SOURCE: MMX Mineracao e Metalicos S.A.

December 22, 2008 08:50 ET

MMX Wins Private Bidding Process for CSN Port Services

RIO DE JANEIRO, BRAZIL--(Marketwire - December 22, 2008) - MMX Mineração e Metálicos S.A. (BOVESPA: MMXM3) (TSX: XMM) ("MMX" or "Company") announces to its shareholders and the market that it has won the private bidding process promoted by Companhia Siderúrgica Nacional ("CSN") for port services to be provided by Terminal de Carga do Porto de Itaguaí ("Terminal"), in Itaguaí Municipality, Rio de Janeiro State, which will be fully dedicated to ship iron ore produced at MMX's Sudeste System.

The port services agreement between MMX and CSN will be in full force and effect during 3 years starting from January 2009, and can be renewable for an additional 3 year period.

The contract foresees shipments of 1.2 million metric tons of iron ore in 2009 and 2 million metric tons in each one of the two following years, 2010 and 2011.

The price to be paid to CSN for the port services in 2009 will be a fixed amount per shipped ton, and can be reviewed in the following years according to iron ore price adjustments.

MMX already has a long-term contract with MRS Logística that secures the railway transportation of the compromised iron ore amounts to be exported, since MMX Sudeste System up to the Terminal.

Despite the short-term uncertainties related to the mining sector worldwide, the Company believes that it will be able to export all the compromised amounts of iron ore, mainly due to the need, from major international consumers, for high quality Brazilian iron ore, in order to improve its products performance and also to optimize its industrial activities.

The access to the Terminal grants MMX an export capacity of 2 million ton per year until 2011 and enables MMX to settle, from now on, long-term iron ore export contracts.

It is expected for the second half of 2011 the start-up of LLX Sudeste Port, located at the same region of the Terminal and where MMX has already secured availability to export the whole iron ore production from MMX Sudeste System.