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.
2
5. MMX INTRODUCTION
High quality mining assets in traditional
mining districts
Two operating systems: Serra Azul and
Corumbá;
Current Capacity: approximately 7 Mtpy;
Mining rights in traditional iron ore districts:
Brazil (Minas Gerais and Mato Grosso do Sul);
Sudeste System | MG
Serra Azul Unit
Bom Sucesso Unit
Production committed with strategic
consumers – China and South Korea –
through long-term contracts;
Brownfield start up in Brazil;
Sudeste Superport | RJ
Strategic port location.
Corumbá System | MS
Sistema Sudeste
5
6. MMX INTRODUCTION
Ingredients for a successful iron ore
business
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 OFFTAKE
64% of future production already committed through long-term contracts.
OPERATIONAL
TRACK RECORD
Experience management team with implementation and operational expertise;
Current Capacity of 7 Mtpy (Serra Azul and Corumbá sites).
6
7. MMX INTRODUCTION
A lot has been delivered
Issuance of
debentures
at the
amount of
R$ 600
million;
BNDES
approves
eligibility for a
long term
financing for
Serra Azul;
Arrival of 2 Ship
Loaders in the
Sudeste
Superport ;
Conclusion of the
contracting of
supplementary long term
funding for the Sudeste
Superport with BNDES, in
the sum of R$ 935 million;
Sale of all shares
in Minera MMX de
Chile S.A. to
Inversiones Cooper
Mining S.A.
The merger of
MMX Porto
Sudeste S.A.
by MMX
JANUARY
2012
Conclusion of
the offshore
civil works at
the Sudeste
Superport;
JANUARY
2014
Conclusion of
the capital
increase in the
amount of R$
1.4 billion;
Renewal of the
lease contracts
for mineral
rights with the
CEFAR,
extending the
terms of validity
from 2021 to
2034;
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;
Hiring of
financial
advisors to
evaluate
business
opportunities;
Definitive
agreements
executed by the
Company with
Trafigura and
Mubadala;
Approval of
the business
plan’s revision
of the
Company;
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11. UNIQUE INTEGRATED LOGISTICS
Logística integrada
Since Iron ore is a bulk
OFFTAKERS (SHAREHOLDERS)
commodity, an integrated
WISCO
logistic (mine > railway >
Long-Term contract (20 years).
Wisco will off-take at least 50% of
MMX Sudeste production.
port) is the key factor for
a successful operation.
Mine
SK NETWORKS
Railway
Superport
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%).
SK and Wisco will together
offtake 64% of total production
Serra Azul unit is near to the MRS
railway - 7 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.
11
14. 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.
14
15. SERRA AZUL
Expansion project with integrated
logistic and pellet feed iron ore
Highlights
Production target: 15 Mtpy waiting of new partner;
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;
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
16. SERRA AZUL
Growth through consolidation while
leveraging existing infrastructure
N
Igarapé
3
13
8
5
3
1
7
6
4
2
9
10
14
14
11
12
Brumadinho
Arcelor Mittal
Minerita
6
15
USIMINAS Central
4
Mario Campos
MRI
5
São Joaquim
de Bicas
USIMINAS Western
2
Sarzedo
1
Ferrous-Santanense
7
USIMINAS Eastern
8
Comisa
9 Emicon
10 MMX
11 USIMINAS Pau de Vinho
Itatiaiuçu
BR
38
1
12 Ferrous – Esperança
13 Minera do Brasil
14 Vale
15 Itaminas
16
17. UNIDADE SERRA AZUL
Serra azul unit expansion project
1
2
6
Igarapé
Itatiaiuçu
5
1
8
3
4
Mario Campos
7
9
9
4
Rail terminal connected to the
MRS rail network
Arch extensions
6
9
Pipeline with approximately 7km
extension
5
São Joaquim de Bicas
Tailings dam, about 40km away
from the mine, associated with
a tailings pipeline
3
2
Beneficiation Plant
Waste deposit
7
Water supply
8
High voltage power station
9
Access
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;
Construction works for the tunnel and offshore
infrastructure completed;
Fully funded (BNDES);
Definitive agreements executed with Trafigura and
Mubadala to sell 65% of the Sudeste Superport.
Sudeste Superport - Itaguaí
23
24. USIMINAS AGREEMENT
Pau de Vinho Joint Mining
SRK resources audit : 805 million tons;
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.
Sudeste Superport Handling
Volumes: 12 Mpta;
80% Take-or-Pay;
Usiminas can renew the contract in 2016 for 1 to 5 years.
24
39. 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;
Sale of assets in progress.
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