Companhia Siderúrgica Nacional S A : Integrated Report of CSN Mineração 2023

Integrated

Report

2023

Summary

3 Message

from the Board of Directors

5 Message from the Superintendent Director

7 About the report

1. Materiality matrix

1. 2023 Highlights

28 CSN Mineração

78 Safety and well-being

88 Value chain

92 Local communities

97 Climate change

112 Eco-efficiency

116 Dams and co-products

38	Corporate governance	120	Biodiversity
60	Innovation and	132	Annexes
	technology		133	Complement to GRI
	People and human rights			and SASB disclosures
66		150	GRI content index
			158	SASB content index
			160	Assurance report

Iron ore reclaimer at TECAR port (Itaguaí, RJ)

Integrated Report 2023

2

Messages

About

CSN

Corporate

Innovation

People and

Safety and

Value

Local

Climate Eco-efficiency

Dams and

Biodiversity

Annexes

the Report Mineração

governance

and technology

human rights

well-being

chain

communities

change

co-products

Message from the Board of Directors

Benjamin Steinbruch

Chairman of the Board

of Directors

Two main factors, one external and the other internal, led CSN Mineração to have a highly positive performance in 2023. The situation in the transoceanic iron ore market, favored by strong demand from China and the increase in price realization, contributed to the Company reaching a new historical record, with 42.7 million tons sold. Furthermore, CMIN's operational capacity, which is rapidly advancing projects to increase productivity and operational efficiency, has driven the value creation for shareholders through cost optimization and increased profitability.

With an increase of 37% in the annual comparison, CSN Mineração's net revenue reached R$ 17.1 billion in 2023. Adjusted EBITDA, with a positive variation of 30%, reached R$ 7.9 billion at the end of the period. Total gross profit was

R$ 7.2 billion, growth of 35%. These results led the Company to announce, at the end of last year, the distribution of more than R$ 1.8 billion in dividends and interest on equity (JCP).

The mining sector plays a fundamental role in enhancing the environmental efficiency of the steel production chain. Aware of this importance, CSN Mineração has a clear strategy to position itself as

one of the largest and most sustainable mining companies in the world. The development of several structuring projects, such as the P15 plant for processing itabirite scheduled to start operations in 2027, will increase the Company's production capacity by more than 80% and allow the offer of premium products, which facilitate decarbonization pathways for steel mills worldwide. In 2023, CSN Mineração took a first step in this direction, becoming part of the Low-Carbon Iron Hub joint venture in Abu Dhabi, an initiative that verticalizes the production of green steel in the world.

CSN Mineração's expansion projects will support the decarbonization of the steel chain

GRI 2-22

Integrated Report 2023

3

Messages

About

CSN

Corporate

Innovation

People and

Safety and

Value

Local

Climate Eco-efficiency

Dams and

Biodiversity

Annexes

the Report Mineração

governance

and technology

human rights

well-being

chain

communities

change

co-products

The strategy of de-characterization of dams, associated with the reprocessing of tailings, is another pillar of the Company's ESG agenda. Three of them are already completely finalized, with the civil works on the Vigia dam being completed last year. Additionally, all dams were considered stable, without emergency level, by the National Mining Agency.

On the front of climate change and reducing greenhouse gas emissions, CSN Mineração is one of the pioneers in adopting innovations to reduce its own carbon footprint. The Company completed tests with the first off-road electric trucks at the Casa de Pedra mine, achieving highly positive operational results. Another six electric vehicles will be incorporated in 2024, demonstrating the effectiveness of having a climate strategy that assesses risks

and opportunities in a way that is structured and connected to business objectives.

With safety as a value, CSN Mineração also celebrated in 2023 the mark of ten years without any fatal accidents in its operations, in addition to a 16.2% reduction in the accident frequency rate compared to the previous year. This positive performance will continue to be strengthened with the implementation of the AGIR Program, an integrated platform designed to prevent high potential accidents and reinforce

the commitment of all leaders and employees to maintaining safe behavior.

Committed to the decarbonization of its activities, CSN Mineração acquired three off-road electric trucks to use in the operations of the Casa de Pedra mine

Care and attention to people go beyond our operations, extending to neighboring communities. In 2023, CSN Mineração completed an in-depth study to assess potential impacts and risks on human rights, associated with mining activities and expansion, and established an engagement plan with a solid system of structured dialogue with internal and external stakeholders.

This management approach is enhanced by the social investments of the CSN Foundation. Last year, the institution expanded the scholarship program for courses at the Technological Education Center (CET, acronym in Portuguese), a school that benefits young people in the municipality of Congonhas (MG) with quality technical training.

Three years after its debut on the stock exchange, CSN Mineração is consolidated as one of the largest and most innovative publicly traded companies in the country. Corporate governance processes are systematically improved, integrating into risk management the assessment of impacts on different fronts of the ESG agenda - climate change, diversity, human rights, eco-efficiency, among other aspects. This evolution qualifies strategic decision-making and provides the allocation of resources in sustainable investments from an economic, social and environmental perspective.

In 2024, demand for iron ore is expected to remain strong to meet steel production in China, Southeast Asia and Europe. At the same time, raw material stocks may increase, with the resumption of projects in Australia, Canada and Brazil itself. The ability to offer products of higher quality and sustainability, combined with world-class operational and logistical efficiency, will be a relevant factor of differentiation and competitive advantage for CSN Mineração to maintain customer preference and remain one of the global leaders in the mining sector.

Benjamin Steinbruch

Chairman of the Board of Directors

GRI 2-22

Integrated Report 2023

4

Messages

About

CSN

Corporate

Innovation

People and

Safety and

Value

Local

Climate Eco-efficiency

Dams and

Biodiversity

Annexes

the Report Mineração

governance

and technology

human rights

well-being

chain

communities

change

co-products

Message from the Superintendent Director

Enéas Garcia Diniz

Superintendent Director

of CSN Mineração

With a record sales performance in 2023, CSN Mineração once again demonstrated its ability to capture market opportunities through an efficient, responsible and innovative operation. The Company ended the period strengthened by the increase in global demand for iron ore and ready to consolidate its growth strategy.

The total iron ore produced in the year, 42.6 million tons, is CMIN's new production record, considering its own production and purchases. This operational performance associated with the recovery in the price of the commodity on the international market led to significant improvements in the Company's financial indicators and cash position, which enjoys a negative leverage ratio of 0.15x.

Consolidating financial strength is essential to boost CMIN's expansion projects. Phase 1 of this journey, with a total investment estimated at R$

15.3 billion, is already underway. One of the main projects is the installation of P15, a new itabirite processing plant, which achieved a 25% progress - in line with the scheduled startup for 2027.

P15 is also a strategic project to offer the steel sector a premium product, which will help decarbonize the production process. With a higher iron content, this ore allows the production of pellets for direct reduction, HBI and other products for export. Part of the production will even be destined for the Low-Carbon Iron Hub, a joint venture in the United Arab Emirates aimed at boosting the production of green steel.

The Company has also made significant progress in the dam de-characterization project. Since 2020, CMIN has transitioned to disposing of mining waste in dry piles and has invested in the elimination of old structures, reusing materials and water. In 2023, work on the Vigia dam was completed. B5 and the Vigia Auxiliary Dam have already been de-characterized and

B4 will be completed by 2028, according

to the project approved by regulatory bodies.

GRI 2-22

Integrated Report 2023

5

Messages

About

CSN

Corporate

Innovation

People and

Safety and

Value

Local

Climate Eco-efficiency

Dams and

Biodiversity

Annexes

the Report Mineração

governance

and technology

human rights

well-being

chain

communities

change

co-products

The year was also marked by the contracting of engineering studies for the de-characterization of the Casa de Pedra dam, which will be demobilized even without legal obligation, as it is not a built by the upstream method. It is important to highlight that all CMIN dams have renewed declarations of stability, without an emergency level, and that the Company has no history of accidents in these structures since the beginning of their operations in 1913.

At the operational level, different initiatives supported CMIN's positive results in 2023. The Company invested in improving the mining plan, enhanced the storage of ore near the processing plants, strengthened inspections and monitoring of railway transport and streamlined handling and boarding at TECAR port.

Focusing on the decarbonization of operations, CMIN completed tests with 100% electric off-road trucks and obtained positive results. Three vehicles of this type were purchased and six more will be tested throughout 2024. In addition, other initiatives have been assessed and implemented to reduce CO2 emissions, such as limiting engine speed, installing automatic shutdown systems and using of additives to optimize combustion in diesel engines.

GRI 2-22

In 2023, CSN Mineração was able to celebrate the ten- year mark without any fatal accidents in its operations

CMIN's management processes and tools have followed operational and commercial developments over the last year. The Company launched the AGIR Program, focused on preventing high-risk accidents and strengthening the safety culture. The initiative reinforces the commitment to safe action for employees and third parties, seeking the continuous reduction of incident severity and frequency indicators.

In managing relationships with communities, the Company made important advances to improve socio-environmental impact management practices. Invested in innovative solutions to reduce dust and particulate emissions in mines, consolidated a stakeholder engagement

system and a methodology for assessing and mitigating human rights risks.

Another commitment of the sustainability agenda is the strengthening of diversity, equal opportunities and inclusion in the workforce. The Company has set the goal of doubling female representation in its workforce in relation to 2019, reaching a minimum level of 26% by 2025. Last year, women already represented 24%1 of CMIN's total employees.

The training and development of employees, through structured initiatives such as the CSN Corporate University, are essential for CMIN to achieve its strategic objectives. The approximately 8 thousand professionals who work in operations and administrative areas are protagonists in the story of overcoming challenges and achieving positive results written in 2023 and which will continue

for the next few years.

Enéas Garcia Diniz

Superintendent Director

of CSN Mineração

1. Considers all employees, including interns.

Integrated Report 2023

6

Messages

About

CSN

Corporate

Innovation

People and

Safety and

Value

Local

Climate Eco-efficiency

Dams and

Biodiversity

Annexes

the Report Mineração

governance

and technology

human rights

well-being

chain

communities

change

co-products

About the report

This is the fourth edition of the Integrated Report of CSN Mineração S.A. (CSN Mineração or CMIN). The publication reinforces the Company's commitment to transparent accountability to society and the constant evolution of social, environmental and governance information disclosure practices. On an annual basis, the document is subject to independent verification.

Approved by the Board of Directors and audited by Grant Thornton, the Integrated Report presents the management practices, performance and goals defined by the Company in the period from January 1 to December

31, 20231. The topics covered throughout the chapters were defined according to the 2023 materiality study and represent the main impacts, risks and opportunities associated with the Company's business model.

The financial data2 follow the guidelines issued by the CPC Committee and the international accounting standards (International Financial Reporting Standards - IFRS) issued by

the International Accounting Standards Board (IASB), as well as the interpretations of the International Financial Reporting Interpretations Committee (IFRIC).

The 2023 Integrated Report covers the same scope as CMIN's financial statements, except for MRS Logística and HPP Passo Real. These companies are considered for the consolidation of financial results but are not covered by GRI disclosures. In relation to the previous year, the scope of the Integrated Report was not changed. In line with the main market benchmarks, the document was prepared in accordance with the following frameworks:

GRI Standards for Sustainability Reporting, from the Global Reporting Initiative;

International Framework for Integrated Reporting (IIRC) in accordance with Technical Guidance 09 of the Accounting Pronouncements Committee (CPC);

Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Task Force on Nature-related Financial Disclosures (TNFD);

Sustainability Accounting Standards Board (SASB) indicators for the Metals & Mining sector.

To send comments, questions or suggestions, please contact us by email [e-mail].

1. The data and information presented in this Integrated Report contain statements about current and future sustainability measures, targets and other objectives. These targets have been disclosed in the limited context of the Company's sustainability efforts and should not be construed as statements of management's expectations or estimates of financial results or other guidelines. The Company cautions investors not to apply these statements in other contexts.
2. In the case of conversions with foreign currencies in relation to the Real, the average annual exchange rate for the reference period of this Integrated Report applies.

GRI 2-2 | 2-3 | 2-5 | 2-14

Integrated Report 2023

7

Messages

About

CSN

Corporate

Innovation

People and

Safety and

Value

Local

Climate Eco-efficiency

Dams and

Biodiversity

Annexes

the Report Mineração

governance

and technology

human rights

well-being

chain

communities

change

co-products

Pile of iron ore in Casa de Pedra (Congonhas, MG)

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GRI 2-2 | 2-3 | 2-5 | 2-14

In the footer, notes indicate which GRI disclosures and SASB indicators are answered on each page. Correlations between GRI disclosures and UNCTAD indicators, Global Compact Principles and Sustainable Development Goals (SDG) are presented in the GRI content index.

Integrated Report 2023

8

Messages

About

CSN

Corporate

Innovation

People and

Safety and

Value

Local

Climate Eco-efficiency

Dams and

Biodiversity

Annexes

the Report Mineração

governance

and technology

human rights

well-being

chain

communities

change

co-products

Materiality matrix

Iron ore loading area at the Pires Complex (Ouro Preto, MG)

The materiality study conducted by CSN Mineração in 2023 guides the topics covered by this edition of the Integrated Report and brought two significant advances in relation to previous exercises of evaluation and prioritization of material topics.

The first of these is the incorporation of the financial materiality bias, giving the study methodology the condition of double materiality. From this perspective, the evaluations considered both the impacts generated by the Company on people, the environment and human rights, as well as the most relevant social and environmental risks and opportunities for the business. Double materiality is one of the premises of the European Sustainability Reporting Standards (ESRS), approved in 2023 and which will become mandatory for companies covered by the Corporate Sustainability Reporting Directive (CSRD).

The second differential of the most recent materiality study is the integration with the permanent channels of listening and dialogue with stakeholders. This approach, known as organic materiality, makes

it possible to capture the demands and interests of the various audiences in a continuous and integrated way into the day-to-day processes of operations. In this way, it is possible to obtain a much more dynamic and in-depth view of stakeholder expectations and the impacts, risks and opportunities associated with material topics.

GRI 2-29 | 3-1

Integrated Report 2023

9

Messages

About

CSN

Corporate

Innovation

People and

Safety and

Value

Local

Climate Eco-efficiency

Dams and

Biodiversity

Annexes

the Report Mineração

governance

and technology

human rights

well-being

chain

communities

change

co-products

MATERIAL TOPICS OF CSN MINERAÇÃO

The materiality review process was organized into two complementary work stages. On the desk review front, three market studies, four ESG rating questionnaires and five mining industry benchmarks were analyzed. On the other hand, the evaluation of the Company's permanent engagement channels involved workshops with various areas to identify and evaluate existing channels. For the consolidation of the material topics, the inputs of the channels already structured and with systematization of the results (ESG and financial institution questionnaires, Green Line and Whistleblowing Channel) and themes raised by the managers in the workshops were considered. With this approach, it was possible to obtain expectations and demands from customers, employees, local communities, business and civil

	E
T
A
R
O
P
R
O
C

G

O

V

				E
				C
			N
	R	N	A
E

Climate change1

Biodiversity

E

Local communities

S

I
N
N
O
V
A
T
I
O
N
	A
	N
	D
	T
	E
Human	C
N
	H
rights	O
	L
	O
	G
	Y

society entities, suppliers, financial institutions, investors and civil society as a whole.

As a result, ten topics were identified to compose CMIN's materiality matrix, five of which were considered material both in terms of impact and financial. In a transversal way, the approach to the management of material topics is driven by adequate mechanisms of corporate governance, risk management and promotion of innovation and new technologies.

Dams and		Health,
	safety and
mineral
	well-being1
1
co-products

	G
Eco-efficiency	People
	management
	and DE&I1
Value	Ethics and
chain	compliance1

The review of material topics in 2023 considered the double materiality methodology and incorporated inputs from the Company's permanent engagement channels

R

I

S

K

M

A

NA

	T
EN
GEM

1. Material topics in the impact and financial perspectives.

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Integrated Report 2023

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