Costa Monteiro Participações. MC Logistica. Logistic Barge Company: Ton/Mo. US$ 450 MM (2006) Capacity Largest Pig Iron

Transcription

1 Mar 2007

2 Who we are... Costa Monteiro Participações Cosipar Usipar Pig Iron Producer 8 yr. Project 20 years Start-up: 01/ (Valor 1000 Brasil 2006) Pig Iron 200 Largest Brazilian Exporter (2005) Steel Cement Port Service Centre AMT London Based MC Logistica Logistic Barge Company: Ton/Mo. US$ 450 MM (2006) Capacity Largest Pig Iron Start-up: 12/2006 Trader in the USA Trading / Financial (27% Market Share) Mineração Araguaia Carajas Florestal Mining Reforestation Limestone, Graphite, Iron Ore (research) 2007 Spin-off COSIPAR

3 COSIPAR Pioneering Company in Northern Brazil, COSIPAR Produces Basic Pig Iron for the Export Markets since Currently, COSIPAR is One of the Major Merchant Pig Iron Producers in Brazil. The Cosipar M ill: 4 Operational Charcoal Blast Furnaces Annual Capacity: 480,000 Tons Sinter Plant Annual Capacity: 480,000 Tons Cogeneration Plant Potency: 1 0 M W Reforestation Program Until ,000 Hectares Seeding Nursery - Annual Capacity: 7 M illion Seedlings

4 Equipment 4 Blast Furnaces: Capacity of 480,000 Tons/Year of Pig Iron Sinter Plant: 480,000 tons of Sinter/Year Electric Cogeneration: Self-Sufficient in Electric Energy Consumption

5 Location Located in Marabá, Pará Distance by railway: 170 km from Carajás Mine and 730km from Ponta da Madeira Port Distance by waterway: 480 km from Vila do Conde Port (Barcarena, PA) via Tocantins-Araguaia River Waterway Vila do Conde Port Ponta da Madeira Port Belém PA Barcarena Tucuruí Açailância Marabá São Luís Santa Inês Ferrovia Carajás MA Ferrovia Norte Railway Norte - Sul Carajás PA150 Rios Rivers Ro Roads R Ferrovias Roads as Rio Araguaia TO ses Cities Rio Tocantins Portos Ports

6 The Company and its Product The Pig Iron Produced by COSIPAR is the Raw Material Used by the Steel and Foundry Industries. Main Features Density: 3.60 T/m3 Ingot Weight: Kg Absence of Non-Metalic Elements Chemical Composition Element Fe C Si S P %

7 Environment Seedlings Nursery: Produces 7 Milion/Year from 29 Different Eucalyptus Clones, in Addition to Native Species such as Mahogany and Wild Chestnut. Reforestation: Project to Plant Eucalyptus on 32,000 Hectares by FFC: Forest Fund of Carajás Founder Every Ton of Exported Pig Iron Matched by a US$3/Ton Contribution for Reforestation Needs.

8 Clients The only Brazilian Merchant Pig Iron Producer Holding LongTerm Supply Contracts with Triple A Companies in the USA:

9 USIPAR USIPAR is an Integrated Pig Iron, Steel & Logistics Project Located in Barcarena-PA 90km from Belem. Following International Trends in Modern Steelmaking, the USIPAR Project is Located in an Area Able to Receive Seaborne Panamax Vessels.

10 USIPAR Pig Iron Production Unit - Total Capacity: 3 Million Tons/Year. Lay-Out Allows for Further Expansion to 8 Million Tons/Year Steel Production Unit - Total Capacity: 2 Million Tons/Year. Port Operation Unit > 10 Million Tons/Year. Logistics Unit - Responsible for Usipar s Raw Material and Products Operations as Well as Providing Logistics Services to Third Parties. (IE. Soybeans & Other Agricultural Goods). Residual Processing Unit - (Fertilizers/Chemical Bonders) Total Capacity: 600,000 Tons/Year. Service Center Unit Roll Forming: Total Capacity: Up to 50,000 Tons/Year.

11 Usipar Project Timeframe 1st Phase 2004 OCTOBER Beginning of Construction 2nd Phase 3rd Phase 4th Phase February January Production of 500,000 Tons of Pig Iron on Coke Basis Logistic Services Production of >500,000 Tons of Pig Iron on Coke Basis June Port Services Production of >1 Million Tons of Pig Iron on Coke Basis and 1Million Tons of Steel Production of >1 Million Tons of Pig Iron on Coke Basis and 1Million Tons of Steel

12 USIPAR: Project Philosophy Operational Project Costs to be Highly Competitive to Guarantee Appropriate Global Market Share for Usipar s Products. Each Phase/Project Unit Should be Economically Viable. Financial Costs Associated with Project Implementation to Minimize risks. Step-by-Step Implementation. A Participation of the Project will be Available to Interested Partners Either in the Form of a Minority Shareholder Stake or Final Off-Takers. Flexibility Regarding Adopted Technologies and Product Lines.

13 Usipar Pig Iron Unit (11/06)

14 Ponta do Aço Port Business Unit of USIPAR Project The port will be implemented in 3 phases until reaches the capacity to operate 3 vessels simultaneously in 3 berths. Besides USIPAR own cargo the Port is expected to provide services to different companies/products Pig Iron Steel Ore Agriculture commodities (soy beans, corn) Cement Liquid cargo including ethanol for export Expected Volume: over 10 MM ton / year

15 Project Figures Total Investment: US$ 1 Billion Employment Creation: 7,500 Employees (Direct & Indirect) Annual Revenues: US$ 950 Million

16 America Metals Trading Founded in December 2003 in the United Kingdom. Designated to Be the International Commercial Arm of the Costa Monteiro Group Purpose: Metallic Products Trading International Logistics Equipment Import Target: Trade at Least 50% More Volume than Own Production

17 America Metals Trading AMT Today Largest Brazilian Merchant Pig Iron Trader. Largest Pig Iron Supplier to the US Market. Incorporated in London with Registered Shares in Companies House. Traded > 1.66 Million Tons of Pig Iron, Equivalent to 10% of the Global Market & 27% of the Brazilian Market.

18 America Metals Trading Top Brazilian Merchant Pig Iron Trader Since 2004 Main Pig Iron Purchasers (2006) AMT Brazilian Purchases Funsider SG 7% 7% P rim etrade 6% 2 30% S tena 6% 25% % S tem core 20% O thers 9% Million Tons 5% % % 0.4 5% EM C 20% 0 AMT 27% 0% 2004 Pig Iron Market Share Brazilian Market Share C argill

19 Ports of Shipment AMT is the Only Trader Exporting Pig Iron from All Brazilian Ports, Both in the Northern and Southern Regions: Trading > 1.66 Million Tons of Pig Iron, Equivalent to 10% of Global Market & 27% of the Brazilian Market. (000 Tons) Port Share PDM Itaqui Vila do Conde Paul Tubarao Rio de Janeiro Total Region Brazil Total AMT AMT Market North North North South South South 3, , % 50% 100% 20% 14% 33% 6,095 1,662 27%

20 Discharge Ports in 2006 USA New Orleans: Charleston: Mobile: Morehead City: CANADA Contrecour, Quebec, Montreal: MEXICO: Veracruz:

21 MC Log MC Log, Founded in 2005, is a Joint Venture of the Costa Monteiro Group and Mr. Eduardo Carvalho. Eduardo Carvalho Has Managed and Owned a Barge Company in the Amazon Basin for Over 20 Years. The Company Aims to be a Market Leader in River Bulk Transport in Brazil. In September 2006, MC Log Acquired Assets of NAVBEL Including 16 Barges & 4 Push-Boats with an Annual Transport Capacity of 1.4 Million Tons. In December 2006, MC Log Concluded the Construction of 3 River Ports Along the Tocantins River Maraba, Breu Branco & Tucurui. In January 2007, MC Log Started Transporting Iron Ore & Limestone Between Maraba and Barcarena

22 MC Log The Carajas Railroad is a Consolidated Export Axis that Will Export > 100 Million Tons of Iron Ore in Araguaia-Tocantins Waterway is a New Export Axis for Bulk Cargos from South Para, North Tocantins & Mato Grosso State. Porto de Vila do Conde New Axis Ponta da Madeira Actual Axis Belém Barcarena Tucuruí PA Açailância Marabá Carajás São Luís Santa Inês Ferrovia Carajás MA Xambioá Ferrovia Norte - Sul PA150 R. Araguaia TO R. Tocantins River Roads Railroad Cities Ports

23 Barges

24 Maraba River Port