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v3.21.1

Related parties | 12 Months Ended
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Dec. 31, 2020
Related parties |
Related parties | 29. Related parties 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. Related party transactions were made by the Company on terms equivalent to those that prevail in arm´s-length transactions, with respect to price and market conditions that are no less favorable to the Company than those arranged with third parties. 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. a) Transactions with related parties
|  | Year ended December 31,
|  | 2020
|  | Joint Ventures |  | Associates |  | Major stockholders |  | Total
Net operating revenue |  | 372 |  | 240 |  | 185 |  | 797
Cost and operating expenses |  | (951) |  | (25) |  | — |  | (976)
Financial result |  | 27 |  | 2 |  | (49) |  | (20)
|  | Year ended December 31,
|  | 2019
|  | Joint Ventures |  | Associates |  | Major stockholders |  | Total
Net operating revenue |  | 374 |  | 294 |  | 204 |  | 872
Cost and operating expenses |  | (1,749) |  | (32) |  | — |  | (1,781)
Financial result |  | 49 |  | (1) |  | (29) |  | 19
|  | Year ended December 31,
|  | 2018
|  | Joint Ventures |  | Associates |  | Major stockholders |  | Total
Net operating revenue |  | 352 |  | 309 |  | 207 |  | 868
Cost and operating expenses |  | (2,269) |  | (39) |  | — |  | (2,308)
Financial result |  | 115 |  | — |  | (115) |  | —
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
|  | December 31, 2020 |  | December 31, 2019
|  | Joint |  |  |  | Major |  |  |  | Joint |  |  |  | Major |  |
|  | Ventures |  | Associates |  | stockholders (iii) |  | Total |  | Ventures |  | Associates |  | stockholders (iii) |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | — |  | — |  | 2,082 |  | 2,082 |  | — |  | — |  | 1,384 |  | 1,384
Accounts receivable |  | 109 |  | 45 |  | 2 |  | 156 |  | 91 |  | 22 |  | 5 |  | 118
Dividends receivable |  | 19 |  | — |  | — |  | 19 |  | 83 |  | 6 |  | — |  | 89
Loans (i) |  | 1,118 |  | — |  | — |  | 1,118 |  | 1,919 |  | — |  | — |  | 1,919
Derivatives financial instruments |  | — |  | — |  | 2 |  | 2 |  | — |  | — |  | 42 |  | 42
Other assets |  | 68 |  | 2 |  | — |  | 70 |  | 65 |  | — |  | — |  | 65
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supplier and contractors |  | 121 |  | 10 |  | 35 |  | 166 |  | 302 |  | 28 |  | 37 |  | 367
Loans (ii) |  | — |  | 1,433 |  | 944 |  | 2,377 |  | — |  | 1,367 |  | 1,688 |  | 3,055
Derivatives financial instruments |  | — |  | — |  | 242 |  | 242 |  | — |  | — |  | 64 |  | 64
Other liabilities |  | 235 |  | — |  | — |  | 235 |  | 569 |  | — |  | — |  | 569
(i) 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 US$798 (note18). (ii) 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. (iii) Refers to regular financial instruments with large financial institutions of which the stockholders were part of the controlling “shareholders’ agreement”, which has expired on November 10, 2020 (note 28(e)). c) The key management personnel remuneration
|  | Year ended December 31,
|  | 2020 |  | 2019 |  | 2018
Short‐term benefits |  |  |  |  |  |
Wages |  | 9 |  | 8 |  | 8
Direct and indirect benefits |  | 16 |  | 11 |  | 11
Profit sharing program (“PLR”) |  | 8 |  | 1 |  | 10
|  | 33 |  | 20 |  | 29
Long‐term benefits |  |  |  |  |  |
Shares based |  | — |  | — |  | 3
Severance |  | 7 |  | 4 |  | 20
|  | 40 |  | 24 |  | 52
The amounts described above include the Board of Directors and the Executive Officers and are presented on a cash basis.

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