra Azul expansion
MOU with Minerinvest
Financial advisory contract with Itaú BBA and WestLB
Acquisition of 99,1% of PortX shares at the VTO auction
Deal with Usiminas
February
2011
6
7. FINANCIAL HIGHLIGHTS
EBITDA (R$ million) Sales (million ton)
90
72.8 75.2 2,0
0.7
61.6 0.8
60 0.6
1,0
30 1.5
1.3
1.1
0,0
0
3Q10 2Q11 3Q11
3Q10 2Q11 3Q11*
*excluding non recurent itens
MI ME
Net Profit (R$ million)
Debt profile
50 88.5 90.9 100%
54%
-50 63%
73%
50%
(243.2)
-150
46%
37%
27%
-250
0%
3Q10 2Q11 3Q11
3Q10 2Q11 3Q11
Short Term Long Term 7
9. 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 Railway Superport 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%).
MMX has a long term contract Sudeste Superport is located in
Serra Azul unit is near to the
with MRS railway, which connects Itaguaí and will have 50Mtpy iron Long-Term contract (20 years). Wisco will
MRS railway - 10 km from the
the mine with the CSN’s Itaguaí ore shipping capacity. The Superport off-take at least 50% of MMX Sudeste
mine, a distance currently
port and to the Sudeste will have a depth of 20 meters, production.
traversed by trucks.
Superport. enough to handle Capesize vessels.
SK and Wisco will together
offtake 64% of total production 9
16. 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.
Tariff: R$ 26.463/ton , net of tax, readjusted annually by a parametric
formula the variation in IGP-DI and in diesel oil.
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20. SUDESTE SUPERPORT
Overview
Highlights
50 mtpy capacity, expandable to 100 mtpy
Capesizes handling
Loading: 2 ship loaders of 25 Mtpy each
Fully funded (BNDES)
Start-up forecast: 1Q13
100% of equipment already ordered
Licensing for 100 Mtpy underway
Sudeste Superport - Itaguaí
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21. SUDESTE SUPERPORT
Overview
Highlights
Tunnel: Meeting of the two excavation fronts as
of September 2011
EIA-RIMA for 100 Mtpy filed with Inea in
September 2011
Licensed to 50 Mtpy
Navy Approval to 100 Mtpy
Sudeste Superport - Itaguaí
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32. SUDESTE SUPERPORT
CAPEX and Funding
CAPEX
Funding: BNDES FINAME - PSI
Total Amount: R$ 407.1 mm
Actual Forecast Interest Rate per Year: 4.50%
Amortization: 8 years
1.276 Grace Period: 2 years
Funding: BNDES FINEM
Total Amount: R$ 805.1 mm
Interest Rate per Year: TJLP + 2.18%
Amortization: 10 years
286
649 Grace Period: 2 years
86 40 63 Requested Supplementary Funding : R$ 552
million
2007 2008 2009 2010 2011 to
2013
32
33. SUDESTE SUPERPORT
Construction schedule
1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1Q13
Preliminary License
Construction LIcense
Funding BNDES FINAME-
PSI
ANTAQ License
Funding BNDES FINEM
Civil Construction:
Stockyard 06
Stockyard 32
Tunnel
Offshore
Road-rail access
Equipment sett up:
Car dumpers
Shiploader
Stacker reclaimer
Belt conveyor 33 33
34. USIMINAS AGREEMENT
Pau de Vinho Joint Mining Sudeste Superport Handling
SRK resources audit : 810 million tons Handling fee: USD 12.63/ton adjusted
plus a potential 75 million tons by US-PPI
Pau de Vinho target production: 8 Mtpy Volumes:
■ 2012 = 3 Mtpy
Significant synergies with current
mining operations at Serra Azul ■ 2013 = 4 Mtpy
■ 2014 = 8 Mtpy
13.5% of production at Pau de Vinho
■ 2015 = 12 Mtpy
will be delivered to Usiminas
■ 2016 = 12 Mtpy
MMX will be responsible for the
licensing, CAPEX and operation for 30
80% Take-or-Pay
years
Usiminas can renew the contract for 1
to 5 years
34
36. BOM SUCESSO
High-quality iron ore with high magnetite content to supply the
seaborne market
Highlights
Production target: 10 Mtpy
64% of production already committed through long-term
contracts
Execution Update
Conceptual engineering
EIA RIMA filed in November 2010
SRK resources audit update: 365 million tons plus a
potential of 741 million tons
Public Hearing: June 2011
Expected Quality – Ouro Preto pilot plant test work
Fe: 67.2% P: 0.033%
SiO2: 2.5% PPC: 0.6%
AL2O3: 0.5% FeO: 8.8%
36
38. CHILE
One of the lowest cost additions to seaborne supply
Highlights
High-quality iron ore with magnetite content to
supply the seaborne market
Production target: 10 Mtpy
50% of production already committed through long-
term contracts
460 Mt of iron ore potential already secured
Execution Update
Castilla Port fully licensed
Drilling performed: approximately 43 thousand
meters
Water permits
Expected Quality – Ouro Preto pilot plant test
work
Fe: 67.50% SiO2: 2.5%
Al2O3: 0.85% P: 0.015%
38
39. CHILE
Castilha Port
EBX has 240,000 ha property in the Atacama region
Fully Licensed Port
Deep water port – 28 meter draft: Chinamax vessels
Water availability with permits
MPX Thermal Power Plant
BERTH N° 1 – COAL
BERTH N° 2 – IRON ORE
BERTH N° 3 – COPPER
39
41. CORUMBÁ
Unique high quality lump
Highlights
Current Capacity: 2.1 Mtpy
Long-term contracts signed with local and international
barge operators
77% of production already committed through long-term
contracts
SRK audit resources report: 192 million tons plus a
potential of an additional 123 million tons
41