CMIN3

CSN Mineração S.A. is a Brazilian company focused on the production and commercialization of iron ore, with common shares traded on B3 under the ticker CMIN3. Incorporated in 2007 under the name Congonhas Minérios S.A., as a subsidiary of Companhia Siderúrgica Nacional (CSN), the company consolidated its current structure starting in 2015, when CSN’s iron ore and logistics businesses were combined with those of its then-controlled company Namisa, in partnership with an Asian consortium formed by major steelmakers. The operational origins of the business, however, date back to the start of operations at the Casa de Pedra mine in 1913, which gives CSN Mineração a century-long track record in the iron ore mining industry in Brazil. In February 2021, the company carried out its initial public offering, resulting in a more dispersed shareholder base on the Brazilian stock exchange, while still maintaining CSN as a relevant controlling shareholder.

CSN Mineração’s main activity is the extraction, processing, and commercialization of high-grade iron ore, with an integrated operation that covers mine, railroad, and port. The company develops mineral deposits, conducts geological research, open-pit extraction, processing at beneficiation plants, and shipment through its own and affiliated logistics assets. Its economic focus is on the production of lump ore, sinter feed, and pellet feed, which are essential inputs for the steel industry. In addition to mining, the company’s corporate purpose includes the operation of port infrastructure, power generation primarily to supply its mining operations, and equity interests in other companies related to its value chain, such as railway logistics and hydroelectric power generation.

The core operational assets of CSN Mineração are the Casa de Pedra and Engenho mines, located in the Iron Quadrangle in Minas Gerais, one of the richest iron ore regions in the world. Casa de Pedra is one of the oldest mines in operation in the country and one of the largest in terms of capacity, with open-pit mining and a production history dating back to 1913. The Engenho mine, in operation since 1950, is also an open-pit mine, and its ore is processed both at the Pires beneficiation plant and at the Casa de Pedra facility itself. The production process involves primary, secondary, and tertiary crushing, particle size classification, flotation-based concentration stages to produce pellet feed, and subsequent filtration. The company has an installed capacity of around 33 million tons of iron ore per year in its plants (central plant and dry processing plants), and supplements this volume with purchases from third parties to reach higher annual sales levels.

CSN Mineração’s product portfolio is composed mainly of lump ore, sinter feed, and pellet feed, with characteristics tailored to the needs of different steelmaking clients. Lump ore has a coarser particle size and can be fed directly into blast furnaces without the need for agglomeration. Sinter feed, with an intermediate particle size, is used in sintering processes before being applied in ore reduction at steel mills. Pellet feed, with a very fine particle size, is destined for pellet production after an agglomeration process. The combination of these products allows the company to serve both integrated steel mills and plants with different production routes, in Brazil and abroad. In 2024, CSN Mineração sold more than 42 million tons of iron ore, with most of the volume destined for the foreign market and a relevant share supplied to CSN’s Presidente Vargas Steelworks in Volta Redonda (RJ).

Integrated logistics is an essential component of CSN Mineração’s business model. The company holds the concession to operate TECAR, a coal and ore terminal located at the Port of Itaguaí (RJ), leased until 2047, which is responsible for all of the company’s iron ore shipments to the transoceanic market. TECAR has annual iron ore loading capacity and also handles the unloading of reductants such as coal and coke, used mainly by the CSN group. The outflow of production from Minas Gerais to the port is carried out via the rail network of MRS Logística S.A., an affiliate in which CSN Mineração holds an 18.74% stake. MRS connects the Iron Quadrangle to the Port of Itaguaí and to the Presidente Vargas Steelworks, transporting all of the iron ore produced by CSN Mineração, as well as the coal and coke imported through TECAR.

CSN Mineração’s markets are concentrated on supplying iron ore to the transoceanic market, with an emphasis on customers in Asia and Europe, in addition to serving the Brazilian steel industry. The company is among the largest iron ore exporters in Brazil, operating in a sector heavily influenced by the global steel industry dynamics, especially Chinese demand. Production is mostly destined for export, with significant contracts with international trading companies and steelmakers, such as substantial volumes negotiated with Glencore International AG and Prosperity Steel United, which have represented significant portions of annual revenue. The company also supplies the domestic steel value chain through deliveries to CSN, integrating with flat steel production in the country.

In regulatory terms, CSN Mineração’s activities are subject to the Brazilian mining legal framework, governed by the Mining Code and related regulations. Mineral exploration and extraction depend on permits and concessions granted by the Federal Government, with oversight by the National Mining Agency (ANM). In addition, TECAR’s operation is subject to a port lease agreement, under the supervision of the National Secretariat of Ports and the National Waterway Transport Agency (ANTAQ). In power generation, through its subsidiary Companhia Energética Chapecó (CEC) and the Quebra-Queixo Hydroelectric Plant, the company complies with generation concession rules defined by the National Electric Energy Agency (ANEEL), with a concession contract in effect until 2040.

From an environmental, social, and governance perspective, CSN Mineração highlights initiatives related to tailings management and operational safety. Since 2020, the company has adopted tailings filtering and dry stacking technology, which reduces reliance on conventional dams and is aligned with the pursuit of greater environmental risk control in mining. There have been significant investments in modernizing tailings disposal structures, decharacterizing dams, and implementing dry stacking, integrating the beneficiation process with the mitigation of environmental impacts. In governance, the 2021 IPO and debenture issuances strengthened its access to the capital markets, with financial and operational information disclosed to the investing public, while the shareholder structure keeps CSN and the Asian consortium as strategic controlling blocs in the company’s management.

In addition to mining and logistics, CSN Mineração also began operating in power generation through the acquisition of 100% of the shares of Companhia Energética Chapecó, which is responsible for the Quebra-Queixo Power Plant on the Chapecó River in Santa Catarina. This hydroelectric plant operates as an independent power producer, primarily focused on meeting the energy needs of the mining operations. Diversification into energy assets reinforces the vertical integration of the business, ensuring greater predictability of supply and contributing to cost competitiveness in iron ore production. With this set of assets – high-grade mines, beneficiation plants, associated rail infrastructure, a dedicated port terminal, and its own power generation – CSN Mineração consolidates an integrated model for iron ore production and export, reflected in the economic and financial performance presented to the market through its CMIN3 shares traded on B3.