MMX investments in iron ore and steel markets

MMX INVESTMENTS IN THE CONTEXT OF THE CURRENT IRON ORE AND STEEL MARKET Chequer Bou-Habib | MMX Sales Director

Belo Horizonte | November 2012

THE IRON ORE AND STEEL MARKET TODAY

1

IMPACT OF THE EURO ZONE CRISIS ON THE

WORLD ECONOMY, AS A % OF GDP

3

Source: IF - April 2012Prepared by: Finance Ministry

Very strong ( >3%) of GDP

Strong (2-3%) of GDP

Moderate (1-2%) of GDP

Limited (= or < than 1%) of

GDP

Insufficient data

WORLD PRODUCTION OF CRUDE STEEL

4

114

116

118

120

122

124

126

128

130

132

134

January February March April May June

123,724

121,004

132,626

129,539

131,387

127,459

1H2012

* Numbers in thousands of tonsSource: World Steel Association

Annual Rate:

1,531,478

MAIN BUYERS OF BRAZILIAN IRON ORE

5

*Numbers in tonsSource: Ministry of Development,

Industry and Foreign Trade / 2011

China

197,970,764.21

Europe 85,863,442.09

Others Asia

99,508,031.44

South America

13,767,202.25

North America

6,808,473.11

POPULATION GROWTH AND STEEL DEMAND

6

In 2050, the world population will reach 9.3 billion, according to

United Nations projections

Consumption of crude steel per capita (on this date):

Japan – 538.6 kg

China – 445.2 kg

Australia – 340.4 kg

European Union - 339.9 kg

United States – 291.6 kg

Brazil - 146.9 kg

Argentina 127.4 kg

Source: World Steel Association – 2010

MMX INVESTMENTS

2

HIGH QUALITY MINERAL ASSETS

MMX SudesteSerra Azul Unit

Bom Sucesso UnitMMX Corumbá

SudesteSuperport

Minera MMX de Chile

Mining rights in Minas Gerais (Serra

Azul and Bom Sucesso), Mato Grosso

do Sul (Corumbá) and Chile

Production committed to strategic

consumers – China and South Korea –

through long-term contracts

Expansion beyond 40 mtpy, through

totally integrated systems, with own

ports

Port with strategic location

8

Conclusion of civil engineering work for offshore structure at

Sudeste Superport

Beginning of expansion work at Serra Azul Unit

Installation License (LI) issued for Serra Azul Unit expansion

Rail services contract with MRS until 2026

SRK certified 997.4 million tons of mineral reserves at Serra

Azul

Purchase of critical equipment for expansion of Serra Azul

Unit

Agreement with Mineração Usiminas

2012

MAJOR MILESTONES – 2011 AND 2012

9

2011

INTEGRATED LOGISTICS

Mine SuperportRailroad

The Serra Azul Unit isclose to the MRSrailroad.

Long term contract foruse of MRS railroad whichconnects the mine to theSudeste Superport.

In Itaguaí (RJ), theSudeste Superport willbe able to handle 50Mtpy. Its 20 meter draftwill allow it to handlecapesize vessels.

Long term contracts

Long term contract (20 years) for purchase of 14% of production of Sudeste System.

Long term contract (20 years) for purchase of 50% of production of Sudeste System.

64% of total production committed to SK and

Wisco 10

SERRA AZUL UNIT

2.1

LOCATION OF SERRA AZUL UNIT

12

SERRA AZUL UNIT

Expansion project with integrated logistics

Highlights

Production target: 29 Mtpy

64% of future production committed to long term contracts

997.4 million tons of reserves audited by SRK

Project Updates

Critical equipment already acquired

Installation license issued in April 2012

Beginning of expansion work in May 2012

Expected quality:

PreliminaryTests in Ouro Preto

Fe: 67.0% P: 0.03%

SiO2: 3.5% Mn: 0.5%

AL2O3: 0.5% LOI: 0.25%

13

Expansion of Serra

Azul Unit

3D Projection of

Processing Plant

14

SUDESTE SUPERPORT

2.2

SUDESTE SUPERPORT

50 mtpy initial capacity

Handling capesize vessels

Financed by BNDES

Forecast start: 2013

100% of equipment already on order

License for 100 mtpy under way

16

17

Location of Sudeste

Superport

17

WaterfrontAcess

OffshoreStructure

Tunnel

Storage Yard 32

Storage Yard 6

Rail Access

Sudeste Superport 3D

Projection

18

1919

Sudeste Superport

Offshore Structure -

Civil Engineering work

already completed