Mmx junho 2012 - ingles

MMX: CREATING CHOICES IN SEABORNE IRON ORE SUPPLY

Rio de Janeiro | June 2012

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

MMX INTRODUCTION

1

HIGH QUALITY MINING ASSETS IN TRADITIONAL

MINING DISTRICS

Sudeste SystemSerra Azul Unit

Bom Sucesso UnitCorumbá System

Sudeste Superport

Chile System

Mining rights in traditional iron ore districts: Brazil – Minas Gerais and Chile

Production committed with strategic consumers – China and South Korea – through long-term contracts

Brownfield start up in Brazil

Expanding beyond 40 Mtpy in Brazil and Chile, through fully integrated systems: with private ports in Brazil

Unique port location

4

42% Controlling Shareholders

16% Wisco

14% SK Networks

28% Free Float

MMX Corumbá Mineração MMX Sudeste

Minera MMX do Chile

Superporto Sudeste

Serra Azul

Bom Sucesso

100% 100% 99%70%

30% EBX

MMXM3: SOLID CONTROLLING SHAREHOLDERS

5

SRK certification: 3,1 billion tons of mineral resources, and further mineral potential

of up to 1,4 billion tons. Reserves of 1 billion tons in Serra Azul.

64% of future production already committed through long-term contracts

Experience management team with implementation and operational expertise

Installed Capacity of 10 Mtpy (Serra Azul and Corumbá sites)

Sudeste Superport at 50 Mtpy, expandable to 100 Mtpy, provides gateway to

seaborne markets

Long Term Railway Contract with MRS

Low stripping ratio

Competitive scale – New beneficiation plant

Energy supply contract with MPX

Integrated infrastructure with the existing MRS railway

Resource Base

Secured Off-take

Operational Track Record

GuaranteedLogistics

Competitive Production Cost

Structure

INGREDIENTS FOR A SUCCESSFUL IRON ORE

BUSINESS

6

Installation License authorizing the Serra Azul Unit expansion

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

April2012

February2011

DURING THE YEAR OF 2011, A LOT HAS BEEN

DELIVERED

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FINANCIAL HIGHLIGHTS

38%29% 32%

62%71% 68%

0%

20%

40%

60%

80%

100%

1Q11 4Q11 1Q12

Debt profile

Short Term Long Term

61% 59% 53%

0%

15%

30%

45%

60%

1Q11 4Q11 1Q12

Gross Margin (%)

63.8 69.2

49.3

0

25

50

75

1Q11 4Q11 1Q12

Net Profit (R$ million)

41.7 20.4

4.2

0

15

30

45

1Q11 4Q11 1Q12

EBITDA (R$ million)

SUDESTE SYSTEM

2

SERRA AZUL UNIT

2.1

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 Itaguaí port and to the Sudeste Superport.

Sudeste Superport is located in Itaguaí and 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%).

SK and Wisco will togetherofftake 64% of total production

Long-Term contract (20 years). Wisco will off-take at least 50% of MMX Sudeste production.

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QUADRILÁTERO FERRÍFEROIron ore Quadrangle

12

RAILWAY

Railway access conecting MRS to the Sudeste Superport

13

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

Construction license issued in April, 2012

Acquisiion of 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: 67.0% P: 0.03%

SiO2: 3.5% Mn: 0.5%

AL2O3: 0.5% LOI: 0.25%

14

SERRA AZUL

Growth through consolidation while leveraging existing infrastructure

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SERRA AZUL

Serra Azul Unit Expansion Project

New Beneficiation Plant, transmission line and water pipelines, Stockyard and Loading Terminal

Pit

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Serra Azul ExpansionBeneficiation Plant

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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.

MRS CONTRACT

MMX signed a long term contract for railway services

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SUDESTE SUPERPORT

2.2

Sudeste SuperportLocation

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Nautical Access

Offshore

Tunnel

Stockyard 32

Stockyard 06

Railway Access

Sudeste Superport Artistic View

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SUDESTE SUPERPORT

Overview

Sudeste Superport - Itaguaí

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

22

SUDESTE SUPERPORT

Overview

Sudeste Superport - Itaguaí

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

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Sudeste SuperportRailway access

24

Sudeste Superport Stockyard Elevation 6 m

25

Sudeste Superport Car Dumpers Elevation 6 m

26

Sudeste Superport Mariquita Hill

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Sudeste Superport Stockyard Elevation 32 m

28

11 m

20.5 m

Sudeste Superport Tunnel entrance

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Sudeste Superport Tunnel exit

30

Bridge450 m

31

Superporto Sudeste Offshore Structure - Bridge

31

Pier766 m

Superporto Sudeste Offshore StructurePier

32

33

Superporto Sudeste Offshore Structure

SUDESTE SUPERPORT

34

Shiploader

EquipmentCar dumpers

(Silo and Feeders)

35

EquipmentCar dumpers(Car Positioners)

36

Funding: BNDES FINAME - PSI

Total Amount: R$ 407.1 mm

Interest Rate per Year: 4.50%

Amortization: 8 years

Grace Period: 2 years

Funding: BNDES FINEM

Total Amount: R$ 805.1 mm

Interest Rate per Year: TJLP + 2.18%

Amortization: 10 years

Grace Period: 2 years

Requested Supplementary Funding : R$ 552 million

SUDESTE SUPERPORT

CAPEX and Funding

37

2007 2008 2009 2010 2011 2012 to 2013

86 40 63

286

944

258

723.71

CAPEX

Actual Forecast

SUDESTE SUPERPORTConstruction schedule

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

1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1Q13

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USIMINAS AGREEMENT

SRK resources audit : 810 million tons plus a potential 75 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

Handling fee: USD 12.63/ton adjusted by US-PPI

Volumes:

■ 2013 = 4 Mtpy

■ 2014 = 8 Mtpy

■ 2015 = 12 Mtpy

■ 2016 = 12 Mtpy

■ Additional 3 Mtpy will be allocated from 2013 until 2016

80% Take-or-Pay

Usiminas can renew the contract for 1 to 5 years

Pau de Vinho Joint Mining Sudeste Superport Handling

39

BOM SUCESSO

2.3

BOM SUCESSO

High-quality iron ore with high magnetite content

Highlights



Execution Update

Conceptual engineering

SRK resources audit update: 365 million tons plus a potential of 741 million tons


Fe: 67.2% P: 0.033%

SiO2: 2.5% PPC: 0.6%

AL2O3: 0.5% FeO: 8.8%

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CHILE

3

CHILE

Highlights

High-quality iron ore with magnetite content



460 Mt of iron ore potential

Execution Update

Castilla Port fully licensed

Drilling performed 2011: approximately 43 thousand meters

Water permits


Fe: 67.50% SiO2: 2.5%

Al2O3: 0.85% P: 0.015%

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CHILE

Castilha Port

BERTH N° 1 – COAL

BERTH N° 2 – IRON ORE

BERTH N° 3 – COPPER

Fully Licensed Port

Deep water port – 28 meter draft: Chinamax vessels

Shared construction with MPX (Sister Company)

44

CORUMBÁ

4

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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Investor RelationsGuilherme Escalhão – CEO and IRO

Rafaela Gunzburger – AnalystBeatriz Yoshinaga - Analyst

Tel. + 55 21 2555-6197/ [email protected]

mailto:[email protected]

Mmx junho 2012 - ingles

Business

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