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Investments in subsidiaries, associates and joint ventures | 12 Months Ended
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Dec. 31, 2020
Investments in subsidiaries, associates and joint ventures |
Investments in subsidiaries, associates and joint ventures | 14. Investments in subsidiaries, associates and joint ventures a) Investment information
|  |  |  |  |  | Investments in associates and joint ventures |  | Equity results in the income statement |  | Dividends received
|  |  |  |  |  |  |  |  |  | Year ended December 31, |  | Year ended December 31,
Associates and joint ventures |  | % ownership |  | % voting capital |  | December 31, 2020 |  | December 31, 2019 |  | 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Ferrous minerals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Baovale Mineração S.A. |  | 50.00 |  | 50.00 |  | 20 |  | 25 |  | 1 |  | 4 |  | 5 |  | — |  | — |  | 1
Companhia Coreano-Brasileira de Pelotização |  | 50.00 |  | 50.00 |  | 48 |  | 88 |  | 8 |  | 48 |  | 69 |  | 34 |  | 62 |  | 32
Companhia Hispano-Brasileira de Pelotização (i) |  | 50.89 |  | 50.89 |  | 43 |  | 70 |  | 11 |  | 37 |  | 55 |  | 27 |  | 50 |  | 23
Companhia Ítalo-Brasileira de Pelotização (i) |  | 50.90 |  | 51.00 |  | 44 |  | 65 |  | 10 |  | 30 |  | 60 |  | 23 |  | 54 |  | 32
Companhia Nipo-Brasileira de Pelotização (i) |  | 51.00 |  | 51.11 |  | 121 |  | 150 |  | 8 |  | 84 |  | 126 |  | 32 |  | 92 |  | 67
MRS Logística S.A. |  | 48.16 |  | 46.75 |  | 398 |  | 496 |  | 34 |  | 50 |  | 72 |  | 22 |  | 29 |  | 27
Samarco Mineração S.A. (note 24) |  | 50.00 |  | 50.00 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | —
VLI S.A. |  | 29.60 |  | 29.60 |  | 480 |  | 812 |  | (22) |  | 1 |  | 30 |  | 2 |  | 9 |  | 7
Zhuhai YPM Pellet Co. |  | — |  | — |  | — |  | 23 |  | — |  | — |  | — |  | — |  | — |  | —
|  |  |  |  |  | 1,154 |  | 1,729 |  | 50 |  | 254 |  | 417 |  | 140 |  | 296 |  | 189
Base metals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Korea Nickel Corp. |  | 25.00 |  | 25.00 |  | 18 |  | 14 |  | — |  | — |  | 1 |  | — |  | — |  | —
|  |  |  |  |  | 18 |  | 14 |  | — |  | — |  | 1 |  | — |  | — |  | —
Coal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Henan Longyu Energy Resources Co., Ltd. |  | — |  | — |  | — |  | — |  | — |  | (2) |  | 16 |  | — |  | — |  | —
Nacala Corridor Holding Netherlands B.V. |  | 50.00 |  | 50.00 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | —
|  |  |  |  |  | — |  | — |  | — |  | (2) |  | 16 |  | — |  | — |  | —
Others |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aliança Geração de Energia S.A.(i) |  | 55.00 |  | 55.00 |  | 367 |  | 470 |  | 28 |  | 31 |  | 25 |  | 24 |  | 28 |  | 25
Aliança Norte Energia Participações S.A.(i) |  | 51.00 |  | 51.00 |  | 117 |  | 160 |  | (8) |  | 4 |  | 15 |  | — |  | — |  | —
California Steel Industries, Inc. |  | 50.00 |  | 50.00 |  | 234 |  | 242 |  | (7) |  | 23 |  | 77 |  | — |  | 29 |  | 31
Companhia Siderúrgica do Pecém |  | 50.00 |  | 50.00 |  | — |  | — |  | (131) |  | (69) |  | (243) |  | — |  | — |  | —
Mineração Rio do Norte S.A. |  | 40.00 |  | 40.00 |  | 71 |  | 97 |  | (3) |  | 15 |  | 2 |  | 9 |  | — |  | —
Others |  |  |  |  |  | 70 |  | 86 |  | (48) |  | (28) |  | (5) |  | — |  | — |  | —
|  |  |  |  |  | 859 |  | 1,055 |  | (169) |  | (24) |  | (129) |  | 33 |  | 57 |  | 56
Total |  |  |  |  |  | 2,031 |  | 2,798 |  | (119) |  | 228 |  | 305 |  | 173 |  | 353 |  | 245
(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. The significant associates and joint ventures of the Company are located in Brazil. b) Movements during the year
|  | 2020 |  | 2019
Balance at January 1, |  | 2,798 |  | 3,225
Additions and Capitalizations (i) |  | 131 |  | 76
Disposals (ii) |  | (250) |  | —
Translation adjustment |  | (542) |  | (111)
Equity results in income statement |  | (119) |  | 228
Results from sales on equity interest (ii) |  | 106 |  | —
Equity results in statement of comprehensive income |  | (2) |  | (4)
Fair value adjustment (iii) |  | (10) |  | (163)
Dividends declared |  | (128) |  | (326)
Transfer to assets held for sale (iii) |  | — |  | (152)
Others |  | 47 |  | 25
Balance at December 31, |  | 2,031 |  | 2,798
| (i) |  | In 2020, refers mainly to Companhia Siderúrgica do Pecém's capital increase.
| (ii) |  | In 2020, refers to the exercise of the call option of VLI's share (note 15).
| (iii) |  | In 2019, refers to fair value adjustment of the investment in Henan Longyu Energy Resources Co., Ltd., which was reclassified and presented as held for sale (note 15).
The amount of investments by segments are presented in note 4(b). c) Summarized financial information The summarized financial information about relevant associates and joint ventures for the Company are as follow. The stand-alone financial statements of those entities may differ from the financial information reported herein, which is prepared considering Vale’s accounting policies. The summarized financial information about Samarco is presented in note 24.
|  | December 31, 2020
|  |  |  |  |  |  |  |  |  |  |  |  |  | Nacala |  |
|  | Aliança Geração |  | Aliança |  |  |  |  |  |  |  |  |  | Corridor Holding |  |
|  | de Energia |  | Norte Energia |  | CSI |  | CSP (i) |  | Pelletizing (ii) |  | MRS Logística |  | Netherlands B.V. (i) |  | VLI S.A.
Current assets |  | 138 |  | — |  | 336 |  | 346 |  | 300 |  | 412 |  | 524 |  | 614
Non-current assets |  | 711 |  | 229 |  | 344 |  | 2,234 |  | 258 |  | 1,701 |  | 4,349 |  | 3,737
Total assets |  | 849 |  | 229 |  | 680 |  | 2,581 |  | 558 |  | 2,113 |  | 4,874 |  | 4,351
Current liabilities |  | 48 |  | — |  | 63 |  | 737 |  | 53 |  | 389 |  | 573 |  | 607
Non-current liabilities |  | 134 |  | — |  | 148 |  | 2,623 |  | — |  | 898 |  | 4,684 |  | 2,123
Total liabilities |  | 182 |  | — |  | 211 |  | 3,360 |  | 53 |  | 1,286 |  | 5,257 |  | 2,729
Stockholders' equity |  | 668 |  | 229 |  | 469 |  | (779) |  | 504 |  | 827 |  | (383) |  | 1,622
Net revenue |  | 186 |  | — |  | 665 |  | 1,176 |  | 104 |  | 640 |  | 611 |  | 1,011
Net income (loss) |  | 51 |  | (15) |  | (14) |  | (835) |  | 73 |  | 70 |  | (87) |  | (59)
|  | December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  | Nacala |  |
|  | Aliança Geração |  | Aliança |  |  |  |  |  |  |  |  |  | Corridor Holding |  |
|  | de Energia |  | Norte Energia |  | CSI |  | CSP (i) |  | Pelletizing (ii) |  | MRS Logística |  | Netherlands B.V.(i) |  | VLI S.A.
Current assets |  | 215 |  | — |  | 481 |  | 438 |  | 720 |  | 490 |  | 384 |  | 805
Non-current assets |  | 880 |  | 314 |  | 344 |  | 2,960 |  | 315 |  | 2,196 |  | 4,505 |  | 4,507
Total assets |  | 1,095 |  | 314 |  | 825 |  | 3,398 |  | 1,035 |  | 2,686 |  | 4,889 |  | 5,312
Current liabilities |  | 99 |  | — |  | 186 |  | 985 |  | 297 |  | 415 |  | 516 |  | 773
Non-current liabilities |  | 142 |  | — |  | 155 |  | 2,675 |  | 2 |  | 1,242 |  | 4,671 |  | 2,380
Total liabilities |  | 241 |  | — |  | 341 |  | 3,660 |  | 299 |  | 1,657 |  | 5,187 |  | 3,153
Stockholders' equity |  | 854 |  | 314 |  | 484 |  | (262) |  | 736 |  | 1,029 |  | (298) |  | 2,159
Net revenue |  | 257 |  | — |  | 997 |  | 1,393 |  | 583 |  | 759 |  | 782 |  | 1,238
Net income (loss) |  | 57 |  | 8 |  | 46 |  | (412) |  | 392 |  | 103 |  | (49) |  | 2
(i) The joint ventures 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 any further losses nor liabilities associated with the investee. (ii) Aggregate entity information: Companhia Coreano-Brasileira de Pelotização, Companhia Hispano-Brasileira de Pelotização, Companhia Ítalo-Brasileira de Pelotização, Companhia Nipo-Brasileira de Pelotização. d) Subsidiaries The significant consolidated entities in each business segment are as follows:
|  |  |  |  |  |  |  |  |  | % Noncontrolling |
|  | Location |  | Main activity /Business |  | % Ownership |  | % Voting capital |  | interest |
Direct and indirect subsidiaries |  |  |  |  |  |  |  |  |  |  |
Companhia Portuária da Baía de Sepetiba |  | Brazil |  | Iron ore |  | 100.0 | % | 100.0 | % | 0.0 | %
Ferrous Resource Limited |  | Isle of Man |  | Iron Ore |  | 100.0 | % | 100.0 | % | 0.0 | %
Mineração Corumbaense Reunida S.A. |  | Brazil |  | Iron ore and manganese |  | 100.0 | % | 100.0 | % | 0.0 | %
Minerações Brasileiras Reunidas S.A. (“MBR”) |  | Brazil |  | Iron ore |  | 100.0 | % | 100.0 | % | 0.0 | %
New Steel Global |  | Netherlands |  | Iron ore |  | 100.0 | % | 100.0 | % | 0.0 | %
Salobo Metais S.A. |  | Brazil |  | Copper |  | 100.0 | % | 100.0 | % | 0.0 | %
PT Vale Indonesia |  | Indonesia |  | Nickel |  | 44.3 | % | 44.3 | % | 55.7 | %
Vale Holdings B.V |  | Netherlands |  | Holding and research |  | 100.0 | % | 100.0 | % | 0.0 | %
Vale Canada Limited |  | Canada |  | Nickel |  | 100.0 | % | 100.0 | % | 0.0 | %
Vale International S.A. |  | Switzerland |  | Trading and holding |  | 100.0 | % | 100.0 | % | 0.0 | %
Vale Malaysia Minerals Sdn. Bhd. |  | Malaysia |  | Iron ore |  | 100.0 | % | 100.0 | % | 0.0 | %
Vale Manganês S.A. |  | Brazil |  | Manganese and ferroalloys |  | 100.0 | % | 100.0 | % | 0.0 | %
Vale Moçambique S.A. |  | Mozambique |  | Coal |  | 80.7 | % | 80.7 | % | 19.3 | %
Vale Nouvelle Caledonie S.A.S. |  | New Caledonia |  | Nickel |  | 95.0 | % | 95.0 | % | 5.0 | %
Vale Newfoundland & Labrador Ltd |  | Canada |  | Nickel |  | 100.0 | % | 100.0 | % | 0.0 | %
Vale Oman Distribution Center LLC |  | Oman |  | Iron ore and pelletizing |  | 100.0 | % | 100.0 | % | 0.0 | %
Vale Oman Pelletizing Company LLC |  | Oman |  | Pelletizing |  | 70.0 | % | 70.0 | % | 30.0 | %
Vale Shipping Holding Pte. Ltd. |  | Singapore |  | Iron ore |  | 100.0 | % | 100.0 | % | 0.0 | %
On April 30, 2020 the incorporation of the wholly owned subsidiary Ferrous Resources do Brasil S.A. was approved at the General Shareholders' Meeting. e) Noncontrolling interest Summarized financial information The summarized financial information, prior to the eliminations of the intercompany balances and transactions, about subsidiaries with material noncontrolling interest are as follow. The stand-alone financial statements of those entities may differ from the financial information reported herein, which is prepared considering Vale’s accounting policies.
|  | December 31, 2020
|  |  |  |  |  | Vale |  |  |  |
|  | PTVI |  | VNC |  | Moçambique S.A. |  | Others |  | Total
Current assets |  | 595 |  | 2 |  | 352 |  | — |  |
Non-current assets |  | 1,881 |  | — |  | 168 |  | — |  |
Related parties-Stockholders |  | 61 |  | 49 |  | 29 |  | — |  |
Total assets |  | 2,537 |  | 51 |  | 549 |  | — |  |
Current liabilities |  | 162 |  | — |  | 341 |  | — |  |
Non-current liabilities |  | 53 |  | — |  | 98 |  | — |  |
Related parties-Stockholders |  | — |  | 281 |  | 12,185 |  | — |  |
Total liabilities |  | 215 |  | 281 |  | 12,624 |  | — |  |
Stockholders' equity |  | 2,322 |  | (230) |  | (12,075) |  | — |  |
Equity attributable to noncontrolling interests |  | 1,292 |  | (12) |  | (2,330) |  | 127 |  | (923)
Net income (loss) |  | 84 |  | (669) |  | (1,804) |  | — |  |
Net income (loss) attributable to noncontrolling interests |  | 35 |  | (33) |  | (348) |  | (3) |  | (350)
Dividends paid to noncontrolling interests (i) |  | — |  | — |  | — |  | 14 |  | 14
(i) Dividends paid to others noncontrolling interests relates to Vale Oman Pelletizing
|  | December 31, 2019
|  |  |  |  |  | Vale |  |  |  |
|  | PTVI |  | VNC |  | Moçambique S.A. |  | Others |  | Total
Current assets |  | 462 |  | 169 |  | 188 |  |  |  |
Non-current assets |  | 1,630 |  | 604 |  | 199 |  |  |  |
Related parties-Stockholders |  | 84 |  | 34 |  | 29 |  |  |  |
Total assets |  | 2,176 |  | 807 |  | 416 |  |  |  |
Current liabilities |  | 140 |  | 199 |  | 320 |  |  |  |
Non-current liabilities |  | 61 |  | 236 |  | 147 |  |  |  |
Related parties-Stockholders |  | — |  | 344 |  | 10,221 |  |  |  |
Total liabilities |  | 201 |  | 779 |  | 10,688 |  |  |  |
Stockholders' equity |  | 1,975 |  | 28 |  | (10,272) |  |  |  |
Equity attributable to noncontrolling interests |  | 806 |  | 1 |  | (1,982) |  | 101 |  | (1,074)
Net income (loss) |  | 67 |  | (2,055) |  | (3,183) |  |  |  |
Net income (loss) attributable to noncontrolling interests |  | 27 |  | (103) |  | (613) |  | 192 |  | (497)
Dividends paid to noncontrolling interests (i) |  | — |  | — |  | — |  | 184 |  | 184
(i) Dividends paid to noncontrolling interests relates to US$162 to Minerações Brasileiras Reunidas and US$21 to Vale Oman Pelletizing.
|  | December 31, 2018
|  |  |  |  |  |  |  | Vale |  |  |  |
|  | MBR |  | PTVI |  | VNC |  | Moçambique S.A. |  | Others |  | Total
Net income (loss) |  | 434 |  | 58 |  | 351 |  | (985) |  |  |  |
Net income (loss) attributable to noncontrolling interests |  | 174 |  | 24 |  | 18 |  | (190) |  | 10 |  | 36
Dividends paid to noncontrolling interests (i) |  | 168 |  | — |  | — |  | — |  | 14 |  | 182
(i) Dividends paid to others noncontrolling interests relates to Vale Oman Pelletizing Accounting policy Consolidation and investments in associates and joint ventures-The financial statements reflect the assets, liabilities and transactions of the Parent Company and its direct and indirect controlled entities (“subsidiaries”). The subsidiaries are consolidated when the Company is exposed or has rights to variable returns from its involvement with the investee and has the ability to direct the significant activities of the investee. Intercompany balances and transactions, which include unrealized profits, are eliminated. Joint arrangements are all entities over which the Company has shared control with one or more parties. Joint arrangement investments are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The joint operations are recorded in the financial statements to represent the Company's contractual rights and obligations. Interests in joint ventures are accounted for using the equity method, after initially being recognized at cost. The Company investment in joint ventures includes the goodwill identified in the acquisition, net of any impairment loss. The Company interest in the profits or losses of its joint ventures is recognized in the income statement and participation in the changes in reserves is recognized in the Company's reserves. When the Company's interest in the losses of an associate or joint venture is equal to or greater than the carrying amount of the investment, including any other receivables, the Company does not recognize additional losses, unless it has incurred obligations or made payments on behalf of the joint venture. Unrealized gains on downstream or upstream transactions between the Company and its associates and joint ventures are eliminated proportionately to the Company’s interest. Investments held by other investors in Vale’s subsidiaries are classified as noncontrolling interests (“NCI”). The Company treats transactions with noncontrolling interests as transactions with equity owners of the Company. For purchases or disposals from noncontrolling interests, the difference between the consideration paid and the proportion acquired of the carrying value of net assets of the subsidiary is directly recorded in stockholders’ equity in “Acquisitions and disposal of noncontrolling interest”. Translation from the functional currency to the presentation currency-The income statement and statement of financial position of the subsidiaries for which the functional currency is different from the presentation currency are translated into the presentation currency as follows: (i) assets, liabilities and stockholders’ equity, except for the components described in item (iii) are translated at the closing rate at the statement of financial position date; (ii) income and expenses are translated at the average exchange rates, except for specific significant transactions that, are translated at the rate at the transaction date and; (iii) capital, capital reserves and treasury stock are translated at the rate at each transaction date. All resulting exchange differences are recognized directly in the comprehensive income as “translation adjustments”. When a foreign operation is disposed of or sold, foreign exchanges differences that were recognized in equity are recognized in the income of statement. Critical accounting estimates and judgments Judgment is required in some circumstances to determine whether after considering all relevant factors, the Company has either control, joint control or significant influence over an entity. Significant influence includes situations of collective control. The Company holds the majority of the voting capital in five joint arrangements (Aliança Geração de Energia S.A., Aliança Norte Energia Participações S.A., Companhia Hispano-Brasileira de Pelotização, Companhia Ítalo-Brasileira de Pelotização and Companhia Nipo-Brasileira de Pelotização), but management have concluded that the Company does not have a sufficiently dominant voting interest to have the power to direct the activities of these entities. As a result, these entities are accounted under equity method due to shareholder’s agreements where relevant decisions are shared with other parties.

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