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Financial and capital risk management (Tables)

12 Months Ended

Dec. 31, 2020

Ifrs Statement [Line Items]

Schedule for risks, origination and management

Risks		Origin of the exhibition		Management
Market Risk-Exchange Rate		Contracts for the sale of ore and financial instruments that are not denominated in US$		Swap and forward operations
Market risk-Interest rate		Loans and financing indexed to LIBOR		Swap operations
Market risk-Product and input prices		Volatility of commodity and input prices		Option contracts
Credit Risk		Receivables, derivative transactions, guarantees, advances to suppliers and financial investments		Portfolio diversification and policies for monitoring counterparty solvency and liquidity indicators
Liquidity risk		Contractual or assumed obligations		Availability of revolving credit lines

Schedule of protection program

														Financial
														settlement
														Inflows				Fair value
		Notional								Fair value				(Outflows)		Value at Risk		by year
Flow		December 31, 2020		December 31, 2019		Bought / Sold		Average strike (US$/bbl)		December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2020		2021 +
Brent crude oil (bbl)
Call options		13,746,945		7,048,500		B		55		92		11		—		11		92
Put options		13,746,945		7,048,500		S		28		(12)		(3)		(68)		1		(12)
Gasoil (bbl)
Call options		—		7,710,750		C		—		—		7		—		—		—
Put options		—		7,710,750		V		—		—		(3)		(137)		—		—
Forward Freight Agreement (days)
Freight forwards (days)		1,625		1,050		C		11,893		4		—		(2)		1		4

Schedule of derivatives effects on statement of financial position

		Assets
		December 31, 2020				December 31, 2019
		Current		Non-current		Current		Non-current
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap		—		—		13		—
IPCA swap		7		38		82		117
Eurobonds swap		—		3		—		—
Pre-dollar swap		—		9		21		8
Forward transactions		—		—		1		—
		7		50		117		125
Commodities price risk
Base metals products		30		—		151		9
Gasoil, Brent and freight		97		—		20		—
		127		—		171		9
Others		—		16		—		50
		—		16		—		50
Total		134		66		288		184

		Liabilities
		December 31, 2020				December 31, 2019
		Current		Non-current		Current		Non-current
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap		111		525		48		80
IPCA swap		72		100		13		37
Eurobonds swap		4		—		6		29
Pre-dollar swap		62		58		8		37
Libor swap		1		6		—		—
Forward transactions		1		—		—		—
		251		689		75		183
Commodities price risk
Base metals products		46		—		4		4
Gasoil, Brent and freight		13		—		8		—
		59		—		12		4
Others		18		—		7		120
		18		—		7		120
Total		328		689		94		307

		December 31, 2020		December 31, 2019
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap		(636)		(115)
IPCA swap		(127)		149
Eurobonds swap		(1)		(35)
Pre-dollar swap		(111)		(16)
Libor swap		(7)		—
Forward transactions		(1)		1
		(883)		(16)
Commodities price risk
Base metals products		(16)		152
Gasoil, Brent and freight		84		12
		68		164
Others		(2)		(77)
		(2)		(77)
Total		(817)		71

Schedule of effects of derivatives on income statement and cash flow

		Gain (loss) recognized in the income statement
		Year ended December 31,
		2020		2019		2018
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap		(746)		(39)		(206)
IPCA swap		(262)		118		(23)
Eurobonds swap		28		(39)		(27)
Pre-dollar swap		(160)		2		(23)
Libor swap		(7)		—		—
		(1,147)		42		(279)
Commodities price risk
Base metals products		10		58		(25)
Gasoil, Brent and freight		(134)		42		6
		(124)		100		(19)
Others		61		102		32
		61		102		32
Total		(1,210)		244		(266)

		Financial settlement inflows (outflows)
		Year ended December 31,
		2020		2019		2018
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap		(141)		(381)		(135)
IPCA swap		—		(28)		7
Eurobonds swap		(6)		(5)		(3)
Pre-dollar swap		(49)		8		10
		(196)		(406)		(121)
Commodities price risk
Base metals products		8		48		8
Gasoil, Brent and freight		(206)		2		49
		(198)		50		57
		68		21		(3)
Others
Derivatives designated as cash flow hedge accounting
Nickel		292		11		—
		292		11		—
Total		(34)		(324)		(67)

Schedule of effects of derivatives on other comprehensive income

		Gain(loss) recognized in the other comprehensive income
		Year ended December 31,
		2020		2019		2018
Net investments hedge		(2,786)		(392)		(543)
Cash flow hedge (Nickel and Palladium)		(104)		150		—

Schedule of sensitivity analysis of derivative financial instruments

Instrument		Instrument’s main risk events		Probable		Scenario I		Scenario II
CDI vs. US$ fixed rate swap		R$ depreciation		(473)		(1,048)		(1,623)
		US$ interest rate inside Brazil decrease		(473)		(494)		(517)
		Brazilian interest rate increase		(473)		(496)		(522)
Protected item: R$ denominated liabilities		R$ depreciation		n.a.		—		—
TJLP vs. US$ fixed rate swap		R$ depreciation		(163)		(285)		(408)
		US$ interest rate inside Brazil decrease		(163)		(165)		(168)
		Brazilian interest rate increase		(163)		(173)		(182)
		TJLP interest rate decrease		(163)		(172)		(181)
Protected item: R$ denominated debt		R$ depreciation		n.a.		—		—
R$ fixed rate vs. US$ fixed rate swap		R$ depreciation		(111)		(264)		(418)
		US$ interest rate inside Brazil decrease		(111)		(113)		(115)
		Brazilian interest rate increase		(111)		(120)		(129)
Protected item: R$ denominated debt		R$ depreciation		n.a.		—		—
IPCA vs. US$ fixed rate swap		R$ depreciation		(173)		(343)		(512)
		US$ interest rate inside Brazil decrease		(173)		(178)		(183)
		Brazilian interest rate increase		(173)		(189)		(204)
		IPCA index decrease		(173)		(184)		(195)
Protected item: R$ denominated debt		R$ depreciation		n.a.		—		—
IPCA vs. CDI swap		Brazilian interest rate increase		45		43		41
		IPCA index decrease		45		43		40
Protected item: R$ denominated debt linked to IPCA		IPCA index decrease		n.a.		(43)		(40)
EUR fixed rate vs. US$ fixed rate swap		EUR depreciation		(1)		(173)		(346)
		Euribor increase		(1)		(2)		(3)
		US$ Libor decrease		(1)		(2)		(2)
Protected item: EUR denominated debt		EUR depreciation		n.a.		173		346
US$ floating rate vs. US$ fixed rate swap		US$ Libor decrease		(7)		(10)		(13)
Protected item: Libor US$ indexed debt		US$ Libor decrease		n.a.		10		13
NDF BRL/USD		R$ depreciation		(1)		(39)		(77)
		US$ interest rate inside Brazil decrease		(1)		(2)		(3)
		Brazilian interest rate increase		(1)		(7)		(13)
Protected item: R$ denominated liabilities		R$ depreciation		n.a.		—		—
Fuel oil protection
Options		Price input decrease		80		25		(28)
Protected item: Part of costs linked to fuel oil prices		Price input decrease		n.a.		(25)		28
Forward Freight Agreement
Forwards		Freight price decrease		4		(2)		(7)
Protected item: Part of costs linked to maritime freight prices		Freight price decrease		n.a.		2		7
Nickel sales fixed price protection
Forwards		Nickel price decrease		(19)		(19)		(19)
Protected item: Part of nickel revenues with fixed prices		Nickel price decrease		n.a.		19		19
Palladium Revenue Hedging Program
Options		Palladium price increase		(1)		(5)		(9)
Protected item: Part of palladium future revenues		Palladium price increase		n.a.		5		9
Option-SPCs		SPCs stock value decrease		18		10		2

Instrument		Main risks		Probable		Scenario I		Scenario II
Embedded derivatives-Raw material purchase (nickel)		Nickel price increase		2		(5)		(13)
Embedded derivatives-Raw material purchase (copper)		Copper price increase		—		(1)		(3)
Embedded derivatives-Gas purchase		Pellet price increase		—		—		(1)
Embedded derivatives-Guaranteed minimum return		Stock value decrease		(19)		(84)		(270)

Schedule of carrying amount of the financial assets that represent the exposure to credit risk

		December 31, 2020		December 31, 2019
Cash and cash equivalents		13,487		7,350
Short-term investments		771		826
Restricted cash		38		151
Judicial deposits (note 26)		1,268		3,133
Derivative financial instruments (note 19)		200		472
Investments in equity securities		757		726
Related parties-Loans (note 29)		1,118		1,919
Total		17,639		14,577

Summary of ratings published by Moody's regarding the main financial institutions

		December 31, 2020				December 31, 2019
		Cash and cash				Cash and cash
		equivalents				equivalents
		and				and
		investment		Derivatives		investment		Derivatives
Aa1		2,210		36		31		—
Aa2		363		15		1		11
Aa3		1,681		41		202		46
A1		2,812		21		1,468		—
A2		4		20		2,740		138
A3		5		36		109		105
Baa1		4		—		5		—
Baa2		1		—		47		—
Baa3		—		—		1		117
Ba1		2,986		—		—		—
Ba2		4,189		6		835		—
Ba3		—		—		2,735		—
Others		3		25		2		55
		14,258		200		8,176		472

Eurobonds with derivative offset

Ifrs Statement [Line Items]

Schedule of protection program

																Financial
																Settlement
																Inflows
		Notional										Fair value				(Outflows)		Value at Risk		Fair value by year
		December 31,			December 31,					Average		December 31,		December 31,		December 31,		December 31,
Flow		2020			2019			Index		rate		2020		2019		2020		2020		2021		2022		2023+
CDI vs. US$ fixed rate swap												(473)		(38)		(129)		42		(60)		(96)		(317)
Receivable		R$	9,445		R$	2,115		CDI		100.09	%
Payable		US$	2.213		US$	558		Fix		2.09	%
TJLP vs. US$ fixed rate swap												(163)		(77)		(44)		9		(50)		(42)		(71)
Receivable		R$	1,651		R$	2,111		TJLP +		1.14	%
Payable		US$	460		US$	601		Fix		3.05	%
R$ fixed rate vs. US$ fixed rate swap												(111)		(18)		(48)		11		(63)		(51)		3
Receivable		R$	2,512		R$	2,173		Fix		5.43	%
Payable		US$	621		US$	604		Fix		0.31	%
IPCA vs. US$ fixed rate swap												(173)		46		(12)		13		(73)		(8)		(92)
Receivable		R$	2,363		R$	2,826		IPCA +		5.10	%
Payable		US$	622		US$	759		Fix		4.02	%
IPCA vs. CDI swap												45		104		44		1		7		38		—
Receivable		R$	694		R$	1,634		IPCA +		6.63	%
Payable		R$	550		R$	1,350		CDI		98.76	%
EUR fixed rate vs. US$ fixed rate swap												(1)		(35)		(6)		5		(4)		(3)		6
Receivable		€	500		€	500		Fix		3.75	%
Payable		US$	613		US$	613		Fix		4.29	%
Forward		R$	916		R$	121		B		5.96		(1)		—		—		3		(1)		—		—

Libor floating interest rate US$ denominated debt

Ifrs Statement [Line Items]

Schedule of protection program

																Financial
																Settlement
																Inflows
		Notional										Fair value				(Outflows)		Value at Risk		Fair value by year
		December 31,			December 31,					Average		December 31,		December 31,		December 31,		December 31,
Flow		2020			2019			Index		rate		2020		2019		2020		2020		2021		2022		2023+
Libor vs. US$ fixed rate swap												(7)		—		—		1		(1)		(1)		(4)
Receivable		US$	950			—		Libor		0.13	%
Payable		US$	950			—		Fix		0.48	%

Protection programs for base metals raw materials and products - Nickel revenue hedging program

Ifrs Statement [Line Items]

Schedule of protection program

														Financial
														settlement
														Inflows				Fair value
		Notional (ton)						Average		Fair value				(Outflows)		Value at Risk		by year
		December 31,		December 31,		Bought/		strike		December 31,		December 31,		December 31,		December 31,
Flow		2020		2019		Sold		(US$/ton)		2020		2019		2020		2020		2021
Nickel Revenue Hedging Program (i)
Call options		58,620		75,984		S		17,664		(46)		(12)		—		10		(46)
Put options		58,620		75,984		B		15,000		28		162		292		6		28
Total										(18)		150		292		16		(18)

Protection programs for base metals raw materials and products - Palladium revenue hedging program

Ifrs Statement [Line Items]

Schedule of protection program

														Financial
														settlement				Fair
														Inflows		Value at		value
		Notional (t oz)								Fair value				(Outflows)		Risk		by year
		December 31,		December 31,		Bought /		Average strike		December 31,		December 31,		December 31,		December 31,
Flow		2020		2019		Sold		(US$/t oz)		2020		2019		2020		2020		2021
Palladium Revenue Hedging Program
Palladium Forwards		—		—		S		—		—		—		3		—		—
Call Options		7,200		—		S		2,347		(1)		—		—		—		(1)
Put Options		7,200		—		B		2,050		—		—		—		—		—
Total										(1)		—		—		—		(1)

Embedded derivatives in contracts

Ifrs Statement [Line Items]

Schedule of protection program

														Financial
														settlement
														Inflows
		Notional								Fair value				(Outflows)		Value at Risk		Fair value
		December 31,		December 31,		Bought/		Average		December 31,		December 31,		December 31,		December 31,
Flow		2020		2019		Sold		strike		2020		2019		2020		2020		2021+
Warrants da Wheaton Precious Metals Corp.  (quantity of warranties)
Call options		—		10,000,000		B		—		—		26		25		—		—
Stock options associated with convertible debentures (quantity)
Conversion options		—		140,239		S		8,346		—		(51)		235		—		—
Option related to a Special Purpose Entity “SPE” (quantity)
Call option		137,751,623		137,751,623		B		2.92		18		24		—		2		18
Embedded derivatives in contracts for the sale of part of its shareholding (quantity)
Put option		1,105,070,863		1,105,070,863		S		4.23		(19)		(69)		—		4		(19)
Embedded Derivative in natural gas purchase agreement (volume/month)
Call options		746,667		746,667		S		233		—		(1)		—		—		—
Embedded in raw material purchase contract (ton)
Nickel forwards		1,979		1,497		S		15,831		2		2		—		1		2
Copper forwards		976		1,009		S		7,121		—		—		—		—		—

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