corporate presentation march 2011 corporate presentation - march 2011

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  • 1. March, 2011
  • 2. DisclaimerThis presentation relating to MMX Minerao e Metlicos S.A. (MMX) includes forward-looking statements, as that term is defined in thePrivate Securities Litigation Reform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities ExchangeAct of 1934. All statements other than statements of historical facts are statements that could be deemed forward-looking statements andare 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 andspecific. The risk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in suchstatements may not be indicative of results or developments in future periods. We caution participants of this presentation not to placeundue reliance on these forward-looking statements as a number of factors could cause future results to differ materially from thesestatements.Forward-looking statements may be influenced in particular by factors such as the ability to obtain all required regulatory approvals on atimely basis or at all, exploration for mineral resources and reserves, difficulty in converting geological resources into mineral reserves, andchanges 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 registeredunder the U.S. Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the UnitedStates 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 partwithout MMXs prior written consent. Investor Relations Roger Downey CEO & IRO Camila Anker IR Manager Rafaela Gunzburger Analyst Tel. + 55 21 2555-6197/ 6338 2 ri@mmx.com.br
  • 3. Iron ore market 3
  • 4. Seaborne Iron Ore Supply/Demand DEMAND SUPPLY Source: Credit Suisse Estimates Seaborne market already at record levels. September is now very near the peak levels of June 2008. Iron Ore Markets are tight and should be even tighter in 2010 and 2011. Shipments-to-capacity could reach ~ 98%. 4
  • 5. Chinese local iron ore production has been replaced byimports. China imported 45.7 million tons in Oct/2010. Source: Credit Suisse 5
  • 6. China represented 54% of Brazils iron ore exports in sep/2010 Brazils Iron Ore exported volume 40 (million tons) China World 35 30 25 20 15 10 5 0 Source: Credit Suisse 6
  • 7. Iron ore prices are expected to remainabove US$ 100/ton through 2012 7
  • 8. Crude Steel Production Crude Steel Production (million tons) 2000 1600 1200 800 400 CAGR China 6.0%aa 0 China Others World Chinese crude steel production has rebounded and is forecast to grow at least 6.0 (CAGR). The world crude steel output is expected to recover back to pre-crisis levels by 2010. 8
  • 9. Miners drastically pushed back investments Investments (US$ billion) 110 100 Planned 90 80 70 Approximately 60 US$ 200bn in capex 50 reduction 40 30 Estimated 20 10 0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010e 2012e 2014e Source: Credit Suisse 9
  • 10. A unique story 10
  • 11. Since IPO (July06), a lot has been deliveredFebruary Definitive contract between MMX, LLX , PortX and Usiminas; 2011 SK Networks investment in MMX and Iron Ore offtake from MMX Sudeste and MMX Chile; Wiscos Investment in MMX and Iron Ore offtake from MMX Sudeste; Sale of Corumbas pig iron facility to Vetorial; MoU with Wuhan: supply of iron ore and sale of stake in MMX; Minera MMX de Chile: acquisition of mining rights and logistics already identified; Development of MMX Sudeste System: acquisition of assets, logistics secured and expansion plans to 33.7 million tons per year of iron ore; Sale of assets to Anglo American: MMX Minas-Rio and MMX Amap; Spin off of LLX; Partnership with Anglo American and Cleveland Cliffs; MMX Corumb pig iron furnaces: implemented in 12 months;July MMX Corumb iron ore mine: operational in 8 months;2006 MMX Amap System, mine, railroad and port: operational in a 14-month record time;. 11
  • 12. Corporate Governance Novo Mercado Highest Corporate Governance at BM&FBOVESPA level Independent Board Members Related-Parties Transaction Disclosure Free Float: at least 25% Audit Committee MMX Policies Disclosure and use of information Corporate Governance Securities Trading 12