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Corporate Presentation | November, 2008
Business PlanFollow Up
Business Business PlanPlanFollowFollow UpUp
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.
Investor Relations
Nelson Guitti – Officer
Marilia Botelho – Manager
Priscylla Setimi - Analyst
Tel. 55 21 2555-5634 / 5558/ 5563
Iron Ore
31
251
492
241
-11
16
18
11
42
267
510
253
11 -
2008 2009 2010 2011 2012 2013
MMX Business Plan - Follow Up
Production Ramp-up
Total Capex
US$ 1.082 MM
July 2008 – New MMX Business Plan
Production Capacity of 40 Mpty by 2013
MMX Sudeste : 33.7 Mpty
MMX Corumbá : 6.3Mpty
Achieved
2
Current total installed
capacity of 10.8 Mtpy
Average exchange rate: US$ 2,12
4.38.7 8.7
18.5
32.1 33.7
1.6
1.9 3.2
3.2
6.36.3
5.9
10.6 11.8
21.6
38.440.0
2008 2009 2010 2011 2012 2013
Corumbá
Sudeste
Serra Azul & Bom Sucesso
Sudeste System
23
146 13073
11
105
362
168
-
31
251
492
241
11
2008 2009 2010 2011 2012
MMX Sudeste: Production (Mtpy) & Capex (US$MM)
Total Capex
US$ 1.026 MM
Production Ramp-upWhat MMX is doing in 2008:What MMX is doing in 2008:
� conclusion of AVG, Minerminas and Bom Sucesso
acquisitions;
� implementation of the 4th work shift;
� renewal of mine equipments fleet and revamp of existing
beneficiation plants;
� construction of Magnetic Concentration Plant – start-up in
Oct 30, 2008;
� basic engineering (Phase II) and environmental studies for
Phases II and III.
MMX has already reached
installed production capacity of
8.7 Mtpy
3
PHASE I
CONCLUDED
*
PHASE I PHASE II PHASE III
* In 2012, when Bom Sucesso starts-up, the old 4Mtpy AVG plant is shut-down
4.38.7 8.7
18.514.7 16.3
17.417.4
4.3
8.7 8.7
18.5
32.133.7
2008 2009 2010 2011 2012 2013
Bom Sucesso
Serra Azul
Concentration Magnetic Plant
Start Up Oct 30, 2008
4
MMX Sudeste: Timeline
2008 2009 2010 2011 2012
PHASE I
8,7 Mtpy
PHASE II
18 Mtpy
PHASE III
33,7 Mtpy
Detailed engineering
Funding
Procurement
Construction Licensing
Construction
Detailed engineering
Construction Licensing
Funding
Procurement
Construction 17.4Mtpy Plant
Start-up
Construction
2Mpty Plant Phase I Concluded
Basic engineering
Operation Licensing
Operation Licensing
5
MMX Sudeste: Sales
Sales
20112011
Start-up of LLX
Sudeste Port71%
91%100%
50%
3% 3%
29%
9%
50%
97% 97%
2008 2009 2010 2011 2012 2013
Domestic Exports
� Until LLX Sudeste Port completion, MMX sales will be
mainly in the domestic market;
� MMX keeps pursuing port availability to allow eventual
exports;
� upon LLX Sudeste Port start-up, MMX becomes an
international player;
� MMX is already in contact with international steel makers
aiming at testing iron ore samples and develop a long term
relationship.
6
MMX Sudeste: Logistics
Logistics
Railroad transportation – MRS:
� contract valid up to mid-2011 covering up to 4 Mtpy;
�currently under negotiation to expand capacity availability
to cover 32 Mpty from 2012 on.
7
LLX Sudeste Port:
� Public Hearings will occur up to the end of 2008 and
environmental license is expected to be granted by 1Q09;
� Port Services Agreement already agreed.
Provision to increase up to 15 Mpty given a 2-year
pre-notice ���� notice already given
Chile
Preliminary tests in Ouro Preto pilot plant:
-Fe: 67.50%
- SiO2: 2.5%
- Al2O3: 0.85%
- P: 0.015%
Iron Ore in Chile: quality & logistics
8
Patrícia
Bella
Fortuna-
Fierro
Teatino
s
50km distant from the Chilean coast
approx 1.760 hectares
Pellet feed with high magnetite content
Existing railroad (FERRONOR)
4 mining rights (2 purchase and options
agreements)
USD 44.5 million
(USD 26 million already paid)
2-year drilling campaign to begin in 1Q09
USD 17 million
EBX has 240,000 ha property at Atacama region
Permits to develop the urban, industrial and port
zones
Water availability with permits
Guaranteed site contract for:
89ha of premium area (port)
782 ha of retro-area
Unlimited scalability for a long-term
development
Located close to mining players
Opportunities for industrial businesses:
Port / Thermo
Puerto
Punta Cachos
Logistics: Puerto Punta Cachos
9
Mining
Corumbá System
MMX Corumbá Mineração: Production (Mpty) & Capex (US$ MM)
What MMX is doing in 2008:What MMX is doing in 2008:
� conclusion of NE&Rabicho mineral rights acquisition;
� implementation of new mine route, reducing transportation
inside the mine from 12.5km to 2.5km (costs and time
savings);
� construction of tailings dam;
� implementation of water recovering system;
� implementation of industrial jigging test;
� new mining rights under registration.
Production Ramp-up
Total Capex
US$ 56.4MM
Significant impact on costs:
expected reduction of 35%
10
MMX announced adjustments on Corumbá iron
ore mine due to demand constraint, mainly from
the Pig Iron plant, the major client.
1.6 1.9
3.2 3.2 3.2
3.1
1.61.9
3.2 3.2
6.3
2008 2009 2010 2011 2012
NE & Rabicho Mine
63 Mine
PHASE I PHASE II PHASE III
10.8 12.1
3.8
18.2
11.5
10.8
15.918.2
11.5
2008 2009 2010 2011
MMX Corumbá: Sales & Logistics
Sales
Logistics
� Transport is made in barges down the Paraguay River
delivering products to South American customers and to
Rosario Port, where cargo is shipped to Europe.
� MMX has long-term contracts with local and international
barge operators;
� Rosario Port in Argentina: Handymax vessels
� The single client for iron ore in the domestic market is
MMX own pig iron plant (25%)� market prices;
� MMX has Long Term Supply Agreements – 5 years, in
average - with traditional steel makers in South America
and Europe.
11
� Alternative route under analysis: rail transportation from
Corumbá to Sudest Port.
Metallics
12 4 4
1414 17 18 17 15
2618 20 18 17 15
2008 2009 2010 2011 2012 2013
Forestry Program
Enhancement Current Plant
MMX Metálicos Corumbá: Production (thousand tons/year) & Capex (US$MM)
Pig Iron:Pig Iron:
� 2 blast furnaces already with total installed capacity;
� partnership with local charcoal suppliers, aiming at
improving charcoal production techniques;
� forestry program in progress:
� self-sufficiency to be reached in 2017;
� acquisition of pinus forests to expedite own
charcoal production rate.
Capex US$ 115.4MM
12
MMX announced adjustments of pig iron
output due to the current economic scenario,
as of end of November. Operations are
expected to resume upon the improvement in
global economic conditions.
MMX Corumbá: Biomass self-sufficiency under way
After starting up a forest program in 2006, MMX will ramp up charcoal production to reach
self-sufficiency in 2017.
3% 7% 7% 7%
33%
67% 67% 67%
100%
25%25% 25%
28%32% 32%
2009 2010 2011 2012 2013 2014 2015 2016 2017
Acquired Forests
Ow n Forests
In order to expedite own charcoal production, MMX acquired approximately 1 million cubic meters of planted pine forest in Aug 2008. This
will allow MMX to guarantee additional 25% charcoal supply during the next 3 years.
13
� Planted Area : 2.928 hectares in 2008 (up to October)
� Approx 3.5 million trees planted in 2008
