Mmx setembro 2012 - ingles v final 2

MMX: CREATING CHOICES IN SEABORNE IRON ORE SUPPLY

Rio de Janeiro | September 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 DISTRICTS

Sudeste System Serra Azul Unit

Bom Sucesso Unit Corumbá 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%

5,48% 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

Guaranteed Logistics

Competitive Production Cost

Structure

INGREDIENTS FOR A SUCCESSFUL IRON ORE

BUSINESS

6

Conclusion of the offshore civil works at the Sudeste Superport

Issuance of debentures at the amount of R$ 600 million

Approval of the merger of PORTX into MMX

Public hearings in Itaguaí and Mangaratiba for the expansion of the Sudeste

Superport to 100 Mtpy

Beginning of construction of the Serra Azul Unit expansion

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

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

Financial advisory contract with Itaú BBA and Bradesco

Deal with Usiminas

September 2012

February 2011

A LOT HAS BEEN DELIVERED

7

FINANCIAL HIGHLIGHTS

37% 32% 33%

63% 68% 67%

0%

20%

40%

60%

80%

100%

2Q11 1Q12 2Q12

Debt profile

Short Term Long Term

61% 53% 56%

0%

15%

30%

45%

60%

2Q11 1Q12 2Q12

Gross Margin (%)

75.2

4.2 13.9

0

15

30

45

60

75

90

2Q11 1Q12 2Q12

EBITDA (R$ million)

90.9 49.3

-391.6

-400

-300

-200

-100

0

100

200

2Q11 1Q12 2Q12

Net Profit (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 Superport Railway

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 together offtake 64% of total production

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

11

QUADRILÁTERO FERRÍFERO Iron ore Quadrangle

12

RAILWAY

Railway access conecting MRS to the Sudeste Superport

13

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

14

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

Beginning of construction of Serra Azul Unit expansion

Construction license issued in April, 2012

Acquisition 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%

15

SERRA AZUL

Growth through consolidation while leveraging existing infrastructure

16

SERRA AZUL

Serra Azul Unit Expansion Project

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

Pit

17

Serra Azul Expansion

Beneficiation Plant 18

Earthwork

19

Construction Site and

Warehouse

Maintenance workshop

Benefic. substation

Sump and Thickners

Administrative Buildings

Primary Crushing

Grind

Pile

Construction Site

Processing

SERRA AZUL

SUDESTE SUPERPORT

2.2

Sudeste Superport

Location

21

Nautical Access

Offshore

Tunnel

Stockyard 32

Stockyard 06

Railway Access

Sudeste Superport

Artistic View

22

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: 2Q13

100% of equipment already ordered

Licensing for 100 Mtpy underway

23

SUDESTE SUPERPORT

Overview

Sudeste Superport - Itaguaí

Highlights

Public hearing for 100 Mtpy held on May, 2012

Construction works for the tunnel and offshore

infraestructure completed

EIA-RIMA for 100 Mtpy filed with Inea in

September 2011

Licensed to 50 Mtpy

Navy Approval to 100 Mtpy

24

Sudeste Superport

Railway access

25

Sudeste Superport

Stockyard Elevation 6 m

26

Sudeste Superport

Car Dumpers Elevation 6 m

27

Sudeste Superport

Mariquita Hill

28

Sudeste Superport

Stockyard Elevation 32 m

29

11 m

20.5 m

Sudeste Superport

Tunnel entrance

30

Sudeste Superport

Tunnel exit

31

Bridge

450 m

32 32

Superporto Sudeste

Offshore Structure - Bridge

33

Superporto Sudeste

Offshore Structure

SUDESTE SUPERPORT

34

Shiploader (China)

SUDESTE SUPERPORT

Shiploader (China)

35

Assembly of car dumpers

SUDESTE SUPERPORT

SUDESTE SUPERPORT

Assembly of car dumpers

37

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:

■ 12 Mtpy

80% Take-or-Pay

Usiminas can renew the contract for 1

to 5 years

Pau de Vinho Joint Mining Sudeste Superport Handling

38

BOM SUCESSO

2.3

BOM SUCESSO

High-quality iron ore with high magnetite content

Highlights



contracts

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%

40

CHILE

3

CHILE

Highlights

High-quality iron ore with magnetite content


50% of production already committed through long-

term contracts

460 Mt of iron ore potential

Execution Update

Drilling performed 2011: approximately 43

thousand meters

Water permits


Fe: 67.50% SiO2: 2.5%

Al2O3: 0.85% P: 0.015%

42

CHILE

Castilha Port

BERTH N° 1 – COAL

BERTH N° 2 – IRON ORE

BERTH N° 3 – COPPER

Deep water port – 28 meter draft: Chinamax vessels

Shared construction with MPX (Sister Company)

43

CORUMBÁ

4

CORUMBÁ

Highlights

Current Capacity: 2.1 Mtpy

Long-term contracts signed with local and international

barge operators


contracts

SRK audit resources report: 192 million tons plus a

potential of an additional 123 million tons

45

Investor Relations Guilherme Escalhão – CEO and IRO

Adriana Marques – Manager Daniella Maia - Analyst

Phone + 55 21 2163-6197 +55 21 2163-4366

[email protected]

mailto:[email protected]

Mmx setembro 2012 - ingles v final 2

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