Production overview

In Q1 2014, production of manganese ore reached 470,000 tonnes against 638,000 tonnes in Q4 2013 and 501,000 tonnes in Q1 2013.

Manganese ore production

Output from the Carajas Azul manganese mine decreased by 32.3% and 12.9% against Q4 2013 and Q1 2013, respectively, reaching 332,000 tonnes. The production decreased due to low feed availability for the plant.

In Q1 2014, production from Urucum reached the historical record of 130,000 tonnes increasing by 11.1% against Q1 2013 and 33.1% against Q1 2013. This production increase was a result of operational improvements carried out in the beneficiation plant in Q4 2013, which improved productivity and the physical availability of the plant in Q1 2014. A mine expansion project, which will allow significant production increases as of next year is currently ongoing and in H2 2014 we will build the infrastructure in the underground mine to access high quality ore bodies.

Production at Morro da Mina was 8,000 tonnes in Q1 2014, a decrease of 74.3% and 64.2% respectively when compared to Q4 2013 and Q1 2013. The weak performance was caused by interruption of production in the north section of the mine, due to geological conditions. In 2Q14, we will improve production in the south section to deal with this restriction.

Ferroalloys production;

Production of ferroalloys was 8.7% lower than in Q4 2013, due to a decision to shut down furnaces and to sell excess energy to the Brazilian national grid. Ferroalloy quarterly production was comprised of 28,000 tonnes of ferrosilicon manganese alloys (FeSiMn), 13,000 tonnes of high carbon manganese alloys (FeMnHc) and 5,000 tonnes of medium carbon manganese alloys (FeMnMC.

• [Editor:Sophie]