MMX investments in iron ore and steel markets
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Transcript of 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
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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
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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