3. INGREDIENTS FOR A SUCCESSFUL IRON ORE
BUSINESS
Guaranteed Owned Sudeste Superport at 50 Mtpy, expandable to 100 Mtpy, provides gateway
Logistics to seaborne markets.
Competitive Cost Integrated infrastructure, with the existing MRS railway providing an efficient link
Structure between mine and port
Strong Resource SRK certification: 3.1 billion tons of mineral resources, and further mineral
Base potential of up to 1.4 billion tons
Solid Financial Strong balance sheet and project fundamentals to attract competitive funding
Position Current operations provide strong FCF
Operational Track Experienced management team with implementation and operational expertise.
Record Installed Capacity of 10 Mtpy (Serra Azul and Corumbá sites)
Secured Offtake 64% of future production already committed through long-term contracts.
3
4. 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 Chinamax enabled
superports and pipelines
Sudeste System
Serra Azul Unit
Unique port location and strong balance sheet leverage Bom Sucesso Unit
significant value creation through consolidation of stranded Corumbá System
iron ore resources in the Southeast of Brazil Chile System
Strong cash generation
Sudeste Superport
Proven track record delivering value to shareholders
Location
5. FINANCIAL HIGHLIGHTS
EBITDA (R$ million) Sales (million ton)
90 2,0
72.8 75.2
61.6 0.8 0.7
60 0.6
1,0
30 1.3 1.5
1.1
0 0,0
3Q10 2Q11 3Q11* 3Q10 2Q11 3Q11
*excluding non recurent itens
MI ME
Net Profit (R$ million)
Debt profile
100%
50 88.5 90.9
-50 54% 63% 73%
(243.2) 50%
-150
46% 37%
-250 27%
3Q10 2Q11 3Q11 0%
3Q10 2Q11 3Q11
Short Term Long Term
7. 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%).
Serra Azul unit is near to the MMX has a long term contract Sudeste Superport is located in
MRS railway - 10 km from the with MRS railway, which connects Itaguaí and will have 50Mtpy iron Long-Term contract (20 years). Wisco will
mine, a distance currently the mine with the CSN’s Itaguaí ore shipping capacity. The Superport off-take at least 50% of MMX Sudeste
traversed by trucks. port and to the Sudeste will have a depth of 20 meters, production.
Superport. enough to handle Capesize vessels.
SK and Wisco will together
offtake 64% of total production
15. 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
16. 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
Licensed to 50 Mtpy
Navy Approval to 100 Mtpy
Sudeste Superport - Itaguaí
27. SUDESTE SUPERPORT
CAPEX and Funding
Funding: BNDES FINAME - PSI
CAPEX
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
286 Interest Rate per Year: TJLP + 2.18%
649
86 40 63 Amortization: 10 years
Grace Period: 2 years
2007 2008 2009 2010 2011 to Requested Supplementary Funding : R$ 552
2013 million
28. SUDESTE SUPERPORT
Construction schedule
1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1S13
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
