MMX MINERAÇÃO E METÁLICOS S.A. MMX MINERAÇÃO E METÁLICOS S.A.
CNPJ/MF: 02.762.115/0001-49
NIRE: 33.3.0026111-7 (Publicly Held Company)
("CVM") Instruction No. 358/02, hereby informs to its shareholders and to the market in general
that its subsidiary MMX Sudeste Mineração S.A., industrial plant for the production of iron ore in the Serra Azul region, located in the cities of Igarapé, Brumadinho and São Joaquim de Bicas, in the State of Minas Gerais ("Serra Azul Unit"), will grant to its employees a collective vacation period of thirty (30) days, beginning on the first week of September. Back office and maintenance and conservation employees of the Serra Azul Unit will continue their regular activities during such period.
The necessity of the collective vacation and temporary stop of the production activities at the Serra Azul Unit is a consequence of the significant and prolonged decline of the iron ore price in the international market, as well as the operating restrictions imposed by the environmental authorities of the State of Minas Gerais until determination of the cavities' protection areas existing in certain mining sectors. MMX is currently engaged in discussions with the relevant authorities regarding such operating restrictions in order to find a solution that would allow it to resume its activities in the short-term. During such period, the Company will focus on the reduction of costs, optimization of resources for mining activities and modernization of its current facilities, ensuring volume and quality efficiency improvements for the resumption of its activities and mitigating the impact of the prices decline.
The Company also informs that it will review its business plan in order to prioritize the initiatives for cash generation, in the best interest of the Company and its shareholders, taking into account the current market environment, the Company's short- and mid-term cash needs, and the
economic and financial perspective of the business model of the Company.
Praia do Flamengo, 66 - 10º andar · Flamengo ·Rio de Janeiro- RJ · Brasil·22210-903
www.mmx.com.br/riMMX will keep the shareholders and the market informed and expects to present the revised business model jointly with the release of the 2014 2Q results.
Rio de Janeiro, August 20, 2014
Carlos Roberto de Castro Gonzalez
Chief Executive Officer and Investor Relations Officer MMX Mineração e Metálicos S.A.
About MMX:
MMX, an EBX group mining Company, was established in 2005. The company produces about 7 million tons of iron ore per year. Recently, the Company began negotiations to sell 65% of Superporto Sudeste, a port terminal under construction in Itaguaí, in the State of Rio de Janeiro. As of mid-2014, the Company will have guaranteed access to transocean markets for the iron ore produced at the Serra Azul Unit in the State of Minas Gerais. At the moment, MMX is currently
reviewing its business model. For further information, visit the website: http://ri.mmx.com.br
Investors: Adriana Marques +55 21 2163 6197 ri@mmx.com.br
Press: Juliana Campos + 55 31 3516 7542
Praia do Flamengo, 66 - 10º andar · Flamengo ·Rio de Janeiro- RJ · Brasil·22210-903
www.mmx.com.br/ri|
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