United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of
April 2021
Vale S.A.
Praia de Botafogo nº 186, 18º andar,
Botafogo
22250-145 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F x
Form 40-F ¨
(Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1))
(Check One) Yes ¨
No x
(Indicate by check mark if the registrant is submitting the Form 6-K
in paper
as permitted by Regulation S-T Rule 101(b)(7))
(Check One) Yes ¨
No x
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.)
(Check One) Yes ¨
No x
(If “Yes” is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b). 82- .)
Interim Financial Statements
March 31,
2021
BRGAAP in R$ (English)
Vale S.A. Interim Financial Statements
Contents
Report on review of quarterly information
To the Board of Directors and Stockholders
Vale S.A.
Introduction
We have reviewed the accompanying consolidated
and parent company interim accounting information of Vale S.A. ("Company"), included in the Quarterly Information Form (ITR)
for the quarter ended March 31, 2021, comprising the statement of financial position at that date and the income statement and the
statements of comprehensive income, changes in equity and cash flows for the three-month period then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of the consolidated and
parent company interim accounting information in accordance with the accounting standard CPC 21, Interim Financial Reporting, of
the Brazilian Accounting Pronouncements Committee (CPC) and International Accounting Standard (IAS) 34, Interim Financial Reporting
issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the
standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility
is to express a conclusion on this interim accounting information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and International
Standards on Reviews of Interim Financial Information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent
Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively).
A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian
and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the interim information
Based on our review, nothing has come to our attention
that causes us to believe that the accompanying consolidated and parent company interim accounting information included in the quarterly
information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the
preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM.
PricewaterhouseCoopers Auditores Independentes, Rua do Russel 804,
Edifício Manchete, 6º e 7º andares, Rio de Janeiro, RJ, Brasil
22210-907, T: (21) 3232-6112, F: (21) 3232-6113, www.pwc.com/br
Other matters
Value added statements
The quarterly information referred to above includes the parent company
and consolidated statements of value added for the three-month period ended March 31, 2021. These statements are the responsibility
of the Company's management and are presented as supplementary information under IAS 34. These statements have been subjected to review
procedures performed together with the review of the interim accounting information for the purpose of concluding whether they are reconciled
with the interim accounting information and accounting records, as applicable, and if their form and content are in accordance with the
criteria defined in the accounting standard CPC 09 - "Statement of Value Added". Based on our review, nothing has come to our
attention that causes us to believe that these statements of value added have not been properly prepared, in all material respects, in
accordance with the criteria established in this accounting standard, and consistent with the parent company and consolidated interim
accounting information taken as a whole.
Rio de Janeiro, April 26, 2021
PricewaterhouseCoopers
|
Patricio Marques Roche
|
Auditores Independentes
|
Contador CRC 1RJ081115/O-4
|
CRC 2SP000160/O-5
Income Statement
In millions of Brazilian reais, except earnings
per share data
|
|
|
|
Consolidated
|
|
|
Parent company
|
|
|
|
|
|
Three-month
period ended March 31,
|
|
|
|
Notes
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net operating revenue
|
|
|
4(c)
|
|
|
69,301
|
|
|
|
31,251
|
|
|
|
46,075
|
|
|
|
18,793
|
|
Cost of goods sold and services rendered
|
|
|
5(a)
|
|
|
(25,397
|
)
|
|
|
(19,215
|
)
|
|
|
(12,439
|
)
|
|
|
(8,617
|
)
|
Gross profit
|
|
|
|
|
|
43,904
|
|
|
|
12,036
|
|
|
|
33,636
|
|
|
|
10,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses
|
|
|
5(b)
|
|
|
(577
|
)
|
|
|
(516
|
)
|
|
|
(323
|
)
|
|
|
(260
|
)
|
Research and evaluation expenses
|
|
|
|
|
|
(552
|
)
|
|
|
(429
|
)
|
|
|
(252
|
)
|
|
|
(178
|
)
|
Pre-operating and operational stoppage
|
|
|
19
|
|
|
(792
|
)
|
|
|
(1,192
|
)
|
|
|
(748
|
)
|
|
|
(1,160
|
)
|
Equity results and others results from subsidiaries
|
|
|
12
|
|
|
-
|
|
|
|
-
|
|
|
|
13,901
|
|
|
|
(1,687
|
)
|
Brumadinho event
|
|
|
19
|
|
|
(637
|
)
|
|
|
(708
|
)
|
|
|
(637
|
)
|
|
|
(708
|
)
|
Other operating expenses, net
|
|
|
5(c)
|
|
|
(41
|
)
|
|
|
(267
|
)
|
|
|
(487
|
)
|
|
|
(586
|
)
|
|
|
|
|
|
|
(2,599
|
)
|
|
|
(3,112
|
)
|
|
|
11,454
|
|
|
|
(4,579
|
)
|
Impairment and disposals of non-current assets
|
|
|
12 and 14
|
|
|
(897
|
)
|
|
|
(136
|
)
|
|
|
(8
|
)
|
|
|
42
|
|
Operating income
|
|
|
|
|
|
40,408
|
|
|
|
8,788
|
|
|
|
45,082
|
|
|
|
5,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
|
|
|
6
|
|
|
402
|
|
|
|
492
|
|
|
|
93
|
|
|
|
173
|
|
Financial expenses
|
|
|
6
|
|
|
(7,538
|
)
|
|
|
(2,290
|
)
|
|
|
(7,442
|
)
|
|
|
(2,327
|
)
|
Other financial items, net
|
|
|
6
|
|
|
6,960
|
|
|
|
(8,688
|
)
|
|
|
652
|
|
|
|
(5,832
|
)
|
Equity results and other results in associates and joint ventures
|
|
|
12 and 20
|
|
|
(93
|
)
|
|
|
(767
|
)
|
|
|
(93
|
)
|
|
|
(767
|
)
|
Income (loss) before income taxes
|
|
|
|
|
|
40,139
|
|
|
|
(2,465
|
)
|
|
|
38,292
|
|
|
|
(3,114
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax
|
|
|
|
|
|
(8,270
|
)
|
|
|
(1,593
|
)
|
|
|
(7,489
|
)
|
|
|
(1,065
|
)
|
Deferred tax
|
|
|
|
|
|
(1,680
|
)
|
|
|
4,695
|
|
|
|
(239
|
)
|
|
|
5,163
|
|
|
|
|
|
|
|
(9,950
|
)
|
|
|
3,102
|
|
|
|
(7,728
|
)
|
|
|
4,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
30,189
|
|
|
|
637
|
|
|
|
30,564
|
|
|
|
984
|
|
Loss attributable to non-controlling interests
|
|
|
|
|
|
(375
|
)
|
|
|
(347
|
)
|
|
|
-
|
|
|
|
-
|
|
Net income attributable to Vale's stockholders
|
|
|
|
|
|
30,564
|
|
|
|
984
|
|
|
|
30,564
|
|
|
|
984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Vale's stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share:
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common share (R$)
|
|
|
|
|
|
5.96
|
|
|
|
0.19
|
|
|
|
5.96
|
|
|
|
0.19
|
|
The accompanying notes are an integral part of
these interim financial statements.
Statement of Comprehensive Income
In millions of Brazilian reais
|
|
Consolidated
|
|
|
Parent company
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net income
|
|
|
30,189
|
|
|
|
637
|
|
|
|
30,564
|
|
|
|
984
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be subsequently reclassified to income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement benefit obligations (note 23)
|
|
|
1,642
|
|
|
|
47
|
|
|
|
(7
|
)
|
|
|
(9
|
)
|
Fair value adjustment to investment in equity securities
|
|
|
1,553
|
|
|
|
(1,209
|
)
|
|
|
1,279
|
|
|
|
(1,002
|
)
|
Equity results (note 12 and 26)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,923
|
|
|
|
(151
|
)
|
Total items that will not be subsequently reclassified to income statement, net of tax
|
|
|
3,195
|
|
|
|
(1,162
|
)
|
|
|
3,195
|
|
|
|
(1,162
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Translation adjustments
|
|
|
10,023
|
|
|
|
18,305
|
|
|
|
10,501
|
|
|
|
19,601
|
|
Net investments hedge (note 15)
|
|
|
(851
|
)
|
|
|
(2,394
|
)
|
|
|
(851
|
)
|
|
|
(2,394
|
)
|
Net cash flow hedge (note 15)
|
|
|
88
|
|
|
|
277
|
|
|
|
-
|
|
|
|
-
|
|
Equity results (note 12 and 26)
|
|
|
-
|
|
|
|
-
|
|
|
|
88
|
|
|
|
277
|
|
Reclassification of cumulative translation adjustment to net income (note 12)
|
|
|
(6,308
|
)
|
|
|
-
|
|
|
|
(6,308
|
)
|
|
|
-
|
|
Total of items that may be subsequently reclassified to income statement, net of tax
|
|
|
2,952
|
|
|
|
16,188
|
|
|
|
3,430
|
|
|
|
17,484
|
|
Total comprehensive income
|
|
|
36,336
|
|
|
|
15,663
|
|
|
|
37,189
|
|
|
|
17,306
|
|
Comprehensive income (loss) attributable to non-controlling interests
|
|
|
(853
|
)
|
|
|
(1,643
|
)
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to Vale's stockholders
|
|
|
37,189
|
|
|
|
17,306
|
|
|
|
|
|
|
|
|
|
Items above are stated net of tax and the related
taxes are disclosed in note 7.
The accompanying notes are an integral part of
these interim financial statements.
Statement of Cash Flows
In millions of Brazilian reais
|
|
Consolidated
|
|
|
Parent company
|
|
|
|
Three-month
period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Cash flow from operations (a)
|
|
|
47,422
|
|
|
|
9,006
|
|
|
|
55,867
|
|
|
|
6,405
|
|
Interest on loans and borrowings paid (note 18)
|
|
|
(1,585
|
)
|
|
|
(1,077
|
)
|
|
|
(1,989
|
)
|
|
|
(1,589
|
)
|
Cash received (paid) on settlement of Derivatives, net (note 15)
|
|
|
(1,094
|
)
|
|
|
1,332
|
|
|
|
(831
|
)
|
|
|
(178
|
)
|
Income taxes (including settlement program)
|
|
|
(6,433
|
)
|
|
|
(1,527
|
)
|
|
|
(5,118
|
)
|
|
|
(1,352
|
)
|
Net cash provided by operating activities
|
|
|
38,310
|
|
|
|
7,734
|
|
|
|
47,929
|
|
|
|
3,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (notes 13 and 14)
|
|
|
(5,541
|
)
|
|
|
(4,999
|
)
|
|
|
(3,183
|
)
|
|
|
(2,678
|
)
|
Additions to investments (note 12)
|
|
|
(237
|
)
|
|
|
(364
|
)
|
|
|
(403
|
)
|
|
|
(628
|
)
|
Cash paid on the disposal of VNC (note 12)
|
|
|
(3,134
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Short-term investment
|
|
|
(4,069
|
)
|
|
|
884
|
|
|
|
(2,682
|
)
|
|
|
870
|
|
Other investments activities, net (i)
|
|
|
(141
|
)
|
|
|
(244
|
)
|
|
|
(10,657
|
)
|
|
|
1,532
|
|
Net cash used in investing activities
|
|
|
(13,122
|
)
|
|
|
(4,723
|
)
|
|
|
(16,925
|
)
|
|
|
(904
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings from third-parties (note 18)
|
|
|
1,633
|
|
|
|
24,419
|
|
|
|
1,633
|
|
|
|
-
|
|
Payments of loans and borrowings from third-parties (note 18)
|
|
|
(6,913
|
)
|
|
|
(1,678
|
)
|
|
|
(6,401
|
)
|
|
|
(1,226
|
)
|
Lease payments (note 18)
|
|
|
(304
|
)
|
|
|
(218
|
)
|
|
|
(102
|
)
|
|
|
(26
|
)
|
Dividends and interest on capital paid to stockholders (note 24)
|
|
|
(21,866
|
)
|
|
|
-
|
|
|
|
(21,866
|
)
|
|
|
-
|
|
Dividends and interest on capital paid to non-controlling interest
|
|
|
(15
|
)
|
|
|
(12
|
)
|
|
|
-
|
|
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
(27,465
|
)
|
|
|
22,511
|
|
|
|
(26,736
|
)
|
|
|
(1,252
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(2,277
|
)
|
|
|
25,522
|
|
|
|
4,268
|
|
|
|
1,130
|
|
Cash and cash equivalents in the beginning of the period
|
|
|
70,086
|
|
|
|
29,627
|
|
|
|
14,609
|
|
|
|
9,597
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
5,590
|
|
|
|
6,135
|
|
|
|
-
|
|
|
|
-
|
|
Cash and cash equivalents at end of the period
|
|
|
73,399
|
|
|
|
61,284
|
|
|
|
18,877
|
|
|
|
10,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment - capitalized loans and borrowing costs
|
|
|
87
|
|
|
|
138
|
|
|
|
87
|
|
|
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
40,139
|
|
|
|
(2,465
|
)
|
|
|
38,292
|
|
|
|
(3,114
|
)
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity results and others results from subsidiaries (note 12)
|
|
|
-
|
|
|
|
-
|
|
|
|
(13,901
|
)
|
|
|
1,687
|
|
Equity results and other results in associates and joint ventures (note 12)
|
|
|
93
|
|
|
|
767
|
|
|
|
93
|
|
|
|
767
|
|
Impairment and disposal of non-current assets
|
|
|
897
|
|
|
|
136
|
|
|
|
8
|
|
|
|
(42
|
)
|
Depreciation, depletion and amortization
|
|
|
4,012
|
|
|
|
3,676
|
|
|
|
2,047
|
|
|
|
1,932
|
|
Financial results, net (note 6)
|
|
|
176
|
|
|
|
10,486
|
|
|
|
6,697
|
|
|
|
7,986
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
7,718
|
|
|
|
2,553
|
|
|
|
25,884
|
|
|
|
430
|
|
Inventories
|
|
|
(924
|
)
|
|
|
(865
|
)
|
|
|
(111
|
)
|
|
|
(591
|
)
|
Suppliers and contractors (ii)
|
|
|
(1,452
|
)
|
|
|
(2,846
|
)
|
|
|
(1,749
|
)
|
|
|
(2,820
|
)
|
Provision - Payroll, related charges and other remunerations
|
|
|
(1,634
|
)
|
|
|
(885
|
)
|
|
|
(882
|
)
|
|
|
(496
|
)
|
Payments related to Brumadinho event (note 19) (iii)
|
|
|
(813
|
)
|
|
|
(970
|
)
|
|
|
(813
|
)
|
|
|
(970
|
)
|
Other assets and liabilities, net
|
|
|
(790
|
)
|
|
|
(581
|
)
|
|
|
302
|
|
|
|
1,636
|
|
Cash flow from operations (a)
|
|
|
47,422
|
|
|
|
9,006
|
|
|
|
55,867
|
|
|
|
6,405
|
|
(i) Includes loans and advances with related
parties in the Parent Company.
(ii) Includes variable lease payments.
(iii) In addition, the Company has incurred
in expenses, which were recognized straight in the income statement, of R$637 and R$708 for the three-month period ended March 31,
2021 and 2020, respectively. Therefore, the Company has disbursed a total amount of R$1,450 as at March 31, 2021 in relation to the
Brumadinho event (2020: R$1,678).
The accompanying notes are an integral part of
these interim financial statements.
Statement of Financial Position
In millions of Brazilian reais
|
|
|
|
Consolidated
|
|
|
Parent company
|
|
|
|
Notes
|
|
March 31,
2021
|
|
|
December
31,
2020
|
|
|
March 31,
2021
|
|
|
December
31,
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
18
|
|
|
73,399
|
|
|
|
70,086
|
|
|
|
18,877
|
|
|
|
14,609
|
|
Short-term investments
|
|
|
18
|
|
|
8,141
|
|
|
|
4,006
|
|
|
|
4,294
|
|
|
|
1,811
|
|
Accounts receivable
|
|
|
9
|
|
|
20,026
|
|
|
|
25,944
|
|
|
|
23,907
|
|
|
|
46,559
|
|
Other financial assets
|
|
|
11
|
|
|
1,648
|
|
|
|
1,707
|
|
|
|
33
|
|
|
|
37
|
|
Inventories
|
|
|
10
|
|
|
24,352
|
|
|
|
21,103
|
|
|
|
6,954
|
|
|
|
6,142
|
|
Recoverable taxes
|
|
|
|
|
|
2,652
|
|
|
|
2,646
|
|
|
|
1,026
|
|
|
|
1,036
|
|
Others
|
|
|
|
|
|
1,807
|
|
|
|
1,313
|
|
|
|
2,484
|
|
|
|
2,199
|
|
|
|
|
|
|
|
132,025
|
|
|
|
126,805
|
|
|
|
57,575
|
|
|
|
72,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Judicial deposits
|
|
|
22(c)
|
|
|
6,529
|
|
|
|
6,591
|
|
|
|
6,210
|
|
|
|
6,265
|
|
Other financial assets
|
|
|
11
|
|
|
12,025
|
|
|
|
9,271
|
|
|
|
5,768
|
|
|
|
3,838
|
|
Recoverable taxes
|
|
|
|
|
|
6,304
|
|
|
|
5,670
|
|
|
|
2,473
|
|
|
|
2,244
|
|
Deferred income taxes
|
|
|
7(a)
|
|
|
52,459
|
|
|
|
53,711
|
|
|
|
41,855
|
|
|
|
42,760
|
|
Others
|
|
|
|
|
|
3,679
|
|
|
|
3,380
|
|
|
|
927
|
|
|
|
725
|
|
|
|
|
|
|
|
80,996
|
|
|
|
78,623
|
|
|
|
57,233
|
|
|
|
55,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
12
|
|
|
10,658
|
|
|
|
10,557
|
|
|
|
205,961
|
|
|
|
181,319
|
|
Intangibles
|
|
|
13
|
|
|
49,343
|
|
|
|
48,309
|
|
|
|
28,133
|
|
|
|
28,243
|
|
Property, plant and equipment
|
|
|
14
|
|
|
222,547
|
|
|
|
213,836
|
|
|
|
111,983
|
|
|
|
111,338
|
|
|
|
|
|
|
|
363,544
|
|
|
|
351,325
|
|
|
|
403,310
|
|
|
|
376,732
|
|
Total assets
|
|
|
|
|
|
495,569
|
|
|
|
478,130
|
|
|
|
460,885
|
|
|
|
449,125
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suppliers and contractors
|
|
|
|
|
|
17,733
|
|
|
|
17,496
|
|
|
|
9,965
|
|
|
|
11,601
|
|
Loans, borrowings and leases
|
|
|
18
|
|
|
5,633
|
|
|
|
5,901
|
|
|
|
3,164
|
|
|
|
3,804
|
|
Other financial liabilities
|
|
|
11
|
|
|
11,861
|
|
|
|
9,906
|
|
|
|
5,193
|
|
|
|
4,747
|
|
Taxes payable
|
|
|
|
|
|
4,731
|
|
|
|
4,950
|
|
|
|
3,856
|
|
|
|
3,509
|
|
Settlement program ("REFIS")
|
|
|
7(c)
|
|
|
1,774
|
|
|
|
1,769
|
|
|
|
1,738
|
|
|
|
1,733
|
|
Liabilities related to associates and joint ventures
|
|
|
20
|
|
|
4,818
|
|
|
|
4,554
|
|
|
|
4,818
|
|
|
|
4,554
|
|
Provisions
|
|
|
21
|
|
|
5,143
|
|
|
|
9,498
|
|
|
|
3,420
|
|
|
|
4,606
|
|
Liabilities related to Brumadinho
|
|
|
19
|
|
|
10,521
|
|
|
|
9,925
|
|
|
|
10,521
|
|
|
|
9,925
|
|
De-characterization of dams
|
|
|
19
|
|
|
2,093
|
|
|
|
1,981
|
|
|
|
2,093
|
|
|
|
1,981
|
|
Dividends payable
|
|
|
|
|
|
119
|
|
|
|
6,342
|
|
|
|
103
|
|
|
|
6,342
|
|
Others
|
|
|
|
|
|
2,953
|
|
|
|
3,516
|
|
|
|
4,935
|
|
|
|
4,173
|
|
|
|
|
|
|
|
67,379
|
|
|
|
75,838
|
|
|
|
49,806
|
|
|
|
56,975
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, borrowings and leases
|
|
|
18
|
|
|
73,035
|
|
|
|
72,187
|
|
|
|
18,596
|
|
|
|
21,646
|
|
Participative stockholders' debentures
|
|
|
17
|
|
|
23,043
|
|
|
|
17,737
|
|
|
|
23,043
|
|
|
|
17,737
|
|
Other financial liabilities
|
|
|
11
|
|
|
25,166
|
|
|
|
23,967
|
|
|
|
106,521
|
|
|
|
107,718
|
|
Settlement program ("REFIS")
|
|
|
7(c)
|
|
|
12,082
|
|
|
|
12,493
|
|
|
|
11,843
|
|
|
|
12,245
|
|
Deferred income taxes
|
|
|
7(a)
|
|
|
11,078
|
|
|
|
9,198
|
|
|
|
-
|
|
|
|
-
|
|
Provisions
|
|
|
21
|
|
|
42,414
|
|
|
|
43,829
|
|
|
|
12,760
|
|
|
|
13,016
|
|
Liabilities related to Brumadinho
|
|
|
19
|
|
|
12,344
|
|
|
|
13,849
|
|
|
|
12,344
|
|
|
|
13,849
|
|
De-characterization of dams
|
|
|
19
|
|
|
9,085
|
|
|
|
9,916
|
|
|
|
9,085
|
|
|
|
9,916
|
|
Liabilities related to associates and joint ventures
|
|
|
20
|
|
|
5,048
|
|
|
|
6,228
|
|
|
|
5,048
|
|
|
|
6,228
|
|
Streaming transactions
|
|
|
|
|
|
11,316
|
|
|
|
10,419
|
|
|
|
-
|
|
|
|
-
|
|
Others
|
|
|
|
|
|
1,677
|
|
|
|
1,483
|
|
|
|
4,352
|
|
|
|
4,010
|
|
|
|
|
|
|
|
226,288
|
|
|
|
221,306
|
|
|
|
203,592
|
|
|
|
206,365
|
|
Total liabilities
|
|
|
|
|
|
293,667
|
|
|
|
297,144
|
|
|
|
253,398
|
|
|
|
263,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to Vale's stockholders
|
|
|
|
|
|
207,487
|
|
|
|
185,785
|
|
|
|
207,487
|
|
|
|
185,785
|
|
Equity attributable to non-controlling interests
|
|
|
|
|
|
(5,585
|
)
|
|
|
(4,799
|
)
|
|
|
-
|
|
|
|
-
|
|
Total stockholders' equity
|
|
|
|
|
|
201,902
|
|
|
|
180,986
|
|
|
|
207,487
|
|
|
|
185,785
|
|
Total liabilities and stockholders' equity
|
|
|
|
|
|
495,569
|
|
|
|
478,130
|
|
|
|
460,885
|
|
|
|
449,125
|
|
The accompanying notes are an integral part of
these interim financial statements.
Statement of Changes in Equity
In millions of Brazilian reais
|
|
Share
capital
|
|
|
Capital
reserve
|
|
|
Profit
reserves
|
|
|
Treasury
stocks
|
|
|
Other
reserves
|
|
|
Cumulative
translation
adjustments
|
|
|
Retained
earnings
|
|
|
Equity
attributable to
Vale’s
stockholders
|
|
|
Equity
attributable to
non-controlling
interests
|
|
|
Total
stockholders'
equity
|
|
Balance at December 31,
2020
|
|
|
77,300
|
|
|
|
3,634
|
|
|
|
36,598
|
|
|
|
(6,452
|
)
|
|
|
(7,307
|
)
|
|
|
82,012
|
|
|
|
-
|
|
|
|
185,785
|
|
|
|
(4,799
|
)
|
|
|
180,986
|
|
Net income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30,564
|
|
|
|
30,564
|
|
|
|
(375
|
)
|
|
|
30,189
|
|
Other comprehensive income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,012
|
|
|
|
3,613
|
|
|
|
|
|
|
|
6,625
|
|
|
|
(478
|
)
|
|
|
6,147
|
|
Dividends and interest on capital
of Vale's stockholders
|
|
|
-
|
|
|
|
-
|
|
|
|
(15,524
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(15,524
|
)
|
|
|
-
|
|
|
|
(15,524
|
)
|
Dividends of non-controlling
interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
(9
|
)
|
Acquisitions and disposal of
non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
76
|
|
|
|
76
|
|
Treasury
shares utilized in the period (note 24)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
37
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
37
|
|
|
|
-
|
|
|
|
37
|
|
Balance at March 31,
2021
|
|
|
77,300
|
|
|
|
3,634
|
|
|
|
21,074
|
|
|
|
(6,415
|
)
|
|
|
(4,295
|
)
|
|
|
85,625
|
|
|
|
30,564
|
|
|
|
207,487
|
|
|
|
(5,585
|
)
|
|
|
201,902
|
|
|
|
Share
capital
|
|
|
Capital
reserve
|
|
|
Profit
reserves
|
|
|
Treasury
stocks
|
|
|
Other
reserves
|
|
|
Cumulative
translation
adjustments
|
|
|
Retained
earnings
|
|
|
Equity
attributable to
Vale’s
stockholders
|
|
|
Equity
attributable to
non-controlling
interests
|
|
|
Total
stockholders'
equity
|
|
Balance at
December 31, 2019
|
|
|
77,300
|
|
|
|
3,634
|
|
|
|
28,577
|
|
|
|
(6,520
|
)
|
|
|
(5,673
|
)
|
|
|
64,162
|
|
|
|
-
|
|
|
|
161,480
|
|
|
|
(4,331
|
)
|
|
|
157,149
|
|
Net income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
984
|
|
|
|
984
|
|
|
|
(347
|
)
|
|
|
637
|
|
Other comprehensive income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,162
|
)
|
|
|
17,484
|
|
|
|
-
|
|
|
|
16,322
|
|
|
|
(1,296
|
)
|
|
|
15,026
|
|
Dividends of non-controlling
interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
(9
|
)
|
Capitalization of non-controlling
interest advances
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25
|
|
|
|
25
|
|
Treasury
shares utilized in the period (note 24)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
68
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
68
|
|
|
|
-
|
|
|
|
68
|
|
Balance at March 31,
2020
|
|
|
77,300
|
|
|
|
3,634
|
|
|
|
28,577
|
|
|
|
(6,452
|
)
|
|
|
(6,835
|
)
|
|
|
81,646
|
|
|
|
984
|
|
|
|
178,854
|
|
|
|
(5,958
|
)
|
|
|
172,896
|
|
The accompanying notes are an integral part of
these interim financial statements.
Value Added Statement
In millions of Brazilian Reais
|
|
Consolidated
|
|
|
Parent company
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Generation of value added
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from products and services
|
|
|
70,104
|
|
|
|
31,648
|
|
|
|
46,835
|
|
|
|
19,146
|
|
Revenue from the construction of own assets
|
|
|
1,824
|
|
|
|
1,196
|
|
|
|
661
|
|
|
|
589
|
|
Other revenues
|
|
|
622
|
|
|
|
343
|
|
|
|
485
|
|
|
|
130
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products, goods and services sold
|
|
|
(7,772
|
)
|
|
|
(5,174
|
)
|
|
|
(4,214
|
)
|
|
|
(2,503
|
)
|
Material, energy, third-party services and other
|
|
|
(9,355
|
)
|
|
|
(7,925
|
)
|
|
|
(3,124
|
)
|
|
|
(2,967
|
)
|
Impairment of non-current assets and others results
|
|
|
(897
|
)
|
|
|
(136
|
)
|
|
|
(8
|
)
|
|
|
42
|
|
Brumadinho event
|
|
|
(637
|
)
|
|
|
(708
|
)
|
|
|
(637
|
)
|
|
|
(708
|
)
|
Other costs and expenses
|
|
|
(3,992
|
)
|
|
|
(2,910
|
)
|
|
|
(2,204
|
)
|
|
|
(1,609
|
)
|
Gross value added
|
|
|
49,897
|
|
|
|
16,334
|
|
|
|
37,794
|
|
|
|
12,120
|
|
Depreciation, amortization and depletion
|
|
|
(4,012
|
)
|
|
|
(3,676
|
)
|
|
|
(2,047
|
)
|
|
|
(1,932
|
)
|
Net value added
|
|
|
45,885
|
|
|
|
12,658
|
|
|
|
35,747
|
|
|
|
10,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Received from third parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity results from entities
|
|
|
(93
|
)
|
|
|
(767
|
)
|
|
|
13,808
|
|
|
|
(2,454
|
)
|
Financial income
|
|
|
4,441
|
|
|
|
4,769
|
|
|
|
3,938
|
|
|
|
5,083
|
|
Total value added to be distributed
|
|
|
50,233
|
|
|
|
16,660
|
|
|
|
53,493
|
|
|
|
12,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel and charges
|
|
|
2,212
|
|
|
|
1,972
|
|
|
|
1,102
|
|
|
|
988
|
|
Taxes and contributions
|
|
|
13,032
|
|
|
|
(1,309
|
)
|
|
|
10,629
|
|
|
|
(2,539
|
)
|
Interest (net derivatives and monetary and exchange rate variation)
|
|
|
4,544
|
|
|
|
15,165
|
|
|
|
10,608
|
|
|
|
13,014
|
|
Other remunerations of third party funds
|
|
|
256
|
|
|
|
195
|
|
|
|
590
|
|
|
|
370
|
|
Reinvested net income
|
|
|
30,564
|
|
|
|
984
|
|
|
|
30,564
|
|
|
|
984
|
|
Loss attributable to noncontrolling interest
|
|
|
(375
|
)
|
|
|
(347
|
)
|
|
|
-
|
|
|
|
-
|
|
Distributed value added
|
|
|
50,233
|
|
|
|
16,660
|
|
|
|
53,493
|
|
|
|
12,817
|
|
The accompanying notes are an integral part of
these interim financial statements.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
1. Corporate
information
Vale S.A. and its subsidiaries (“Vale”
or the “Company”) are iron ore and iron ore pellets producers, which are key raw materials for steelmaking, and nickel producers,
which is used to produce stainless steel and metal alloys employed in the production process of several products. The Company also produces
copper, metallurgical and thermal coal, manganese ore and, platinum group metals, gold, silver and cobalt. The information by segment
is presented in note 4.
Vale S.A. (the “Parent Company”) is
a public company headquartered in the city of Rio de Janeiro, Brazil with securities traded on the stock exchanges of São Paulo
– B3 S.A. (VALE3), New York - NYSE (VALE) and Madrid – LATIBEX (XVALO).
2. Basis
of preparation of the interim financial statements
a) Statement
of compliance
The consolidated and individual interim financial
statements of the Company (“interim financial statements”) have been prepared and are being presented in accordance with IAS
34 Interim Financial Reporting (CPC 21) of the International Financial Reporting Standards (“IFRS”), as issued by the International
Accounting Standards Board (“IASB”), as implemented in Brazil by the Brazilian Accountant Pronouncements Committee ("CPC"),
approved by the Brazilian Securities Exchange Commission ("CVM") and by the Brazilian Federal Accounting Council (“CFC”).
All relevant information from its own interim financial statements, and only this information, are being presented and correspond to those
used by the Company's Management.
The presentation of the parent company and consolidated
statements of value added is required by the Brazilian corporate legislation and the accounting practices adopted in Brazil for listed
companies, while it is not required by IFRS. Therefore, under the IFRS, the presentation of such statements is considered supplementary
information, and not part of the set of financial statements. The Statement of Value Added was prepared in accordance with the criteria
defined in Technical Pronouncement CPC 09 - "Statement of Value Added".
b) Basis
of presentation
The interim financial statements have been prepared
to update users about relevant events and transactions that occurred in the period and should be read in conjunction with the financial
statements for the year ended December 31, 2020. The accounting policies, accounting estimates and judgements, risk management and
measurement methods are the same as those applied when preparing the last annual financial statements. The selected notes of the Parent
Company are presented in a summarized form in note 26.
These interim financial statements were authorized
for issue by the Executive Board on April 26, 2021.
The interim financial statements of the Company
are measured using the currency of the primary economic environment in which the entity operates (“functional currency”),
which in the case of the Parent Company is the Brazilian real (“R$”).
The exchange rates used by the Company to translate
its foreign operations are as follows:
|
|
|
|
|
Average rate
|
|
|
|
Closing rate
|
|
|
Three-month period ended March 31,
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
2021
|
|
|
2020
|
|
United States dollar
|
|
|
5.6973
|
|
|
|
5.1967
|
|
|
|
5.4833
|
|
|
|
4.4656
|
|
Canadian dollar ("CAD")
|
|
|
4.5325
|
|
|
|
4.0771
|
|
|
|
4.3323
|
|
|
|
3.3148
|
|
Euro ("EUR")
|
|
|
6.6915
|
|
|
|
6.3779
|
|
|
|
6.6033
|
|
|
|
4.9224
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
3. Significant
events in the current period
The financial position, cash flows and performance
of the Company were particularly affected by the following events and transactions during the three-month period ended March 31,
2021:
|
·
|
February 2021, the Company entered into a Judicial Settlement for Integral Reparation (“Global
Settlement”) with the State of Minas Gerais, the Public Defender of the State of Minas Gerais and the Federal and the State of Minas
Gerais Public Prosecutors Offices, to repair the environmental and social damage resulting from the Dam I rupture. Thus, the Company recognized
a loss of R$19,924 in the income statement for the year ended December 31, 2020. In April 2021 (subsequent event), the res judicata
of the Global Settlement was drawn up (note 12).
|
|
·
|
In March 2021, the Company completed the sale of its equity interest in Vale Nouvelle-Calédonie
SAS (“VNC”) to the Prony Resources New Caledonia consortium. Upon closing of the transaction, the Company recognized further
losses in the amount of R$549 as “Impairment and disposals of non-current assets”. Thus, the Company has paid a total cash
of R$3,441, of which R$307 were used support the continuity of VNC’s operation until March 31, 2021 and R$3,134 (US$555 million)
was paid to the buyers on March 31, 2021. Additionally, the Company reclassified the gain of R$6,391 related to the cumulative translation
adjustments from the stockholders’ equity to the income statement under “Other financial items, net” (note 12).
|
|
·
|
In March 2021, the Company paid stockholders’ remuneration in the amount of R$21,866 (note
24).
|
|
·
|
In March 2021, the Company redeemed all of its 3.750% bonds due January 2023, in the total amount
of R$4,946 (EUR750 million) and for it paid a premium of R$354, which was recorded as “Financial expenses” under “Expenses
with cash tender offer redemption” for three-month period ended March 31,2021 (notes 6 and 18).
|
|
·
|
In April 2021 (subsequent event), the Company approved a share buyback program for its common shares,
limited to a maximum of 270,000,000 common shares and their respective ADRs. The program will be carried out over a period of up to 12
months (note 24).
|
|
·
|
In April 2021 (subsequent event), the Company signed an Investment Agreement with Mitsui &
Co., Ltd (“Mitsui”), for the acquisition by Vale of the totality of Mitsui´s interest of Vale Moçambique and
in the Nacala Logistics Corridor (“NLC”). The completion of Mitsui´s exit is expected throughout 2021 (note 12).
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
4. Information
by business segment and by geographic area
The Company operates the following reportable
segments: Ferrous Minerals, Base Metals and Coal. The segments are aligned with products and reflect the structure used by Management
to evaluate Company’s performance. The responsible bodies for making operational decisions, allocating resources and evaluating
performance ("chief operating decision maker" under IFRS 8 - Operating Segments) are the Executive Boards and the Board of Directors.
Accordingly, the performance of the operating segments is assessed based on a measure of adjusted LAJIDA (EBITDA).
The Company allocates to “Others”
the revenues and cost of other products, services, research and development, investments in joint ventures and associates of other business
and unallocated corporate expenses. Additionally, the costs related to the Brumadinho event are not directly linked to the Company's operating
activities and, therefore, are allocated to "Other" as well.
In the current period, the Company has allocated
the financial information of Vale New Caledonia operation to “Others” as this operation is no longer analyzed by the chief
operating decision maker as part of to the performance of the Base Metals business segment due to the sale of this operation. The comparative
periods were restated to reflect this change in the allocation criteria.
a) Adjusted
LAJIDA (EBITDA)
The definition of Adjusted LAJIDA (EBITDA) for
the Company is the operating income or loss plus dividends received and interest from associates and joint ventures, and excluding the
amounts charged as (i) depreciation, depletion and amortization and (ii) impairment and disposal of non-current assets.
|
|
Consolidated
|
|
|
|
Three-month period ended March 31, 2021
|
|
|
|
Net operating
revenue
|
|
|
Cost of goods
sold and
services
rendered
|
|
|
Sales,
administrative
and other
operating
expenses
|
|
|
Research and
evaluation
|
|
|
Pre operating
and operational
stoppage
|
|
|
Dividends
received and
interest from
associates
and joint
ventures
|
|
|
Adjusted
LAJIDA
(EBITDA)
|
|
Ferrous minerals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Iron ore
|
|
|
50,153
|
|
|
|
(11,456
|
)
|
|
|
(117
|
)
|
|
|
(184
|
)
|
|
|
(503
|
)
|
|
|
-
|
|
|
|
37,893
|
|
Iron ore pellets
|
|
|
6,637
|
|
|
|
(2,105
|
)
|
|
|
160
|
|
|
|
(4
|
)
|
|
|
(72
|
)
|
|
|
-
|
|
|
|
4,616
|
|
Ferroalloys and manganese
|
|
|
250
|
|
|
|
(122
|
)
|
|
|
(5
|
)
|
|
|
(1
|
)
|
|
|
(23
|
)
|
|
|
-
|
|
|
|
99
|
|
Other ferrous products and services
|
|
|
536
|
|
|
|
(362
|
)
|
|
|
10
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
183
|
|
|
|
|
57,576
|
|
|
|
(14,045
|
)
|
|
|
48
|
|
|
|
(190
|
)
|
|
|
(598
|
)
|
|
|
-
|
|
|
|
42,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base metals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nickel and other products
|
|
|
7,880
|
|
|
|
(4,238
|
)
|
|
|
(54
|
)
|
|
|
(60
|
)
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
3,526
|
|
Copper
|
|
|
3,010
|
|
|
|
(904
|
)
|
|
|
1
|
|
|
|
(102
|
)
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
2,002
|
|
|
|
|
10,890
|
|
|
|
(5,142
|
)
|
|
|
(53
|
)
|
|
|
(162
|
)
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
5,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal
|
|
|
509
|
|
|
|
(1,810
|
)
|
|
|
8
|
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
424
|
|
|
|
(880
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others (i)
|
|
|
326
|
|
|
|
(621
|
)
|
|
|
(564
|
)
|
|
|
(188
|
)
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(1,052
|
)
|
|
|
|
69,301
|
|
|
|
(21,618
|
)
|
|
|
(561
|
)
|
|
|
(551
|
)
|
|
|
(608
|
)
|
|
|
424
|
|
|
|
46,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brumadinho event
|
|
|
-
|
|
|
|
-
|
|
|
|
(637
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(637
|
)
|
COVID-19
|
|
|
-
|
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9
|
)
|
Total
|
|
|
69,301
|
|
|
|
(21,618
|
)
|
|
|
(1,207
|
)
|
|
|
(551
|
)
|
|
|
(608
|
)
|
|
|
424
|
|
|
|
45,741
|
|
(i) Includes the EBITDA of VNC in the amount of
R$358.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
|
|
Consolidated
|
|
|
|
Three-month period ended March 31, 2020
|
|
|
|
Net operating
revenue
|
|
|
Cost of goods
sold and
services
rendered
|
|
|
Sales,
administrative
and other
operating
expenses
|
|
|
Research and
evaluation
|
|
|
Pre operating
and operational
stoppage
|
|
|
Dividends
received and
interest from
associates
and joint
ventures
|
|
|
Adjusted
LAJIDA
(EBITDA)
|
|
Ferrous minerals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Iron ore
|
|
|
19,375
|
|
|
|
(7,548
|
)
|
|
|
(87
|
)
|
|
|
(108
|
)
|
|
|
(749
|
)
|
|
|
-
|
|
|
|
10,883
|
|
Iron ore pellets
|
|
|
3,824
|
|
|
|
(1,848
|
)
|
|
|
48
|
|
|
|
(4
|
)
|
|
|
(112
|
)
|
|
|
-
|
|
|
|
1,908
|
|
Ferroalloys and manganese
|
|
|
211
|
|
|
|
(223
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(17
|
)
|
Other ferrous products and services
|
|
|
383
|
|
|
|
(317
|
)
|
|
|
5
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
68
|
|
|
|
|
23,793
|
|
|
|
(9,936
|
)
|
|
|
(34
|
)
|
|
|
(115
|
)
|
|
|
(866
|
)
|
|
|
-
|
|
|
|
12,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base metals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nickel and other products
|
|
|
4,263
|
|
|
|
(2,386
|
)
|
|
|
(86
|
)
|
|
|
(57
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,734
|
|
Copper
|
|
|
1,709
|
|
|
|
(924
|
)
|
|
|
4
|
|
|
|
(77
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
712
|
|
|
|
|
5,972
|
|
|
|
(3,310
|
)
|
|
|
(82
|
)
|
|
|
(134
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
2,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal
|
|
|
673
|
|
|
|
(1,684
|
)
|
|
|
6
|
|
|
|
(40
|
)
|
|
|
-
|
|
|
|
324
|
|
|
|
(721
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others (i)
|
|
|
813
|
|
|
|
(1,000
|
)
|
|
|
(591
|
)
|
|
|
(140
|
)
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
(935
|
)
|
|
|
|
31,251
|
|
|
|
(15,930
|
)
|
|
|
(701
|
)
|
|
|
(429
|
)
|
|
|
(883
|
)
|
|
|
324
|
|
|
|
13,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brumadinho event
|
|
|
-
|
|
|
|
-
|
|
|
|
(708
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(708
|
)
|
Total
|
|
|
31,251
|
|
|
|
(15,930
|
)
|
|
|
(1,409
|
)
|
|
|
(429
|
)
|
|
|
(883
|
)
|
|
|
324
|
|
|
|
12,924
|
|
(i) Includes the reclassification of the EBITDA of VNC in the amount
of R$209 for the three-month period ended March 31, 2020.
Adjusted LAJIDA (EBITDA) is reconciled to net
income as follows:
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Net income attributable to Vale's stockholders
|
|
|
30,564
|
|
|
|
984
|
|
Loss attributable to non-controlling interests
|
|
|
(375
|
)
|
|
|
(347
|
)
|
Net income
|
|
|
30,189
|
|
|
|
637
|
|
Depreciation, depletion and amortization
|
|
|
4,012
|
|
|
|
3,676
|
|
Income taxes
|
|
|
9,950
|
|
|
|
(3,102
|
)
|
Financial results
|
|
|
176
|
|
|
|
10,486
|
|
LAJIDA (EBITDA)
|
|
|
44,327
|
|
|
|
11,697
|
|
|
|
|
|
|
|
|
|
|
Items to reconciled adjusted LAJIDA (EBITDA)
|
|
|
|
|
|
|
|
|
Equity results and other results in associates and joint ventures
|
|
|
93
|
|
|
|
767
|
|
Dividends received and interest from associates and joint ventures (i)
|
|
|
424
|
|
|
|
324
|
|
Impairment and disposal of non-current assets
|
|
|
897
|
|
|
|
136
|
|
Adjusted LAJIDA (EBITDA)
|
|
|
45,741
|
|
|
|
12,924
|
|
(i) Includes the remuneration of the financial
instrument of the Coal segment.
b) Assets
by segment
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
|
Product inventory
|
|
|
Investments in
associates and
joint ventures
|
|
|
Property, plant
and equipment
and intangibles (i)
|
|
|
Product inventory
|
|
|
Investments in
associates and
joint ventures
|
|
|
Property, plant
and equipment
and intangibles (i)
|
|
Ferrous minerals
|
|
|
12,519
|
|
|
|
6,036
|
|
|
|
155,045
|
|
|
|
10,483
|
|
|
|
5,995
|
|
|
|
152,970
|
|
Base metals
|
|
|
7,263
|
|
|
|
96
|
|
|
|
109,462
|
|
|
|
6,398
|
|
|
|
91
|
|
|
|
101,593
|
|
Coal
|
|
|
270
|
|
|
|
-
|
|
|
|
-
|
|
|
|
129
|
|
|
|
-
|
|
|
|
-
|
|
Others
|
|
|
18
|
|
|
|
4,526
|
|
|
|
7,383
|
|
|
|
-
|
|
|
|
4,471
|
|
|
|
7,582
|
|
Total
|
|
|
20,070
|
|
|
|
10,658
|
|
|
|
271,890
|
|
|
|
17,010
|
|
|
|
10,557
|
|
|
|
262,145
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
Capital expenditures (ii)
|
|
|
|
|
|
Capital expenditures (ii)
|
|
|
|
|
|
|
Sustaining capital
|
|
|
Project execution
|
|
|
Depreciation, depletion and amortization
|
|
|
Sustaining capital
|
|
|
Project execution
|
|
|
Depreciation, depletion and amortization
|
|
Ferrous minerals
|
|
|
2,898
|
|
|
|
446
|
|
|
|
2,180
|
|
|
|
2,381
|
|
|
|
406
|
|
|
|
1,892
|
|
Base metals
|
|
|
1,594
|
|
|
|
374
|
|
|
|
1,738
|
|
|
|
1,349
|
|
|
|
235
|
|
|
|
1,552
|
|
Coal
|
|
|
159
|
|
|
|
-
|
|
|
|
-
|
|
|
|
345
|
|
|
|
-
|
|
|
|
83
|
|
Others (iii)
|
|
|
58
|
|
|
|
12
|
|
|
|
94
|
|
|
|
272
|
|
|
|
11
|
|
|
|
149
|
|
Total
|
|
|
4,709
|
|
|
|
832
|
|
|
|
4,012
|
|
|
|
4,347
|
|
|
|
652
|
|
|
|
3,676
|
|
(i) Goodwill is allocated to ferrous minerals and base metals
segments in the amount of R$7,133 and R$11,114 in March 31, 2021 and R$7,133 and R$10,008 in December 31, 2020, respectively.
The variation of "Property, plant and equipment and intangibles" of base metals occurred due to the foreign exchange variation
in the period.
(ii) Cash outflows.
(iii) Includes the reclassification of VNC
under the captions “Sustaining capital” and “depreciation, depletion and amortization”, in the amount of R$266
and R$81, respectively, for the three-month period ended on March 31, 2020.
c) Net
operating revenue by geographic area
|
|
Consolidated
|
|
|
|
Three-month period ended March 31, 2021
|
|
|
|
Ferrous minerals
|
|
|
Base metals
|
|
|
Coal
|
|
|
Others
|
|
|
Total
|
|
Americas, except United States and Brazil
|
|
|
1,200
|
|
|
|
520
|
|
|
|
-
|
|
|
|
21
|
|
|
|
1,741
|
|
United States of America
|
|
|
544
|
|
|
|
1,567
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,111
|
|
Germany
|
|
|
937
|
|
|
|
2,546
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,483
|
|
Europe, except Germany
|
|
|
3,234
|
|
|
|
3,864
|
|
|
|
100
|
|
|
|
-
|
|
|
|
7,198
|
|
Middle East, Africa and Oceania
|
|
|
1,499
|
|
|
|
2
|
|
|
|
99
|
|
|
|
-
|
|
|
|
1,600
|
|
Japan
|
|
|
2,893
|
|
|
|
527
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,420
|
|
China
|
|
|
37,208
|
|
|
|
875
|
|
|
|
76
|
|
|
|
-
|
|
|
|
38,159
|
|
Asia, except Japan and China
|
|
|
4,279
|
|
|
|
865
|
|
|
|
234
|
|
|
|
-
|
|
|
|
5,378
|
|
Brazil
|
|
|
5,782
|
|
|
|
124
|
|
|
|
-
|
|
|
|
305
|
|
|
|
6,211
|
|
Net operating revenue
|
|
|
57,576
|
|
|
|
10,890
|
|
|
|
509
|
|
|
|
326
|
|
|
|
69,301
|
|
|
|
Consolidated
|
|
|
|
Three-month period ended March 31, 2020
|
|
|
|
Ferrous minerals
|
|
|
Base metals
|
|
|
Coal
|
|
|
Others (i)
|
|
|
Total
|
|
Americas, except United States and Brazil
|
|
|
458
|
|
|
|
488
|
|
|
|
-
|
|
|
|
390
|
|
|
|
1,336
|
|
United States of America
|
|
|
201
|
|
|
|
1,092
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,293
|
|
Germany
|
|
|
826
|
|
|
|
865
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,691
|
|
Europe, except Germany
|
|
|
1,276
|
|
|
|
1,689
|
|
|
|
219
|
|
|
|
-
|
|
|
|
3,184
|
|
Middle East, Africa and Oceania
|
|
|
1,075
|
|
|
|
36
|
|
|
|
126
|
|
|
|
-
|
|
|
|
1,237
|
|
Japan
|
|
|
1,692
|
|
|
|
424
|
|
|
|
55
|
|
|
|
-
|
|
|
|
2,171
|
|
China
|
|
|
13,789
|
|
|
|
505
|
|
|
|
75
|
|
|
|
-
|
|
|
|
14,369
|
|
Asia, except Japan and China
|
|
|
1,850
|
|
|
|
707
|
|
|
|
198
|
|
|
|
-
|
|
|
|
2,755
|
|
Brazil
|
|
|
2,626
|
|
|
|
166
|
|
|
|
-
|
|
|
|
423
|
|
|
|
3,215
|
|
Net operating revenue
|
|
|
23,793
|
|
|
|
5,972
|
|
|
|
673
|
|
|
|
813
|
|
|
|
31,251
|
|
(i) Includes the reclassification of VNC
in the amount of R$390 for the three-month period ended March 31, 2020.
Provisionally
priced commodities sales – The commodity price risk arises from volatility of iron ore, nickel, copper and coal prices.
The Company is mostly exposed to the fluctuations in the iron ore and copper price (note 15). The selling price of these products can
be measured reliably at each period, since the price is quoted in an active market.
The sensitivity of the Company’s risk on
final settlement of provisionally priced accounts receivables is presented below:
|
|
March 31, 2021
|
|
|
|
Thousand metric tons
|
|
|
Provisional price (US$/tonne)
|
|
|
Change
|
|
|
Effect on Revenue
|
|
Iron ore
|
|
|
12,114
|
|
|
|
160.5
|
|
|
|
+/-10%
|
|
|
|
1,066
|
|
Iron ore pellets
|
|
|
108
|
|
|
|
200.0
|
|
|
|
+/-10%
|
|
|
|
12
|
|
Copper
|
|
|
78
|
|
|
|
10,864.6
|
|
|
|
+/-10%
|
|
|
|
462
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
5. Costs
and expenses by nature
a) Cost
of goods sold and services rendered
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Personnel
|
|
|
2,142
|
|
|
|
1,855
|
|
Materials and services
|
|
|
3,854
|
|
|
|
3,631
|
|
Fuel oil and gas
|
|
|
1,144
|
|
|
|
1,257
|
|
Maintenance
|
|
|
3,561
|
|
|
|
3,003
|
|
Royalties
|
|
|
1,379
|
|
|
|
726
|
|
Energy
|
|
|
819
|
|
|
|
843
|
|
Ores acquired from third parties (i)
|
|
|
1,878
|
|
|
|
266
|
|
Depreciation, depletion and amortization
|
|
|
3,779
|
|
|
|
3,285
|
|
Freight
|
|
|
4,293
|
|
|
|
3,117
|
|
Others
|
|
|
2,548
|
|
|
|
1,232
|
|
Total
|
|
|
25,397
|
|
|
|
19,215
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
24,665
|
|
|
|
18,499
|
|
Cost of services rendered
|
|
|
732
|
|
|
|
716
|
|
Total
|
|
|
25,397
|
|
|
|
19,215
|
|
(i) The increase in “Ores
acquired from third parties” is mainly due to the significant increase in the reference price for iron ore and higher volumes
of other ores compared to 2020.
Tax
on mineral production (Taxa de Fiscalização de Recursos Minerais - “TFRM”) –
Several Brazilian states, including Minas Gerais, Pará and Mato Grosso do Sul, impose a TFRM, which is currently assessed
at rates ranging from R$0.50 to R$3.72 per metric ton of minerals produced in or transferred from the state. The expenses related to the
TFRM are presented in these interim financial statements under “Royalties”. In March 2021, a state decree increased the
TFRM rate in the state of Para to R$11.19 per metric ton, with effectiveness as of April 2021. According to the prior rule, which
would expire in 2031, the TFRM rate was R$3.72 per ton until the production of 10 million metric tons and R$0.74 for volumes over than
10 million metric tons. The Company is evaluating in the legal aspects of this change and, based on the Constitutional Principle of mandatory
notice period, which sets out the tax increase would become in force only in the subsequent year of its enactment, therefore the Company
does not expect any impact in 2021. The Company is also evaluating other legal aspects to defend the overcharge for the future.
b) Selling
and administrative expenses
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Selling
|
|
|
98
|
|
|
|
71
|
|
Personnel
|
|
|
260
|
|
|
|
211
|
|
Services
|
|
|
92
|
|
|
|
79
|
|
Depreciation and amortization
|
|
|
48
|
|
|
|
82
|
|
Others
|
|
|
79
|
|
|
|
73
|
|
Total
|
|
|
577
|
|
|
|
516
|
|
c) Other
operating expenses (income), net
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Provision for litigations
|
|
|
88
|
|
|
|
89
|
|
Profit sharing program
|
|
|
122
|
|
|
|
150
|
|
Others
|
|
|
(169
|
)
|
|
|
28
|
|
Total
|
|
|
41
|
|
|
|
267
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
6. Financial
result
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Financial income
|
|
|
|
|
|
|
|
|
Short-term investments
|
|
|
149
|
|
|
|
231
|
|
Others
|
|
|
253
|
|
|
|
261
|
|
|
|
|
402
|
|
|
|
492
|
|
Financial expenses
|
|
|
|
|
|
|
|
|
Loans and borrowings gross interest (note 18)
|
|
|
(1,133
|
)
|
|
|
(954
|
)
|
Capitalized loans and borrowing costs
|
|
|
87
|
|
|
|
138
|
|
Participative stockholders' debentures (note 17)
|
|
|
(5,314
|
)
|
|
|
(103
|
)
|
Interest on REFIS
|
|
|
(38
|
)
|
|
|
(109
|
)
|
Interest on lease liabilities (note 18)
|
|
|
(98
|
)
|
|
|
(78
|
)
|
Financial guarantees
|
|
|
(201
|
)
|
|
|
(703
|
)
|
Expenses with cash tender offer redemption (note 18)
|
|
|
(354
|
)
|
|
|
-
|
|
Others
|
|
|
(487
|
)
|
|
|
(481
|
)
|
|
|
|
(7,538
|
)
|
|
|
(2,290
|
)
|
Other financial items, net
|
|
|
|
|
|
|
|
|
Net foreign exchange gains (losses)
|
|
|
1,740
|
|
|
|
(2,276
|
)
|
Derivative financial instruments (note 15)
|
|
|
(2,422
|
)
|
|
|
(6,394
|
)
|
Reclassification of cumulative translation adjustment on VNC
sale (note 12)
|
|
|
6,391
|
|
|
|
-
|
|
Indexation gains (losses), net
|
|
|
1,251
|
|
|
|
(18
|
)
|
|
|
|
6,960
|
|
|
|
(8,688
|
)
|
Total
|
|
|
(176
|
)
|
|
|
(10,486
|
)
|
7. Income
taxes
a) Deferred income tax assets
and liabilities
|
|
Consolidated
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Deferred taxes, net
|
|
Balance at December 31, 2020
|
|
|
53,711
|
|
|
|
9,198
|
|
|
|
44,513
|
|
Effect in income statement
|
|
|
(1,406
|
)
|
|
|
274
|
|
|
|
(1,680
|
)
|
Translation adjustment
|
|
|
840
|
|
|
|
916
|
|
|
|
(76
|
)
|
Other comprehensive income
|
|
|
(686
|
)
|
|
|
690
|
|
|
|
(1,376
|
)
|
Balance at March 31, 2021
|
|
|
52,459
|
|
|
|
11,078
|
|
|
|
41,381
|
|
|
|
|
Consolidated
|
|
|
|
|
Assets
|
|
|
|
Liabilities
|
|
|
|
Deferred taxes, net
|
|
Balance at December 31, 2019
|
|
|
37,151
|
|
|
|
7,585
|
|
|
|
29,566
|
|
Effect in income statement
|
|
|
4,468
|
|
|
|
(227
|
)
|
|
|
4,695
|
|
Transfers between asset and liabilities
|
|
|
186
|
|
|
|
186
|
|
|
|
-
|
|
Translation adjustment
|
|
|
2,132
|
|
|
|
1,462
|
|
|
|
670
|
|
Other comprehensive income
|
|
|
8,364
|
|
|
|
44
|
|
|
|
8,320
|
|
Balance at March 31, 2020
|
|
|
52,301
|
|
|
|
9,050
|
|
|
|
43,251
|
|
b) Income
tax reconciliation – Income statement
Income tax expense is recognized based on
the estimate of the weighted average effective tax rate expected for the full year. The total amount presented as income taxes in
the income statement is reconciled to the statutory rate, as follows:
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Income (loss) before income taxes
|
|
|
40,139
|
|
|
|
(2,465
|
)
|
Income taxes at statutory rate - 34%
|
|
|
(13,647
|
)
|
|
|
838
|
|
Adjustments that affect the basis of taxes:
|
|
|
|
|
|
|
|
|
Tax incentives
|
|
|
2,501
|
|
|
|
1,379
|
|
Equity results
|
|
|
(55
|
)
|
|
|
(177
|
)
|
Addition(reversal) of tax loss carryforward
|
|
|
(257
|
)
|
|
|
1,015
|
|
Others
|
|
|
1,508
|
|
|
|
47
|
|
Income taxes
|
|
|
(9,950
|
)
|
|
|
3,102
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
c) Income taxes - Settlement
program (“REFIS”)
The balance mainly relates to the settlement program
of the claims related to the collection of income tax and social contribution on equity gains of foreign subsidiaries and affiliates from
2003 to 2012. As at March 31, 2021, the balance of R$13,856 (R$1,774 classified as current liabilities and R$12,082 classified as
non-current liabilities) is due in 91 remaining monthly installments, bearing the SELIC interest rate (Special System for Settlement and
Custody), which is the Brazilian federal funds rate. As at March 31, 2021, the SELIC rate was 2.75% per annum.
d) Uncertain tax positions
There have been no developments on matters related
to the uncertain tax positions since the December 31, 2020 financial statements.
|
8.
|
Basic and diluted earnings per share
|
The basic and diluted earnings per share are presented
below:
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Net income attributable to Vale's stockholders:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
30,564
|
|
|
|
984
|
|
|
|
|
|
|
|
|
|
|
Thousands of shares
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding - common shares
|
|
|
5,130,188
|
|
|
|
5,128,598
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share:
|
|
|
|
|
|
|
|
|
Common share (R$)
|
|
|
5.96
|
|
|
|
0.19
|
|
The Company does not have potential outstanding
shares or other instruments with dilutive effect on the earnings per share computation.
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Accounts receivable
|
|
|
20,306
|
|
|
|
26,205
|
|
Expected credit loss
|
|
|
(280
|
)
|
|
|
(261
|
)
|
|
|
|
20,026
|
|
|
|
25,944
|
|
|
|
|
|
|
|
|
|
|
Revenue related to the steel sector - %
|
|
|
88.98
|
%
|
|
|
87.25
|
%
|
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Impairment of accounts receivable recorded in the income statement
|
|
|
2
|
|
|
|
55
|
|
As at March 31, 2021, there is no customer
that individually represents more than 10% of the Company’s accounts receivable or revenues. In 2020, the Company had a customer
of the Ferrous Minerals Segment whose revenue individually represented 10.1% of the Company’s total revenue.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Finished products
|
|
|
18,498
|
|
|
|
13,659
|
|
Work in progress
|
|
|
1,572
|
|
|
|
3,351
|
|
Consumable inventory
|
|
|
4,282
|
|
|
|
4,093
|
|
Total
|
|
|
24,352
|
|
|
|
21,103
|
|
|
|
Consolidated
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Reversal for net realizable value
|
|
|
70
|
|
|
|
314
|
|
Finished and work in progress products inventories
by segments are presented in note 4(b) and the cost of goods sold is presented in note 5(a).
11. Other
financial assets and liabilities
|
|
Consolidated
|
|
|
|
Current
|
|
|
Non-Current
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Other financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
-
|
|
|
|
-
|
|
|
|
329
|
|
|
|
197
|
|
Derivative financial instruments (note 15)
|
|
|
799
|
|
|
|
698
|
|
|
|
324
|
|
|
|
347
|
|
Investments in equity securities
|
|
|
-
|
|
|
|
-
|
|
|
|
6,189
|
|
|
|
3,936
|
|
Related parties - Loans (note 25)
|
|
|
849
|
|
|
|
1,009
|
|
|
|
5,183
|
|
|
|
4,791
|
|
|
|
|
1,648
|
|
|
|
1,707
|
|
|
|
12,025
|
|
|
|
9,271
|
|
Other financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments (note 15)
|
|
|
1,755
|
|
|
|
1,712
|
|
|
|
4,875
|
|
|
|
3,578
|
|
Related parties - Loans (note 25)
|
|
|
4,148
|
|
|
|
3,759
|
|
|
|
5,355
|
|
|
|
4,903
|
|
Financial guarantees provided
|
|
|
-
|
|
|
|
-
|
|
|
|
4,762
|
|
|
|
4,558
|
|
Liabilities related to the concession grant (note 13)
|
|
|
1,465
|
|
|
|
1,088
|
|
|
|
10,174
|
|
|
|
10,928
|
|
Advance received
|
|
|
4,493
|
|
|
|
3,347
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
11,861
|
|
|
|
9,906
|
|
|
|
25,166
|
|
|
|
23,967
|
|
Investment
in equity securities – Mainly refers to 34.2 million common shares of The Mosaic Company (“Mosaic”), which
is accounted for as a financial instrument measured at fair value through other comprehensive income. The recorded amount was calculated
based on Mosaic’s share price at the end of each financial reporting period.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
12. Investments
in subsidiaries, associates and joint ventures
a) Investment information
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
Investments
in associates and joint
ventures
|
|
|
Equity
results in the income
statement
|
|
|
Dividends
received
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month
period ended March
31,
|
|
|
Three-month
period ended March
31,
|
|
Associates
and joint ventures
|
|
%
ownership
|
|
|
%
voting capital
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Ferrous minerals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baovale Mineração
S.A.
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
110
|
|
|
|
103
|
|
|
|
7
|
|
|
|
5
|
|
|
|
-
|
|
|
|
-
|
|
Companhia Coreano-Brasileira
de Pelotização
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
279
|
|
|
|
249
|
|
|
|
29
|
|
|
|
15
|
|
|
|
-
|
|
|
|
-
|
|
Companhia Hispano-Brasileira
de Pelotização (i)
|
|
|
50.89
|
|
|
|
50.89
|
|
|
|
224
|
|
|
|
223
|
|
|
|
-
|
|
|
|
12
|
|
|
|
-
|
|
|
|
-
|
|
Companhia Ítalo-Brasileira
de Pelotização (i)
|
|
|
50.90
|
|
|
|
51.00
|
|
|
|
250
|
|
|
|
228
|
|
|
|
22
|
|
|
|
24
|
|
|
|
-
|
|
|
|
-
|
|
Companhia Nipo-Brasileira de
Pelotização (i)
|
|
|
51.00
|
|
|
|
51.11
|
|
|
|
645
|
|
|
|
627
|
|
|
|
18
|
|
|
|
10
|
|
|
|
-
|
|
|
|
-
|
|
MRS Logística S.A.
|
|
|
48.16
|
|
|
|
46.75
|
|
|
|
2,114
|
|
|
|
2,069
|
|
|
|
93
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
-
|
|
Samarco Mineração
S.A. (note 20)
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
VLI S.A.
|
|
|
29.60
|
|
|
|
29.60
|
|
|
|
2,414
|
|
|
|
2,495
|
|
|
|
(83
|
)
|
|
|
(131
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
6,036
|
|
|
|
5,994
|
|
|
|
86
|
|
|
|
(74
|
)
|
|
|
-
|
|
|
|
-
|
|
Base metals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Korea Nickel
Corp.
|
|
|
25.00
|
|
|
|
25.00
|
|
|
|
96
|
|
|
|
91
|
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
96
|
|
|
|
91
|
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
Others
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aliança Geração
de Energia S.A. (i)
|
|
|
55.00
|
|
|
|
55.00
|
|
|
|
1,825
|
|
|
|
1,909
|
|
|
|
56
|
|
|
|
46
|
|
|
|
-
|
|
|
|
-
|
|
Aliança Norte Energia
Participações S.A. (i)
|
|
|
51.00
|
|
|
|
51.00
|
|
|
|
601
|
|
|
|
606
|
|
|
|
(6
|
)
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
-
|
|
California Steel Industries, Inc.
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
1,406
|
|
|
|
1,218
|
|
|
|
68
|
|
|
|
(28
|
)
|
|
|
-
|
|
|
|
-
|
|
Companhia Siderúrgica
do Pecém ("CSP") (ii)
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(237
|
)
|
|
|
(364
|
)
|
|
|
-
|
|
|
|
-
|
|
Mineração Rio do
Norte S.A.
|
|
|
40.00
|
|
|
|
40.00
|
|
|
|
312
|
|
|
|
367
|
|
|
|
(51
|
)
|
|
|
(46
|
)
|
|
|
-
|
|
|
|
-
|
|
Nacala Corridor Holding Netherlands
B.V.
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Others
|
|
|
|
|
|
|
|
|
|
|
382
|
|
|
|
372
|
|
|
|
(78
|
)
|
|
|
(53
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
4,526
|
|
|
|
4,472
|
|
|
|
(248
|
)
|
|
|
(449
|
)
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
10,658
|
|
|
|
10,557
|
|
|
|
(162
|
)
|
|
|
(521
|
)
|
|
|
-
|
|
|
|
-
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
(i) Although the Company held a majority
of the voting capital, the entities are accounted under the equity method due to the stockholders' agreement where relevant decisions
are shared with other parties.
(ii) CSP is a joint venture and its results
are accounted for under the equity method, in which the accumulated losses are capped to the Company ́s interest in the investee’s
capital based on the applicable law and requirements. That is, after the investment is reduced to zero, the Company does not recognize
further losses nor liabilities associated with the investee.
b) Movements during the period
|
|
Consolidated
|
|
|
|
2021
|
|
|
2020
|
|
Balance at January 1,
|
|
|
10,557
|
|
|
|
11,278
|
|
Capital contribution to CSP
|
|
|
237
|
|
|
|
364
|
|
Translation adjustment
|
|
|
134
|
|
|
|
311
|
|
Equity results in income statement
|
|
|
(162
|
)
|
|
|
(521
|
)
|
Dividends declared
|
|
|
(195
|
)
|
|
|
(182
|
)
|
Others
|
|
|
87
|
|
|
|
49
|
|
Balance at March 31,
|
|
|
10,658
|
|
|
|
11,299
|
|
The amount of investments by segments are presented
in note 4(b).
c) Acquisitions and divestitures
Investment Agreement
with Mitsui & Co. Ltd. (“Mitsui”) - In January 2021, the Company signed a Heads of Agreement with
Mitsui, both parties to structure Mitsui’s exit from Vale Moçambique and Nacala Logistics Corridor (“NLC”).
Currently, Mitsui holds a non-controlling interest of 15% in Vale Moçambique and a 50% interest in NLC.
In April 2021
(subsequent event), the Company signed an Investment Agreement with Mitsui for the acquisition by Vale of the totality of Mitsui´s
interest of Vale Moçambique and NLC. The Investment Agreement determines that Vale will acquire Mitsui's stake in the mine and
logistics assets for an immaterial consideration and will undertake of the Nacala Corridor Project Finance in full, which is approximately
R$14,181 (US$2,489 million) outstanding balance at March 31, 2021. In case of closing the transaction, Vale will also control
NLC and, therefore, consolidate its assets and liabilities. The parties expect to conclude the transaction during 2021.
In addition, the
Company informed the market its divestiture intention in the coal segment following the acquisition of Mitsui’s stake. Therefore,
after completion of this acquisition transaction, the Company will assess whether the coal segment would meet the criteria to be classified
as a discontinued operation in its future financial statements.
Boston Electrometallurgical
Company (“Boston Metal”) – In February 2021, the Company made an investment of R$33 (US$6 million)
in Boston Metal to acquire a non-controlling interest of 3.24%, aiming promote the development of a technology focused on the reduction
of carbon dioxide on the steel production. Boston Metal has a diverse shareholding structure which includes venture capital funds, mining
companies and private investors. Since the Company does not have significant influence over Boston Metal, this investment has been classified
as a financial instrument and recorded as “Investments in equity securities”.
Vale Nouvelle-Calédonie
S.A.S. (“VNC”) – In December 2020, the Company signed a binding put option agreement to sell
its interest in VNC for an immaterial consideration to a consortium constituted in a new company called “Prony Resources”,
led by the current management and employees of VNC and supported by the Caledonian and French authorities with Trafigura Pte. Ltd. as
a non-controlling shareholder. Under the terms of agreement, the Company has assumed an obligation to pay to the buyers an amount of
R$2,573 (US$500 million) upon closing of the transaction and this amount has been provided for as at December 31, 2020.
In March 2021, the Company signed the share
purchase agreement with Prony Resources, concluding the transaction to sell its interest in VNC. With the final agreement, Vale's obligation
to pay to buyers increased by R$302 (US$55 million), which combined with other working capital adjustments, resulted in an additional
loss of R$549, recorded as “Impairment and disposals of non-current assets”. On March 31, 2021, the Company disbursed
R$3,134 (US$555 million) to VNC on the closing of the transaction, thus the liabilities recorded as at December 31, 2021 were settled
and there is no outstanding balance in these interim financial statements.
The agreement also established that Vale may purchase a certain amount of VNC’s annual nickel production, with a cap price over
a long-term period. Such cap included in contract
is an embedded derivative, however, it is deemed closely related to the host contract (nickel supply agreement) because the cap was out
of the money on inception of the contract. Therefore, this derivative will not be separated from the host contract, which will be accounted
for as an executory contract.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
Upon closing of the transaction, the Company
also recognized a gain of R$6,391 (US$1,132 million) arising from the accumulated exchange differences reclassified from the stockholders’
equity to the income statement under “Other financial items, net”.
d) Financial guarantees provided
As at March 31, 2021 and December 31,
2020, the notional value of corporate financial guarantees provided by the Company (within the limit of its direct or indirect interest)
for certain associates and joint ventures were R$8,481 and R$8,091, respectively. The fair value of these financial guarantees is shown
in note 16.
13. Intangibles
Movements during the period
|
|
Consolidated
|
|
|
|
Goodwill
|
|
|
Concessions
|
|
|
Contract right
|
|
|
Software
|
|
|
Research and
development
project and
patents
|
|
|
Total
|
|
Balance at December 31, 2020
|
|
|
17,141
|
|
|
|
28,015
|
|
|
|
-
|
|
|
|
396
|
|
|
|
2,757
|
|
|
|
48,309
|
|
Additions
|
|
|
-
|
|
|
|
183
|
|
|
|
-
|
|
|
|
78
|
|
|
|
-
|
|
|
|
261
|
|
Disposals
|
|
|
-
|
|
|
|
(13
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13
|
)
|
Amortization
|
|
|
-
|
|
|
|
(297
|
)
|
|
|
-
|
|
|
|
(41
|
)
|
|
|
-
|
|
|
|
(338
|
)
|
Translation adjustment
|
|
|
1,106
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18
|
|
|
|
-
|
|
|
|
1,124
|
|
Balance at March 31, 2021
|
|
|
18,247
|
|
|
|
27,888
|
|
|
|
-
|
|
|
|
451
|
|
|
|
2,757
|
|
|
|
49,343
|
|
Cost
|
|
|
18,247
|
|
|
|
33,330
|
|
|
|
-
|
|
|
|
4,077
|
|
|
|
2,757
|
|
|
|
58,411
|
|
Accumulated amortization
|
|
|
-
|
|
|
|
(5,442
|
)
|
|
|
-
|
|
|
|
(3,626
|
)
|
|
|
-
|
|
|
|
(9,068
|
)
|
Balance at March 31, 2021
|
|
|
18,247
|
|
|
|
27,888
|
|
|
|
-
|
|
|
|
451
|
|
|
|
2,757
|
|
|
|
49,343
|
|
|
|
Consolidated
|
|
|
|
Goodwill
|
|
|
Concessions
|
|
|
Contract right
|
|
|
Software
|
|
|
Research and
development
project and
patents
|
|
|
Total
|
|
Balance at December 31, 2019
|
|
|
14,628
|
|
|
|
16,005
|
|
|
|
563
|
|
|
|
304
|
|
|
|
2,757
|
|
|
|
34,257
|
|
Additions
|
|
|
-
|
|
|
|
87
|
|
|
|
-
|
|
|
|
30
|
|
|
|
-
|
|
|
|
117
|
|
Disposals
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
Amortization
|
|
|
-
|
|
|
|
(215
|
)
|
|
|
(1
|
)
|
|
|
(30
|
)
|
|
|
-
|
|
|
|
(246
|
)
|
Translation adjustment
|
|
|
1,616
|
|
|
|
-
|
|
|
|
87
|
|
|
|
26
|
|
|
|
-
|
|
|
|
1,729
|
|
Balance at March 31, 2020
|
|
|
16,244
|
|
|
|
15,872
|
|
|
|
649
|
|
|
|
330
|
|
|
|
2,757
|
|
|
|
35,852
|
|
Cost
|
|
|
16,244
|
|
|
|
20,578
|
|
|
|
1,136
|
|
|
|
3,810
|
|
|
|
2,757
|
|
|
|
44,525
|
|
Accumulated amortization
|
|
|
-
|
|
|
|
(4,706
|
)
|
|
|
(487
|
)
|
|
|
(3,480
|
)
|
|
|
-
|
|
|
|
(8,673
|
)
|
Balance at March 31, 2020
|
|
|
16,244
|
|
|
|
15,872
|
|
|
|
649
|
|
|
|
330
|
|
|
|
2,757
|
|
|
|
35,852
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
14. Property,
plant and equipment
a) Movements during the period
|
|
Consolidated
|
|
|
|
Building
and land
|
|
|
Facilities
|
|
|
Equipment
|
|
|
Mineral
properties
|
|
|
Railway
equipment
|
|
|
Right
of
use assets
|
|
|
Others
|
|
|
Constructions
in progress
|
|
|
Total
|
|
Balance at
December 31, 2020
|
|
|
44,646
|
|
|
|
39,448
|
|
|
|
25,637
|
|
|
|
41,853
|
|
|
|
13,108
|
|
|
|
8,121
|
|
|
|
12,968
|
|
|
|
28,055
|
|
|
|
213,836
|
|
Additions (i)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
209
|
|
|
|
-
|
|
|
|
5,144
|
|
|
|
5,353
|
|
Disposals
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(101
|
)
|
|
|
(107
|
)
|
Assets retirement obligation
(ii)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,101
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,101
|
)
|
Depreciation, depletion and amortization
|
|
|
(562
|
)
|
|
|
(623
|
)
|
|
|
(872
|
)
|
|
|
(759
|
)
|
|
|
(211
|
)
|
|
|
(223
|
)
|
|
|
(346
|
)
|
|
|
-
|
|
|
|
(3,596
|
)
|
Impairment (iii)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(244
|
)
|
|
|
(244
|
)
|
Translation adjustment
|
|
|
1,396
|
|
|
|
767
|
|
|
|
1,390
|
|
|
|
3,121
|
|
|
|
35
|
|
|
|
614
|
|
|
|
572
|
|
|
|
1,511
|
|
|
|
9,406
|
|
Transfers
|
|
|
189
|
|
|
|
416
|
|
|
|
773
|
|
|
|
123
|
|
|
|
102
|
|
|
|
-
|
|
|
|
355
|
|
|
|
(1,958
|
)
|
|
|
-
|
|
Balance at March 31,
2021
|
|
|
45,667
|
|
|
|
40,008
|
|
|
|
26,924
|
|
|
|
42,237
|
|
|
|
13,034
|
|
|
|
8,721
|
|
|
|
13,549
|
|
|
|
32,407
|
|
|
|
222,547
|
|
Cost
|
|
|
82,652
|
|
|
|
62,826
|
|
|
|
59,196
|
|
|
|
94,445
|
|
|
|
20,186
|
|
|
|
11,186
|
|
|
|
32,447
|
|
|
|
32,407
|
|
|
|
395,345
|
|
Accumulated
depreciation
|
|
|
(36,985
|
)
|
|
|
(22,818
|
)
|
|
|
(32,272
|
)
|
|
|
(52,208
|
)
|
|
|
(7,152
|
)
|
|
|
(2,465
|
)
|
|
|
(18,898
|
)
|
|
|
-
|
|
|
|
(172,798
|
)
|
Balance at March 31,
2021
|
|
|
45,667
|
|
|
|
40,008
|
|
|
|
26,924
|
|
|
|
42,237
|
|
|
|
13,034
|
|
|
|
8,721
|
|
|
|
13,549
|
|
|
|
32,407
|
|
|
|
222,547
|
|
|
|
Consolidated
|
|
|
|
Building
and land
|
|
|
Facilities
|
|
|
Equipment
|
|
|
Mineral
properties
|
|
|
Railway
equipment
|
|
|
Right
of
use assets
|
|
|
Others
|
|
|
Constructions
in progress
|
|
|
Total
|
|
Balance
at December 31, 2019
|
|
|
43,137
|
|
|
|
38,713
|
|
|
|
22,921
|
|
|
|
33,302
|
|
|
|
13,075
|
|
|
|
6,819
|
|
|
|
12,126
|
|
|
|
17,640
|
|
|
|
187,733
|
|
Additions
(i)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
118
|
|
|
|
-
|
|
|
|
3,992
|
|
|
|
4,110
|
|
Disposals
|
|
|
(1
|
)
|
|
|
(13
|
)
|
|
|
(22
|
)
|
|
|
(19
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
(187
|
)
|
|
|
(246
|
)
|
Assets
retirement obligation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
218
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
218
|
|
Depreciation,
depletion and amortization
|
|
|
(540
|
)
|
|
|
(619
|
)
|
|
|
(922
|
)
|
|
|
(642
|
)
|
|
|
(293
|
)
|
|
|
(179
|
)
|
|
|
(338
|
)
|
|
|
-
|
|
|
|
(3,533
|
)
|
Translation
adjustment
|
|
|
2,771
|
|
|
|
1,465
|
|
|
|
3,407
|
|
|
|
4,336
|
|
|
|
242
|
|
|
|
1,444
|
|
|
|
1,089
|
|
|
|
605
|
|
|
|
15,359
|
|
Transfers
|
|
|
3
|
|
|
|
355
|
|
|
|
275
|
|
|
|
1,383
|
|
|
|
51
|
|
|
|
-
|
|
|
|
253
|
|
|
|
(2,320
|
)
|
|
|
-
|
|
Balance
at March 31, 2020
|
|
|
45,370
|
|
|
|
39,901
|
|
|
|
25,659
|
|
|
|
38,578
|
|
|
|
13,075
|
|
|
|
8,202
|
|
|
|
13,126
|
|
|
|
19,730
|
|
|
|
203,641
|
|
Cost
|
|
|
84,462
|
|
|
|
76,067
|
|
|
|
54,363
|
|
|
|
84,602
|
|
|
|
19,288
|
|
|
|
9,221
|
|
|
|
30,820
|
|
|
|
19,730
|
|
|
|
378,553
|
|
Accumulated
depreciation
|
|
|
(39,092
|
)
|
|
|
(36,166
|
)
|
|
|
(28,704
|
)
|
|
|
(46,024
|
)
|
|
|
(6,213
|
)
|
|
|
(1,019
|
)
|
|
|
(17,694
|
)
|
|
|
-
|
|
|
|
(174,912
|
)
|
Balance
at March 31, 2020
|
|
|
45,370
|
|
|
|
39,901
|
|
|
|
25,659
|
|
|
|
38,578
|
|
|
|
13,075
|
|
|
|
8,202
|
|
|
|
13,126
|
|
|
|
19,730
|
|
|
|
203,641
|
|
(i) Includes capitalized borrowing costs.
(ii) Refers to changes in discount rates.
(iii) Due to the Company's assessment of
the recoverability of its coal assets, the carrying amount of this cash-generating unit was reduced to zero. Therefore, assets acquired
during the year are also provided for impairment. In the current year, the Company recognized an impairment loss related to coal assets
acquired in the amount of R$244.
b) Right-of-use assets (Leases)
|
|
December 31,
2020
|
|
|
Additions and contract
modifications
|
|
|
Depreciation
|
|
|
Translation
adjustment
|
|
|
March 31, 2021
|
|
Ports
|
|
|
3,732
|
|
|
|
-
|
|
|
|
(61
|
)
|
|
|
300
|
|
|
|
3,971
|
|
Vessels
|
|
|
2,779
|
|
|
|
-
|
|
|
|
(59
|
)
|
|
|
267
|
|
|
|
2,987
|
|
Pellets plants
|
|
|
683
|
|
|
|
193
|
|
|
|
(53
|
)
|
|
|
-
|
|
|
|
823
|
|
Properties
|
|
|
579
|
|
|
|
16
|
|
|
|
(34
|
)
|
|
|
8
|
|
|
|
569
|
|
Energy plants
|
|
|
287
|
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
30
|
|
|
|
308
|
|
Mining equipment and locomotives
|
|
|
61
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
9
|
|
|
|
63
|
|
Total
|
|
|
8,121
|
|
|
|
209
|
|
|
|
(223
|
)
|
|
|
614
|
|
|
|
8,721
|
|
Lease liabilities are presented in note 18.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
15. Financial
and capital risk management
a) Effects of derivatives
on the balance sheet
|
|
Consolidated
|
|
|
|
Assets
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
Foreign exchange and interest rate risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPCA swap
|
|
|
33
|
|
|
|
205
|
|
|
|
37
|
|
|
|
197
|
|
Eurobonds swap
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13
|
|
Pre-dollar swap
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
46
|
|
Libor swap
|
|
|
5
|
|
|
|
29
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
38
|
|
|
|
240
|
|
|
|
37
|
|
|
|
256
|
|
Commodities price risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base metals products
|
|
|
139
|
|
|
|
-
|
|
|
|
158
|
|
|
|
-
|
|
Gasoil, Brent and freight
|
|
|
622
|
|
|
|
-
|
|
|
|
503
|
|
|
|
-
|
|
|
|
|
761
|
|
|
|
-
|
|
|
|
661
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
-
|
|
|
|
84
|
|
|
|
-
|
|
|
|
91
|
|
|
|
|
-
|
|
|
|
84
|
|
|
|
-
|
|
|
|
91
|
|
Total
|
|
|
799
|
|
|
|
324
|
|
|
|
698
|
|
|
|
347
|
|
|
|
Consolidated
|
|
|
|
Liabilities
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
Foreign exchange and interest rate risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDI & TJLP vs. US$ fixed and floating rate swap
|
|
|
835
|
|
|
|
3,526
|
|
|
|
576
|
|
|
|
2,724
|
|
IPCA swap
|
|
|
28
|
|
|
|
704
|
|
|
|
382
|
|
|
|
520
|
|
Eurobonds swap
|
|
|
-
|
|
|
|
-
|
|
|
|
19
|
|
|
|
-
|
|
Pre-dollar swap
|
|
|
513
|
|
|
|
483
|
|
|
|
318
|
|
|
|
303
|
|
Libor swap
|
|
|
16
|
|
|
|
-
|
|
|
|
5
|
|
|
|
31
|
|
Forward transactions
|
|
|
148
|
|
|
|
160
|
|
|
|
6
|
|
|
|
-
|
|
|
|
|
1,540
|
|
|
|
4,873
|
|
|
|
1,306
|
|
|
|
3,578
|
|
Commodities price risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base metals products
|
|
|
132
|
|
|
|
2
|
|
|
|
242
|
|
|
|
-
|
|
Gasoil, Brent and freight
|
|
|
3
|
|
|
|
-
|
|
|
|
64
|
|
|
|
-
|
|
|
|
|
135
|
|
|
|
2
|
|
|
|
306
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
80
|
|
|
|
-
|
|
|
|
100
|
|
|
|
-
|
|
Total
|
|
|
1,755
|
|
|
|
4,875
|
|
|
|
1,712
|
|
|
|
3,578
|
|
a.i) Net exposure
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Foreign exchange and interest rate risk
|
|
|
|
|
|
|
|
|
CDI & TJLP vs. US$ fixed and floating rate swap
|
|
|
(4,361
|
)
|
|
|
(3,300
|
)
|
IPCA swap
|
|
|
(494
|
)
|
|
|
(668
|
)
|
Eurobonds swap
|
|
|
-
|
|
|
|
(6
|
)
|
Pre-dollar swap
|
|
|
(990
|
)
|
|
|
(575
|
)
|
Libor swap (i)
|
|
|
18
|
|
|
|
(36
|
)
|
Forward transactions
|
|
|
(308
|
)
|
|
|
(6
|
)
|
|
|
|
(6,135
|
)
|
|
|
(4,591
|
)
|
Commodities price risk
|
|
|
|
|
|
|
|
|
Base metals products
|
|
|
5
|
|
|
|
(84
|
)
|
Gasoil, Brent and freight
|
|
|
619
|
|
|
|
439
|
|
|
|
|
624
|
|
|
|
355
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
4
|
|
|
|
(9
|
)
|
|
|
|
4
|
|
|
|
(9
|
)
|
Total
|
|
|
(5,507
|
)
|
|
|
(4,245
|
)
|
(i) In July 2017, the U.K. Financial
Conduct Authority (FCA), which regulates the London Interbank Offered Rate (‘‘LIBOR’’), announced the effective
discontinuation of LIBOR. After June 30, 2023, the FCA will no longer require panel banks to submit quotes for any U.S. dollar LIBOR
settings. The Company is currently evaluating the potential impact of the eventual replacement of the LIBOR interest rate.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
a.ii) Effects of derivatives on the income statement and cash
flows
|
|
Consolidated
|
|
|
|
Gain (loss) recognized in the income
statement
|
|
|
Financial settlement
inflows (outflows)
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Foreign exchange and interest rate risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDI & TJLP vs. US$ fixed and floating rate swap
|
|
|
(1,489
|
)
|
|
|
(3,126
|
)
|
|
|
(486
|
)
|
|
|
(80
|
)
|
IPCA swap
|
|
|
80
|
|
|
|
(1,089
|
)
|
|
|
(97
|
)
|
|
|
1
|
|
Eurobonds swap
|
|
|
(154
|
)
|
|
|
(145
|
)
|
|
|
(162
|
)
|
|
|
(24
|
)
|
Pre-dollar swap
|
|
|
(1,136
|
)
|
|
|
(661
|
)
|
|
|
(423
|
)
|
|
|
(100
|
)
|
Libor swap
|
|
|
53
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
|
(2,646
|
)
|
|
|
(5,021
|
)
|
|
|
(1,170
|
)
|
|
|
(203
|
)
|
Commodities price risk
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base metals products
|
|
|
(13
|
)
|
|
|
-
|
|
|
|
(33
|
)
|
|
|
1,243
|
|
Gasoil, Brent and freight
|
|
|
229
|
|
|
|
(1,638
|
)
|
|
|
109
|
|
|
|
(4
|
)
|
|
|
|
216
|
|
|
|
(1,638
|
)
|
|
|
76
|
|
|
|
1,239
|
|
Others
|
|
|
8
|
|
|
|
265
|
|
|
|
-
|
|
|
|
296
|
|
|
|
|
8
|
|
|
|
265
|
|
|
|
-
|
|
|
|
296
|
|
Total
|
|
|
(2,422
|
)
|
|
|
(6,394
|
)
|
|
|
(1,094
|
)
|
|
|
1,332
|
|
a.iii) Hedge accounting
|
|
Consolidated
|
|
|
|
Gain (loss) recognized in the other comprehensive
income
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Net investments hedge
|
|
|
(851
|
)
|
|
|
(2,394
|
)
|
Cash flow hedge (Nickel and Palladium)
|
|
|
88
|
|
|
|
277
|
|
|
|
|
|
|
|
|
|
|
Net investment hedge:
In March 2021, the Company repurchased all
hedge instruments in euros (note 18). As a result, the amount of debt designated as a hedge instrument for this investment is R$13,488
(US$2,368 million) as at March 31,2021.
Cash Flow Hedge (Nickel):
|
|
Notional
(ton)
|
|
|
Fair value
|
|
|
Financial
settlement
Inflows
(Outflows)
|
|
|
Value
at
Risk
|
|
|
Fair
value by
year
|
|
Flow
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
Bought
/
Sold
|
|
Average
strike
(US$/ton)
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
March 31,
2021
|
|
|
March 31,
2021
|
|
|
2021
|
|
Nickel
Revenue Hedging Program (i)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call
options
|
|
|
44,640
|
|
|
|
58,620
|
|
|
S
|
|
|
17,641
|
|
|
|
(129
|
)
|
|
|
(239
|
)
|
|
|
(30
|
)
|
|
|
33
|
|
|
|
(129
|
)
|
Put
options
|
|
|
44,640
|
|
|
|
58,620
|
|
|
B
|
|
|
15,000
|
|
|
|
137
|
|
|
|
143
|
|
|
|
-
|
|
|
|
32
|
|
|
|
137
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
(96
|
)
|
|
|
(30
|
)
|
|
|
65
|
|
|
|
8
|
|
(i) With the hedge structure, the company
ensures prices between US$15,000/t and US$17,641/t for the program’s sales volume.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
Cash flow hedge
(Palladium):
|
|
Notional
(t oz)
|
|
|
|
|
|
|
|
Fair
value
|
|
|
Financial
settlement Inflows (Outflows)
|
|
|
Value
at Risk
|
|
|
Fair
value by year
|
|
Flow
|
|
March
31, 2021
|
|
|
December 31,
2020
|
|
|
Bought
/
Sold
|
|
Average
strike (US$/t
oz)
|
|
|
March
31, 2021
|
|
|
December 31,
2020
|
|
|
March
31, 2021
|
|
|
March
31, 2021
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Palladium Revenue Hedging
Program
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options
|
|
|
-
|
|
|
|
7,200
|
|
|
S
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
Put Options
|
|
|
-
|
|
|
|
7,200
|
|
|
B
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
b) Protection programs for
the R$ and EUR denominated debt instruments and other liabilities
|
|
Notional
|
|
|
|
|
|
|
|
|
Fair
value
|
|
|
Financial
Settlement
Inflows
(Outflows)
|
|
|
Value
at Risk
|
|
|
Fair
value by year
|
|
Flow
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
Index
|
|
|
Average
rate
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
March 31,
2021
|
|
|
March 31,
2021
|
|
|
2021
|
|
|
2022
|
|
|
2023+
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDI vs. US$ fixed
rate swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,326
|
)
|
|
|
(2,454
|
)
|
|
|
(88
|
)
|
|
|
244
|
|
|
|
(366
|
)
|
|
|
(708
|
)
|
|
|
(2,252
|
)
|
Receivable
|
|
|
R$
9,149
|
|
|
|
R$
9,445
|
|
|
|
CDI
|
|
|
|
100.60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
|
|
|
US$
2.144
|
|
|
|
US$
2.213
|
|
|
|
Fix
|
|
|
|
2.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TJLP vs. US$ fixed rate swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,035
|
)
|
|
|
(846
|
)
|
|
|
(66
|
)
|
|
|
51
|
|
|
|
(263
|
)
|
|
|
(285
|
)
|
|
|
(487
|
)
|
Receivable
|
|
|
R$
1,561
|
|
|
|
R$
1,651
|
|
|
|
TJLP
+
|
|
|
|
1.12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
|
|
|
US$
431
|
|
|
|
US$
460
|
|
|
|
Fix
|
|
|
|
3.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ fixed rate vs. US$ fixed
rate swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(990
|
)
|
|
|
(575
|
)
|
|
|
(464
|
)
|
|
|
228
|
|
|
|
(485
|
)
|
|
|
(369
|
)
|
|
|
(137
|
)
|
Receivable
|
|
|
R$
10,800
|
|
|
|
R$
2,512
|
|
|
|
Fix
|
|
|
|
3.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
|
|
|
US$
2.073
|
|
|
|
US$
621
|
|
|
|
Fix
|
|
|
|
-1.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPCA vs. US$ fixed rate swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(730
|
)
|
|
|
(900
|
)
|
|
|
(366
|
)
|
|
|
52
|
|
|
|
(24
|
)
|
|
|
(59
|
)
|
|
|
(647
|
)
|
Receivable
|
|
|
R$
1,671
|
|
|
|
R$
2,363
|
|
|
|
IPCA
+
|
|
|
|
4.54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
|
|
|
US$
413
|
|
|
|
US$
622
|
|
|
|
Fix
|
|
|
|
3.88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPCA vs. CDI swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
237
|
|
|
|
232
|
|
|
|
-
|
|
|
|
2
|
|
|
|
33
|
|
|
|
204
|
|
|
|
-
|
|
Receivable
|
|
|
R$
711
|
|
|
|
R$
694
|
|
|
|
IPCA
+
|
|
|
|
6.63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
|
|
|
R$
1,350
|
|
|
|
R$
550
|
|
|
|
CDI
|
|
|
|
98.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUR fixed rate vs. US$ fixed
rate swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
(162
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Receivable
|
|
|
-
|
|
|
|
EUR
500
|
|
|
|
Fix
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
|
|
|
-
|
|
|
|
US$
613
|
|
|
|
Fix
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward
|
|
|
R$
8,863
|
|
|
|
R$
916
|
|
|
|
B
|
|
|
|
5.90
|
|
|
|
(308
|
)
|
|
|
(6
|
)
|
|
|
(22
|
)
|
|
|
165
|
|
|
|
(120
|
)
|
|
|
(32
|
)
|
|
|
(156
|
)
|
c) Protection program for Libor
floating interest rate US$ denominated debt
|
|
Notional
|
|
|
|
|
|
|
|
|
Fair
value
|
|
|
Financial
Settlement Inflows (Outflows)
|
|
|
Value
at Risk
|
|
|
Fair
value by year
|
|
Flow
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
Index
|
|
|
Average
rate
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
March 31,
2021
|
|
|
March 31,
2021
|
|
|
2021
|
|
|
2022
|
|
|
2023+
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Libor
vs. US$ fixed rate swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
(36
|
)
|
|
|
(2
|
)
|
|
|
16
|
|
|
|
(5
|
)
|
|
|
(2
|
)
|
|
|
25
|
|
Receivable
|
|
|
US$
950
|
|
|
|
US$
950
|
|
|
|
Libor
|
|
|
|
1.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable
|
|
|
US$
950
|
|
|
|
US$
950
|
|
|
|
Fix
|
|
|
|
4.78
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
d) Protection program for product
prices and input costs
|
|
Notional
|
|
|
|
|
|
|
|
Fair
value
|
|
|
Financial
settlement
Inflows
(Outflows)
|
|
|
Value
at
Risk
|
|
|
Fair
value by
year
|
|
Flow
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
Bought
/
Sold
|
|
Average
strike
(US$/bbl)
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
March 31,
2021
|
|
|
March 31,
2021
|
|
|
2021+
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brent crude oil (bbl)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call options
|
|
|
8,247,807
|
|
|
|
13,746,945
|
|
|
B
|
|
|
55
|
|
|
|
451
|
|
|
|
478
|
|
|
|
203
|
|
|
|
83
|
|
|
|
451
|
|
Put options
|
|
|
8,247,807
|
|
|
|
13,746,945
|
|
|
S
|
|
|
28
|
|
|
|
(4
|
)
|
|
|
(59
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Freight Agreement
(days)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight forwards (days)
|
|
|
720
|
|
|
|
1,625
|
|
|
B
|
|
|
11,472
|
|
|
|
44
|
|
|
|
22
|
|
|
|
22
|
|
|
|
4
|
|
|
|
44
|
|
e) Embedded derivatives in
contracts
|
|
Notional
|
|
|
|
|
|
|
|
Fair
value
|
|
|
Financial
settlement
Inflows
(Outflows)
|
|
|
Value
at Risk
|
|
|
Fair
value
|
|
Flow
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
Bought
/
Sold
|
|
Average
strike
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
March 31,
2021
|
|
|
March 31,
2021
|
|
|
2021+
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option
related to a Special Purpose Entity “SPE”
(quantity)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call
option
|
|
|
137,751,623
|
|
|
|
137,751,623
|
|
|
B
|
|
|
2.99
|
|
|
|
84
|
|
|
|
95
|
|
|
|
-
|
|
|
|
10
|
|
|
|
84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Embedded
derivatives in contracts for the sale
of part of its shareholding (quantity)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Put option
|
|
|
1,105,070,863
|
|
|
|
1,105,070,863
|
|
|
S
|
|
|
4.32
|
|
|
|
(69
|
)
|
|
|
(100
|
)
|
|
|
-
|
|
|
|
16
|
|
|
|
(69
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Embedded
Derivative in natural gas purchase
agreement (volume/month)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call options
|
|
|
729,571
|
|
|
|
746,667
|
|
|
S
|
|
|
233
|
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
13
|
|
|
|
(11
|
)
|
Embedded
in raw material purchase
contract (ton)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nickel forwards
|
|
|
2,347
|
|
|
|
1,979
|
|
|
S
|
|
|
17,974
|
|
|
|
4
|
|
|
|
10
|
|
|
|
-
|
|
|
|
7
|
|
|
|
4
|
|
Copper forwards
|
|
|
849
|
|
|
|
976
|
|
|
S
|
|
|
8,430
|
|
|
|
(3
|
)
|
|
|
2
|
|
|
|
-
|
|
|
|
1
|
|
|
|
(3
|
)
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
f) Sensitivity analysis of
derivative financial instruments
The following tables present the potential value
of the instruments given hypothetical stress scenarios for the main market risk factors that impact the derivatives positions. The scenarios
were defined as follows:
- Probable: the probable scenario was defined
as the fair value of the derivative instruments as at March 31, 2021
- Scenario I: fair value estimated considering
a 25% deterioration in the associated risk variables
- Scenario II: fair value estimated considering
a 50% deterioration in the associated risk variables
Instrument
|
|
Instrument's main risk events
|
|
Probable
|
|
|
Scenario I
|
|
|
Scenario II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDI vs. US$ fixed rate swap
|
|
R$ depreciation
|
|
|
(3,326
|
)
|
|
|
(6,455
|
)
|
|
|
(9,583
|
)
|
|
|
US$ interest rate inside Brazil decrease
|
|
|
(3,326
|
)
|
|
|
(3,495
|
)
|
|
|
(3,672
|
)
|
|
|
Brazilian interest rate increase
|
|
|
(3,326
|
)
|
|
|
(3,506
|
)
|
|
|
(3,694
|
)
|
Protected item: R$ denominated liabilities
|
|
R$ depreciation
|
|
|
n.a.
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TJLP vs. US$ fixed rate swap
|
|
R$ depreciation
|
|
|
(1,035
|
)
|
|
|
(1,682
|
)
|
|
|
(2,329
|
)
|
|
|
US$ interest rate inside Brazil decrease
|
|
|
(1,035
|
)
|
|
|
(1,055
|
)
|
|
|
(1,075
|
)
|
|
|
Brazilian interest rate increase
|
|
|
(1,035
|
)
|
|
|
(1,095
|
)
|
|
|
(1,149
|
)
|
|
|
TJLP interest rate decrease
|
|
|
(1,035
|
)
|
|
|
(1,075
|
)
|
|
|
(1,115
|
)
|
Protected item: R$ denominated debt
|
|
R$ depreciation
|
|
|
n.a.
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ fixed rate vs. US$ fixed rate swap
|
|
R$ depreciation
|
|
|
(990
|
)
|
|
|
(3,892
|
)
|
|
|
(6,794
|
)
|
|
|
US$ interest rate inside Brazil decrease
|
|
|
(990
|
)
|
|
|
(1,037
|
)
|
|
|
(1,085
|
)
|
|
|
Brazilian interest rate increase
|
|
|
(990
|
)
|
|
|
(1,222
|
)
|
|
|
(1,438
|
)
|
Protected item: R$ denominated debt
|
|
R$ depreciation
|
|
|
n.a.
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPCA vs. US$ fixed rate swap
|
|
R$ depreciation
|
|
|
(730
|
)
|
|
|
(1,370
|
)
|
|
|
(2,009
|
)
|
|
|
US$ interest rate inside Brazil decrease
|
|
|
(730
|
)
|
|
|
(766
|
)
|
|
|
(804
|
)
|
|
|
Brazilian interest rate increase
|
|
|
(730
|
)
|
|
|
(829
|
)
|
|
|
(925
|
)
|
|
|
IPCA index decrease
|
|
|
(730
|
)
|
|
|
(791
|
)
|
|
|
(852
|
)
|
Protected item: R$ denominated debt
|
|
R$ depreciation
|
|
|
n.a.
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPCA vs. CDI swap
|
|
Brazilian interest rate increase
|
|
|
237
|
|
|
|
222
|
|
|
|
209
|
|
|
|
IPCA index decrease
|
|
|
237
|
|
|
|
225
|
|
|
|
214
|
|
Protected item: R$ denominated debt linked to IPCA
|
|
IPCA index decrease
|
|
|
n.a.
|
|
|
|
(225
|
)
|
|
|
(214
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ floating rate vs. US$ fixed rate swap
|
|
US$ Libor decrease
|
|
|
18
|
|
|
|
(16
|
)
|
|
|
(50
|
)
|
Protected item: Libor US$ indexed debt
|
|
US$ Libor decrease
|
|
|
n.a.
|
|
|
|
16
|
|
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NDF BRL/USD
|
|
R$ depreciation
|
|
|
(308
|
)
|
|
|
(2,428
|
)
|
|
|
(4,548
|
)
|
|
|
US$ interest rate inside Brazil decrease
|
|
|
(308
|
)
|
|
|
(339
|
)
|
|
|
(371
|
)
|
|
|
Brazilian interest rate increase
|
|
|
(308
|
)
|
|
|
(464
|
)
|
|
|
(612
|
)
|
Protected item: R$ denominated liabilities
|
|
R$ depreciation
|
|
|
n.a.
|
|
|
|
-
|
|
|
|
-
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
Instrument
|
|
Instrument's main risk events
|
|
Probable
|
|
|
Scenario I
|
|
|
Scenario II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel oil protection
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
Price input decrease
|
|
|
448
|
|
|
|
171
|
|
|
|
77
|
|
Protected item: Part of costs linked to fuel oil prices
|
|
Price input decrease
|
|
|
n.a.
|
|
|
|
171
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Freight Agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
Freight price decrease
|
|
|
44
|
|
|
|
22
|
|
|
|
(1
|
)
|
Protected item: Part of costs linked to maritime freight prices
|
|
Freight price decrease
|
|
|
n.a.
|
|
|
|
(22
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nickel sales fixed price protection
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forwards
|
|
Nickel price decrease
|
|
|
(1
|
)
|
|
|
(14
|
)
|
|
|
(26
|
)
|
Protected item: Part of nickel revenues with fixed prices
|
|
Nickel price decrease
|
|
|
n.a.
|
|
|
|
(14
|
)
|
|
|
(26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nickel Revenue Hedging Program
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
Nickel price increase
|
|
|
7
|
|
|
|
(713
|
)
|
|
|
(1,665
|
)
|
Protected item: Part of nickel future revenues
|
|
Nickel price increase
|
|
|
7
|
|
|
|
713
|
|
|
|
1,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option - SPCs
|
|
SPCs stock value decrease
|
|
|
84
|
|
|
|
29
|
|
|
|
4
|
|
Instrument
|
|
Main risks
|
|
Probable
|
|
|
Scenario I
|
|
|
Scenario II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Embedded derivatives - Raw material purchase (nickel)
|
|
Nickel price increase
|
|
|
3
|
|
|
|
(52
|
)
|
|
|
(107
|
)
|
Embedded derivatives - Raw material purchase (copper)
|
|
Copper price increase
|
|
|
(3
|
)
|
|
|
(14
|
)
|
|
|
(25
|
)
|
Embedded derivatives - Gas purchase
|
|
Pellet price increase
|
|
|
(11
|
)
|
|
|
(36
|
)
|
|
|
(66
|
)
|
Embedded derivatives - Guaranteed minimum return
|
|
Stock value decrease
|
|
|
(69
|
)
|
|
|
(403
|
)
|
|
|
(1,453
|
)
|
g) Financial counterparties’
ratings
The table below presents the ratings published
by Moody’s regarding the main financial institutions that we hire derivative instruments, cash and cash equivalents transactions.
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
|
Cash and cash equivalents
and investment
|
|
|
Derivatives
|
|
|
Cash and cash equivalents
and investment
|
|
|
Derivatives
|
|
Aa1
|
|
|
537
|
|
|
|
-
|
|
|
|
11,487
|
|
|
|
188
|
|
Aa2
|
|
|
2,164
|
|
|
|
72
|
|
|
|
1,884
|
|
|
|
79
|
|
Aa3
|
|
|
4,751
|
|
|
|
198
|
|
|
|
8,735
|
|
|
|
214
|
|
A1
|
|
|
20,453
|
|
|
|
45
|
|
|
|
14,612
|
|
|
|
109
|
|
A2
|
|
|
22,078
|
|
|
|
500
|
|
|
|
20
|
|
|
|
105
|
|
A3
|
|
|
4,595
|
|
|
|
46
|
|
|
|
27
|
|
|
|
188
|
|
Baa1
|
|
|
-
|
|
|
|
-
|
|
|
|
18
|
|
|
|
-
|
|
Baa2
|
|
|
35
|
|
|
|
-
|
|
|
|
8
|
|
|
|
-
|
|
Ba1
|
|
|
-
|
|
|
|
4
|
|
|
|
15,516
|
|
|
|
-
|
|
Ba2
|
|
|
17,372
|
|
|
|
3
|
|
|
|
21,767
|
|
|
|
31
|
|
Ba3
|
|
|
9,544
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Others
|
|
|
11
|
|
|
|
255
|
|
|
|
18
|
|
|
|
131
|
|
|
|
|
81,540
|
|
|
|
1,123
|
|
|
|
74,092
|
|
|
|
1,045
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
16.
|
Financial assets and liabilities
|
a) Financial instruments classification
|
|
Consolidated
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
Financial
assets
|
|
Amortized
cost
|
|
|
At
fair value
through OCI
|
|
|
At
fair value
through
profit or loss
|
|
|
Total
|
|
|
Amortized
cost
|
|
|
At
fair value
through OCI
|
|
|
At
fair value
through
profit or loss
|
|
|
Total
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
(note 18)
|
|
|
73,399
|
|
|
|
-
|
|
|
|
-
|
|
|
|
73,399
|
|
|
|
70,086
|
|
|
|
-
|
|
|
|
-
|
|
|
|
70,086
|
|
Short-term investments (note
18)
|
|
|
-
|
|
|
|
-
|
|
|
|
8,141
|
|
|
|
8,141
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,006
|
|
|
|
4,006
|
|
Derivative financial instruments
(note 15)
|
|
|
-
|
|
|
|
-
|
|
|
|
799
|
|
|
|
799
|
|
|
|
-
|
|
|
|
-
|
|
|
|
698
|
|
|
|
698
|
|
Accounts receivable (note 9)
|
|
|
18,629
|
|
|
|
-
|
|
|
|
1,397
|
|
|
|
20,026
|
|
|
|
23,377
|
|
|
|
-
|
|
|
|
2,567
|
|
|
|
25,944
|
|
Related parties (note 25)
|
|
|
849
|
|
|
|
-
|
|
|
|
-
|
|
|
|
849
|
|
|
|
1,009
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,009
|
|
|
|
|
92,877
|
|
|
|
-
|
|
|
|
10,337
|
|
|
|
103,214
|
|
|
|
94,472
|
|
|
|
-
|
|
|
|
7,271
|
|
|
|
101,743
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Judicial deposits (note 22)
|
|
|
6,529
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,529
|
|
|
|
6,591
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,591
|
|
Restricted cash
|
|
|
329
|
|
|
|
-
|
|
|
|
-
|
|
|
|
329
|
|
|
|
197
|
|
|
|
-
|
|
|
|
-
|
|
|
|
197
|
|
Derivative financial instruments
(note 15)
|
|
|
-
|
|
|
|
-
|
|
|
|
324
|
|
|
|
324
|
|
|
|
-
|
|
|
|
-
|
|
|
|
347
|
|
|
|
347
|
|
Investments in equity securities
|
|
|
-
|
|
|
|
6,189
|
|
|
|
-
|
|
|
|
6,189
|
|
|
|
-
|
|
|
|
3,936
|
|
|
|
-
|
|
|
|
3,936
|
|
Related parties (note 25)
|
|
|
5,183
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,183
|
|
|
|
4,791
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,791
|
|
|
|
|
12,041
|
|
|
|
6,189
|
|
|
|
324
|
|
|
|
18,554
|
|
|
|
11,579
|
|
|
|
3,936
|
|
|
|
347
|
|
|
|
15,862
|
|
Total of financial assets
|
|
|
104,918
|
|
|
|
6,189
|
|
|
|
10,661
|
|
|
|
121,768
|
|
|
|
106,051
|
|
|
|
3,936
|
|
|
|
7,618
|
|
|
|
117,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suppliers and contractors
|
|
|
17,733
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17,733
|
|
|
|
17,496
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17,496
|
|
Derivative financial instruments
(note 15)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,755
|
|
|
|
1,755
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,712
|
|
|
|
1,712
|
|
Loans, borrowings and leases
(note 18)
|
|
|
5,633
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,633
|
|
|
|
5,901
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,901
|
|
Dividends payable
|
|
|
119
|
|
|
|
-
|
|
|
|
-
|
|
|
|
119
|
|
|
|
6,342
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,342
|
|
Liabilities related to the concession
grant
|
|
|
1,465
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,465
|
|
|
|
1,088
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,088
|
|
Related parties (note 25)
|
|
|
4,148
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,148
|
|
|
|
3,759
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,759
|
|
Other financial liabilities
|
|
|
4,493
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,493
|
|
|
|
3,347
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,347
|
|
|
|
|
33,591
|
|
|
|
-
|
|
|
|
1,755
|
|
|
|
35,346
|
|
|
|
37,933
|
|
|
|
-
|
|
|
|
1,712
|
|
|
|
39,645
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
(note 15)
|
|
|
-
|
|
|
|
-
|
|
|
|
4,875
|
|
|
|
4,875
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,578
|
|
|
|
3,578
|
|
Loans, borrowings and leases
(note 18)
|
|
|
73,035
|
|
|
|
-
|
|
|
|
-
|
|
|
|
73,035
|
|
|
|
72,187
|
|
|
|
-
|
|
|
|
-
|
|
|
|
72,187
|
|
Related parties (note 25)
|
|
|
5,355
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,355
|
|
|
|
4,903
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,903
|
|
Participative stockholders' debentures
(note 17)
|
|
|
-
|
|
|
|
-
|
|
|
|
23,043
|
|
|
|
23,043
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17,737
|
|
|
|
17,737
|
|
Liabilities related to the concession
grant
|
|
|
10,174
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,174
|
|
|
|
10,928
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,928
|
|
Financial guarantees
|
|
|
-
|
|
|
|
-
|
|
|
|
4,762
|
|
|
|
4,762
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,558
|
|
|
|
4,558
|
|
|
|
|
88,564
|
|
|
|
-
|
|
|
|
32,680
|
|
|
|
121,244
|
|
|
|
88,018
|
|
|
|
-
|
|
|
|
25,873
|
|
|
|
113,891
|
|
Total of financial liabilities
|
|
|
122,155
|
|
|
|
-
|
|
|
|
34,435
|
|
|
|
156,590
|
|
|
|
125,951
|
|
|
|
-
|
|
|
|
27,585
|
|
|
|
153,536
|
|
b) Hierarchy of fair value
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31,
2020
|
|
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Total
|
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Total
|
|
Financial
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
|
|
8,141
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,141
|
|
|
|
4,006
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,006
|
|
Derivative
financial instruments
|
|
|
-
|
|
|
|
1,039
|
|
|
|
84
|
|
|
|
1,123
|
|
|
|
-
|
|
|
|
950
|
|
|
|
95
|
|
|
|
1,045
|
|
Accounts receivable
|
|
|
-
|
|
|
|
1,397
|
|
|
|
-
|
|
|
|
1,397
|
|
|
|
-
|
|
|
|
2,567
|
|
|
|
-
|
|
|
|
2,567
|
|
Investments
in equity securities
|
|
|
6,189
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,189
|
|
|
|
3,936
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,936
|
|
Total
|
|
|
14,330
|
|
|
|
2,436
|
|
|
|
84
|
|
|
|
16,850
|
|
|
|
7,942
|
|
|
|
3,517
|
|
|
|
95
|
|
|
|
11,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
financial instruments
|
|
|
-
|
|
|
|
6,561
|
|
|
|
69
|
|
|
|
6,630
|
|
|
|
-
|
|
|
|
5,190
|
|
|
|
100
|
|
|
|
5,290
|
|
Participative
stockholders' debentures
|
|
|
-
|
|
|
|
23,043
|
|
|
|
-
|
|
|
|
23,043
|
|
|
|
-
|
|
|
|
17,737
|
|
|
|
-
|
|
|
|
17,737
|
|
Financial
guarantees
|
|
|
-
|
|
|
|
4,762
|
|
|
|
-
|
|
|
|
4,762
|
|
|
|
-
|
|
|
|
4,558
|
|
|
|
-
|
|
|
|
4,558
|
|
Total
|
|
|
-
|
|
|
|
34,366
|
|
|
|
69
|
|
|
|
34,435
|
|
|
|
-
|
|
|
|
27,485
|
|
|
|
100
|
|
|
|
27,585
|
|
There were no transfers between levels 1, 2 and
3 of the fair value hierarchy during the three-month period ended March 31, 2021.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
b.i) Changes in Level 3 assets
and liabilities during the period
|
|
Consolidated
|
|
|
|
Derivative financial instruments
|
|
|
|
Financial assets
|
|
|
Financial liabilities
|
|
Balance at December 31, 2020
|
|
|
95
|
|
|
|
100
|
|
Gain and losses recognized in income statement
|
|
|
(11
|
)
|
|
|
(31
|
)
|
Balance at March 31, 2021
|
|
|
84
|
|
|
|
69
|
|
c) Fair value of loans and
financing
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
|
Carrying amount
|
|
|
Fair value
|
|
|
Carrying amount
|
|
|
Fair value
|
|
Quoted in the secondary market:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds
|
|
|
42,436
|
|
|
|
52,388
|
|
|
|
38,708
|
|
|
|
52,100
|
|
Eurobonds
|
|
|
-
|
|
|
|
-
|
|
|
|
4,783
|
|
|
|
5,118
|
|
Debentures
|
|
|
2,177
|
|
|
|
2,242
|
|
|
|
2,577
|
|
|
|
2,578
|
|
Debt contracts in Brazil in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$, indexed to TJLP, TR,IPCA,IGP-M and CDI
|
|
|
3,397
|
|
|
|
3,396
|
|
|
|
4,470
|
|
|
|
4,452
|
|
R$, with fixed interest
|
|
|
148
|
|
|
|
151
|
|
|
|
180
|
|
|
|
180
|
|
Basket of currencies and bonds in US$ indexed to LIBOR
|
|
|
256
|
|
|
|
303
|
|
|
|
290
|
|
|
|
291
|
|
Debt contracts in the international market in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$, with variable and fixed interest
|
|
|
19,492
|
|
|
|
19,264
|
|
|
|
16,759
|
|
|
|
17,036
|
|
Other currencies, with variable interest
|
|
|
57
|
|
|
|
54
|
|
|
|
-
|
|
|
|
-
|
|
Other currencies, with fixed interest
|
|
|
626
|
|
|
|
674
|
|
|
|
616
|
|
|
|
698
|
|
Total
|
|
|
68,589
|
|
|
|
78,472
|
|
|
|
68,383
|
|
|
|
82,453
|
|
Due to the short-term cycle, the fair value of
cash and cash equivalents balances, financial investments, accounts receivable and accounts payable approximate their book values.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
17.
|
Participative stockholders’ debentures
|
At the time of its privatization in 1997, the
Company issued a total of 388,559,056 debentures to then-existing stockholders, including the Brazilian Government. The debentures’
terms were set to ensure that pre-privatization stockholders would participate in potential future benefits that might be obtained from
exploration of mineral resources. This obligation will cease when all the relevant mineral resources are exhausted, sold or otherwise
disposed of by the Company.
Holders of participative stockholders’ debentures
have the right to receive semi-annual payments equal to an agreed percentage of revenues less value-added tax, transport fee and insurance
expenses related to the trading of the products, derived from these mineral resources. On April 1, 2021 (subsequent event), the Company
made available for withdrawal as remuneration the amount of R$1,073 for the second semester of 2020, as disclosed on the “Shareholders’
debentures report” made available on the Company’s website.
To calculate the fair value of the liability,
the Company uses the weighted average price of trades in the secondary market for the last month of the quarter. The average price increased
from R$45.65 per debenture for the year ended December 31, 2020 (R$26.81 for the year ended December 31, 2019) to R$59.30 per
debenture for the period ended March 31, 2021 (R$27.07 for the period ended March 31, 2020), resulting in an expense of R$5,314
recorded in the income statement for the three-month period ended March 31, 2021 (R$103 for the period ended March 31, 2020).
Secondary public
offering - In March 2021, BNDES (National Bank for Economic and Social Development-“Brazil”), BNDESPAR (BNDES
Participações S.A.) and the Federal Government carried out a public offering for the secondary distribution of the participatory
debentures held by them, which correspond to 55% of the total debentures in circulation. In April 2021 (subsequent event), the Company
was notified that the secondary offer of 214,329,234 debentures was priced, in the total amount of R$11,467. The Company did not participate
in this offer as a buyer.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
18. Loans,
borrowings, leases, cash and cash equivalents and short-term investments
a) Net
debt
The Company evaluates the net debt with the objective
of ensuring the continuity of its business in the long term.
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Debt contracts in the international markets
|
|
|
63,328
|
|
|
|
61,787
|
|
Debt contracts in Brazil
|
|
|
6,046
|
|
|
|
7,639
|
|
Total of loans and borrowings
|
|
|
69,374
|
|
|
|
69,426
|
|
|
|
|
|
|
|
|
|
|
(-) Cash and cash equivalents
|
|
|
73,399
|
|
|
|
70,086
|
|
(-) Short-term investments
|
|
|
8,141
|
|
|
|
4,006
|
|
Net debt (cash)
|
|
|
(12,166
|
)
|
|
|
(4,666
|
)
|
Leasing
|
|
|
9,294
|
|
|
|
8,662
|
|
b) Cash
and cash equivalents
Cash
and cash equivalents include cash, immediately redeemable deposits and short-term investments with an insignificant risk of change in
value. They are readily convertible to cash, being R$19,952 (R$14,805 as at December 31, 2020) denominated in R$, indexed
to the CDI, R$51,367 (R$52,979 as at December 31, 2020) denominated in US$ and R$2,080 (R$2,302 as at December 31, 2020) denominated
in other currencies.
c) Short-term
investments
At March 31, 2021, the balance of R$8,141
(R$4,006 as at December 31, 2020) is substantially comprised of investments in an exclusive investment fund immediately liquid,
whose portfolio is composed of committed transactions and Financial Treasury Bills (“LFTs”), which are floating-rate securities
issued by the Brazilian government.
d) Loans,
borrowings and leases
i) Total debt
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
Current liabilities
|
|
|
Non-current liabilities
|
|
|
|
Average interest
rate (i)
|
|
|
March 31, 2021
|
|
|
December 31,
2020
|
|
|
March 31, 2021
|
|
|
December 31,
2020
|
|
Quoted in the secondary market:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds
|
|
|
6.02
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
42,436
|
|
|
|
38,709
|
|
Eurobonds
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,783
|
|
Debentures
|
|
|
10.48
|
%
|
|
|
245
|
|
|
|
555
|
|
|
|
1,932
|
|
|
|
2,021
|
|
Debt contracts in Brazil in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$, indexed to TJLP, TR, IPCA, IGP-M and CDI
|
|
|
9.29
|
%
|
|
|
1,145
|
|
|
|
1,662
|
|
|
|
2,252
|
|
|
|
2,808
|
|
R$, with fixed interest
|
|
|
2.80
|
%
|
|
|
97
|
|
|
|
107
|
|
|
|
51
|
|
|
|
73
|
|
Basket of currencies and bonds in US$ indexed to LIBOR
|
|
|
2.31
|
%
|
|
|
256
|
|
|
|
232
|
|
|
|
-
|
|
|
|
58
|
|
Debt contracts in the international market in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$, with variable and fixed interest
|
|
|
2.28
|
%
|
|
|
1,994
|
|
|
|
942
|
|
|
|
17,498
|
|
|
|
15,817
|
|
Other currencies, with variable interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
57
|
|
|
|
-
|
|
Other currencies, with fixed interest
|
|
|
3.47
|
%
|
|
|
68
|
|
|
|
61
|
|
|
|
558
|
|
|
|
555
|
|
Accrued charges
|
|
|
|
|
|
|
785
|
|
|
|
1,043
|
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
|
|
|
|
4,590
|
|
|
|
4,602
|
|
|
|
64,784
|
|
|
|
64,824
|
|
(i) In order to determine the average interest rate for debt
contracts with floating rates, the Company used the rate applicable as at March 31, 2021.
(ii) R$ denominated debt that bears interest
at IPCA, CDI, TR or TJLP, plus spread. For a total of R$5,087 the Company entered into derivative transactions to mitigate the exposure
to the cash flow variations of the floating rate debt denominated in R$, resulting in an average cost of 2.67% per year in US$.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
Future flows of debt payments,
principal and interest
|
|
|
Consolidated
|
|
|
|
|
Principal
|
|
|
Estimated future
interest payments (i)
|
|
2021
|
|
|
|
1,886
|
|
|
|
2,448
|
|
2022
|
|
|
|
6,852
|
|
|
|
3,305
|
|
2023
|
|
|
|
1,637
|
|
|
|
3,133
|
|
2024
|
|
|
|
11,402
|
|
|
|
3,033
|
|
Between 2025 and 2029
|
|
|
|
11,966
|
|
|
|
5,699
|
|
2030 onwards
|
|
|
|
34,846
|
|
|
|
20,741
|
|
Total
|
|
|
|
68,589
|
|
|
|
38,359
|
|
(i) Based on interest rate curves and foreign
exchange rates applicable as at March 31, 2021 and considering that the payments of principal will be made on their contracted payments
dates. The amount includes the estimated interest not yet accrued and the interest already recognized in the interim financial statements.
Credit and financing lines
The Company has two revolving credit facilities
to assist the short-term liquidity management and to enable more efficiency in cash management in the available amount of R$28,486 (US$5,000
million), of which R$11,394 (US$2,000 million) will mature in 2022 and R$17,092 (US$3,000 million) in 2024. As at March 31, 2021,
these lines are undrawn.
In March 2021, the Company redeemed all
of its 3.750% bonds due January 2023, in the total amount of R$4,946 (EUR750 million) and for it paid a premium of R$354, which
was recorded as “Expenses with cash tender offer redemption” under the financial results for three-month period ended March 31,2021
Funding
In January 2021, the Company contracted
the credit line R$1,633 (US$290 million) with The New Development Bank maturing at 2035 and indexed to Libor + 2,49% per year.
Covenants
Some of the Company’s debt agreements with
lenders contain financial covenants. The primary financial covenants in those agreements require maintaining certain ratios, such as
debt to EBITDA (LAJIDA) (as defined in note 4(a)) and interest coverage. The Company has not identified any instances of noncompliance
as at March 31, 2021.
Reconciliation of debt to
cash flows arising from financing activities
|
|
Consolidated
|
|
|
|
Quoted in the
secondary market
|
|
|
Debt contracts in Brazil
|
|
|
Debt contracts on the
international market
|
|
|
Total
|
|
December 31, 2020
|
|
|
47,010
|
|
|
|
4,980
|
|
|
|
17,436
|
|
|
|
69,426
|
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
1,633
|
|
|
|
1,633
|
|
Repayments (i)
|
|
|
(5,213
|
)
|
|
|
(1,104
|
)
|
|
|
(596
|
)
|
|
|
(6,913
|
)
|
Interest paid
|
|
|
(1,016
|
)
|
|
|
(487
|
)
|
|
|
(82
|
)
|
|
|
(1,585
|
)
|
Cash flow from financing activities
|
|
|
(6,229
|
)
|
|
|
(1,591
|
)
|
|
|
955
|
|
|
|
(6,865
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
|
|
|
3,899
|
|
|
|
125
|
|
|
|
1,802
|
|
|
|
5,826
|
|
Interest accretion
|
|
|
633
|
|
|
|
303
|
|
|
|
51
|
|
|
|
987
|
|
Non-cash changes
|
|
|
4,532
|
|
|
|
428
|
|
|
|
1,853
|
|
|
|
6,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021
|
|
|
45,313
|
|
|
|
3,817
|
|
|
|
20,244
|
|
|
|
69,374
|
|
(i) Includes expenses with the redemption
of the 3.750% bonds in the amount of R$4,946.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
ii) Lease liabilities
|
|
Consolidated
|
|
|
|
December 31,
2020
|
|
|
Additions and
contract
modifications
|
|
|
Payments (i)
|
|
|
Interest (ii)
|
|
|
Translation
adjustment
|
|
|
March 31, 2021
|
|
Ports
|
|
|
3,860
|
|
|
|
-
|
|
|
|
(93
|
)
|
|
|
37
|
|
|
|
293
|
|
|
|
4,097
|
|
Vessels
|
|
|
2,770
|
|
|
|
-
|
|
|
|
(85
|
)
|
|
|
26
|
|
|
|
281
|
|
|
|
2,992
|
|
Pellets plants
|
|
|
708
|
|
|
|
193
|
|
|
|
(5
|
)
|
|
|
9
|
|
|
|
-
|
|
|
|
905
|
|
Properties
|
|
|
738
|
|
|
|
16
|
|
|
|
(88
|
)
|
|
|
10
|
|
|
|
9
|
|
|
|
685
|
|
Energy plants
|
|
|
322
|
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
10
|
|
|
|
32
|
|
|
|
353
|
|
Mining equipment and locomotives
|
|
|
264
|
|
|
|
-
|
|
|
|
(22
|
)
|
|
|
6
|
|
|
|
14
|
|
|
|
262
|
|
Total
|
|
|
8,662
|
|
|
|
209
|
|
|
|
(304
|
)
|
|
|
98
|
|
|
|
629
|
|
|
|
9,294
|
|
(i) The total amount of the variable lease
payments not included in the measurement of lease liabilities, which have been recognized straight to the income statement, for the three-month
period ended March 31, 2021 and 2020 was R$180 and R$147, respectively.
(ii) The interest accretion recognized in
the income statement is disclosed in note 6.
Annual minimum payments
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
2024
|
|
|
2025 onwards
|
|
|
Total
|
|
Ports
|
|
|
282
|
|
|
|
343
|
|
|
|
336
|
|
|
|
331
|
|
|
|
4,540
|
|
|
|
5,832
|
|
Vessels
|
|
|
277
|
|
|
|
361
|
|
|
|
352
|
|
|
|
343
|
|
|
|
2,304
|
|
|
|
3,637
|
|
Pellets plants
|
|
|
221
|
|
|
|
195
|
|
|
|
67
|
|
|
|
67
|
|
|
|
581
|
|
|
|
1,131
|
|
Properties
|
|
|
170
|
|
|
|
155
|
|
|
|
123
|
|
|
|
112
|
|
|
|
205
|
|
|
|
765
|
|
Energy plants
|
|
|
29
|
|
|
|
38
|
|
|
|
36
|
|
|
|
33
|
|
|
|
343
|
|
|
|
479
|
|
Mining equipment and locomotives
|
|
|
66
|
|
|
|
77
|
|
|
|
52
|
|
|
|
44
|
|
|
|
89
|
|
|
|
328
|
|
Total
|
|
|
1,045
|
|
|
|
1,169
|
|
|
|
966
|
|
|
|
930
|
|
|
|
8,062
|
|
|
|
12,172
|
|
The amounts in the table above presents the undiscounted
lease obligation by maturity date. The lease liability recognized in the balance sheet is measured at the present value of such obligations.
e) Guarantees
As at March 31, 2021 and December 31,
2020, loans and borrowings are secured by property, plant and equipment in the amount of R$934 and R$915, respectively. The securities
issued through Vale’s wholly-owned finance subsidiary Vale Overseas Limited are fully and unconditionally guaranteed by Vale.
19. Brumadinho
dam failure
On January 25, 2019, a tailings dam (“Dam
I”) failed at the Córrego do Feijão mine, in the city of Brumadinho, state of Minas Gerais. The failure released
a flow of tailings debris, destroying some of Vale’s facilities, affecting local communities and disturbing the environment. The
tailings released have caused an impact of around 315 km in extension, reaching the nearby Paraopeba River. The dam failure in Brumadinho
(“event”) resulted in 270 fatalities, including 11 victims still missing, and caused extensive property and environmental
damage in the region.
As a result of the dam failure, the Company has
been recognizing provisions to meet its assumed obligations, including de-characterization of the dams, individual indemnification to
those affected by the event, remediation of the affected areas and compensation to the society, as shown below:
|
|
Consolidated
|
|
|
|
December 31, 2020
|
|
|
Impact on the
income statement
|
|
|
Present value
adjustment
|
|
|
Disbursements
|
|
|
March 31, 2021
|
|
Global Settlement for Brumadinho
|
|
|
20,726
|
|
|
|
-
|
|
|
|
(490
|
)
|
|
|
(68
|
)
|
|
|
20,168
|
|
Provision for individual indemnification and other commitments
|
|
|
3,048
|
|
|
|
-
|
|
|
|
(34
|
)
|
|
|
(317
|
)
|
|
|
2,697
|
|
De-characterization of dams
|
|
|
11,897
|
|
|
|
-
|
|
|
|
(258
|
)
|
|
|
(461
|
)
|
|
|
11,178
|
|
Incurred expenses (i)
|
|
|
-
|
|
|
|
637
|
|
|
|
-
|
|
|
|
(637
|
)
|
|
|
-
|
|
|
|
|
35,671
|
|
|
|
637
|
|
|
|
(782
|
)
|
|
|
(1,483
|
)
|
|
|
34,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) The Company has incurred expenses, which
have been recognized straight to the income statement, in relation to communication services, accommodation and humanitarian assistance,
equipment, legal services, water, food aid, taxes, among others. For period ended March 31, of 2020, the Company incurred expenses
in the amount of R$708.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
a) Global Settlement for Brumadinho
On February 4, 2021, the Company entered
into a Judicial Settlement for Integral Reparation (“Global Settlement”), which was under negotiations since 2019, with the
State of Minas Gerais, the Public Defender of the State of Minas Gerais and the Federal and the State of Minas Gerais Public Prosecutors
Offices, to repair the environmental and social damage resulting from the Dam I rupture. The Global Settlement was ratified by the Minas
Gerais State Court on February 4, 2021 and the res judicata was drawn up on April 7, 2021 (subsequent event).
With the Global Settlement, the requests contained
in public civil actions regarding the socio-environmental and socioeconomic collective damages caused by the dam rupture were substantially
resolved and the parameters for the reparation and compensation of said damages were established. As a result, the Company recorded an
additional provision as at December 31, 2020.
The provision is discounted at presented value
using an observable rate that reflects the current market assessments of the time value of money and the risks specific to the liability
at the reporting date. During the current period, the discount rate applied on the provisions for the Global Settlement, individual indemnification
and other commitments, has increased from 5.9% at December 31, 2020 to 7.3% at March 31, 2021, resulting in an impact of R$650
on the balance of the provisions.
Based on the present value of the projected cash
outflows, the provision related to Global Settlement is detailed as follows:
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Payment obligations (i)
|
|
|
11,943
|
|
|
|
12,172
|
|
Provision for socio-economic reparation and others
|
|
|
4,268
|
|
|
|
4,468
|
|
Provision for social and environmental reparation
|
|
|
3,957
|
|
|
|
4,086
|
|
|
|
|
20,168
|
|
|
|
20,726
|
|
|
|
|
March 31, 2021
|
|
|
|
December 31, 2020
|
|
Current liabilities
|
|
|
8,893
|
|
|
|
8,110
|
|
Non-current liabilities
|
|
|
11,275
|
|
|
|
12,616
|
|
Liabilities
|
|
|
20,168
|
|
|
|
20,726
|
|
(i) As established in the Global Settlement,
R$5,433 in judicial deposits made by Vale in public civil actions due to the Dam I rupture will be released in the second quarter of
2021, to the State of Minas Gerais to use in water security projects and to develop projects that will be proposed by the affected communities.
Therefore, the provision already considers that these judicial deposits settled part of the obligations.
(a.i) Cash settlement obligation
The cash settlement obligation relates to the
socio-economic reparation and socio-environmental compensation projects that will be carried out or managed directly by the State of
Minas Gerais and Institutions of Justice, mainly aiming to develop the urban mobility program and strengthening public service programs,
as well as other projects that will be proposed by the affected population. In addition, resources will be used in a program of income
transfer to those affected by the event, which will be carried out by Institutions of Justice. Of the total amount, R$4,400 relates to
the income transfer program that will be fully paid in 2021. The remaining amount of R$7,543 is the present value of the semiannual fixed
payments obligation, which will last 5 years on average.
(a.ii) Provision for socio-economic reparation
and others
The Global Settlement includes remediation projects
for Brumadinho and other affected municipalities of the Paraopeba Basin. The socioeconomic reparation actions aims to strengthen the
productive activities of the affected region, through measures for greater economic diversification of the municipality of Brumadinho,
reducing its historical dependence on mining, and, for the rest of the Basin, finding ways to support the transformation of the economy
of the impacted municipalities. These projects will be carried out directly by the Company for an average period of 3 years.
The estimated amounts for the project execution,
although set in the agreement, may vary since the implementation of those projects are Vale's responsibility and changes against the
original budget may result in changes in provision in future reporting periods.
(a.iii) Provision for social and environmental
reparation
The Global Settlement establishes the rule for
the development of the environmental reparation plan, and projects for the compensation of environmental damage already known. These
measures aim to repair the damage caused, restore the ecosystems disruption, restore local infrastructure, repair social and economic
losses, recover affected areas and repair the loss of memory and cultural heritage caused by the dam rupture. It also includes several
actions to clean up the affected areas and improvements to the water catchment system along the Paraopeba River and other water collection
points near the affected area. These measures and compensation projects will be carried out directly by the Company for an average period
of 5 years.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
The estimated amount to carry out the
environmental recovery actions is part of the Global Settlement. However, it has no cap due to the Company's legal obligation to
fully repair the environmental damage caused by the dam rupture. Therefore, this provision may change in the future depending on
several factors that are not under the control of the Company.
b) Provision for individual
indemnification and other commitments
In addition to the Global Settlement, the Company
has been working to ensure geotechnical safety of the remaining structures at the Córrego do Feijão mine, in Brumadinho,
and the removal and proper disposal of the tailings of Dam I. As at March 31, 2021, the provision recorded is R$1,301 (R$1,387 as
at December 31, 2020).
For the individual indemnification, Vale and
the Public Defendants of the State of Minas Gerais formalized an agreement on April 5, 2019, under which those affected by the Brumadinho’s
Dam failure may join an individual or family group out-of-Court settlement agreements for the indemnification of material, economic and
moral damages. This agreement establishes the basis for a wide range of indemnification payments, which were defined according to the
best practices and case law of Brazilian Courts, following rules and principles of the United Nations (“UN”). As at
March 31, 2021, the provision recorded is R$890 (R$930 as at December 31, 2020).
In addition, the Company was notified of the
imposition of administrative fines by the Brazilian Institute of the Environment and Renewable Natural Resources (“IBAMA”),
in the amount of R$250. In July 2020, the Company signed an agreement with IBAMA, of which R$150 will be used in environmental projects
in 7 parks in the state of Minas Gerais, covering an area of approximately 794 thousand hectares, and R$100 will be used in basic sanitation
programs in the state of Minas Gerais.
c) De-characterization of
other dams in Brazil
Following the Brumadinho Dam rupture, the Company
has decided to speed up the plan to “de-characterize” its tailings dams built under the upstream method (same method as Brumadinho’s
dam), certain “centerline structures” and dikes, located in Brazil. The observable rate applied to the provision for the
de-characterization of dams, increased from 3.5% at December 31, 2020 to 4.3% at March 31, 2021, resulting in an impact of
R$278 on the balance of the provision. The Company has a total provision to comply with these assumed obligations in the amount of R$11,178
at March 31, 2021 (R$11,897 as at December 31, 2020).
(c.i) Operation stoppages
The Company has
suspended some operations due to judicial decisions or technical analysis performed by Vale on its upstream dam structures. The Company
has been recording losses in relation to the operational stoppage and idle capacity of the ferrous mineral segment in the amounts
of R$619 and R$981 for the periods ended March 31,2021 and 2020, respectively. The Company is working on legal and technical
measures to resume all operations at full capacity.
d) Contingencies and other
legal matters
(d.i) Public civil actions brought by the
State of Minas Gerais and state public prosecutors for damages resulting from the rupture of Dam I
The Company is party to public civil actions
brought by the State of Minas Gerais and state prosecutors claiming economic and environmental damages resulting from the dam rupture
and seeking a broad range of injunctions ordering Vale to take specific remediation and reparation actions. These legal proceedings were
initially brought before various state courts in Minas Gerais but have been consolidated before the 6th Public Treasury Court in the
city of Belo Horizonte and then transferred to the 2nd Public Treasury Court in the city of Belo Horizonte.
With the Global Settlement, the requests contained
in public civil actions regarding the socio-environmental and socioeconomic collective damages caused by the dam rupture were substantially
resolved. Indemnifications for individual damages are not covered by the Global Settlement, but the parties ratified the agreement signed
by Vale with the Public Defendants of the State of Minas Gerais on April 5, 2019. Thus, the Company expects to keep signing individual
agreements.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
(d.ii) Requests for fines or forfeit of
assets
On August 26, 2020,
the Public Prosecutor's Office of Minas Gerais (“MPMG”) and other plaintiffs of the Public Civil Actions presented a request
for ruling condemning Vale to indemnify alleged economic losses of the State of Minas Gerais and collective moral damages, both claims
already considered in said Public Civil Actions filed against Vale in January 2019 as a result of the Brumadinho dam rupture. In
that submission, the plaintiffs also requested the immediate freezing of R$26.7 billion from the Company as a guarantee for the reimbursement
of the alleged economic losses, which was dismissed by the judge of the 2nd Lower Court of Public Treasury of Belo Horizonte on October 6,
2020. This claim was extinguished with the Global Settlement.
In other proceeding, in May 2020, the MPMG
requested the imposition of fines or forfeit of assets, rights and amounts of the Company, allegedly based on Article 5, item V
of Brazilian Law 12.846/2013. According to the MPMG, Vale would have, through its employee’s actions, hindered the inspection activities
of public agencies in the complex. Vale was not required to present any guarantees of R$7.9 billion based on a judicial decision. The
Company believes that the likelihood of loss is remote. In January 2021, the Comptroller General of the State of Minas Gerais (“CGE”)
notified Vale to present it defense against the Administrative Liability Proceeding (“PAR”) initiated based on the same article.
Vale presented its defense in March 2021, and filed a writ of mandamus in the face of the establishment of this PAR, which had the
injunction granted to suspend the proceeding of the PAR.
In October 2020, the Company was informed
that the Brazilian Office of the Comptroller General (“CGU”) initiated an administrative proceeding based on the same allegations
made by the MPMG. As this is a discretionary procedure from the CGU, the Company estimates its likelihood of a loss during the administrative
phase as possible, but it reaffirms its assessment of loss as remote in the annulment lawsuit to be instituted against any decision by
CGU, if necessary.
(d.iii) U.S. Securities putative class
action suit
Vale is defending itself in a putative class
action brought before a Federal Court in New York and filed by holders of securities - American Depositary Receipts ("ADRs")
- issued by Vale. The Lead Plaintiff alleges that Vale made false and misleading statements or omitted to make disclosures concerning the
risks of the operations of Dam I in the Córrego de Feijão mine and the adequacy of the related programs and procedures.
Following the decision of the Court, in May 2020,
that denied the Motion to Dismiss presented by the Company, the Discovery phase has started and the fact Discovery is expected to be
concluded by June 2021. In parallel, in February 2021 the Plaintiff filed a motion for class certification, which we opposed
on April 9, 2021. The deadline to file Reply and rebuttal expert report on class certification is May 24, 2021.
Based on the evaluation of the Company's
legal counsel and given the very preliminary stage, the expectation of loss of this process is classified as possible. However,
considering the initial stage of this putative class action, it is not possible at this time to reliably estimate the amount of a
potential loss. The plaintiff did not specify the amounts of the losses alleged in this claim.
(d.iv) Arbitration proceedings in Brazil
filed by shareholders and a class association
In Brazil, Vale is a defendant in (i) one
arbitration filed by 166 minority shareholders, (ii) one arbitration filed by a class association allegedly representing all Vale’s
minority shareholders, and (iii) one arbitration filed by foreign investment funds.
In the three proceedings, the Claimants argue
Vale would be aware of the risks associated with the dam, and failed to disclose it to the shareholders, which would be required under
the Brazilian applicable laws and the rules of Comissão de Valores Mobiliários (Securities and Exchange Commission
of Brazil). Based on such argument, they claim compensation for losses caused by the decrease of the value of the shares.
Based on the evaluation of the Company's legal
counsel and given the very preliminary stage, the expectation of loss of these proceedings is classified as possible.
Specifically, in the proceeding filed by foreign
funds, the Claimants estimated the amount of the alleged losses at approximately R$1,800. However, the Company disagree with the estimated
losses alleged by the foreign funds and believes that the likelihood of loss is remote based on the current status of the proceeding.
(d.v) Investigations by the CVM and the
U.S. Securities and Exchange Commission (“SEC”)
The Company is cooperating with the CVM and the
SEC by providing documents and other information related to the Dam I rupture in connection with ongoing investigations by both agencies.
These investigations relate to Vale's disclosure of relevant information to shareholders, investors and the market in general, especially
regarding the conditions and management of Vale's dams. The CVM and SEC investigations may result in the application of fines and administrative
penalties either through negotiated resolutions or court proceedings.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
(d.vi) Criminal proceedings and investigations
In January 2020, the MPMG brought criminal
charges against 16 individuals (including former executive officers of Vale and current and former employees) for a number of potential
crimes, including homicide, and against Vale S.A. for alleged environmental crimes. These charges were accepted by the state criminal
judge in the city of Brumadinho on February 14, 2020, and a criminal proceeding against these individuals and Vale is ongoing. Vale
intends to vigorously defend itself against the criminal claims, and the Company cannot estimate when a decision on this criminal proceeding
will be issued. The criminal action is currently suspended while the MPMG organizes the relevant documents to enable defendants to defend
themselves properly. In addition, the MPF and the federal police are conducting a separate investigation into the causes of the dam rupture
in Brumadinho, which may result in additional criminal proceedings.
e) Insurance and financial
guarantees
(e.i) Insurance
The Company is negotiating with insurers the
payment of indemnification under its operational risk and civil liability. However, these negotiations are still at a preliminary stage,
therefore any payment of insurance proceeds will depend on the coverage definitions under these policies and assessment of the amount
of loss. Due to uncertainties, no indemnification to the Company was recognized in these financial statements.
(e.ii) Financial guarantees
For the Brumadinho
event, the Company has financial guarantees in the amount of R$5,289 in March 31, 2021 (R$5,843 in December 31, 2020),
which were presented in court and used to release the respective judicial deposit. The expenses related to these financial guarantees
in the amounts of R$10 and R$38 were recorded as financial expense in the Company's income statement for the period ended March 31,
2021 and December 31,2020, respectively. With the Global Agreement, these guarantees will be released in 2021.
20. Liabilities
related to associates and joint ventures
In November 2015, the Fundão
tailings dam owned by Samarco Mineração S.A. (Samarco) failed, releasing tailings downstream, flooding certain
communities and causing impacts on communities and the environment along the Doce river. The rupture resulted in 19 fatalities and
caused property and environmental damage to the affected areas. Samarco is a joint venture equally owned by Vale S.A. and BHP
Billiton Brasil Ltda. (‘‘BHPB’’).
In June 2016, Samarco, Vale and BHPB
created the Fundação Renova, a not-for-profit private foundation, to develop and implement (i) social and
economic remediation and compensation programs and (ii) environmental remediation and compensation programs in the region
affected by the dam rupture. The creation of Fundação Renova was provided for under the agreement for settlement and
conduct adjustment (the ‘‘Framework Agreement’’) signed in March 2016 by Vale, BHPB, Samarco, the
Brazilian federal government, the two Brazilian states affected by the rupture (Minas Gerais and Espírito Santo) and other
governmental authorities.
In June 2018, Samarco, Vale and BHPB entered
into a comprehensive agreement with the offices of the federal and state (Minas Gerais and Espírito Santo) prosecutors, public
defenders and attorney general, among other parties, improving the governance mechanism of Fundação Renova and establishing,
among other things, a process for potential revisions to the remediation programs provided under the Framework Agreement based on the
findings of experts hired by Samarco to advise the MPF (Federal Prosecutor’s Office) over a two-year period (the ‘‘June 2018
Agreement’’). Under the Framework Agreement, the June 2018 Agreement and Renova’s by-laws, Fundação
Renova must be funded by Samarco, but to the extent that Samarco is unable to fund, Vale and BHPB must ratably bear the funding requirements
Under the Framework Agreement. Since Samarco is not generating cash enough to comply with its cash needs, the Company and BHPB have been
funding the Fundação Renova and also providing funds directly to Samarco, to preserve its operations and to support Samarco’s
funding obligations.
In addition, the Company has a provision of R$1,121
for the de-characterization of the Germano dam. Samarco has been gradually resuming its operations since December 2020.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
On April 9, 2021 (subsequent event), Samarco
filed for a petition for judicial reorganization ("JR") with the Minas Gerais State Court to renegotiate its financial debts,
which is held by bondholders abroad. The JR was filed to prevent legal actions, such as the enforcement action filed in Brazil with respect
to promissory notes and actions filed in New York, USA, by bondholders of notes maturing in 2022, 2023 and 2024, all
of which include requests to attach Samarco’s bank accounts. The Company does not guarantee any of the Samarco’s financial
debts.
Movements during the period
|
|
Consolidated
|
|
|
|
2021
|
|
|
2020
|
|
Balance at January 1,
|
|
|
10,782
|
|
|
|
6,853
|
|
Provision
|
|
|
-
|
|
|
|
-
|
|
Disbursements
|
|
|
(568
|
)
|
|
|
(300
|
)
|
Present value valuation
|
|
|
(348
|
)
|
|
|
73
|
|
Balance at March 31,
|
|
|
9,866
|
|
|
|
6,626
|
|
|
|
|
March 31, 2021
|
|
|
|
December 31, 2020
|
|
Current liabilities
|
|
|
4,818
|
|
|
|
4,554
|
|
Non-current liabilities
|
|
|
5,048
|
|
|
|
6,228
|
|
Liabilities
|
|
|
9,866
|
|
|
|
10,782
|
|
Samarco’s working capital
In addition to the provision, Vale S.A. made
available R$113 during the three-month period ended March 31, 2021, which was fully used to fund Samarco’s working capital.
This amount was recognized in Vale´s income statement as an expense in “Equity results and other results in associates and
joint ventures”. Vale S.A. may provide an additional short-term credit facility up to R$365 (US$64 million) in 2021.
Contingencies related to Samarco
accident
These proceedings include public civil actions
brought by Brazilian authorities and multiple proceedings involving claims for significant amounts of damages and remediation measures.
The Company expects the Framework Agreements to represent the settlement of the public civil action brought by the MPF and other related
proceedings. There are also putative securities class actions in the United States against Vale and some of its current and former officers
and a criminal proceeding in Brazil. The main updates regarding the lawsuits in the period were as follows:
(i) Public Civil Action filed by the
Federal Government and others and public civil action filed by the Federal Public Prosecutors ("MPF")
The Framework Agreement (“TAC-Gov”)
estates a possible renegotiation of Renova Foundation's reparation programs upon the completion of studies carried by specialists. However,
these studies have not yet been concluded and, therefore, these negotiations have not started. This issue motivated the request for the
resumption of the Public Civil Action, by the Federal Public Prosecutors ("MPF").
Although, in March 2021, the Federal Prosecutors,
the State Public Prosecutors of Minas Gerais and the Public Defenders of the Federal Union (“DPU”), of Minas Gerais (“DPMG”)
and of Espírito Santo (“DPES”) requested and had granted the suspension of the process until April 27, 2021,
in order to initiate the negotiations for a possible renegotiation of the measures for full reparation of socio-economic and socio-environmental
damages caused by the rupture of the Fundão dam.
In March 2021, a new incidental proceeding
(“Eixo Prioritário”) was initiated, at the request of the Federal Attorney General’s Office (“AGU”),
with the purpose of discuss a restructure on Renova Foundation's organizational management structure, the “Eixo Prioritário
13”. There was granted an injunction for an expert procedure and diagnosis report to be made at the Renova Foundation, in particular
of its governance mechanisms.
The “Eixos Prioritários” discuss
specific obligations set forth in the proceedings based on the obligations established in the TTAC, dividing them by theme, in order
to facilitate the procedural organization of the discussions.
On March 30, 2021, the MPF also filed a
motion to recuse the Judge responsible for the civil actions, from the cases (“Arguição de Suspeição”).
Such motion has not been ruled yet by the Federal Regional Tribunal of the 1st Region.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
(ii) Class Action in the United
States
In March 2017, the holders of securities
issued by Samarco Mineração S.A. filed a potential collective action in the New York Federal Court against Samarco, Vale,
BHP Billiton Limited, BHP Billiton PLC and BHP Brasil Ltda. based on U.S. Federal Securities laws, which was dismissed without prejudice,
in June 2019. In December 2019 the plaintiffs filed a Notice of Appeal to the NY Court of Appeals.
In January 2021, it was held a hearing
before the Second Circuit of the New York State Court of Appeals. In March 2021 the Second Circuit denied the plaintiff’s
appeal. In case no further appeal is filed, Vale expects this decision to be final by June 2021.
(iii) Criminal proceeding
In September 2019, the federal court of
Ponte Nova dismissed all criminal charges against Vale representatives relating to the first group of charges, which concerns the
results of the Fundão dam failure. Charges remain pending against the Company. The second group of charges
against Vale S.A. and one of the Company’s employees, which concerns the accusation of alleged crimes committed against the
Environmental Public Administration, remained unchanged. In March 2020, the judge scheduled a number of hearings to collect
defense witnesses’ testimonies and intent letters were issued for the same purpose, but due to the new coronavirus pandemic,
all hearings in the country which were previously scheduled to take place in April have been cancelled by an express
determination from the National Justice Council. In July 2020, the Federal Court of the 1st Region denied an appeal presented
by Vale and rejected the claim to recognize the state of limitation to keep the company within the criminal process. In
October 2020, the criminal action was scanned and transferred to electronic processing. Additionally, the scheduling of
hearings for the deposition of defense witnesses began in some cities, which received the letter precatory from Ponte Nova. In
February, 2021, the Federal Public Prosecutors ("MPF") requested the resumption of the hearings and it rescheduling at
Ponte Nova to continue prosecuting the case. There is no judicial decision about the request yet, because the defendant’s
responses has not been presented so far, being their deadlines ongoing. The Company cannot estimate when a final decision on the
case will be issued.
Insurance
Since the Fundão dam rupture, the Company
has been negotiating with insurers the indemnification payments based on its general liability policies. For the period ended March 31,
2021, the Company received payments in the amount of R$174 (US$33 million), and recognized a gain in the income statement as “Equity
results and other results in associates and joint ventures”.
21. Provisions
|
|
Consolidated
|
|
|
|
Current liabilities
|
|
|
Non-current liabilities
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Payroll, related charges and other remunerations
|
|
|
2,783
|
|
|
|
4,560
|
|
|
|
-
|
|
|
|
-
|
|
Onerous contracts
|
|
|
258
|
|
|
|
302
|
|
|
|
4,778
|
|
|
|
4,360
|
|
Environmental obligations
|
|
|
490
|
|
|
|
533
|
|
|
|
1,074
|
|
|
|
1,038
|
|
Asset retirement obligations (i)
|
|
|
546
|
|
|
|
516
|
|
|
|
20,891
|
|
|
|
21,413
|
|
Provision related to VNC sale (note 12)
|
|
|
-
|
|
|
|
2,598
|
|
|
|
-
|
|
|
|
-
|
|
Provisions for litigation (note 22)
|
|
|
470
|
|
|
|
455
|
|
|
|
5,282
|
|
|
|
5,216
|
|
Employee postretirement obligations (note 23)
|
|
|
596
|
|
|
|
534
|
|
|
|
10,389
|
|
|
|
11,802
|
|
Provisions
|
|
|
5,143
|
|
|
|
9,498
|
|
|
|
42,414
|
|
|
|
43,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) The Company has issued letters of credit
and surety bonds for R$3,780 as at March 31, 2021 in connection with the Asset retirement obligations for its Base Metals operations.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
22. Litigations
a) Provision
for legal proceedings
The Company has considered all information available
to assess the likelihood of an outflow of resources and in the preparation on the estimate of the costs that may be required to settle
the obligations. The main litigations refer to:
Tax
litigations - Mainly refers to the lawsuit filed in 2011 by Valepar (merged by Vale) seeking the right to exclude the amount
of dividends received in the form of interest on stockholders’ equity (“JCP”) from the PIS and COFINS tax base. The
amount reserved for this proceeding as at March 31, 2021 is R$2,202 (R$2,197 as at December 31, 2020). This proceeding is guaranteed
by a judicial deposit in the amount of R$2,535 recorded at March 31, 2021 (R$2,529 as at December 31, 2020).
Civil
litigations - Refers to lawsuits for: (i) indemnities for losses, payments and contractual fines due to contractual imbalance
or non-compliance that are alleged by suppliers, and (ii) land claims referring to real estate Vale's operational activities.
Labor
litigations - Refers to lawsuits for individual claims by in-house employees and service providers, primarily involving demands
for additional compensation for overtime work, moral damages or health and safety conditions.
Environmental
litigations - Refers mainly to proceedings for environmental damages and issues related to environmental licensing.
|
|
Consolidated
|
|
|
|
Tax litigation
|
|
|
Civil litigation
|
|
|
Labor litigation
|
|
|
Environmental
litigation
|
|
|
Total of
litigation
provision
|
|
Balance at December 31, 2020
|
|
|
2,520
|
|
|
|
1,354
|
|
|
|
1,741
|
|
|
|
56
|
|
|
|
5,671
|
|
Additions and reversals, net
|
|
|
(9
|
)
|
|
|
(7
|
)
|
|
|
105
|
|
|
|
(1
|
)
|
|
|
88
|
|
Payments
|
|
|
-
|
|
|
|
(63
|
)
|
|
|
(51
|
)
|
|
|
(1
|
)
|
|
|
(115
|
)
|
Indexation and interest
|
|
|
21
|
|
|
|
55
|
|
|
|
30
|
|
|
|
2
|
|
|
|
108
|
|
Balance at March 31, 2021
|
|
|
2,532
|
|
|
|
1,339
|
|
|
|
1,825
|
|
|
|
56
|
|
|
|
5,752
|
|
Current liabilities
|
|
|
40
|
|
|
|
75
|
|
|
|
354
|
|
|
|
1
|
|
|
|
470
|
|
Non-current liabilities
|
|
|
2,492
|
|
|
|
1,264
|
|
|
|
1,471
|
|
|
|
55
|
|
|
|
5,282
|
|
|
|
|
2,532
|
|
|
|
1,339
|
|
|
|
1,825
|
|
|
|
56
|
|
|
|
5,752
|
|
|
|
|
Consolidated
|
|
|
|
|
Tax litigation
|
|
|
|
Civil litigation
|
|
|
|
Labor litigation
|
|
|
|
Environmental
litigation
|
|
|
|
Total of
litigation
provision
|
|
Balance at December 31, 2019
|
|
|
2,804
|
|
|
|
1,213
|
|
|
|
1,835
|
|
|
|
43
|
|
|
|
5,895
|
|
Additions and reversals, net
|
|
|
23
|
|
|
|
14
|
|
|
|
49
|
|
|
|
3
|
|
|
|
89
|
|
Payments
|
|
|
(3
|
)
|
|
|
(48
|
)
|
|
|
(89
|
)
|
|
|
-
|
|
|
|
(140
|
)
|
Indexation and interest
|
|
|
57
|
|
|
|
39
|
|
|
|
24
|
|
|
|
2
|
|
|
|
122
|
|
Translation adjustment
|
|
|
66
|
|
|
|
10
|
|
|
|
-
|
|
|
|
-
|
|
|
|
76
|
|
Balance at March 31, 2020
|
|
|
2,947
|
|
|
|
1,228
|
|
|
|
1,819
|
|
|
|
48
|
|
|
|
6,042
|
|
Current liabilities
|
|
|
40
|
|
|
|
72
|
|
|
|
345
|
|
|
|
1
|
|
|
|
458
|
|
Non-current liabilities
|
|
|
2,907
|
|
|
|
1,156
|
|
|
|
1,474
|
|
|
|
47
|
|
|
|
5,584
|
|
|
|
|
2,947
|
|
|
|
1,228
|
|
|
|
1,819
|
|
|
|
48
|
|
|
|
6,042
|
|
b) Contingent
liabilities
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Tax litigations
|
|
|
42,183
|
|
|
|
35,914
|
|
Civil litigations
|
|
|
7,966
|
|
|
|
7,005
|
|
Labor litigations
|
|
|
2,945
|
|
|
|
2,926
|
|
Environmental litigations
|
|
|
4,841
|
|
|
|
4,717
|
|
Total
|
|
|
57,935
|
|
|
|
50,562
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
As reported in the annual financial statements
for 2020, the Company is party in several actions and the main updates on contingent liabilities since then, are discussed as follows:
(b.i) Assessments regarding the disallowance
of JCP:
In February 2021 Vale was assessed for collection
of IRPJ, CSLL and penalties regarding the disallowance of the JCP expenses deducted from the 2017 taxable income, in the amount of R$3,426.
There was also a reduction in tax losses, with the corresponding tax impact of R$698 in March 31,2021. The Company had filed an
administrative appeal and a decision is pending. As of March 31,2021, the likelihood of loss is possible.
(b.ii) Proceeding related to income tax
paid abroad:
In March 2021, Vale was assessed for the
collection of R$2,171 due to the disregard of taxes paid abroad that were offset by the IRPJ debt in 2016. Tax authorities allege the
Company has failed to comply with the applicable rules relating to the offset, in Brazil, of income taxes paid abroad. The Company
had filed an administrative appeal and a decision is pending. As of March 31, 2021, the likelihood of loss is possible.
c) Judicial deposits
|
|
Consolidated
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Tax litigations
|
|
|
5,146
|
|
|
|
5,132
|
|
Civil litigations
|
|
|
451
|
|
|
|
441
|
|
Labor litigations
|
|
|
872
|
|
|
|
924
|
|
Environmental litigations
|
|
|
60
|
|
|
|
94
|
|
Total
|
|
|
6,529
|
|
|
|
6,591
|
|
d) Guarantees contracted for
legal proceedings
In addition to the above-mentioned tax, civil,
labor and environmental judicial deposits, the Company contracted R$11.7 billion in guarantees for its lawsuits, as an alternative to
judicial deposits.
e) Contingent Assets
There have been no developments on matters related
to the contingent assets since the December 31, 2020 financial statements. Therefore, no assets were recognized in the period ended
March 31,2021.
|
23.
|
Employee post-retirement obligations
|
Reconciliation of net liabilities
recognized in the statement of financial position
|
|
Consolidated
|
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
|
|
Overfunded
pension plans
|
|
|
|
Underfunded
pension plans
|
|
|
|
Other
benefits
|
|
|
|
Overfunded
pension plans
|
|
|
|
Underfunded
pension plans
|
|
|
|
Other
benefits
|
|
Amount
recognized in the statement of financial position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Present value of
actuarial liabilities
|
|
|
(16,015
|
)
|
|
|
(24,379
|
)
|
|
|
(8,892
|
)
|
|
|
(16,138
|
)
|
|
|
(24,073
|
)
|
|
|
(9,007
|
)
|
Fair value of assets
|
|
|
20,073
|
|
|
|
22,286
|
|
|
|
-
|
|
|
|
20,626
|
|
|
|
20,744
|
|
|
|
-
|
|
Effect
of the asset ceiling
|
|
|
(4,058
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,488
|
)
|
|
|
-
|
|
|
|
-
|
|
Liabilities
|
|
|
-
|
|
|
|
(2,093
|
)
|
|
|
(8,892
|
)
|
|
|
-
|
|
|
|
(3,329
|
)
|
|
|
(9,007
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
-
|
|
|
|
(154
|
)
|
|
|
(442
|
)
|
|
|
-
|
|
|
|
(204
|
)
|
|
|
(499
|
)
|
Non-current
liabilities
|
|
|
-
|
|
|
|
(1,939
|
)
|
|
|
(8,450
|
)
|
|
|
-
|
|
|
|
(3,125
|
)
|
|
|
(8,508
|
)
|
Liabilities
|
|
|
-
|
|
|
|
(2,093
|
)
|
|
|
(8,892
|
)
|
|
|
-
|
|
|
|
(3,329
|
)
|
|
|
(9,007
|
)
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
a) Share capital
As at March 31, 2021, the share capital
was R$77,300 corresponding to 5,284,474,782 shares issued and fully paid without par value.
|
|
March 31, 2021
|
|
Stockholders
|
|
Common shares
|
|
|
Golden shares
|
|
|
Total
|
|
Shareholders with more than 5% of total capital
|
|
|
1,991,377,240
|
|
|
|
-
|
|
|
|
1,991,377,240
|
|
Previ
|
|
|
534,423,682
|
|
|
|
-
|
|
|
|
534,423,682
|
|
Capital World Investors
|
|
|
302,201,922
|
|
|
|
-
|
|
|
|
302,201,922
|
|
Capital Research Global Investors
|
|
|
294,934,543
|
|
|
|
-
|
|
|
|
294,934,543
|
|
Bradespar
|
|
|
293,907,266
|
|
|
|
-
|
|
|
|
293,907,266
|
|
Mitsui&co
|
|
|
286,347,055
|
|
|
|
-
|
|
|
|
286,347,055
|
|
Blackrock, Inc
|
|
|
279,562,772
|
|
|
|
-
|
|
|
|
279,562,772
|
|
Others
|
|
|
3,139,424,184
|
|
|
|
-
|
|
|
|
3,139,424,184
|
|
Golden shares
|
|
|
-
|
|
|
|
12
|
|
|
|
12
|
|
Total outstanding (without shares in treasury)
|
|
|
5,130,801,424
|
|
|
|
12
|
|
|
|
5,130,801,436
|
|
Shares in treasury
|
|
|
153,673,346
|
|
|
|
-
|
|
|
|
153,673,346
|
|
Total capital
|
|
|
5,284,474,770
|
|
|
|
12
|
|
|
|
5,284,474,782
|
|
b) Share buyback program
On April 1, 2021 (subsequent event), the
Board of Directors approved a share buyback program for Vale’s common share which will be limited to a maximum of 270,000,000 common
shares, and their respective ADRs, representing up to 5.3% of the total number of outstanding shares. The program will be carried out
over a period of up to 12-month period and the repurchased shares will be cancelled after the expiration of the program and/or alienated
through the executive compensation programs. The shares will be acquired in the stock market based on regular trading conditions.
c) Treasury shares
In March 2021, the Company used 890,482
(2020: 1,628,485 shares) from its treasury shares, for the share-based payment program of its executives (Matching program), corresponding
to the amount of R$37 (2020: R$68) recognized as “Treasury shares utilized in the period” in the Statement of Changes in
Equity.
d) Stockholder’s remuneration
On February 25, 2021, based on the Company’s
dividends policy, the Board of Directors approved the stockholder’s remuneration in the amount of R$21,866, equivalent to R$4.262386983
per share. This amount was paid on March 15, 2021, of which R$4,288 was in the form of interest on stockholders’ equity and
R$17,578 in the form of dividends.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
The Company’s related parties are subsidiaries,
joint ventures, associates, stockholders and its related entities and key management personnel of the Company. Transactions between the
parent company and its subsidiaries are eliminated on consolidation and are not disclosed in this note.
In April 2021 (subsequent event), the Company
signed an Investment Agreement with Mitsui (related party) for the acquisition by Vale of the totality of Mitsui´s interest of
Vale Moçambique and NLC. The Investment Agreement determines that Vale will acquire Mitsui's stake in the mine and logistics assets
for an immaterial consideration and will undertake of the Nacala Corridor Project Finance in full (note 12).
a) Transactions
with related parties
|
|
Consolidated
|
|
|
|
Three-month
period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
Joint
Ventures
|
|
|
Associates
|
|
|
Major
Shareholders
|
|
|
Total
|
|
|
Joint
Ventures
|
|
|
Associates
|
|
|
Major
Shareholders
|
|
|
Total
|
|
Net
operating revenue
|
|
|
888
|
|
|
|
326
|
|
|
|
295
|
|
|
|
1,509
|
|
|
|
308
|
|
|
|
274
|
|
|
|
142
|
|
|
|
724
|
|
Cost and operating
expenses
|
|
|
(967
|
)
|
|
|
(30
|
)
|
|
|
-
|
|
|
|
(997
|
)
|
|
|
(1,201
|
)
|
|
|
(28
|
)
|
|
|
-
|
|
|
|
(1,229
|
)
|
Financial
result
|
|
|
72
|
|
|
|
(2
|
)
|
|
|
(2,952
|
)
|
|
|
(2,882
|
)
|
|
|
33
|
|
|
|
8
|
|
|
|
(106
|
)
|
|
|
(65
|
)
|
Purchases, accounts receivable and other assets,
and accounts payable and other liabilities relate largely to amounts charged by joint ventures and associates related to the pelletizing
plants operational lease and railway transportation services.
Net operating revenue
relates to sale of iron ore to the steelmakers and right to use capacity on railroads. Cost and operating expenses mostly relates to
the variable lease payments of the pelletizing plants and the logistics costs for using the Nacala Logistic Corridor.
b) Outstanding
balances with related parties
|
|
Consolidated
|
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
|
Joint
Ventures
|
|
|
Associates
|
|
|
Major
Shareholders
|
|
|
Total
|
|
|
Joint
Ventures
|
|
|
Associates
|
|
|
Major
Shareholders
|
|
|
Total
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents (i)
|
|
|
-
|
|
|
|
-
|
|
|
|
11,778
|
|
|
|
11,778
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,820
|
|
|
|
10,820
|
|
Accounts receivable
|
|
|
854
|
|
|
|
772
|
|
|
|
10
|
|
|
|
1,636
|
|
|
|
565
|
|
|
|
236
|
|
|
|
11
|
|
|
|
812
|
|
Dividends
receivable
|
|
|
293
|
|
|
|
4
|
|
|
|
-
|
|
|
|
297
|
|
|
|
101
|
|
|
|
|
|
|
|
-
|
|
|
|
101
|
|
Loans (ii)
|
|
|
6,032
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,032
|
|
|
|
5,800
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,800
|
|
Derivatives
financial instruments (i)
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12
|
|
|
|
12
|
|
Other assets
|
|
|
394
|
|
|
|
8
|
|
|
|
-
|
|
|
|
402
|
|
|
|
354
|
|
|
|
8
|
|
|
|
-
|
|
|
|
362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplier and
contractors
|
|
|
359
|
|
|
|
27
|
|
|
|
173
|
|
|
|
559
|
|
|
|
627
|
|
|
|
54
|
|
|
|
181
|
|
|
|
862
|
|
Loans (iii)
|
|
|
-
|
|
|
|
8,247
|
|
|
|
-
|
|
|
|
8,247
|
|
|
|
-
|
|
|
|
7,440
|
|
|
|
4,907
|
|
|
|
12,347
|
|
Derivatives
financial instruments (i)
|
|
|
-
|
|
|
|
-
|
|
|
|
4,219
|
|
|
|
4,219
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,255
|
|
|
|
1,255
|
|
Other liabilities
|
|
|
1,256
|
|
|
|
528
|
|
|
|
-
|
|
|
|
1,784
|
|
|
|
1,222
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,222
|
|
(i) Refers to regular financial instruments
with large financial institutions of which the stockholders were part of the controlling “shareholders’ agreement”.
(ii) Refers to the loan with Nacala BV.,
which carries interest at the average rate of 8.2% p.a. and maturity at 2034. In 2020, the Company recognized an impairment of this receivable
in the amount of R$4,106.
(iii) Mainly relates to Vale Moçambique's
loan payable to an entity controlled by one of its non-controlling shareholders, which carries interest at 5.83% p.a. and maturity at
2034.
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
|
26.
|
Select notes to Parent Company information (individual interim
information)
|
a) Other
financial assets and liabilities
|
|
Parent company
|
|
|
|
Current
|
|
|
Non-Current
|
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
Other financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
-
|
|
|
|
-
|
|
|
|
21
|
|
|
|
20
|
|
Derivative financial instruments
|
|
|
33
|
|
|
|
37
|
|
|
|
295
|
|
|
|
338
|
|
Investments in equity securities
|
|
|
-
|
|
|
|
-
|
|
|
|
5,411
|
|
|
|
3,438
|
|
Related parties - Loans
|
|
|
-
|
|
|
|
-
|
|
|
|
41
|
|
|
|
42
|
|
|
|
|
33
|
|
|
|
37
|
|
|
|
5,768
|
|
|
|
3,838
|
|
Other financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
1,487
|
|
|
|
1,166
|
|
|
|
4,259
|
|
|
|
3,076
|
|
Related parties - Loans
|
|
|
2,227
|
|
|
|
2,484
|
|
|
|
87,326
|
|
|
|
89,156
|
|
Financial guarantees
|
|
|
-
|
|
|
|
-
|
|
|
|
4,762
|
|
|
|
4,558
|
|
Liabilities related to the concession grant
|
|
|
1,465
|
|
|
|
1,088
|
|
|
|
10,174
|
|
|
|
10,928
|
|
Advance receipts
|
|
|
14
|
|
|
|
9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
5,193
|
|
|
|
4,747
|
|
|
|
106,521
|
|
|
|
107,718
|
|
b) Investments
|
|
|
Parent company
|
|
|
|
|
2021
|
|
|
|
2020
|
|
Balance at January 1st,
|
|
|
181,319
|
|
|
|
144,594
|
|
Additions and Capitalizations
|
|
|
403
|
|
|
|
1,104
|
|
Disposals
|
|
|
(2
|
)
|
|
|
(118
|
)
|
Translation adjustment
|
|
|
8,609
|
|
|
|
28,920
|
|
Equity results in income statement
|
|
|
13,748
|
|
|
|
(2,208
|
)
|
Equity results in statement of comprehensive income
|
|
|
2,021
|
|
|
|
157
|
|
Dividends declared
|
|
|
(228
|
)
|
|
|
(535
|
)
|
Others
|
|
|
91
|
|
|
|
522
|
|
Balance at March 31,
|
|
|
205,961
|
|
|
|
172,436
|
|
c) Intangibles
|
|
|
Parent company
|
|
|
|
|
Concessions
|
|
|
|
Contract right
|
|
|
|
Software
|
|
|
|
Total
|
|
Balance at December 31, 2020
|
|
|
28,015
|
|
|
|
-
|
|
|
|
228
|
|
|
|
28,243
|
|
Additions
|
|
|
183
|
|
|
|
-
|
|
|
|
36
|
|
|
|
219
|
|
Disposals
|
|
|
(13
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(13
|
)
|
Amortization
|
|
|
(297
|
)
|
|
|
-
|
|
|
|
(19
|
)
|
|
|
(316
|
)
|
Balance at March 31, 2021
|
|
|
27,888
|
|
|
|
-
|
|
|
|
245
|
|
|
|
28,133
|
|
Cost
|
|
|
33,330
|
|
|
|
-
|
|
|
|
2,654
|
|
|
|
35,984
|
|
Accumulated amortization
|
|
|
(5,442
|
)
|
|
|
-
|
|
|
|
(2,409
|
)
|
|
|
(7,851
|
)
|
Balance at March 31, 2021
|
|
|
27,888
|
|
|
|
-
|
|
|
|
245
|
|
|
|
28,133
|
|
|
|
|
Parent company
|
|
|
|
|
Concessions
|
|
|
|
Contract right
|
|
|
|
Software
|
|
|
|
Total
|
|
Balance at December 31, 2019
|
|
|
15,993
|
|
|
|
99
|
|
|
|
179
|
|
|
|
16,271
|
|
Additions
|
|
|
87
|
|
|
|
-
|
|
|
|
28
|
|
|
|
115
|
|
Disposals
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
Amortization
|
|
|
(215
|
)
|
|
|
(1
|
)
|
|
|
(14
|
)
|
|
|
(230
|
)
|
Balance at March 31, 2020
|
|
|
15,860
|
|
|
|
98
|
|
|
|
193
|
|
|
|
16,151
|
|
Cost
|
|
|
20,566
|
|
|
|
223
|
|
|
|
2,533
|
|
|
|
23,322
|
|
Accumulated amortization
|
|
|
(4,706
|
)
|
|
|
(125
|
)
|
|
|
(2,340
|
)
|
|
|
(7,171
|
)
|
Balance at March 31, 2020
|
|
|
15,860
|
|
|
|
98
|
|
|
|
193
|
|
|
|
16,151
|
|
d) Property,
plant and equipment
|
|
|
Parent
company
|
|
|
|
|
Building
and land
|
|
|
|
Facilities
|
|
|
|
Equipment
|
|
|
|
Mineral
properties
|
|
|
|
Railway
equipment
|
|
|
|
Right
of
use assets
|
|
|
|
Others
|
|
|
|
Constructions
in progress
|
|
|
|
Total
|
|
Balance
at December 31, 2020
|
|
|
28,299
|
|
|
|
30,567
|
|
|
|
10,232
|
|
|
|
9,016
|
|
|
|
12,713
|
|
|
|
2,115
|
|
|
|
7,065
|
|
|
|
11,331
|
|
|
|
111,338
|
|
Additions
(i)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
193
|
|
|
|
-
|
|
|
|
2,652
|
|
|
|
2,845
|
|
Disposals
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
(15
|
)
|
Assets
retirement obligation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(335
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(335
|
)
|
Depreciation,
amortization and depletion
|
|
|
(314
|
)
|
|
|
(404
|
)
|
|
|
(370
|
)
|
|
|
(199
|
)
|
|
|
(200
|
)
|
|
|
(96
|
)
|
|
|
(267
|
)
|
|
|
-
|
|
|
|
(1,850
|
)
|
Transfers
|
|
|
123
|
|
|
|
188
|
|
|
|
580
|
|
|
|
74
|
|
|
|
94
|
|
|
|
-
|
|
|
|
317
|
|
|
|
(1,376
|
)
|
|
|
-
|
|
Balance
at March 31, 2021
|
|
|
28,108
|
|
|
|
30,351
|
|
|
|
10,439
|
|
|
|
8,556
|
|
|
|
12,607
|
|
|
|
2,212
|
|
|
|
7,115
|
|
|
|
12,595
|
|
|
|
111,983
|
|
Cost
|
|
|
37,640
|
|
|
|
41,814
|
|
|
|
20,447
|
|
|
|
11,864
|
|
|
|
19,247
|
|
|
|
2,966
|
|
|
|
15,929
|
|
|
|
12,595
|
|
|
|
162,502
|
|
Accumulated
depreciation
|
|
|
(9,532
|
)
|
|
|
(11,463
|
)
|
|
|
(10,008
|
)
|
|
|
(3,308
|
)
|
|
|
(6,640
|
)
|
|
|
(754
|
)
|
|
|
(8,814
|
)
|
|
|
-
|
|
|
|
(50,519
|
)
|
Balance
at March 31, 2021
|
|
|
28,108
|
|
|
|
30,351
|
|
|
|
10,439
|
|
|
|
8,556
|
|
|
|
12,607
|
|
|
|
2,212
|
|
|
|
7,115
|
|
|
|
12,595
|
|
|
|
111,983
|
|
|
|
|
Parent company
|
|
|
|
|
Building
and land
|
|
|
|
Facilities
|
|
|
|
Equipment
|
|
|
|
Mineral
properties
|
|
|
|
Railway
equipment
|
|
|
|
Right
of
use assets
|
|
|
|
Others
|
|
|
|
Constructions
in progress
|
|
|
|
Total
|
|
Balance
at December 31, 2019
|
|
|
28,352
|
|
|
|
30,219
|
|
|
|
10,213
|
|
|
|
7,153
|
|
|
|
12,766
|
|
|
|
2,114
|
|
|
|
6,840
|
|
|
|
8,218
|
|
|
|
105,875
|
|
Additions
(i)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
117
|
|
|
|
-
|
|
|
|
1,980
|
|
|
|
2,097
|
|
Disposals
|
|
|
-
|
|
|
|
(9
|
)
|
|
|
(2
|
)
|
|
|
(19
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
(7
|
)
|
|
|
(40
|
)
|
Assets
retirement obligation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(383
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(383
|
)
|
Depreciation,
amortization and depletion
|
|
|
(271
|
)
|
|
|
(395
|
)
|
|
|
(354
|
)
|
|
|
(159
|
)
|
|
|
(244
|
)
|
|
|
(87
|
)
|
|
|
(248
|
)
|
|
|
-
|
|
|
|
(1,758
|
)
|
Transfers
|
|
|
5
|
|
|
|
368
|
|
|
|
273
|
|
|
|
935
|
|
|
|
196
|
|
|
|
-
|
|
|
|
228
|
|
|
|
(2,005
|
)
|
|
|
-
|
|
Balance
at March 31, 2020
|
|
|
28,086
|
|
|
|
30,183
|
|
|
|
10,130
|
|
|
|
7,527
|
|
|
|
12,718
|
|
|
|
2,144
|
|
|
|
6,817
|
|
|
|
8,186
|
|
|
|
105,791
|
|
Cost
|
|
|
36,258
|
|
|
|
39,725
|
|
|
|
18,827
|
|
|
|
10,148
|
|
|
|
18,499
|
|
|
|
2,539
|
|
|
|
14,901
|
|
|
|
8,186
|
|
|
|
149,083
|
|
Accumulated
depreciation
|
|
|
(8,172
|
)
|
|
|
(9,542
|
)
|
|
|
(8,697
|
)
|
|
|
(2,621
|
)
|
|
|
(5,781
|
)
|
|
|
(395
|
)
|
|
|
(8,084
|
)
|
|
|
-
|
|
|
|
(43,292
|
)
|
Balance
at March 31, 2020
|
|
|
28,086
|
|
|
|
30,183
|
|
|
|
10,130
|
|
|
|
7,527
|
|
|
|
12,718
|
|
|
|
2,144
|
|
|
|
6,817
|
|
|
|
8,186
|
|
|
|
105,791
|
|
(i) Includes capitalized borrowing costs.
e) Loans
and borrowings
|
|
Parent company
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
Non-current liabilities
|
|
|
|
|
Average interest
rate (i)
|
|
|
|
March 31, 2021
|
|
|
|
December 31,
2020
|
|
|
|
March 31, 2021
|
|
|
|
December 31,
2020
|
|
Quoted in the secondary market:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds
|
|
|
6.02
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
2,964
|
|
|
|
2,704
|
|
Eurobonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,783
|
|
Debentures
|
|
|
10.48
|
%
|
|
|
246
|
|
|
|
555
|
|
|
|
1,932
|
|
|
|
2,021
|
|
Debt contracts in Brazil in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$, indexed to TJLP, TR, IPCA, IGP-M and CDI
|
|
|
9.29
|
%
|
|
|
1,145
|
|
|
|
1,203
|
|
|
|
2,251
|
|
|
|
2,808
|
|
R$, with fixed interest
|
|
|
2.80
|
%
|
|
|
80
|
|
|
|
84
|
|
|
|
51
|
|
|
|
71
|
|
Basket of currencies and bonds in US$ indexed to LIBOR
|
|
|
2.31
|
%
|
|
|
254
|
|
|
|
232
|
|
|
|
-
|
|
|
|
58
|
|
Debt contracts in the international market in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$, with variable interest
|
|
|
2.28
|
%
|
|
|
855
|
|
|
|
871
|
|
|
|
9,415
|
|
|
|
7,405
|
|
Others, with variable interest
|
|
|
3.47
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
56
|
|
|
|
-
|
|
Accrued charges
|
|
|
|
|
|
|
109
|
|
|
|
369
|
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
|
|
|
|
2,689
|
|
|
|
3,314
|
|
|
|
16,669
|
|
|
|
19,850
|
|
The future flows of debt payments (principal)
are as follows:
|
|
|
Parent company
|
|
|
|
|
Debt principal
|
|
2021
|
|
|
|
1,861
|
|
2022
|
|
|
|
3,618
|
|
2023
|
|
|
|
1,561
|
|
2024
|
|
|
|
5,627
|
|
Between 2025 and 2029
|
|
|
|
1,909
|
|
2030 onwards
|
|
|
|
4,673
|
|
|
|
|
|
19,249
|
|
Selected Notes to the Interim Financial Statements
Expressed in millions of Brazilian reais, unless otherwise stated
|
|
f) Provisions
|
|
Parent company
|
|
|
|
|
Current liabilities
|
|
|
|
Non-current liabilities
|
|
|
|
|
March 31, 2021
|
|
|
|
December 31, 2020
|
|
|
|
March 31, 2021
|
|
|
|
December 31, 2020
|
|
Payroll, related charges and other remunerations
|
|
|
1,992
|
|
|
|
3,154
|
|
|
|
-
|
|
|
|
-
|
|
Environmental obligations
|
|
|
384
|
|
|
|
419
|
|
|
|
601
|
|
|
|
583
|
|
Asset retirement obligations
|
|
|
296
|
|
|
|
323
|
|
|
|
4,070
|
|
|
|
4,405
|
|
Provisions for litigation
|
|
|
470
|
|
|
|
455
|
|
|
|
4,844
|
|
|
|
4,782
|
|
Employee postretirement obligations
|
|
|
278
|
|
|
|
255
|
|
|
|
3,245
|
|
|
|
3,246
|
|
Provisions
|
|
|
3,420
|
|
|
|
4,606
|
|
|
|
12,760
|
|
|
|
13,016
|
|
g) Provisions
for litigation
|
|
|
Parent company
|
|
|
|
|
Tax litigation
|
|
|
|
Civil litigation
|
|
|
|
Labor litigation
|
|
|
|
Environmental
litigation
|
|
|
|
Total of litigation
provision
|
|
Balance at December 31, 2020
|
|
|
2,410
|
|
|
|
1,090
|
|
|
|
1,687
|
|
|
|
50
|
|
|
|
5,237
|
|
Additions and reversals, net
|
|
|
(7
|
)
|
|
|
(7
|
)
|
|
|
105
|
|
|
|
-
|
|
|
|
91
|
|
Payments
|
|
|
-
|
|
|
|
(63
|
)
|
|
|
(51
|
)
|
|
|
(1
|
)
|
|
|
(115
|
)
|
Indexation and interest
|
|
|
21
|
|
|
|
48
|
|
|
|
30
|
|
|
|
2
|
|
|
|
101
|
|
Balance at March 31, 2021
|
|
|
2,424
|
|
|
|
1,068
|
|
|
|
1,771
|
|
|
|
51
|
|
|
|
5,314
|
|
Current liabilities
|
|
|
40
|
|
|
|
75
|
|
|
|
354
|
|
|
|
1
|
|
|
|
470
|
|
Non-current liabilities
|
|
|
2,384
|
|
|
|
993
|
|
|
|
1,417
|
|
|
|
50
|
|
|
|
4,844
|
|
|
|
|
2,424
|
|
|
|
1,068
|
|
|
|
1,771
|
|
|
|
51
|
|
|
|
5,314
|
|
|
|
|
Parent company
|
|
|
|
|
Tax litigation
|
|
|
|
Civil litigation
|
|
|
|
Labor litigation
|
|
|
|
Environmental
litigation
|
|
|
|
Total of litigation
provision
|
|
Balance at December 31, 2019
|
|
|
2,325
|
|
|
|
1,004
|
|
|
|
1,734
|
|
|
|
39
|
|
|
|
5,102
|
|
Additions and reversals, net
|
|
|
14
|
|
|
|
14
|
|
|
|
55
|
|
|
|
3
|
|
|
|
86
|
|
Payments
|
|
|
(2
|
)
|
|
|
(26
|
)
|
|
|
(87
|
)
|
|
|
-
|
|
|
|
(115
|
)
|
Indexation and interest
|
|
|
25
|
|
|
|
33
|
|
|
|
25
|
|
|
|
2
|
|
|
|
85
|
|
Balance at March 31, 2020
|
|
|
2,362
|
|
|
|
1,025
|
|
|
|
1,727
|
|
|
|
44
|
|
|
|
5,158
|
|
Current liabilities
|
|
|
40
|
|
|
|
72
|
|
|
|
345
|
|
|
|
1
|
|
|
|
458
|
|
Non-current liabilities
|
|
|
2,322
|
|
|
|
953
|
|
|
|
1,382
|
|
|
|
43
|
|
|
|
4,700
|
|
|
|
|
2,362
|
|
|
|
1,025
|
|
|
|
1,727
|
|
|
|
44
|
|
|
|
5,158
|
|
h) Contingent
liabilities
|
|
|
Parent company
|
|
|
|
|
March 31, 2021
|
|
|
|
December 31, 2020
|
|
Tax litigations
|
|
|
38,996
|
|
|
|
32,902
|
|
Civil litigations
|
|
|
6,376
|
|
|
|
5,522
|
|
Labor litigations
|
|
|
2,856
|
|
|
|
2,846
|
|
Environmental litigations
|
|
|
3,961
|
|
|
|
3,837
|
|
Total
|
|
|
52,189
|
|
|
|
45,107
|
|
i) Income
taxes
The total amount presented as income taxes in
the income statement is reconciled to the rate established by law, as follows:
|
|
Parent company
|
|
|
|
Three-month period ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Income (loss) before income taxes
|
|
|
38,292
|
|
|
|
(3,114
|
)
|
Income taxes at statutory rates - 34%
|
|
|
(13,019
|
)
|
|
|
1,059
|
|
Adjustments that affect the basis of taxes:
|
|
|
|
|
|
|
|
|
Tax incentives
|
|
|
2,312
|
|
|
|
1,225
|
|
Equity results
|
|
|
4,674
|
|
|
|
(751
|
)
|
Others
|
|
|
(1,695
|
)
|
|
|
2,565
|
|
Income taxes
|
|
|
(7,728
|
)
|
|
|
4,098
|
|
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Vale S.A.
|
|
(Registrant)
|
|
|
|
By:
|
/s/ Ivan Fadel
|
|
|
Head of Investor Relations
|
Date: April 26,
2021
|
|
|
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