March, 2011
Disclaimer
This presentation relating to MMX Mineração e Metálicos 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 suchspecific. 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 MMX’s prior written consent.
Investor Relations
Roger Downey – CEO & IRO
Camila Anker– IR Manager
Rafaela Gunzburger – Analyst
Tel. + 55 21 2555-6197/ 6338
2
Iron ore market
3
market
Seaborne Iron Ore Supply/Demand
DEMAND
• 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%.
Source: Credit Suisse Estimates
SUPPLY
4
Chinese local iron ore production has been replaced by imports. China imported 45.7 million tons in Oct/2010.
Source: Credit Suisse
5
China represented 54% of Brazil´s iron ore exports in sep/2010
25
30
35
40
Brazil´s Iron Ore exported volume
(million tons)
China World
Source: Credit Suisse
6
0
5
10
15
20
25
Iron ore prices are expected to remainabove US$ 100/ton through 2012
7
Crude Steel Production
1600
2000
Crude Steel Production(million tons)
• 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.
0
400
800
1200
1600
China Others World
CAGR China 6.0%aa
8
Miners drastically pushed back investments
Investments(US$ billion)
100
90
80
70
110
Planned
Approximately
50
60
40
30
20
10
01992 1994 1996 1998 2000 2002 2004 2006 2008 2010e 2012e 2014e
Estimated
ApproximatelyUS$ 200bn in capexreduction
Source: Credit Suisse
9
A uniquestory
10
story
Since IPO (July’06), a lot has been delivered…
• Definitive contract between MMX, LLX , PortX and Usiminas;
• SK Networks’ investment in MMX and Iron Ore offtake from MMX Sudeste and MMX Chile;
• Wisco’s Investment in MMX and Iron Ore offtake from MMX Sudeste;
• Sale of Corumba’s 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
February2011
• 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 Amapá;
• Spin off of LLX;
• Partnership with Anglo American and Cleveland Cliffs;
• MMX Corumbá pig iron furnaces: implemented in 12 months;
• MMX Corumbá iron ore mine: operational in 8 months;
• MMX Amapá System, mine, railroad and port: operational in a 14-month record time;. 11
July2006
Corporate Governance
� Novo Mercado
• Highest Corporate Governance at BM&FBOVESPA level
• Independent Board Members
• Related-Parties Transaction Disclosure
• Free Float: at least 25%
12
� Audit Committee
� MMX Policies
• Disclosure and use of information
• Corporate Governance
• Securities Trading
MMX structure
Controlling Shareholders
39%
Free Float
29%
17%
15%
Bom Sucesso under basic engineering studies
Corumbá System started-up in 2005 (Mining)
Assets acquired by MMX (AVG: dec-07; Minerminas: jan-08)
30% EBX Brasil S/A
13
MMX uniqueness:
High quality iron ore;
Low cash cost, due to the high in situ ore content and high productivity;
Secured logistics, through long-term
The only one of its kind
Secured logistics, through long-term agreements with rail, barges and port services providers, including SudesteSuperport;
The unique independent operating Brazilian junior mining company;
Experienced Management in selecting high value mining assets, implementing and operating mining projects;
Proven ability in delivering value to shareholders.
14
Sudeste System
Serra Azul & Bom Sucesso
15
MMX Sudeste: Connected to Sudeste Superport by MRS
16MMX also has rights to use the Açu Superport
Serra AzulOverview
17
Serra Azul8.7 Mtpy of capacity reached in Oct’08
• Assets acquisition concluded in Jan./2008;
• Construction of Magnetic Concentration Plant and operational enhancements: 8.7 million tons as annual installed production capacity in Oct./2008.
OPERATIONS
• Railway capacity secured through long-term agreement with MRS up to 15 Mtpy;
• Long-term agreements with domestic and international customers;
SALES & LOGISTICS
customers;
• Wisco will off-take at least 50% of MMX Sudesteproduction;
• SK Networks will off-take around 12% of MMX Sudesteproduction.
Magnetic Concentration Plant – Start-up Oct./2008 18
Serra Azul Complex: Growth and proximity to existing infrastructure
MMX is the natural consolidator in the region 19
Serra Azul ExpansionGeological Section
Friable Itabirite
20
Compact Itabirite
Serra Azul ExpansionFinal Pit
21
Equipment TypeNumber of equipments
at PeakType
Truck 38 CAT 785 (136 t)
Shovel 8 O&K RH90
Shovel 1 O&K RH120
Drill 7 PV 235
Bulldozer 4 CAT D11T
Wheeldozer 2 CAT 834G
Motor Grader 4 CAT 16H
Water Truck 2 CAT 773
Serra Azul ExpansionNew Plant - 24 Mtpy installed capacity
Number of equipments Type
Primary Crusher 2 gyratory
Secondary Crusher 4 conical
Tertiary Crusher 5 conical
Primary Screen -banana
12'x27'DD
Ball Mill 4 26'x42'
22
Ball Mill 4 26'x42'
SAG Mill 2 -
Magnetic Separator 80 medium Intensity
Magnetic Separator 20 high Intensity
Mill (regriding) 16 vertical mill
Flotation 48 column
Thickener (concentrate) 1 conventional
Thickener (talings) 1 conventional
Filter 14 ceramic disc
Serra Azul ExpansionStockyard and Loading Station
• Conveyor Belt Extension: 10 km
• Average speed: 4,0 – 5,0 m/s
23
• Average speed: 4,0 – 5,0 m/s
• MRS already approved the terminal project
• Loading Capacity: 7.000 t/h
• Stockyard Capacity: 164.000 m 3/ 328.000 t
Serra Azul
2,960
CAPEX (R$ Million)
21.7
25.3 25.3 25.324 24
Production capacity (Mtpy)*
24
* Time adjusted
CAPEX 79 USD/ton
49
539
2010 2011 2012-2016
8.7 8.76.5
0.61.3
1.3
1.3 1.3 1.3 1.3
1.8
20.424 24 24
24 249.3 10 9.6
2011 2012 2013 2014 2015 2016 2017 2018... ...2020
Current Capacity GVA Expansion
Funding
The syndicate of the financial advisors will fully support theCompany in obtaining third party resources necessary toexecute the Serra Azul project expansion, with approximatelyUS$ 800 million, 56% of the estimated US$ 1.4 billion.
Capital Structure
25
75%
25%
Debt Equity
Serra Azul ExpansionMilestones
2H10 1H11 2H11 1H12 2H12 1H13 2H13
EIA RIMA
Filed
Environment
al License
Construction
License Start up
Basic
Engineering
Se
rra
Azu
l E
xp
an
sio
n
Construction
26
Engineering
Ordering
Equipment
begins
Development
Construction
Operations
Se
rra
Azu
l E
xp
an
sio
n
Bom Sucesso: Outstanding magnetite content and logistics
Expected Quality:
Fe: 67.2% P: 0.033%
SiO2: 2.5% PPC: 0.6%
AL2O3: 0.5% FeO: 8.8%
• Acquisition of mining rights concluded in July/2008;
• Unique magnetite content (close to 30%);
• The closest iron ore asset to Sepetiba Bay – 240km;
• Environmental Impact Study filed in Nov/2010;
• Rail capacity secured through long-term agreement with MRS up to 15 Mtpy.
27
Bom Sucesso
1,424
CAPEX (R$ Million)
6.5
9.8 10 10
Production capacity (Mtpy)*
28
CAPEX 81 USD/ton * Time adjusted
5 38
2010 2011 2012-2016
6.5
2015 2016 2017... ...2025
MMX Sudeste System: competitive high-grade iron ore producer with efficient logistics
Sudeste Superport:
�Fully licensed to 50 mtpy
29
�Fully funded;
�Can be expanded to 100 mtpy;
�Shipments to start 1Q12.
Sudeste SuperportGeneral view: onshore site
Administrative Buildings
Iron Ore Yard El. 32Iron Ore Yard El. 06
30Last available location for a Bulk Terminal in Sepetiba region
Rail Loop
RailcarDumper
Sudeste SuperportMilestones
Sudeste Superport will start its operation in 1H 2012
2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12
Development
start-up
Environmental
Studies
Pedreira
Sepetiba
Acquisition
EIA
RIMA
EIA RIMA
Completed
Environmental
License
Construction
License Start up
Sudeste Superport
31
Navy
Approval
ANTAQ
Authorization
Construction
begins
Development
Construction
Operations
Under ConstructionSudeste Superport
Sudeste SuperportVolume and Capex
40,0
50,0 50,0 50,0 50,0 50,0 50
40,0
50,0
Volume Ramp up (mtpy)CAPEX (R$ Million)
Sudeste Superport Total CAPEX: R$ 1.8 billion
800
1000
1200
32
14,5
-
10,0
20,0
30,0
2012 2013 2014 2015 2016 2017 2018... ...2032
Source : Verax Feasibility Study as of March 2010
Actual
86 40 63
360
1093
1150
200
400
600
2007 2008 2009 2010 2011 2012
Chile
33
Chile
Iron Ore in Chile: Quality, logistics and competitiveness
• 6 mining rights (2 purchase, 3 options agreements and 1 leasing);
• USD 44.5 million;
• 50km from the Chilean
Preliminary tests in Ouro Preto pilot plant:
Fe: 67.50% SiO2: 2.5%
Al2O3: 0.85% P: 0.015%
• 50km from the Chilean coast, approx. 1,760 hectares;
• Pellet feed with high magnetite content;
34
Logistics: Puerto Punta Cachos
• EBX has 240,000 ha property in the Atacama region;
• Permits to develop the urban, industrial and port zones;
• Water availability with permits;
• Guaranteed site contract for:• Guaranteed site contract for:
• 89 ha 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.
35
36
Corumbá System
• Unique high quality lump yield;
• Current Capacity: 2.1 Mtpy.
• MMX has Long Term Supply Agreement with traditional steel makers in South America and Europe;
• Transport barges down the Paraguay River to Rosario Port;
MMX Corumbá Mineração
• MMX has long-term contracts with local and international barge operators;
• Rosario Port in Argentina: Handymaxvessels to Europe;
37
SK Networks deal
38
deal
� Capital increase in MMX of up to US$2.2 billion
� Capital increase of common shares at R$13.963
� The Controlling Shareholder converted part of the perpetual debentures issued
by MMX and held by the Controlling Shareholder into MMX equity at R$13.963
per share
� Acquisition of Sudeste Superport, valued at US$ 2.2 billion in (i) MMX shares or cash (ii)
Transaction Highlights
� Acquisition of Sudeste Superport, valued at US$ 2.2 billion in (i) MMX shares or cash (ii)
and royalties
� MMX’s strategy to consolidate iron ore assets may accelerate the second phase of
Sudeste Superport
� Long-term iron ore off-take agreement granting SK Networks entitlement to:
� 50% of the production of MMX Chile’s mines
� Part of MMX Sudeste’s production equal to at least the percentage of SK's
shareholding in MMX immediately following the consummation of the
Transaction(1)
39(1) Applicable from 2013 and beyond. In 2011, SK will receive two capesize ships from MMX’s Serra Azul mines and in 2012 one million tons, subject to availability, from MMX’s Serra Azul mines
Agreement
40
Agreementwith
Usiminas
� Usiminas signed an agreement to ship iron ore through Sudeste Superport
� Handling fee: USD 12.63/ton adjusted by US-PPI
� Volumes:
- 2012 = 3 Mtpy
- 2013 = 4 Mtpy
- 2014 = 8 Mtpy
Port Services Agreement Highlights
- 2014 = 8 Mtpy
- 2015 = 12 Mtpy
- 2016 = 12 Mtpy
� 80% Take-or-Pay
� Sudeste Superport start-up is expected for 1Q12
� In 2015, Sudeste Superport will reach 46 Mtpy (34 Mtpy from MMX and 12
Mtpy from Usiminas)
� Usiminas can renew the contract for 1 to 5 years
41
� MMX and Usiminas signed an agreement to jointly mine the Pau de
Vinho resource
� Pau de Vinho estimated resources: above 800 M tons
� 13.5% of production at Pau de Vinho will be delivered to Usiminas
� MMX will be responsible for the licensing, CAPEX and operation
Joint Mining Agreement Highlights
� Pau de Vinho target production: 8 Mtpy
� MMX owns the surface rights on the area to be mined at Pau de Vinho
� MMX expects to obtain significant synergies with its current mining
operations
� MMX has the right to explore the Pau de Vinho Mine for 30 years, from
the date of the registration at DNPM (National Department of Mineral
Production).42
Iron ore volumes estimates by System
35
35
40Chile Corumbá Sudeste 1.3*
43
* GVA acquisition – 1,3 Mtpy until 2017
0
10
2.12.1
8.7
0
5
10
15
20
25
30
35
20092016E
33.7
Sudeste Chile Corumbá
All of MMX´s operations and projects are substantially committed in long
term sales contracts, reducing our market risk over the long term and
providing greater backing to the funding of our growth.
Long term sales contracts
44
65%
50%
77%
Production already committed
PortX acquisition – Overview of MMX’s Royalty
45
MMX’s Royalty Securities
MMX – SK Networks Transaction Overview
Main steps Final transaction structure
70.0% 100.0% 100.0% 100.0%
100% of free float of PortX receiving Títulos / Royalty Securities + shares(2)A
40.0%(1) 15.5% 31.5%(1)13.0%
(2)Controlling ShareholderControlling Shareholder
Free floatFree float
MMX CorumbáMMX Corumbá MMX SudesteMMX SudesteMinera MMX de
Chile Minera MMX de
Chile PortX
� MMX S.A. (“MMX”), LLX Sudeste Operações Portuárias Ltda. (“LLX
Sudeste”, Centennial Asset Participações Sudeste S.A.
(“Centennial”)) and Eike Batista (their “Controlling Shareholder”)
entered into an agreement (“Agreement”) with SK Networks Co. Ltd.
(“SK Networks” ) which set forth the main terms and conditions of a
transaction (“Transaction”) currently in progress
� The capital stock of MMX may be increased by up to US$2.2 billion, at
a price per share of R$13.963 (“Subscription Price”)
� LLX Sudeste was spun off from LLX Logistica S.A. and contributed to
Centennial. As a result of the partial spin-off, the shareholders of LLX
B
100.0%
41.1%(1) 15.9% 29.7%(1)13.3%
70.0% 100.0% 100.0%
(1) As of November 29, 2010. Does not consider possible subscription of additional US$1,110.8 million in shares. (2) Assumes 100% subscription in VTO. Controlling Shareholder will be paid in a combination of Royalties and shares of MMX.
Sudeste
(2)Controlling ShareholderControlling Shareholder
Free floatFree float
MMX CorumbáMMX Corumbá MMX SudesteMMX SudesteMinera MMX de
Chile Minera MMX de
Chile PortX
Sudeste
100% of free float of PortX receiving Títulos / Royalty Securities + cash(2)
Centennial. As a result of the partial spin-off, the shareholders of LLX
Logistica S.A. received new shares issued by Centennial – equivalent
to 70% of its capital stock. Centennial changed its corporate name to
PortX Operações Portuárias S.A. (“PortX”) and became the owner of
100% of LLX Sudeste
� MMX will acquire up to 100% of PortX through a voluntary exchange
tender offer (“VTO”) for approximately US$2.2 billion
� US$1,796 million in Títulos de Remuneração Variável Baseada
em Royalties (“Títulos”) or Royalty Securities
� US$441 million in new common shares issued by MMX at the
Subscription Price or in cash
MMX Títulos / Royalty SecuritiesOverview
Voluntary Exchange Tender Offer (“VTO”)
Voluntary Exchange
Security key features
� The Títulos / Royalty Securities will grant their holders beginning on
(i) the first date of full operation of the Sudeste Port, or (ii) January
1st, 2013, whichever first occurs, a remuneration (“Royalties”)
� Trading: MMX will list the Títulos at the main floor of
BM&FBOVESPA. The Royalty Securities will be traded at OTC
market outside of Brazil
� Use of proceeds: The Títulos and Royalty Securities will be
distributed solely to PortX’s shareholders in connection with the VTO
in exchange for LLX Sudeste shares. The subscription and payment
of the Títulos will not entail inflow of financial resources into MMX
37.5%(1) 16.9% 31.5%(1)14.1%
Controlling ShareholderControlling Shareholder
Free floatFree float
Exchange Tender Offer
“VTO”
67.7% 32.3%
Controlling Shareholders(2)Controlling Shareholders(2)
Free float
(Former LLX Logistica shareholders)
Free float
(Former LLX Logistica shareholders)
PortX
Sudeste
of the Títulos will not entail inflow of financial resources into MMX
� Face value: The face value per Título / Royalty Security will be
equivalent to the percentage of PortX’s book value that is delivered
against the Títulos (80.28%)
� Guarantees: The Títulos / Royalty Securities will be unsecured
unsubordinated securities, ranking at least pari passu with other
unsecured and unsubordinated indebtedness of MMX
� Term: The Títulos / Royalty Securities will be perpetual, to be repaid
exclusively in the events of maturity provided in the indentures
� Maturity: On the occurrence of an event of maturity, MMX will pay
the holders of Títulos or Royalty Securities a price equivalent to the
economic value of the securities, which will be determined based on
reports to be prepared by independent experts(1)
(1) As of November 29, 2010. Does not consider possible subscription of additional US$1,110.8 million in shares. (2) Includes EBX and Centennial’s stakes in LLX Sudeste. (3) The maturity events include: (i) petition in bankruptcy not discharged within the legal period, bankrupt, adjudication, judicial or extrajudicial recovery or any other similar proceedings created by the law, involving
MMX; (ii) failure by MMX to comply with its obligation to pay Royalties owed on the respective due date thereof which remains uncured a one-year period after the respective Royalties payment date; (iii) winding up, dissolution or termination of the Company; (iv) transformation of MMX into a limited liability company, pursuant to Articles 220-222 of the Brazilian Corporations Law and; (v) the delisting of MMX.
RoyaltiesOverview
Royalties payment Calculation of payment
� The Títulos / Royalty Securities will grant their holders beginning on
(i) the first date of full operation of the Sudeste Port, or (ii) January
1st, 2013, whichever first occurs, a remuneration (“Royalties”) which
will consist of quarterly payments made from MMX’s gross profits
(lucro bruto) as reported in its quarterly financial statements
� Royalties are cumulative, that is, if in a given quarter MMX’s gross
income is insufficient to pay the Royalties, the amounts will be
carried forward to the immediately subsequent quarter
� The Royalties will be calculated based on:
� (i) For iron ore loads: US$5.00, escalated annually by the
� Royalties will be measured at year end, to pay the higher of the
actual tons of shipments carried out in LLX Sudeste Port or the
MMX Iron ore off-take agreements. The formula below provides for
this effect:
� 1st, 2nd and 3rd quarters Royalties:
R = TM x VpT
where:
R = Royalties in the 1st, 2nd, and 3rd quarters
TM = Measured Tonnage in the 1st, 2nd, and 3rd quarters� (i) For iron ore loads: US$5.00, escalated annually by the
variation of the U.S. Producer Price Index, per ton of iron ore
loaded at the LLX Sudeste Port (“Iron Ore Per-Ton Amount”)
� (ii) For other loads: the Royalties will be calculated based on the
Load Margin(1), up to US$ 5.00, (which amount will be restated
annually to the U.S. Producer Price Index) (“Other Cargo Per-
Ton Amount”)
(1) “Load Margin” means, in relation to any load other than iron ore, the difference between the per-ton “cash cost” of transportation and the per-ton amount effectively charged by Sudeste port for the shipment.(2) The Take-or-Pay Tonnage of MMX contracted with Sudeste Port as of this date is as follows: for 2013, 10.4 million tons; for 2014, 25.5 million tons; and from 2015 to and including 2033, 27.2 million tons annually.
TM = Measured Tonnage in the 1st, 2nd, and 3rd quarters
VpT = Iron Ore Per-Ton Amount or Other Cargo Per-Ton
Amount, as applicable
� 4th quarter Royalties:
R = [TM4Q + (TToP – TM)] x VpT
Provided that (TToP – TM) > 0, where:
R = Royalties in the 4th quarter
TM4Q = Average Tonnage in the 4th quarter
TToP = annual Take-or-Pay Tonnage(2)
TM = annual Measured Tonnage
VpT = Iron Ore Per-Ton Amount or Other Cargo Per-Ton
Amount, as applicable
THANK YOUTHANK YOU
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