Ministry of Economic Development and Trade (Ontario) Brazilian Commercial Trade Office

1. THE BRAZILIAN MINING SECTOR THUNDER BAY – TIMMINS – SUDBURY – NORTH BAY Ministry of Economic Development and Trade (Ontario) Brazilian Commercial Trade Office In-Market Coordinator - Mr. Marcos José de Almeida Duarte

2. Products in Demand Sector Overview Production Data How We Can Help Perspectives & Investments

3. BRAZILIAN OVERVIEW • Area: 8.5 million km² - 5th largest country (area) in the world. • Inhabitants: 185.7 million (est. 2010) • Brazilian is divided into five regions (26 states and the federal district) • Key Cities: São Paulo, Rio de Janeiro, Salvador, Belo Horizonte, Porto Alegre, Fortaleza, Recife and Brasília. • Official language: Portuguese • Currency: Real (R$) • Exchange rate: 1 CAD = 1.71 R$ (November 11th, 2010) • Chief of State: President Luiz Inácio Lula da Silva (until Dec. 2010) Source: IBGE

4. Brazil is among the world’s largest mining producers, along with Australia, Chile, China, the USA, Canada, Russia and South Africa. In percentages of the world’s production, this represents: # 1 Niobium producer, with 95% # 2 Iron Ore producer, responsible for 17%; # 2 Manganese producer, with 21%; # 3 Bauxite, with 12,4% # 3 Graphite producer, with 7,12%. BRAZILIAN MINING SECTOR OVERVIEW 2009 Iron-ore Production 394 Million Tons 327 Million Tons 257 Million Tons 234 Million Tons Source: IBRAM/DNPM

5. Mining companies: 73% are small-sized, 22.2% are medium-sized and 4.8% are large companies. • There are over 2,600 mines in Brazil. • Over 98% of these mines operate open pit. • The states of Minas Gerais, Pará and Goiás make up over 80% of the mines. Source: IBRAM/DNPM

6. MINING PRODUCTION DATA 2008 2009 Production: US$ 30 billion Increase of 11% over 2007 Production: US$ 25 billion Decrease of 17% over 2008 Iron ore production increased 6% Mining Investments: US$ 5.2 billion Decrease of 10.2% Bauxilie/Alumina 34 Mt, Manganese 2.4Mt, Copper 222Kt and Kaolin 2.6Mt Iron 327Mt, Bauxite/Alumina 36.9Mt, Copper 217Kt, Manganese 1.7Mt, and Koalin 2Mt Mining industry/mineral transformation: US$ 89.4 billion. It represented a 5.25% share of the brazilian GDP Although the Brazilian mining sector was affected by the 2008/09 international economic crisis, the mining companies have been increasing investment in order to recover Source: MME/IBRAM/DNPM

7. INTERNATIONAL TRADE • The commercial balance increased over seven times from 2001 to 2008. • Production exported: US$ 22.8 billion; the positive balance reached US$ 13.1 billion • Main exported substances: iron ore (82,6%), ornamental stones (6,5%), copper (6,2%), kaolin (2,4%), bauxite (1,9%) and others (1,35%) * *In Billion US Dollars Source: AliceWeb (MDIC)/IBRAM

8. PERSPECTIVES & INVESTMENTS • It is estimated that between 2009 and 2013 Brazilian corporate investment in the mining sector will total US$ 62 billion; an average of US$ 12.4 billion per year. • Investments are planned to increase iron ore, bauxite, aluminum, copper, and gold extraction. • Production of iron ore and nickel are expected to rise sharply until 2013. • The amount of investments in the state of Minas Gerais exceeded 50% of what was invested the previous year. Source: MME/IBRAM/Valor/PriceWaterHouseCoopers

9. PERSPECTIVES & INVESTMENTS • Due to the worldwide importance of the Lithium, Brazil estimates higher investment to increase the extraction of Lithium (1,3% of the world’s reserve). Federal Investment: Plano Mineral 2030 intends to double mineral production in 20 years, reaching the amount of a billion tons of iron ore (150% above the volume that is now being produced) Source: MME/IBRAM/Valor/PriceWaterHouseCoopers

10. PLANNED INVESTMENT BY MAIN COMPANIES • Vale, the second largest mining company in the world plans on: - Investing US$12.9 billion in 2010; - Investing US$24 billion in 2011; - Duplicating its production in 5 years; - Working on 18 different projects between 2010-2012; - All investments aim at improving equipment, rail roads, loading/transportantion and water capturing. *Vale looks at developing contact with new international supliers. Source: Vale/IBRAM/Valor

11. PLANNED INVESTMENT BY MAIN COMPANIES • CSN(Companhia Siderurgica Nacional): - Increase production to 40Mt/year (Mine Casa de Pedra) • SAMARCO - Duplication of pellet production • MMX - Increase mining production capacity to 46Mt per year • ALUNORTE - Grow production capacity from 4,4Mt to 6,3Mt of Aluminum per year Source: Valor/Vale/MMX/Alunorte/IBRAM

12. PRODUCTS ON DEMAND • Earth-movers • Belt Conveyors • Crushers/Grinders • Laboratory instruments • Drill pieces • Carriers/loaders • Management and controlling Software • Security devices Source: IBRAM/Vale

13. MAIN MINING COMPANIES

14. CANADIAN MINING COMPANIES IN BRAZIL

15. PLANNED TRADE SHOWS (2011-2012) • EXPOSIBRAM (2011) – Belo Horizonte *The most important • M&T Expo (2012) - International Trade Show of Construction and Mining Equipment • Sul Metal e Mineração (2012) • CBMina (2012) – Congress of Open Pit and Underground Mining • Equipo Mining (2012)

16. How to do Business in Brazil

17. Market Analysis Partner Search Contacts with local companies HOW WE CAN HELP Preparation of an agenda of meetings Follow-up contacts

18. REFERENCES • IBRAM (Brazilian Mining Institute) • DNPM (National Department of Mineral Production) • MME (Ministry of Mines and Energy) • Valor (Business Publication) • IPEA (Brazilian Institute of Applicable Economic Research) • MDIC (Ministry of Development Industry and Trade) • AliceWeb • PriceWaterHouseCoopers

19. THANK YOU Ontario Ministry of Economic Development and Trade Brazilian Commercial Trade Office Porto Alegre / São Paulo / Rio de Janeiro Phone: +55 (51) 3212-6612 or 3227-8341 mj.mj@terra.com.br or marcos.jose@plugin.com.br