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Minas Gerais - Hot Topics Source: IBGE e Bacen. Elaboração Pezco Economics. Although the international price of iron ore remains above US$ 100 per ton (62% pure ore at the port of Qingdao), analysts expect that the normalization of supply will pressure prices down in the second half of this year and early 2021. Projections indicate that the price of iron ore should drop to the range between US$ 80 and US$ 90 per ton in the next 12 months. Vale's production is expected to be 90 million tons per quarter in the second half of the year, well above the 59 million tons in the first quarter of 2020. Vale announced the resumption of operations in the Itabira Complex, which has been banned since June 5 by decision of the Minas Gerais Sub- secretariat of Labor Inspection. In the period, the estimated loss of production is 1 million tons. The company's projection for total production in 2020 is between 310 and 330 million tons. The stoppage in activities in Itabira would explain part of the increase in the price of iron ore in June – above US$ 100 per ton. Sigma Lithium obtained a US$ 45 million financing from Société Générale bank to begin construction of the lithium battery plant for electric cars in Minas Gerais. The company has shares listed on the Canadian stock exchange, but 70% of the capital is in the hands of private equity fund A10. Sigma signed an agreement for the supply of 55,000 tons of lithium per year, for six years, with the Japanese group Mitsui – which will grant US$ 27 million for the construction of the factory – the estimate is that the construction cost will be US$ 74 millions. - Anglo American signed an agreement with Casa dos Ventos for the supply of wind energy for 20 years. Casa dos Ventos will supply 195 MW (95 MW of firm energy) of energy produced in the Rio do Vento (RN) complex - representing around 30% of Anglo American's consumption in its iron ore and nickel operations. Energy represents 30% of the total nickel production cost and 20% of the total iron ore production cost. The miner expects to produce between 22-24 million tonnes of pellet-feed iron ore - 40% of which is exported to China - and between 42-44,000 tonnes of iron nickel. KPMG © 2021 KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. BD210890 Página | 17

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