Sale of 15% Interest in LLX Logística S.A. to Ontario Teachers Pension Plan July 25, 2007
Important Notice 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 Rodolfo Landim Investor Relations Officer Elizabeth Cruz Manager Gina Pinto - Analyst Tel 55 21 2555-5634 / 5558 / 5563 ri@mmx.com.br http://www.mmx.com.br/ri 2
Transaction Overview The Ontario Teachers` Pension Plan Board ( OTPP ) and LLX Logística S.A. ( LLX ) have entered into a memorandum of understanding pursuant to which OTPP would subscribe for and purchase 15% of the issued and outstanding shares of LLX, in preferred stock, for a price of US$185 million. The Investment is subject to the negotiation of definitive agreements, including of a shareholders agreement of LLX, conclusion of due diligence and corporate approvals. The Investment implies a valuation of MMX s remaining 85% common share interest in LLX of approximately US$1.05 billion. 3
Ownership Structure 85% 15% Centennial Logística 51% 49% 51% 70% 49% Minas-Rio Mineração LLX Minas-Rio LLX Açu 30% 4
Investment Highlights Favorable Industry Dynamics Low Completion Risk Unparalleled Port Facilities Significant Upside Potential Attractive Location Unique Strategic Position 5
LLX Minas-Rio / LLX Açu 300ha back area; Iron ore handling terminal at Porto do Açu; Connecting bridge; Access channel; Breakwater; 6,900ha of adjacent industrial complex; Right to build additional berths; 2 main revenue streams: 1) handling and services fees and 2) industrial area lease; Shared infrastructure agreement to be established with LLX Minas-Rio will give LLX Açu Access to the connecting bridge, access channel and breakwater. 6
Unique Strategic Position New world class logistics corridor increasing the integration of Minas Gerais and Rio de Janeiro states and boosting their economies; Removal of the actual logistics bottleneck, offering an alternative route for the region s products; A logistics solution for the steel plant expansion projects in the railway area of influence; Real and competitive alternative for exports of raw materials and products with high aggregate value. Açu Port will be the entrance/exit door of the Minas-Rio Logistics System, contributing to the development of a new and modern export center. 7
Attractive Location Norte Fluminense, in the municipality of São João da Barra - 45 km from Rio de Janeiro s third largest city, Campos 15 km north of São Tomé Cape 30 km south of Paraíba do Sul River 8
Unparalleled Port Facilities Mixed-use private port facility featuring a deep draft port with minimum need for dredging Depth of 15 meters Draft of 18.5 meters (Phase I); Able to berth large vessels of over 160,000 tons (cape size); The facilities have been specifically designed to comply with ISPS (International Ship and Port Facility Security Code) regulations; Construction License granted on May 14, 2007; Permit for construction and operation received from ANTAQ on June 20, 2007. 9
Unparalleled Port Facilities (Cont d) 7,200ha (2) (rental area = 4,960ha) 4 10 9 5 8 7 1 6 2 3 2500 m access bridge Steel products and general cargo Illustrative Facilities: Liquid Bulk 1 2 Iron Ore storage area (1) Pelletizing Plants (1) 6 7 Coal storage Warehouse Coal 3 Power Plants 8 Yards for general cargo 4 5 Steel Plants Liquid Bulk storage 9 10 Mechanical Industry Shops Oil Processing Plant Iron Ore (1) Part of LLX Minas Rio. (2) Out of the total area, 300ha corresponds to LLX Minas-Rio and the rest to LLX Açu. Rental 10
Favorable Legal Environment As a privately owned port, Porto do Açu features a series of structural advantages over its competitors; Porto do Açu is exempt from regulator fees; Porto do Açu will use non-unionized labor, which is more efficient and less prone to interruptions; As a private port, Porto do Açu acts as its own Port Authority, effectively performing maintenance or dredging when required and without delay. 11
Products Steel Global demand for steel continues to rise, largely as a result of the massive demand from rapidly developing economies such as China and India Chinese steel consumption will continue to grow at very high levels China currently consumes approximately 35% of the world s steel production, with that figure expected to rise to 52% in 2016 (1) ; Porto do Açu s industrial back area and adjacent port facilities provide perfect backdrop for a steel plant. Coke Coke is one of the main ingredients in the iron smelting process; Given that steel (an alloy consisting mostly of iron) figures to be one of the most important sectors of Porto do Açu s industrial complex, coke will also be very important to the industrial complex s day-to-day operations. (1) Global Insight. 12
Products (Cont d) Coal Demand for coal through Porto do Açu will come from 4 different sources: On site coke plant On site thermal plant On site coal gasification plant (production of syngas) Other coal importers; A 1,400 MW on site coal-fired thermal plant to be built by a third-party will power the industrial complex s operations in addition to supplying power to the surrounding areas. Liquid Bulk Liquid bulk will be handled at Porto do Açu in 4 forms: Oil Liquefied Natural Gas (LNG) Ethanol Oil Derivatives; Strategic location: close to Campos basin, home to some of Brazil s largest oilfields. 13
Products (Cont d) Dimension Stone Competing ports such as Vitória operating at capacity, with significant delays; opportunity to gain market share Industrial Area LLX Açu will lease 4,960ha of the 7,200ha of land in the adjacent industrial complex 14
OTPP The Ontario Teachers` Pension Plan is the largest single-profession pension plan in Canada; Net assets are of $Can 106 billion under management of which $Can 49 billion are invested in corporate shares or partnerships; Solid Corporate Governance practices. 15
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