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October, 2010
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. It represented 75% of the total imported volume in Nov/2009.
Source: Credit Suisse
5
Brazil´s iron ore exports in march 2010 grew 24% on a year-over-year basis. China represented 50% of iron ore exports.
Source: Credit Suisse
6
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 agreement with SK Networks
• 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 identified;
September2010
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
MMX structure
Controlling Shareholders
42.62%
Free Float
35.86%
21.52%
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
12
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 LLX Sudeste Port, its sister company;
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.
13
Sudeste System
Serra Azul & Bom Sucesso
14
MMX Sudeste: Connected to Sudeste Super Port by MRS
15MMX also has rights to use the Açu Super Port
Serra AzulOverview
16
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;
• Port capacity from mid-2011 untill 2032 secured through long-term agreement with
SALES & LOGISTICS
long-term agreement with LLX Sudeste Port;
• Long-term agreements with domestic and international customers;
• Wysco will off-take at least 50% of MMX Sudeste production.
Magnetic Concentration Plant – Start-up Oct./2008 17
Serra Azul Complex: Growth and proximity to existing infrastructure
MMX is the natural consolidator in the region 18
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;
• Greenfield basic engineering studies and environmental licensing under development;
• Rail capacity under negotiation with MRS to extend current contract for additional 17 mt up to 2032. 19
Environmental and ConstructionLicenses obtained;
MMX Sudeste System: competitive high-grade iron ore producer with efficient logistics
Long term financing undernegotiation;
50 million ton/year of iron oreCan be expanded to 100 million ton;
Start-up second half 2011.
Export target of 32 milliontons per year
20
Sudeste SuperportGeneral view: onshore site
Administrative Buildings
Iron Ore Yard El. 32Iron Ore Yard El. 06
21Last 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
22
Navy
Approval
ANTAQ
Authorization
Construction
begins
Development
Construction
Operations
Under ConstructionSudeste Superport
500
600
700
800
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
86 40 63
741 712
1150
100
200
300
400
500
2007 2008 2009 2010 2011 2012
23
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
Chile
24
Chile
Iron Ore in Chile: Quality, logistics and competitiveness
• 4 mining rights (2 purchase and options agreements);
• USD 44.5 million;
• 50km from the Chilean coast, approx. 1,760 hectares;
Preliminary tests in Ouro Preto pilot plant:
Fe: 67.50% SiO2: 2.5%
Al2O3: 0.85% P: 0.015%
• Pellet feed with high magnetite content;
• Existing railroad (FERRONOR).
25
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.
26
27
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;
28
Iron ore volumes estimates by System
35
35
40Chile Corumbá Sudeste
1,3*
29
* GVA acquisition – 1,3 Mtpy until 2017
0
10
2,12,1
8,7
0
5
10
15
20
25
30
35
20092015E
33,7
SK Networks deal
30
deal
� Capital increase in MMX of up to US$2.2 billion
� Capital increase of common shares at R$13.963
� The Controlling Shareholder will convert 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)
31(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
SK Network Profile
� SK Networks, a SK Group affiliate based in the Republic of Korea, operates in 22 countries with its businesses
ranging from energy sales to mobile phone distribution, trading and retail
– SK Networks recorded US$ 17.1 billion in sales and US$ 274.6 million in operating income in 2009
– Its parent company, SK Group is one of the largest conglomerates in the Republic of Korea and recorded US$
69.8 billion in sales and US$ 3.2 billion in operating income in 2009
Mine & SmelterMine & Smelter
• Developing partnerships and making strategic acquisitions to secure access to
overseas natural resources and investing in mine & smelter projects
• Coal Mine Project in Australia
Source: Company website and presentations
Mine & SmelterMine & Smelter
Energy &
Chemicals
Energy &
Chemicals
Information &
Telecomunication
Information &
Telecomunication
OtherOther
• Coal Mine Project in Australia
• Lead & Zinc Mine Project in China
• Gold Mine Project in Uzbekistan
• 4th largest refining capacity in Asia
• 25 E&P blocks across 14 countries
• LNG production accounting for 56% of domestic demand
• World’s fourth largest Polyester film production capacity
• No. 1 Korea mobile service provider with 20 million subscribers
• First succeeded in developing CDMA and DMB services for Korea
• Building B2C networks
• Largest carrier of crude oil and LNG in Korea
• Hotel & stock brokerage business
32
42.1% 21.5% 36.4%
MMX ownership structure LLX ownership structure
Controlling
Shareholder
Controlling
ShareholderFree floatFree float
Current Ownership Structure
53.9% 46.1%
Controlling
Shareholder
Controlling
ShareholderFree floatFree float
70% 100% 100%
MMX CorumbáMMX Corumbá MMX SudesteMMX SudesteMinera MMX
de Chile
Minera MMX
de Chile
33
70% 70%
30%
LLX AçuLLX AçuSudeste
Centennial
LLX Minas-RioLLX Minas-Rio
51%
Step 1: Subscription of Capital Increase in MMX
42.1% 21.5% 36.4%
Before capital increase
Controlling
Shareholder
Controlling
ShareholderFree floatFree float
Key considerationsA
Capital increase (1):
Up to US$ 2.2 billion
New MMX shares
issued: Up to 267.2
� MMX’s Board of Directors will approve the issue of up
to 266.7 million MMX common shares at
R$13.963/share
� The Controlling Shareholder will partially assign to SK
his pre-emptive rights in MMX, so as to allow SK to
subscribe and purchase US$700 million(2) worth of
After capital increase
issued: Up to 267.2
million
30.5% 21.5%(1) 36.4%(1)
Controlling
Shareholder
Controlling
Shareholder
11.6%
(1) Assumes 100% subscription from Wisco and free float
(2) For illustrative purposes only. FX rate of R$ 1.7053/US$
(3) Non-convertible debenture bonds issued by IronX Mineraçao S.A. and held by MMX
subscribe and purchase US$700 million worth of
MMX common shares
� The Controlling Shareholder will convert and
contribute to MMX part of the perpetual debentures
issued by MMX and held by the Controlling
Shareholder in the amount of R$ 375.7 million. The
balance of the Perpetual Debentures (R$ 112.4
million) will be paid to the Controlling Shareholder
through the delivery of IronX debentures(3)
� MMX will not disburse any cash as payment of the
Perpetual Debentures
B
Free FloatFree Float
34
Step 2: LLX Spin-Off
After spin-offBBefore spin-offA
53.9% 46.1%
Controlling
Shareholder
Controlling
ShareholderFree floatFree float
67.6% 32.4%
Controlling
Shareholder (1)
Controlling
Shareholder (1) Free floatFree float
(1) Includes EBX and Centennial stakes in LLX Sudeste Port
PortX
Sudeste
70%70%
30%
LLX AçuLLX Açu
Sudeste
Centennial
51%
LLX Minas-RioLLX Minas-Rio
35
Step 3: Voluntary Exchange Tender Offer
Voluntary
Exchange Tender
Key considerations
� MMX will launch a voluntary exchange tender
offer (“OPA”) for the totality of the share
capital of PortX (2)
� Total Value: US$ 2.2 billion, divided into:
- US$ 1.796 billion in royalties: MMX would pay
30.5% 21.5%(1) 36.4%(1)
Controlling
Shareholder
Controlling
Shareholder
11.6%
Free FloatFree Float
Exchange Tender
Offer (“OPA”)
67.6% 32.4%
Controlling
Shareholders(3)
Controlling
Shareholders(3)
Free float
(Former LLX shareholders)
Free float
(Former LLX shareholders)
PortX
Sudeste
(1) Assumes 100% subscription from WISCO and free float
(2) This type of OPA does not trigger preemptive rights for existing MMX shareholders
(3) Includes EBX and Centennial stakes in LLX Sudeste Port
(4) For illustrative purposes only. FX rate of R$ 1.7053/US$
- US$ 1.796 billion in royalties: MMX would pay
to LLX Sudeste shareholders US$ 5/ton of iron
ore shipped through Sudeste Superport
- US$ 441 million in cash or MMX shares
� MMX shares in the OPA priced at R$ 13.963
� Total new MMX shares issued in the OPA:
− Controlling shareholder: 36.4 million (US$
298.1 million)(4)
− Free float: 17.4 million (US$ 142.7 million)(4) 7
Final Outcome
Before LLX Sudeste Superport acquisition
100% LLX Sudeste free float receiving MMX royalties + MMX shares
70% 100% 100% 100%
MMX CorumbáMMX Corumbá MMX SudesteMMX SudesteMinera MMX
de Chile
Minera MMX
de Chile PortX
A
After LLX Sudeste Superport acquisition(2)
33.4% 19.9% 36.0%
Controlling
Shareholder
Controlling
ShareholderFree floatFree float
10.7%30.5% 21.5%(1) 36.4%(1)
Controlling
Shareholder
Controlling
Shareholder
11.6%
Free FloatFree Float
de Chile de Chile
Sudeste
100%
100% LLX Sudeste free float receiving MMX royalties + cashB70% 100% 100%
MMX CorumbáMMX Corumbá MMX SudesteMMX SudesteMinera MMX de
Chile
Minera MMX de
Chile
34.2% 20.4% 34.4%11.0%
(1) Assumes 100% subscription from WISCO and free float
(2) The Controlling Shareholder will be paid by a combination of newly issued MMX shares + MMX royalties
70% 100% 100%
MMX CorumbáMMX Corumbá MMX SudesteMMX SudesteMinera MMX
de Chile
Minera MMX
de Chile PortX
Sudeste
Controlling
Shareholder
Controlling
ShareholderFree floatFree float
37
THANK YOUTHANK YOU
38