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This presentation is for the exclusive use of the recipient and shall not be reproduced or distributed, in whole or in part, without the prior written consent of Garín Investimentos.
CONFIDENTIAL
June | 2018
Minnor | MiningTeaser
2
• The project involves the implementation and operation of a plant
for the processing of high purity iron ore (68%) and its logistics
• The mine has a potential of more than 1 billion tons in RoM1,
approximately 350 million tons of pure iron ore
• The project presents a low investment risk, since studies and
drillings have already been performed in part of the mine
indicating the existence of the high quality iron ore
• The idea is to develop the project in two phases, and this
presentation is focused on the phase 1
• Phase 1 corresponds to the mining, processing, logistics and
exporting of a 1 million tons per year during 10 years
• Dry processing plant: cheaper, simpler and safer (instead of wet
plant)
• Logistics: cargo is taken by truck to the port (in phase 2 it is
believed that transport by train will be available)
Project Description
• Global trend: magnetite is increasing its relevance across the
globe, in which high iron ore content is used to blend with other
low content iron ores to raise its quality and reach the 62% Fe
• Vertical integration: project will not depend on other players for
the logistics
• Sustainability and long-term vision: magnetite helps to reduce
environmental impact and carbon footprint (China is
experimenting a slowing demand as Beijing clamps down on steel
production to curb pollution)
Investment Theses
Minnor is a project of high iron ore content (68%), located in the Brazilian Northeast
• The project is in the stage of obtaining the mining contract and
the environmental licensing
• It is estimated a period of approximately 1 year and a half to start
operations, considering the installation of plant for processing of 1
million tons per year (~3 million tons per year of RoM)
• Garín is studying the best logistics solution to export the cargo to
the international market
Status
(1) ROM – Run of Mine: Amount of raw ore obtained directly from the mine, without suffering any type of beneficiation.
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TOP Fe IMPORTERS
# PAÍSES IMPORT (t)
1° China 779,000,000
2° Japan 110,000,000
3° USA 87,000,000
4° India 81,000,000
5° Russia 68,000, 000
6° South Korea 6,600,000
7° Germany 42,000,000
8° Turkey 34,000,000
TOP Fe PRODUCERS
# COUNTRY PRODUCTION (t)
1° China 900,000,000
2° Australia 420,000,000
3° Brazil 370,000,000
4° India 260,000,000
5° Russia 100,000,000
6° Ukraine 72,000,000
7° South Africa 55,000,000
8° USA 49,000,000
China leads the ranking of largest producers and importers of iron ore
1
23
4
5
6
7
8
Sources: World Steel Association and Bradesco bank (2015).
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Brazilian exports of iron ore keeps a robust annual growth, with Chinese global presence
243
269 282
266
311 331 327 330
344 366 374
384
-
50
100
150
200
250
300
350
400
450
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
[Mill
ion
to
ns]
Iron ore export (NCM 2601)
China; 55,80%
Others; 13,80%
Japão; 7,40%
Malaysia; 6,60%
Philippines; 5%
Netherlands; 4,90%
Oman; 3,30%South Korea;
3,20%
Top destinations of Brazilian exports
Sources: Aliceweb (MDIC), SECEX (Secretariat of Foreign Trade), Bradesco bank (2015).
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Mining profile in the world and in Brazil in terms of the purity of iron ore
SC
RS
PR
SP
MS
RJ
ES
MG
GO
MT
RO
AMPA
RR AP
TO
MA
PI
CE
BASE
PE
RN
ACAL
PB
Nova Olinda 68% Fe
Pará64% Fe
Minas Gerais46% Fe
Mato Grosso do Sul55% Fe
Brazil52% Fe
Australia44% Fe
India64% Fe
Russia56% Fe
China31% Fe
While the purity content of iron ore used in world industry is 62% Fe, the iron ore content of the project is 68% Fe (the best iron ore in the world, with high quality and low cost)
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The project is located in the city of Nova Olinda, state of Paraíba (PB)
SC
RS
PR
SP
MS
RJ
ESMG
GO
MTRO
AM PA
RR AP
TO
MA
PI
CE
BASE
PE
RN
PB
João Pessoa
Recife
Natal
Fortaleza
Maceió
Nova Olinda
Nova Olinda presents:
• Paved Roads
• Dam for water supply
• Substations for power supply
Access
• Roads
• Airports
• Railways
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The mine is divided into two hills, South and North, where in the last hill there are reserves already indicated
NORTH HILL – 68% Fe
Measured/indicated1 110,000,000t
Inferred2 260,000,000t
Estimated3 130,000,000t
TOTAL 500,000,000t
SOUTH HILL – 68% Fe
Estimated 500,000,000t
(1) Measured/indicated: quantity, well defined, existing in mineral deposits intercepted and searched for drill holes with short spacing; (2) Inferred:amount of ore additional to measured and indicated limits, based potentially on reasonable geological evidence; (3) Estimated: virtual quantity,estimated from indirect evidence that is inaccurate and not conclusive.
Total reserves: 1,000,000,000t
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Investment of US$ 9 million have already been performed in studies to prove the reserves and to obtain the environmental permit
Performed
• 9,120m drillings
• 6,000km2 of aeromagnetic survey
• Geophysical maps obtained through radiometric systems and magnetometry
Obs: All studies follow the standards of the Brazilian National Department of Mining Research (DNPM) and the Brazilian National Mining Agency (ANM).
Not performed yet
• 1,500m drilling to obtain JORC (Joint Ore Reserves Committee) certification
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Chemical analyzes concluded that the mine has the potential to sustain a plant for the production of high iron ore content
The analysis also found almost no presence of other elements,corroborating with the high quality profile of the ore found.
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The dry processing plant presents several advantages
• High productivity
• Low impact on surrounding communities
• Low environmental and social impact
• No need to build a dam or capture water from theenvironment
• Resource savings: less energy, fewer productionsteps, less equipment and a simpler and saferoperation
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Garín is evaluating the best logistics of the operation through the following ports
Nova Olinda
Port of Suape
Port of Cabedelo
Port of PecémRoad distance: 610kmDepth: 15mVessel: SuezmaxPecém-Qingdao: 20.600kmPecém-Rotterdam: 7.300kmPecém-NY: 6.000kmPecém-Africa: 3.000km
Road distance: 450kmDepth: 9,14mVessel: HandysizeCabedelo-Qingdao: 20.300kmCabedelo-Rotterdam: 7.500kmCabedelo-NY: 6.500kmCabedelo-Africa: 3.050km
Road distance: 500kmDepth: 12,6mVessel: SuezmaxSuape-Qingdao: 20.200kmSuape-Rotterdam: 7.750kmSuape-NY: 6.650kmSuape-Africa: 3.240km
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Surveys and drillings performed >> the project presents a low investment risk
Promising area, finding
occurrences
Surveys (pools, mappings, etc.)
Identification of the mineral
deposit (iron ore volume)
Proof of the deposit
(economic viability)
Obtain the mining contract and
environmental license
Risk
Research Authorization Concession of mining
Current stage
Thank You
شكراObrigado
Danke schön
Merci Beaucoup
Gracias
ありがとうתודה
Grazie
धन्यवाद
It’s time to invest.
谢谢
спасибо
Casemiro Tércio CarvalhoPartner and Executive Director
[email protected]+5511.99665.2525
Ricardo GeoffroyPartner and Fund Manager
[email protected]+5521.99637.4692
Allan ChiangAsia Investor Relations
[email protected]+5511.95769.0988
Garín Investimentos+5511.3010.3224
Rua Hungria, 1240 – cj.53 Jardim Europa, 01455-000
São Paulo – SP - Brazil
