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September 24, 2013

Enhancing the partnership between Japan and Brazil- A perspective from iron & steel -

Shinichi FujiwaraNippon Steel & Sumitomo Metal Corporation

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Enhancing the partnership in iron & steel - Building up new “stories” over a reliable foundation-

3. Glob

al Collaboration2. Strengthen

iron & steel supply chain

1. Stable iron ore trade

2

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Japan’s Iron Ore Imports - Steady trade flow from Brazil to Japan -

(Source: Customs Statistics)

(Million Tons)

JFY 2002

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

20

40

60

80

100

120

140

160

79 83 8879 81 85

74 7081 80 81

2726

2731

37 3738

32

39 37 38

16 1311

119 8

6

6

5 3 39 9 8

1010 12

10

7

98 10

131 132 134130

136141

128

115

134128 131

OthersIndiaBrazilAustralia

3

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World seaborne iron ore demand & supply - Different supply responses to the rapid growth of Chinese demand -

(Source: Clarkson)(Source: Clarkson)

(Million Tons) (Million Tons)Demand Supply

2002 2007 2012 2013(e)0

200

400

600

800

1,000

1,200

1,400

370 401 386 397

111

377

724779

129 139 131 134

481

778

11101176

China

Rest of the world

Japan

2002 2007 2012 2013(e)0

200

400

600

800

1,000

1,200

1,400

170267

494 540166

268

322325

145

243

294311

481

778

11101176

Rest of the worldBrazilAustralia

+97Mt

+98Mt

+102Mt

+227Mt

+54Mt

+51Mt

+3Mt

+46Mt

+17Mt

+31Mt

+266Mt

-15Mt +11Mt.

+347Mt

+55Mt+297Mt

+332Mt

+66Mt

+297Mt

+332Mt

+66Mt

4

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Energy

Industrial Machinery & Equipments

Mining

Infrastructure &

Transportation

Drive value-enhancing cycle with steel as “catalyst” - Clustering the competitive edges to exploit inter-industry synergies-

5

Steel

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Nippon Steel & Sumitomo Metal in Brazil

Ipatinga Works(including

Unigal)

Cubatao Works

Belo Horizonte (USIMINAS – Head Quarters)

VSBMUSA (Iron Ore Mine)

6

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Nacala

Tete Province

Nacala Railway (913km)

New coal terminal(under construction)

Existing port(to be upgraded with Japan’s ODA)

Vale: Moatize

Minas de Revuboe• NSSMC: 33.3%• Mining License

granted in Apr. 2013• Startup: 2016

• In discussion with Vale for JBIC finance to facilitate Nacala Rail& Port project

• Unlocking the potential of high-quality coking coal in Mozambique

• Capable of serving other industries in “Nacala Corridor” as well

Working together in Mozambique - To materialize the dream coking-coal projects and beyond -

ProSAVANA project area(Agricultural development)

7

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Muito Obrigado!

御清聴ありがとうございました。