About Companhia Siderúrgica Nacional

Companhia Siderúrgica Nacional (CSN) operates as an integrated steel producer in Brazil and Latin America. The company operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a diversified range of high value-added steel products. Segments The company operates through five segments: Steel, Mining, Cement, Logistics, and Energy. Steel The company’s Steel segment comprises a portfolio of diverse products and provides the company an international footprint by means of the company’s international subsidiaries and the company’s exports from Brazil. In the company’s flat steel segment, the company is an almost fully integrated steelmaker. The company’s main industrial facility, Presidente Vargas Steelworks, produces a broad line of steel products, including slabs, hot- and cold-rolled, galvanized and tin mill products for the distribution, packaging, automotive, home appliance and construction industries. The company’s production process is based on the integrated steelworks concept. The company’s annual crude steel capacity and rolled product capacity at Presidente Vargas Steelworks is, in each case, 5.6 million tons. The company obtains all of its iron ore (except for pellets), limestone and dolomite requirements, and a portion of the company’s tin requirements, from its own mines. Using imported coal, the company produces approximately 55% of its coke requirements at production levels in the company’s own coke batteries at Volta Redonda. Imported coal is also pulverized and used directly in the pig iron production process. Zinc, manganese ore, aluminum and a portion of the company’s tin requirements are purchased in local markets. The company’s steel production and distribution processes also require water, industrial gases, energy, rail and road transportation and port facilities. In addition, the company has an annual production capacity of approximately 330,000 tons of galvanized steel products, operated through the company’s subsidiary Lusosider Aços Planos, S.A. in Portugal, and an annual production capacity of approximately 1.1 million tons of steel products operated through SWT in Germany. The company owns and operates a plant in Volta Redonda for production of long steel products. The plant consists of an electric arc steelmaking furnace, continuous casting for billets and a hot rolling mill for round section long products – wire rod and rebar. Mining Activities The company owns a number of high quality iron ore mines, strategically located within Brazil’s ‘Iron Ore Quadrangle’ (Quadrilátero Ferrífero) in the state of Minas Gerais, including the Casa de Pedra and Engenho mines, located in the city of Congonhas, pertaining to the company’s subsidiary CSN Mineração, and the Fernandinho mines, located in the city of Itabirito, and the Cayman and Pedras Pretas mining rights, located in the city of Rio Acima and the city of Congonhas, respectively, pertaining to the company’s wholly owned subsidiary Minerios Nacional S.A., or Minerios Nacional. The company’s mining assets also include the solid bulks cargo terminal TECAR, in the state of Rio de Janeiro, which pertains to CSN Mineração; the Bocaina mines, located in the city of Arcos, in the state of Minas Gerais, which produce dolomite and limestone; and Estanho de RondÔnia S.A., or ERSA, located in the city of Ariquemes, in the state of RondÔnia, which mines and casts tin. The company sold 29.2 million tons of iron ore to third parties in 2022. Cement The company entered the cement market in 2009 in order to take advantage of the synergy potential with the company’s steelmaking business. The company’s cement operations use as inputs slag generated by the company’s blast furnaces at Volta Redonda and limestone from the company’s limestone reserves in the company’s Bocaina mines, which is used to produce clinker. Slag and clinker are the main inputs in cement production. Energy In 2022, the company’s Presidente Vargas Steelworks consumed approximately 2.86 million MWh of electrical energy. Cement production also requires significant amounts of electrical energy and, as a result of the expansion of the company’s cement operations over the last two years, the energy needs of the company’s cement segment represent a larger share of the company’s energy demand. The company’s acquiree, LafargeHolcim (Brasil) S.A., provides 3.4 MW of installed capacity annually from a hydroelectric power plant. In 2022, the company’s mining operations at Casa de Pedra consumed 285,000 MWh of electrical energy. The company’s main source of electrical energy is the company’s thermoelectric co-generation power plant at the Presidente Vargas Steelworks, which is fueled by gas from the steel production process, with 267 MW of installed capacity. In addition, as of December 31, 2022, the company held a 29.50% equity interest in the Itá hydroelectric facility in the state of Santa Catarina, through a 48.75% equity interest in ITASA and a 17.92% equity interest in the Igarapava hydroelectric facility. Logistics The company’s vertical integration strategy and the synergies among the company’s business units are strongly dependent on the logistics needed to guarantee the transportation of inputs at low cost. A number of railways and port terminals comprise the logistics system that integrates the company’s mining, steelmaking and cement units. The company operates a port terminal for containers, TECON at Itaguaí Port, in the state of Rio de Janeiro, and CSN Mineração operates TECAR. The company also has the following participation in three railways: the company shares control in MRS, which operates in the Southeast region of the federal railway system, along the Rio de Janeiro – São Paulo – Belo Horizonte axis; the company has an interest in joint venture TLSA, which has a concession to construct and operate the Northeastern Railway System II; and the company controls Ferrovia Transnordestina Logística S.A., or FTL, which operates the Northeastern Railway System I. Strategies Steel The strategy for the company’s Steel business comprises focus on the domestic market, by increasing market share in the flat steel segment and long steel market; emphasis on high-margin coated steel products, such as galvanized, Galvalume, pre-painted and tin plate; investments in technology startups and other disruptive companies through the company’s subsidiary CSN Inova Ventures, in order to foster innovation and efficiency; geographical diversification through the company’s flat and long steel facilities abroad and the company’s focus on diversifying its exports through, among others, coated steels; constant pursuit of operational excellence by developing and implementing cost reduction projects, including energy efficiency, and process review programs, including internal logistics optimization, project development and implementation discipline; exploring marketing and commercial synergies through the company’s flat steel distribution network and product portfolio to accelerate its entrance into the domestic long steel market; and increased customized services and distribution abilities through the company’s expanding distribution network. Mining In order to strengthen the company’s position in the iron ore market, the company plans to invest in the company’s mining assets, including through CSN Mineração, to generate low operational costs and long-term growth opportunities. To maximize the profitability of the company’s product portfolio, the company is focused on increasing its output of high-quality pellet feed with Itabirite deposits and investing with strategic partners and customers in providing pellet feed to pellet producers. Cement The company has invested heavily in its cement business and completed two important acquisitions in the last two years: Elizabeth Cimentos S.A. in 2021 and LafargeHolcim (Brasil) S.A. in 2022. These acquisitions allowed the company to become the second largest player in the Brazilian cement market with an installed capacity of 17.0 million tons, seven integrated plants, six grinding and mixing plants and 15 distribution centers throughout Brazil, in each case as of December 31, 2022. The company’s cement business strategy looks to increased production and competitiveness, portfolio diversification and capillarity expansion by means of greenfield and brownfield projects, as well as possible acquisition opportunities. The focus of the company’s cement sales strategy is on the retail segment, which operates with a low level of inventory and for which the company’s distribution centers provide a competitive advantage. Energy The operations in the company’s Energy segment provide the company with autonomy in meeting certain of the company’s energy requirements and reduce the company’s exposure to fluctuations in energy prices in the spot market. Logistics In addition to the company’s bulk terminal TECAR, the company’s TECON container terminal has a capacity of 660,000 twenty-foot equivalent units, or TEUs, per year. In terms of railways, the company is developing the TLSA project, which focuses on iron ore, agricultural commodities, gypsum and fuel. Acquisitions LafargeHolcim (Brasil) S.A. In September 2022, the company’s cement subsidiary, CSN Cimentos, acquired the entirety of LafargeHolcim (Brasil) S.A. Metalgráfica Iguaçu S.A. In September 2022, the company’s subsidiary Companhia Metalúrgica Prada acquired Metalgráfica, which, operating in Ponta Grossa, in the state of Paraná, and in Goiânia, in the state of Goiás, produces steel cans for the national and international market of metal food packaging. Santa Ana Energetica S.A. and Topázio Energetica S.A. In June 2022, CSN Cimentos and the company’s energy subsidiary, CSN Energia S.A., or CSN Energia, acquired Santa Ana Energetica S.A., which holds the concession for the hydroelectric power plant of Santa Ana, and Topázio Energetica S.A., which holds, through its subsidiary Brasil Central Energia Ltda., the concession for the hydroelectric power plant of Sacre II. Companhia Estadual de Geração de Energia Eletrica – CEEE-G In 2022, the company’s subsidiary Companhia Florestal do Brasil, or CFB, acquired CEEE-G, which holds concessions for hydroelectric power plants and greenfield wind power plant projects. Companhia Energetica Chapecó – CEC In July 2022, CSN Mineração acquired CEC, which holds the concession for a hydroelectric power plant that has an installed capacity of 120 MW. The energy generated by the acquisitions in the company’s Energy segment support its cement and mining operations and will permits the company to reduce the volume contracted pursuant to the company’s largest external energy contract from 150 MWavg to 50 MWavg per year, Joint Ventures, Strategic Alliances and Consortia The company operates parts of its business through joint ventures, strategic alliances and consortia with other companies. The company has, among others: a strategic alliance with an Asian consortium at the company’s controlled investee CSN Mineração to mine iron ore; a concession jointly held with other Brazilian steel and mining companies at MRS Logística S.A., or MRS, to explore railway transportation in the Southeastern region of Brazil; a concession jointly held with certain Brazilian governmental entities at Transnordestina Logística S.A., or TLSA, to explore railway transportation in the Northeastern region of Brazil; a joint venture with Engie Brasil Energia S.A., or Engie Brasil, and Companhia de Cimento Itambe, or Itambe, at Itá Energetica S.A., or ITASA, to produce electrical energy; and an energy consortium with Aliança, L.D.R.S.P.E. Geracão de Energia e Participações Ltda. and AngloGold. Steel Segment The company produces carbon steel, which is the world’s most widely produced type of steel, representing the vast bulk of global consumption. From carbon steel, the company sells a variety of products, both domestically and abroad, to manufacturers in several industries. Flat Steel The company’s Presidente Vargas Steelworks produces flat steel products, which comprise slabs, hot-rolled, cold-rolled, galvanized and tin mill products. Slabs Slabs are semi-finished products used for processing hot-rolled, cold-rolled or coated coils and sheet products. The company is able to produce continuously cast slabs with a standard thickness of 250 millimeters, widths ranging from 830 to 1,600 millimeters and lengths ranging from 5,250 to 10,500 millimeters. The company produces high, medium and low carbon slabs, as well as micro-alloyed, ultra-low-carbon and interstitial free slabs. The slabs are then slit and finished, generating blooms which are delivered to the long products plant. Hot-Rolled Products Hot-rolled products include heavy and light-gauge hot-rolled coils and sheets. A heavy gauge hot-rolled product, as defined by Brazilian standards, is a flat-rolled steel coil or sheet with a minimum thickness of 5.01 millimeters. The company is able to provide coils of heavy gauge hot-rolled sheet with a maximum thickness of 12.70 millimeters used to manufacture automobile parts, pipes, structural beams and other construction products. The company produces light gauge hot-rolled coils and sheets with a minimum thickness of 1.20 millimeters, which are used for welded pipe and tubing, automobile parts, gas containers, compressor bodies and light cold-formed shapes, channels and profiles for the construction industry. Cold-Rolled Products Cold-rolled products include cold-rolled coils and sheets. A cold-rolled product, as defined by Brazilian standards, is a flat cold-rolled steel coil or sheet with thickness ranging from 0.30 millimeters to 3.00 millimeters. Cold-rolled products have more uniform thickness and better surface quality when compared to hot-rolled products and their main applications are automotive parts, home appliances and construction. The company supplies cold-rolled coils with thickness ranging from 0.30 millimeters to 2.99 millimeters. Galvanized Products Galvanized products comprise flat-rolled steel coated on one or both sides with zinc or a zinc-based alloy applied by either a hot-dip or an electrolytic process. The company uses the hot-dip process, which is approximately 20% less expensive than the electrolytic process. Galvanizing is one of the most effective and low-cost processes used to protect steel against corrosion caused by exposure to water and the atmosphere. Galvanized products are highly versatile and can be used to manufacture a broad range of products, such as automobiles, trucks and bus bodies; manufactured products for the construction industry, such as panels for roofing and siding, dry wall and roofing support frames, doors, windows, fences and light structural components; air ducts and parts for hot air, ventilation and cooling systems; culverts, garbage containers and other receptacles; storage tanks, grain bins and agricultural equipment; panels and sign panels; and pre-painted parts. Galvanized sheets, both painted and bare, are also frequently used for gutters and downspouts, outdoor and indoor cabinets and home appliances, among others. The company produces galvanized sheets and coils in continuous hot-dip processing lines, with thickness ranging from 0.30 millimeters to 3.00 millimeters. The continuous process allows for products with highly adherent and uniform zinc coatings capable of being processed in nearly all kinds of bending and forming machinery. The company produces Galvanew in addition to standard galvanized products. Galvanew is produced by an additional annealing cycle just after the zinc hot-dip coating process. This annealing process causes iron to diffuse from the base steel into the zinc coating. The resulting iron-zinc alloy coating allows better welding and paint performance. The combination of these qualities makes the company’s Galvanew product particularly well suited for manufacturing automobile and home appliance parts, including high gloss exposed parts. At CSN Paraná, one of the company’s branches, the company produces Galvalume, a continuous Al-Zn coated material. Although the production process is similar to hot-dip galvanized coating, Galvalume has at least twice the corrosion resistance of standard galvanized steel. Galvalume is primarily used in outdoor construction applications that may be exposed to severe acid corrosion, like marine uses. Through CSN Paraná, the company also produces pre-painted flat steel, which is manufactured in a continuous painting line. In this production line, a layer of resin-based paint in a choice of colors is deposited over either cold-rolled or galvanized base materials. Pre-painted material is a higher value-added product used primarily in the construction and home appliance markets. Tin Mill Products Tin mill products consist of flat-rolled low-carbon steel coils or sheets with, as defined by Brazilian standards, a maximum thickness of 0.45 millimeters, coated or uncoated. The company applies coatings of tin or chromium by electrolytic process. Coating costs place tin mill products among the company’s highest priced products. There are four types of tin mill products, all produced by the company in coil and sheet forms: Tin Plate: Coated on one or both sides with a thin metallic tin layer plus a chromium oxide layer, covered with a protective oil film; Tin Free Steel: Coated on both sides with a very thin metallic chromium layer plus a chromium oxide layer, covered with a protective oil film; Low Tin Coated Steel: Coated on both sides with a thin metallic tin layer plus a thicker chromium oxide layer, covered with a protective oil film; and Black Plate: Uncoated product used as the starting material for the coated tin mill products. Tin mill products are primarily used to make cans and other containers. With six electrolytic coating lines, the company is one of the largest producers of tin mill products in the world and the sole producer of coated tin mill products in Brazil. Suppliers Iron Ore The company is able to obtain the majority of its iron ore requirements from the company’s Casa de Pedra and Engenho mines located in the state of Minas Gerais. Aluminum, Zinc and Tin The company purchases part of its tin from the company’s subsidiary ERSA. Water The company’s source of water is the Paraíba do Sul River, which runs through the city of Volta Redonda. 94.4% of the water used in the steelmaking process is recirculated and the balance, after careful processing, is returned to the Paraíba do Sul River. Natural Gas Naturgy is the company’s primary natural gas supplier. Diesel Oil The company maintains agreements with Companhia Brasileira de Petróleo Ipiranga, or Ipiranga, to receive diesel oil in order to supply the company’s equipment in the company’s mining plants in the state of Minas Gerais, which provide the iron ore, dolomite and limestone used in the company’s steel plant in Volta Redonda. The company’s main raw materials suppliers are Ternium (slabs); BHP, Kru Overseas, Warrior, Alpha Metallurgical, Suek AG, E-Commodities and German Creek (coal); CI Milpa, Trafigura, Sinochem and Noble (coke); TAG, Ibrame and IBM Metais (aluminum); Zinco Ligas, Sorin and IBM Metais (zinc); ERSA, Fabrica Auricchio and Mineração Taboca (tin); Sotreq, Minas Máquina, Komatsu, Inova, WLM, Metso and Sany (spare parts); RHI Magnesita, Vesuvius, IBAR, Togni S/A and Saint Gobain (refractory bricks); Iconic, Quaker-Houghton and Daido (lubricants); Vale, Vallourec and Samarco (pellet); and Ipiranga (diesel oil). Flat Steel Mill The Presidente Vargas Steelworks, located in the city of Volta Redonda, in the state of Rio de Janeiro, began operating in 1946. It is an integrated facility covering approximately four square km and containing five coke batteries, three of which are in operation, three sinter plants, two blast furnaces, a basic oxygen furnace steel shop, with three converters, three continuous casting units, one hot strip mill, three cold strip mills, two continuous pickling lines, one continuous annealing line, 28 batch annealing furnaces, three continuous galvanizing lines, four continuous annealing lines exclusively for tin mill products, three of which are in operation, and six electrolytic tinning lines, three of which are in operation. The annual production capacity of steel at the Presidente Vargas Steelworks is 5.4 million tons. Downstream Facilities CSN Paraná The company’s CSN Paraná branch produces and supplies plain regular galvanized products, Galvalume products and pre-painted steel products for the automotive, construction and home appliance industries. The plant has an annual capacity of 295,000 tons of galvanized products and Galvalume products, 131,000 tons of pre-painted products, which can use cold-rolled or galvanized steel as substrate, service capacity of 150,000 tons of sheets and narrow strips, and 384,000 tons of pickled hot-rolled coils in excess of the coils required for the coating process. CSN Porto Real The company’s CSN Porto Real branch produces and supplies plain regular galvanized, Galvanew and tailored blanks mainly for the automotive industry. The plant has an annual capacity of 350,000 tons of galvanized products, including Galvanew products, and 354,000 tons of tailored blanks, sheets and narrow strips, which can use cold-rolled or galvanized steel as a substrate. Companhia Metalúrgica Prada Companhia Metalúrgica Prada is the largest Brazilian steel can manufacturer and has an annual production capacity of over one billion cans in its five industrial facilities located in the states of São Paulo, Minas Gerais, Rio de Janeiro and Rio Grande do Sul and in the city of Brasília. The company is the only Brazilian producer of tin plate, which is Companhia Metalúrgica Prada’s main raw material, making it one of the company’s most important products. Companhia Metalúrgica Prada has important customers in the food and chemical industries, including packages of vegetables, fish, dairy products, meat, aerosols, infant nutrition and other business activities. Prada Distribuição, the distribution arm of Companhia Metalúrgica Prada, is one of the leaders in the Brazilian distribution market for steel products with 600,000 tons per year of installed processing capacity. Prada Distribuição has two steel service centers and three distribution centers strategically located in the Southeast region of Brazil. The service centers are located in the city of Mogi das Cruzes, in the state of São Paulo, and in the city of Valença, in the state of Rio de Janeiro. Its product mix also includes sheets, slit coils, sections, tubes and roofing in standard or customized format, according to customers’ specifications. Prada Distribuição processes the entire range of products produced by the company and services 4,000 customers annually from the civil construction, automotive and home appliances sectors, among others. Lusosider Aços Planos, S.A. Lusosider Aços Planos S.A., or Lusosider, is a flat steel processing facility located in Seixal, near Lisbon, Portugal. Lusosider has the capacity to produce approximately 105,000 tons of hot-rolled pickled coils, 36,000 tons of cold-rolled steel products and 276,000 tons of galvanized steel products per year. Its main customers include service centers and tube making industries. CSN Distribuição The company has one service center, located in the city of Camaçari, in the state of Bahia, to support sales in the Northeastern and Northern regions of Brazil. The company also has a distribution center in the city of Canoas, in the state of Rio Grande do Sul, to support sales in the Southern region of Brazil. CSN Cut and Bend The company has one service center, located in the city of Vargem Grande Paulista, in the state of São Paulo, to support sales in the Southeast region of Brazil. SWT Long Steel Mill In February 2012, the company acquired SWT in Germany, which marked the company’s entry into the long steel market. SWT specializes in the production of profiles, including IPE (European I Beams) and HE (European Wide Flange Beams) sections, channels and UPE (Channels with Parallel Flanges) sections and steel sleepers. In total, SWT produces more than 200 types of sections according to different German and international standards. SWT possesses a 28 km internal railway system, as well as the logistics infrastructure to ensure supply of scrap and delivery of finished products. The main markets served by SWT include non-residential construction, equipment industries and engineering and transport, in Germany and in neighboring countries, including Poland and the Czech Republic. The company’s main raw materials suppliers are Scholz and TSR (scrap); RWE Supply & Trading GmbH (electrical energy); GETEC Energie Gas GmbH (natural gas); Refractories Site Service GmbH (refractory); Graftec, W.A.S., and SHOWA DENKO (electrodes); Siemens, Schneider, and Voith (spare parts); and Irle and Walzengießerei Coswig (rolls). Volta Redonda Long Steel Mill The company’s Volta Redonda plant for the production of long steel products comprises a 50-ton electric arc steelmaking furnace, 50-ton ladle furnace, continuous casting machine for billets and a hot rolling mill for wire rod and reinforcing bar. This plant is operational and its production increases annually, providing the Brazilian market with products for civil construction and high quality drawing and cold heading applications. In addition to the company’s operational performance improvements, the company is developing and negotiating certain equipment enhancements that the company expects will provide for nominal capacity of 383 kt/year of billets and 450 kt/year of laminates. Steelmaking Shop Designed for an output of 200,000 tons per year, this unit mainly consists of one 50 ton UHP, AC electric arc furnace, one 50 ton ladle furnace, one continuous casting machine for billets with three strands, mobile equipment and cranes, power supply, distribution facilities and auxiliary equipment. Rolling Mill Designed for an output of 500,000 tons per year, this unit has one walking-beam reheating furnace, or RHF, a four-stand blooming mill, a 250 ton hot shear, a six-stand roughing mill, a six-stand intermediate mill, a six-stand pre-finishing mill, internal water cooling, a double length flying shear, a stepping cooling bed, a 500 ton cold shear, transfer inspection stand, bundling machine, a water-cooling section before wire finishing mill, a 10-stand high-speed wire finishing mill, a water-cooling section after wire finishing mill, a laying head, a loose coil cooling line, reforming device, bundling machine, stripper and coil handling devices. Raw Materials and Energy Suppliers The main raw material the company uses in its long steel production in Volta Redonda is scrap, in addition to pig iron. Mining segment The company’s mining activities are among the largest in Brazil and are mainly driven by the exploration of one of the company’s iron ore reserves, Casa de Pedra, in the state of Minas Gerais. The company sells its iron ore products mainly in Asia, Europe and Brazil with sales and marketing from Brazil and Austria. Casa de Pedra Mine Casa de Pedra is an open pit mine located in the city of Congonhas, in the state of Minas Gerais, approximately 80 km south of the city of Belo Horizonte and 360 km north of the city of Rio de Janeiro. The site is approximately 1,000 meters above sea level and accessible from the cities of Belo Horizonte or Congonhas through mostly paved roads. Casa de Pedra mine is a hematite-rich iron deposit of an early proterozoic banded iron formation in Brazil’s ‘Iron Ore Quadrangle,’ which is located in the central part of the state of Minas Gerais in the Southeast region of Brazil and has been one of the most important iron producing regions in Brazil for the last 50 years. Casa de Pedra mine supplies all of the company’s iron ore needs, except pellets, and produces lump ore, sinter feed and pellet feed fines with high iron content. The following map illustrates the location of the company’s Casa de Pedra mine: The company’s mining rights for Casa de Pedra include the mine, a beneficiation plant, roads, a loading yard and a railway branch and are duly registered with the ANM. The ANM has also granted the company easements in 19 mine areas located in the surrounding region of the Casa de Pedra mine. Engenho Mine Engenho mine is an open cast mine located in the Southeast region of the ‘Iron Ore Quadrangle,’ 60 km from the city of Belo Horizonte, in the state of Minas Gerais. Its ore is processed in the Pires processing plant and in the company’s unit at Casa de Pedra. The company’s mining operations at Casa de Pedra and Engenho mines use hydraulic scoops and wheeled loaders to extract iron ore that is then transported by a large fleet of trucks with an installed annual run of mine capacity of approximately 120 million tons. The iron ore is then processed in the company’s treatment stations, which have an installed capacity of 33 million tons of production per year (covering production in the central plant and production in the dry plants). The company use energy from 100% renewable sources, specifically hydroelectric sources. Fernandinho Mine Fernandinho mine is located in the city of Itabirito, in the Mideastern region of the state of Minas Gerais, approximately 40 km from the city of Belo Horizonte. Fernandinho mine is an open pit mine and is accessible from the cities of Belo Horizonte or Itabirito through mostly paved roads. Fernandinho mine began operations in 1950. Limestone and Dolomite Mine The extraction and preparation of the company’s limestone and dolomite takes place at the company’s Bocaina mining facility located in the city of Arcos, in the state of Minas Gerais. The company’s Bocaina mining facility is an open pit mine, which is accessible from the cities of Belo Horizonte, located approximately 230 km away, and Volta Redonda (where the Presidente Vargas Steelworks is situated), located approximately 460 km away, through paved roads. The ore in this mine is excavated by a fleet of wheel loaders, excavators and tire tractor, and is transported by a fleet of trucks. The company also maintains a fuel truck, a water truck and additional heavy equipment. The company’s Bocaina mining facility has an installed annual production capacity of approximately 12.0 million tons and has sufficient limestone and dolomite reserves to adequately supply the company’s steel production, at levels, for approximately 36 years. Tin Facility The company owns a tin facility in Itapuã do Oeste, in the state of RondÔnia, through the company’s subsidiary ERSA. This facility has an installed annual production capacity of approximately 3,600 tons of tin, which the company uses substantially as a raw material to produce tin plate, a coated steel product. A small part of the company’s tin production that is not used as raw material is sold to third parties; however, the results from these sales are insignificant in the company’s consolidated results. Mineral Rights and Ownership The company holds concessions to mine iron ore, limestone and dolomite. The company purchases manganese in the local market. As of December 31, 2022, the company owned 78.2% of CSN Mineração mines and 100% of Bocaina and Santa Bárbara mines. In addition, each mine is an ‘open pit’ mine. Iron ore extraction, crushing, screening and concentration take place in three different sites: Casa de Pedra mine and Pires beneficiation plant (both of which belong to CSN Mineração) and Fernandinho mine (which belongs to Minerios Nacional). Elizabeth Mines Pitimbu Mine The open pit mining of limestone, clay and sand will take advantage of the mineral reserves of an area of 746.73 ha as required by the ANM. The mining project will be developed in three phases, with four Pits. Mining will follow a sequence: cleaning of the area; removal of sterile; disassemble; crushing and transport. The deposit is exploited mechanically in an open pit. The dismantling of the rock is done using explosives, which are delivered on the day of detonation for immediate use according to an established fire plan. After being extracted, the ore goes to a crusher and later to a conveyor belt that will take it to the industrial unit of Elizabeth Cimentos Ltda., which is the only customer. In addition to the crusher, the following are used in the process: conveyor belt, hydraulic drills, off-road loaders and trucks, excavators, hydraulic breakers, motor graders. 40 employees are responsible for the operationalization of the mine employees. Lafarge Mines Barroso/MG Plant Mining Complex of Barroso Plant The Mining Complex of Barroso Plant consists of two mines: Capoeira Grande Mine, located adjacent to the industrial plant area of the factory, in Bairro do Rosário, in the municipality of Barroso, in the state of Minas Gerais. This mine comprises the following 3 Mining Rights: ANM-822.551/1971, ANM-805.813/1975 and ANM-832.011/1999. Note: On February 26, 1986, case ANM-822.551/1971 included the titles of cases ANM-003.423/1940, ANM-004.162/1942, ANM-001.821/1965, ANM-818.906/1970 and ANM-803.284/1971. Mata do Ribeirão Mine located on Highway BR-265, in the rural area of the municipality of Barroso, in the state of Minas Gerais, about 10km from the plant. The following 6 Mining Rights make up the reserves and resources of this mine: ANM-000.410/1945 and ANM-005.670/1954, ANM-008.021/1960, ANM-800.568/1975, ANM-800.569/1975 and ANM-851.747/1975. Note: On December 18, 1975, the approval of Mining Group nº 30/1975 was published in the DOU, consisting of processes ANM-000.410/1945, ANM-005.670/1954 and ANM-851.747/1975. Capoeira Grande and Mata do Ribeirão mines, operate limestone production models in a similar way, with their advances conducted on slopes and berms connected by access ramps, the mining method is mechanized with rock blasting using explosives. The processing of two mines consists of a primary crusher in each mine and unified limestone pile crushing and secondary crushing facility which is equipped with cone crushers and classifying screens. There is also a waste dump in each mine. Pedro Leopoldo/MG Plant Mining Complex of Pedro Leopoldo Plant The mining complex is formed by the Campinho Farm Mine and its southern expansion (Campinho Sul) All limestone supply to the plant is carried out by this mine. Access to the mine area is via Avenida Camilo Alves Silva and Rua Espírito Santo to Avenida Carlos Bernadino Pereira (Avenida da Correia). The 3 Mining Rights that make up the mine are: ANM-931.775/2011, ANM-001.273/1964 and ANM-801.702/1978. Note: In 2011, the Mining Grouping of the 3 ANM processes was required, resulting in process ANM-931.775/2011. The Request for Mining Grouping is still pending analysis. Cantagalo Plant The mining complex of Cantagalo is formed by a mine in operation called Mina da Saudade and is located adjacent to the plant area of the factory, which is located on Highway RJ-166, km 8, in the municipality of Cantagalo, state of Rio de Janeiro. Access to the mine is via internal access to the plant. This mine comprises the following four Mining Rights: ANM-004.331/1960, ANM-006.665/1965, ANM-805.436/1968 and ANM-806.415/1972. Note: On December 30, 1997, the inclusion of areas of Mining Concessions under processes ANM-004.331/1960 and ANM-806.415/1972 was requested. The proven reserves and resources have their environmental licenses in order and are under their own property. The mining operation at the Cantagalo Plant supplies the limestone substance for the manufacture of cement and offers grades and physical-chemical characteristics suited to the needs of the plant. Caaporã Plant The mining complex at Caaporã Plant of CSN Cimentos Brasil S.A. it is located in an area adjacent to the plant area of the factory. Access to the mine is via roadways from the plant. This mine comprises the following 3 Mining Rights: ANM-805.923/1974, ANM-840.263/1982 and ANM-840.120/1983. Proved reserves are owned by CSN and their environmental licenses have been regularized. Mine resources are partially owned by CSN. Montes Claros Plant The Montes Claros mining complex owned by CSN Cimentos Brasil S.A. it is located in an area adjacent to the plant area of the factory. All cubed resources and reserves are CSN's property and their environmental licenses have been regularized. Access to the areas is via internal roads in the plant. The undertaking target of this study corresponds to the mining grouping nº 930.063/1998, process started on 05/12/1998 The Grouping is composed of 8 Mining Rights, namely: ANM-007.914/1964; ANM-831.062/1986; ANM-831.130/1982; ANM-831.304/1980; ANM-831.305/1980; ANM-831.306/1980; ANM-831,416/1983; ANM-816.483/1969. Cement segment The company’s Cement segment comprises seven integrated cement plants, six grinding and mixing plants and 15 distribution centers throughout the Southeast, Northeast and Midwest of Brazil. Production The company’s cement production in the Southeast region of Brazil takes place in the states of Rio de Janeiro (Volta Redonda) and Minas Gerais (Arcos, Barroso, Pedro Leopoldo, Montes Claros and others) and begins with the influx of raw materials comprising clinker, limestone, gypsum and slag. Clinker is produced in the company’s plant in Arcos, where limestone, clay and other correctives, such as iron ore and bauxite are ground in a raw mill and calcined inside the kiln. Clinker and limestone are stored in silos and warehouses and come in part from Arcos to Volta Redonda by rail. Slag is a by-product of iron and steel, produced in the blast furnace and is stored in a warehouse, arriving at the company’s cement plant by road. The company uses natural gypsum, which arrives at the plant by truck and is stored in a warehouse. The company’s cement production in the Northeast region of Brazil takes place in Alhandra in a similar clinker production process as in Arcos. All transportation of raw materials within the plant is carried out by conveyor belts, placing inputs in scales according to a predefined formula and delivering them to the mills. There are two grinding lines in each of the company’s Volta Redonda, Arcos and Alhandra plants. The total annual capacity of the company’s seven cement plants is 17 million tons. The cement grinding process in Volta Redonda and Arcos is by vertical mills. The mills have a hydraulic roller system, which uses pressure to grind the layer of material on the turntable. In Volta Redonda, hot gas, derived from the combustion of natural gas or petroleum coke, is used in the mills to dry materials. In Alhandra, the cement grinding process is by ball mills. The materials are ground to a fine powder, in rotating, cylindrical ball mills containing a charge of steel grinding balls. The company produces clinker in each of its seven integrated cement plants. The main raw materials for the production of clinker are limestone, clay and other correctives (iron ore, bauxite, etc.). These materials undergo grinding and are then dosed, forming the so-called ‘raw meal.’ After the homogenization of this raw meal, the mixture is taken to a kiln where it is heated to high temperatures. As a result of this procedure, the company obtains clinker, which is the base material for the company’s cement. The company adds gypsum and other ingredients to the clinker mix that are dosed and fed into the cement mills until the company reaches a granulometry suitable for the type of cement products. In addition to the company’s integrated plant mills, the company has independent grinding stations in strategic locations that receive the company’s clinker or clinker purchased in small volumes from third parties. The portfolio of cement products the company offers in bagged and bulk forms includes the following: CP II (Composite Portland Cement), CPIII (Blast Furnace Portland Cement) and CP V ARI (High Initial Strength Portland Cement). The company produces these different types of cement with the addition of different elements in the composition, as well as filler (calcium carbonate), slag and pozzolan. Energy segment The company’s Energy segment comprises its generation plants. Following is an overview of the company’s Energy segment related assets. Thermoelectric Co-Generation Power Plant The company has a 245 MW thermoelectric co-generation power plant at the Presidente Vargas Steelworks. Aside from operational improvements, the power plant supplies the company’s strip mills with electric energy, processed steam and forced air from the blast furnaces, benefiting the surrounding environment through the elimination of flares that burn steel-processing gases into the atmosphere. In addition, the company has a turbine generator, which adds 22 MW to the company’s installed capacity. This turbine is located near the company’s blast furnace no. 3 and uses the outlet gases from the iron making process to generate energy. The total annual capacity of the company’s thermoelectric co-generation power plant is 267 MW. Itá Hydroelectric Facility The company holds a 29.50% equity interest in the Itá hydroelectric facility, as the company and Engie Brasil each own 48.75% of ITASA, a special-purpose company formed to own and operate, under a 30-year concession granted in 2000, 60.5% of the Itá hydroelectric facility on the Uruguay River in Southern Brazil. Itambe owns the remaining 2.5% of ITASA. Engie Brasil directly owns the remaining 39.5% of the Itá hydroelectric facility, which has an installed capacity of 1,450 MW. Igarapava Hydroelectric Facility The company owns 17.92% of a consortium that built and has the right to operate for 30 years, until September 2031, the Igarapava hydroelectric facility. Other consortium members are Aliança, L.D.R.S.P.E. Geracão de Energia e Participações Ltda. and AngloGold. The facility has an installed capacity of 210 MW. Santa Ana Hydroelectric Facility CSN Cimentos and the company’s energy subsidiary CSN Energia own 100% of Santa Ana Energetica S.A., which holds the concession for the hydroelectric power plant of Santa Ana that has an installed capacity of 6.5 MW. Sacre II Hydroelectric Facility CSN Cimentos and the company’s energy subsidiary CSN Energia own 100% of Topázio Energetica S.A., which holds, through its subsidiary Brasil Central Energia Ltda., the concession for the hydroelectric power plant of Sacre II that has an installed capacity of 30 MW. Quebra-Queixo Hydroelectric Facility CSN Mineração and the company’s energy subsidiary CSN Energia own 100% of CEC, which holds the concession for the hydroelectric power plant Quebra-Queixo that has an installed capacity of 120MW. CEEE-G CFB owns 98.96% of CEEE-G, which holds several concessions for hydroelectric power plants and greenfield wind power plant projects that represent, in the aggregate, an installed capacity of 1,275 MW. Logistics segment The company’s Logistics segment comprises railway and port facilities. Railways Southeastern Railway System As of December 31, 2022, the company held 37.27% (18.64% directly and 18.63% through CSN Mineração) of MRS’s total capital. The Brazilian Southeastern railway system, with 1,643 km of track, serves the São Paulo – Rio de Janeiro – Belo Horizonte industrial triangle in Southeast Brazil, and links the company’s mines located in the state of Minas Gerais to the ports located in the states of São Paulo and Rio de Janeiro and to the steel mills of CSN, Companhia Siderúrgica Paulista and Gerdau Açominas. In addition to serving other customers, the railway transports iron ore from the company’s mines at Casa de Pedra in the state of Minas Gerais and coke and coal from Itaguaí Port in the state of Rio de Janeiro to the Presidente Vargas Steelworks and transports the company’s exports to the ports of Itaguaí and Rio de Janeiro. The railway system connects the Presidente Vargas Steelworks to the container terminal at Itaguaí Port, which handles most of the company’s steel exports. Northeastern Railway System The company holds interest in companies that have concessions to operate the Northeastern railway system, which operates in the states of Maranhão, Piauí, Ceará and Pernambuco, and connects with the region’s leading ports, offering an important competitive advantage through opportunities for intermodal transportation solutions and made-to-measure logistics projects. Northeastern Railway System I, which is in operation by the company’s subsidiary FTL, encompasses the RFFSA network, covering the stretches between the cities of São Luís – Altos, Altos – Fortaleza, Fortaleza – Souza, Souza – Recife/Jorge Lins, Recife/Jorge Lins – Salgueiro, Jorge Lins – Propriá, Paula Cavalcanti – Cabedelo and Itabaiana – Macau, with 4,238 km of railways, of which 1,191 km are operational, and the company is negotiating with the National Agency for Ground Transportation (Agência Nacional de Transportes Terrestres), or ANTT, to return the remainder. As of December 31, 2022, the company held 92.71% of the capital stock of FTL and its concession extends until 2027, renewable for an additional 30 years. Northeastern Railway System II, which is under construction by the company’s jointly controlled investee TLSA, will encompass the new network, covering the stretches between the cities of Eliseu Martins – Trindade, Trindade – Salgueiro, Salgueiro – Porto Suape, Salgueiro – Missão Velha and Missão Velha – Porto de Pecem, with an expected extension of 1,753 km that will connect the interior of Northeast Brazil to Pecem and Suape Ports. As of December 31, 2022, the company held 48.03% of the capital stock of TLSA and its concession extends until the earlier of 2057 or the date when TLSA recovers its invested equity at an annual rate of return of 6.75%. In September 2013, the company entered into an investment agreement, or the TLSA Investment Agreement, with Valec Engenharia, Construções e Ferrovias S.A., or Valec, and the Northeast National Development Fund (Fundo Nacional de Desenvolvimento do Nordeste), or FDNE, two Brazilian government entities focused on infrastructure and the development of the northeastern region and the company’s partners in TLSA. Under the TLSA Investment Agreement, the company and its partners agreed on a budget of R$7.5 billion to complete the construction of the Northeastern Railway System II. In December 2022, the company entered into an amendment to the concession agreement of TLSA, pursuant to which, among other things, there was a change to the railroads granted to TLSA and the company agreed to certain mandatory investments and to the conditions for the return of the Salgueiro – Porto de Suape’s grid. This amendment represents an important step in the evolution of TLSA’s operations, which will support the company’s operations and the transportation of the company’s products across the Northeast region of Brazil. Port Facilities Solid Bulks Terminal The company operates an integrated and modern logistics structure. Part of this structure includes the operation of TECAR through a concession renewed in 2015 and expiring in 2047. TECAR is connected to road and rail systems across Southeast Brazil and is one of the four port terminals that make up the Port of Itaguaí facilities. With a strategic location and a total area of 740,761 m², the terminal consists of a concrete molded berthing pier superposed on jacketed stilts connected to the mainland by an access bridge perpendicular to the berthing pier. Its backyard includes conveyor belts, an internal road system, bulk storage yards and a railway looping, as well as industrial and administrative facilities. Container Terminal The company indirectly owns almost the entirety of TECON, which has a concession to operate the container terminal at Itaguaí Port for a 25-year term expiring in 2026, which is renewable for an additional 25 years. The Itaguaí Port is located in Brazil’s Southeast region, with all major exporting and importing areas in the states of São Paulo, Minas Gerais and Rio de Janeiro within 500 km. In 2020, this area represented 50% of the Brazilian GDP, according to the IBGE. In 2022, the company continued to invest in updating its operating facilities and complying with regulatory requirements. In addition, in 2022, the company bought nine new rubber tyred gantries. In 2023, the company will begin operating nine new rubber tyred gantry cranes and the company expects to acquire six new forklifts, improving the company’s operational capacity. TECON will keep investing in the project expansion in order to increase its capacity by approximately 40%, which would make it one of the largest port terminals in Brazil, with a nominal capacity of 1,000,000 TEUs per year. This expansion project, which is under discussion with regulatory agencies, includes a quay extension of 273 meters, with a total resulting length of 1,083 meters, acquisition of two new gantry cranes (ship-to-shore) for larger container carriers, acquisition of additional yard civil works and equipment, and dredging of the access channel and maneuvering basin. Marketing, Organization and Strategy Flat Steel The company’s steel products are sold both domestically and abroad as a raw material for several manufacturing industries, including the automotive, home appliance, packaging, construction and steel processing industries. The company’s sales approach involves establishing brand loyalty and achieving a reputation for quality products by developing relationships with the company’s customers, focusing on their specific needs and providing tailor-made solutions. The company’s commercial area is responsible for sales of all the company’s products. This area is divided into two major teams, one focused on sales in international markets and the other on sales in the domestic market. The domestic market sales team covers seven market divisions: packaging, distribution network, automotive industry (automakers and auto parts), home appliances, general industry, construction and pipes. The company also has a team responsible for selling all process residues, which include blast furnace slag, pitch and ammonia, which are widely used as inputs in chemical and cement industries. The distribution network division is responsible for supplying large steel processors and distributors. In addition to independent distributors, the company counts with the company’s own distributor, Prada Distribuição. The pipes division supplies oil and gas pipe manufacturers, as well as industries that produce small diameter pipe and light profiles. The packaging division acts in an integrated way with suppliers, representatives of the canning industry and distributors to respond to customer needs for finished products. The company supplies the automotive division from a specialized mill, CSN Porto Real, and also by a portion of the galvanized material produced at Presidente Vargas Steelworks, thereby benefitting from a combined sales strategy. Sales by Geographic Region In 2022, the company sold steel products to customers in Brazil and in 18 other countries. The company sells its steel products to manufacturers in several industries. The company has a particularly strong domestic and export position in the sale of tin plates products used for packaging in Latin America. The company’s customers for these products include some of the world’s largest food processing companies, as well as many small and medium-sized entities. The company also maintains a strong position in the sale of galvanized products for use in the automobile manufacturing, construction and home appliance industries in Brazil and abroad, supplied by CSN Porto Real and CSN Paraná. Seasonality Although steel demand is stronger in the second quarter of each year (year ended December 2022) and weaker in the last quarter, the company’s production is continuous throughout the year. Long Steel – SWT The company’s long steel products are sold both in Germany (approximately 30%) and other countries, mainly in Europe (approximately 60%), for use in industrial, infrastructure, civil construction and engineering industries. The company’s sales approach is to establish brand loyalty and to maintain the company’s reputation of high quality products and excellent delivery performance by developing long-term relationships with the company’s customers. SWT focuses on meeting specific customer needs, developing solutions for both low temperature and high temperature resistant applications, as well as optimized section shapes for special applications. The company’s commercial area is responsible for sales of all of the company’s products worldwide. This area is divided into the direct sales team which is organized in 13 agencies located in Germany and in the company’s core markets in Europe, the commercial back office department (order management from entry via tracking to the final delivery and invoicing), logistics contracting (truck, rail, vessel, maritime, inventory worldwide) and a rail logistics department. Long Steel – Volta Redonda In 2013, the company started the production of long steel in Volta Redonda. This plant has production capacity of 500 kt/year when fully operational, providing the domestic market with products for civil and industrial construction. Divided in wire rod, rebar CSN 50 and rebar CSN 25, the company developed its products using high technology and in accordance with the highest quality and sustainability standards. The company’s commercial team has its own sales force dedicated to meet all the needs of the long steel market: small customers as well as large wholesalers. The company count with strategically located distribution centers to deliver the company’s products throughout Brazil. In order to provide a wide range of products for the civil construction segment, the company include in its product portfolio, in addition to cement and structural section products derived from flat steel, products, such as tiles and tubes, among others. Iron Ore Iron ore products are commercialized by the company’s teams located in Brazil, Portugal and Hong Kong. These three marketing units allow the company to maintain close relations with the company’s customers worldwide, understand the environment where they operate, monitor their requirements and provide all necessary assistance in a short period of time. Market intelligence analysis, planning and administration of sales are handled from Brazil by the staff in the company’s São Paulo office, while the company’s domestic commercial team is located at Casa de Pedra mine, in the state of Minas Gerais. The company supplies its iron ore to the steel industry, and the company’s main destinations are Brazil, Europe and Asia. Prevailing and expected levels of demand for steel products directly affect demand for iron ore. Demand for steel products is correlated to many factors, including GDP, global manufacturing production, urbanization, construction and infrastructure spending. In 2022, the company’s iron ore sales reached 33.3 million tons, of which 29.2 million tons were sales to third parties and 4.1 million tons were sales to the company’s steel mills. In 2022, 87.1% of the company’s iron ore export sales went to the Asian market, mainly China, and 12.9% were sold in the European market. Of the company’s total sales volume to third parties, 95.6% were sinter feed and 4.4% lump ore. Through the company’s marketing offices, the company has long-term relationships with most players in the steel industry in China, Japan, Taiwan, South Korea, Europe and Brazil. Cement The company has a diverse customer base of approximately 25,000 customers, including construction material stores, home centers, concrete producers, construction companies, mortar industries and cement artifact producers. The focus of the company’s cement sales strategy is on the retail segment, in which the company has a strong presence in sales points where the company reinforces the quality of the company’s product to final customers. The retail segment operates with a low level of inventory, and a significant percentage of repurchase, which highlights the competitive advantage of the company’s distribution centers. Regulatory Matters Environmental Regulation The company is subject to regulation and supervision by the Brazilian Ministry of Environment (Ministerio do Meio Ambiente – MMA), the environmental national council (Conselho Nacional do Meio Ambiente), which is responsible for enacting technical regulations and environmental protection standards, and the Brazilian Institute of Environment and Renewable Natural Resources (Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis – IBAMA), which is responsible for enforcing environmental laws at the federal level. The environmental regulations of the state of Rio de Janeiro, in which the Presidente Vargas Steelworks and Cantagalo cement plant are located, are enforced by the state government of Rio de Janeiro and municipalities, and supervised by the state environment institute (Instituto Estadual do Ambiente), or INEA, and the municipal environmental secretariat of each of Volta Redonda and Cantagalo. In the state of Minas Gerais, where the company’s main mining operations and certain of the company’s cement operations are located, the company is subject to regulations and supervision by the Environmental Policy Council (Conselho Estadual de Política Ambiental – COPAM), the Regional Superintendent of Environment and Sustainable Development (Superintendência Regional de Meio Ambiente – SUPRAM), the Superintendency of Priority Projects (Superintendência de Projetos Prioritários – SUPPRI), the Water Management Institute of Minas Gerais (Instituto Mineiro de Gestão das Águas – IGAM), the State Forestry Institute (Instituto Estadual de Florestas – IEF) and the State Environmental Foundation (Fundação Estadual do Meio Ambiente – FEAM), which are the competent bodies of the Secretary of State for the Environment and Sustainable Development of Minas Gerais (Secretaria de Estado de Meio Ambiente e Desenvolvimento Sustentável – SEMAD). The company is also subject to local regulators, including the municipal environmental secretariats of Congonhas and Belo Vale, Ouro Preto and Rio Acima for the company’s mining operations, and Arcos, Barroso, Montes Claros and Pedro Leopoldo, for the company’s cement operations. In the second half of 2022, the company initiated cement operations in certain Brazilian states, and consequently, new regional environmental agencies started to regulate the company’s activities, such as: superintendence of environmental administration (Superintendência de Administração do Meio Ambiente) and the executive water management agency (Agência Executiva de Gestão das Águas do Estado da Paraíba) in the State of Paraíba; institute of the environment and water resources (Instituto do Meio Ambiente e Recursos Hídrico) in the State of Bahia; secretary of state for environment and sustainable development (Secretaria de Estado de Meio Ambiente e Desenvolvimento Sustentável) in the State of Goiás; environmental company of the State of São Paulo (Companhia Ambiental do Estado de São Paulo); department of water and electric energy of the department of sanitation and water resources (Departamento de Águas e Energia Eletrica da Secretaria de Saneamento e Recursos Hídricos) in the State of São Paulo; institute of environment and water resources (Instituto de Meio Ambiente e Recursos Hídricos) and state water resources agency (Agência Estadual de Recursos Hídricos) in the State of Espírito Santo. Mining Regulation The company operates its iron ore mining activities at Casa de Pedra mine under a mining concession known as Manifesto de Mina under Brazilian regulations, which gives the company the right to extract the iron ore deposits existing within the company’s property limits. The company’s iron ore mining activities at Engenho and Fernandinho mines are based on a concession by the MME, which grants the company the right to exploit mineral resources from the mine for an indeterminate period of time lasting until the exhaustion of the mineral deposit. The company’s limestone and dolomite mining activities at Bocaina mine and the company’s tin mining activities at Ariquemes (ERSA mine) are based on concessions under similar conditions. The company’s mineral rights for Casa de Pedra mine include the mining concession, a beneficiation plant, roads, a loading yard and a railway branch, and are duly registered with the ANM. The company has also been granted by the ANM easements in 19 mine areas located in the surrounding region. These areas are needed to expand the company’s operations and as operating support areas. In addition, the company has obtained and are in compliance with all environmental licenses and authorizations for the company’s operations and projects at Casa de Pedra mine. Antitrust Regulation The company is subject to various laws in Brazil which seek to maintain a competitive commercial environment. Competition law and practice in Brazil are governed by Law No. 12,529, dated November 30, 2011, which came into force on May 30, 2012, and provided for significant changes in the Brazilian antitrust system’s structure, including the creation of the Brazilian antitrust authority (Conselho Administrativo de Defesa EconÔmica), or CADE. This law introduced a mandatory pre-merger notification system, as opposed to the post-merger review system previously in force. CADE comprises an Administrative Tribunal of Economic Defense (Tribunal Administrativo de Defesa EconÔmica), a General-Superintendence (Superintendência-Geral) and a Department of Economic Studies (Departamento de Estudos EconÔmicos). Protectionist Measures In Brazil, the company is subject to regulation and supervision by the Special Secretary of Foreign Trade and International Business (Secretaria de Comercio Exterior e Negócios Internacionais – SECINT), the Secretary of Foreign Trade (Secretaria de Comercio Exterior – SECEX) and the Subsecretary of Trade Defense and Public Interest (Subsecretaria de Defesa Comercial e Interesse Público – SDCOM). Worldwide, the company’s exports are subject to the protectionist measures summarized below. In the United States, the company is subject to regulation and supervision by the U.S. Department of Commerce, or DOC, the ITC, the International Trade Administration, or ITA, and the Import Administration, or IA. In the European Union, the company is subject to regulation and supervision by the European Commission. In Canada, the company is subject to regulation and supervision by the Canadian International Trade Tribunal, the Canada Border Services Agency and the Anti-dumping and Countervailing Directorate. History Companhia Siderúrgica Nacional was founded in 1941. The company was incorporated in 1941 under the laws of the Federative Republic of Brazil.