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March 2010 Business Plan MPX Colombia
March 2010
Business Plan
MPX Colombia
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DisclaimerThe material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries
(collectively, “MPX” or the “Company”) as of the date of the presentation. It is information in summary form and does not purport
to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the
accuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to MPX that reflect the current views
and/or expectations of the Company and its management with respect to its performance, business and future events. Forward
looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results,
performance or achievements, and may contain words like “may”, “plan”, “believe”, “anticipate”, “expect”, “envisages”, “will likely
result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and
assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans,
objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of its
affiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (including
investors) for any investment or business decision made or action taken in reliance on the information and statements contained
in this presentation or for any consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities.
Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients
should consult their own advisors in this regard.
The market and competitive position data, including market forecasts, used throughout this presentation were obtained from
internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe
that any of this information or these reports are inaccurate in any material respect, we have not independently verified the
competitive position, market share, market size, market growth or other data provided by third parties or by industry or other
publications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of such
information.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or
in part without MPX’s prior written consent.
Business Plan MPX Colombia March 2010
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� Integrated Mining System:
World-Class Mining Assets + Efficient Logistics
� 1.74 billion tons in potencial coal
resources
� Maximum output capacity of 20 Mtpy in
2021
� Production start-up in 2012
� 3 open-cast and 1 underground mine
2.0 Mty *2.0 Mty *
0.7 Mty *0.7 Mty *
3.5 Mty *3.5 Mty *
5.4 Mty **5.4 Mty **
Mty: MM tons/year
* 65% Dispatch
** 90% Dispatch
MPX Colombia System
Estimated Coal
Demand from MPX’s
power plants
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Mining
Resources and Reserves
� 1.74 billion tons in potential resources
� 66,225 ha along 25 km of coal bearingCerrejón Formation
� 266 boreholes, 195 positive
� 90,000 m drilled
RESOURCES IN SITU BY AREA
Mar/2010
Mt Type
Cañaverales 93.8 Measured/Indicated
San Benito 21.9 Measured
Papayal 28.2 Measured
TOTAL 143.9
San Juan 1,600 Potential
Production Output Ramp-up in current concessions (Mty)
An additional 5Mty
will come from new
areas in La Guajira
and other
Departments
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Cañaverales
Open-Cast Mine
5,812Calorific power GAR* (kcal/kg)
Production start-up 2Q12
Maximum output (2022) 5.0 Mty
Total CAPEX USD 45 M
OPEX USD 37.5/ton
Capex Disbursements (USD M in real terms)
Production Output Ramp-up
* GAR – Gross as received
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Papayal
Open-Cast Mine
7,226Calorific power GAR (kcal/kg)
Production start-up 2Q12
Maximum output (2017) 2 Mty
Total CAPEX USD 30 M
OPEX USD 45/t
Capex Disbursements (USD M in real terms)
Production Output Ramp-up
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San Benito
Open-Cast Mine
5,811Calorific power GAR (kcal/kg)
Production start-up 1Q13
Maximum output (2015) 0.5 Mty
Acumulated CAPEX USD 8 M
OPEX USD 40/ton
Capex Disbursements (USD M in real terms)
Production Output Ramp-up
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San Juan
Underground Mine
6,300Calorific power GAR (kcal/kg)
Production start-up 2Q14
Maximum production 3.0 Mty / Mine
Acumulated CAPEX USD 293 M / Mine
OPEX USD 35/ton
Capex Disbursements (USD M in real terms)
Production Output Ramp-up
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� La Guajira � Other Departments
New Areas
Mine Capex + Concession
AcquisitionsUSD 50.0 M
Contingencies USD 7.5 M
Total CAPEX USD 57.5 M
CAPEX USD 28,8 M/ty
Production Output Ramp-upProduction Output Ramp-up
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MPX Port
� Start-up in 1Q14
� Port Area: 521 ha
� 150 km from mines
Traduzir p/ Inglês
MPX Port
Papayal
Canaverales
San Benito
Underground mine
Highway: 150 Km
La Guajira
Venezuela
MPX Concessions Areas drilled Port
Caribbean Sea
MPX Port Phase 1 Phase 2
Capacity 10 Mty 20 Mty
Cummulative
CapexUSD 284 M USD 400 M
Opex USD 3.5/t USD 3.0/t
Capacity Ramp-up
Capex Disbursements (USD M in real terms)
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MPX Railroad
� Start-up in 1Q16
� 3 alternative routes under study
1
3
2
Capacity 10 Mty 20 Mty
Cummulative
CapexUSD 333 M USD 400 M
Opex USD 2.5/t USD 2.5/t
Capacity Ramp-up
Capex Disbursements (USD M in real terms)
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� Production of up to 20 Mtpy of production in 2021
Capacity Ramp-up
Mines, Port and Railroad
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� Cash generation shall cover most of equity need
Uses & Sources
Total Capex USD 1.906 M
Debt Financing USD 1.374 M
Cash Generation* USD 275 M
Total Equity USD 257 M
*
* Reinvested
Debt/Equity
Mining 70/30
Logistics Infrastructure 75/25
