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Costs and expenses by nature | 6 Months Ended
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Jun. 30, 2021
Costs and expenses by nature |
Costs and expenses by nature |
5. | Costs and expenses by nature
a) Cost of goods sold and services rendered ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three -month period ended June 30, | ​ | Six -month period ended June 30,
​ |  | 2021 |  | 2020 |  | 2021 |  | 2020
Personnel | ​ | 444 | ​ | 362 | ​ | 834 | ​ | 775
Materials and services | ​ | 819 | ​ | 748 | ​ | 1,521 | ​ | 1,553
Fuel oil and gas | ​ | 267 | ​ | 206 | ​ | 475 | ​ | 485
Maintenance | ​ | 800 | ​ | 616 | ​ | 1,449 | ​ | 1,286
Royalties | ​ | 353 | ​ | 168 | ​ | 604 | ​ | 332
Energy | ​ | 169 | ​ | 147 | ​ | 318 | ​ | 336
Ores acquired from third parties (i) | ​ | 691 | ​ | 199 | ​ | 1,034 | ​ | 261
Depreciation,depletion and amortization | ​ | 800 | ​ | 734 | ​ | 1,488 | ​ | 1,463
Freight (ii) | ​ | 991 | ​ | 691 | ​ | 1,773 | ​ | 1,387
Others | ​ | 471 | ​ | 341 | ​ | 936 | ​ | 612
Total | ​ | 5,805 | ​ | 4,212 | ​ | 10,432 | ​ | 8,490
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cost of goods sold | ​ | 5,663 | ​ | 4,086 | ​ | 10,156 | ​ | 8,203
Cost of services rendered | ​ | 142 | ​ | 126 | ​ | 276 | ​ | 287
Total | ​ | 5,805 | ​ | 4,212 | ​ | 10,432 | ​ | 8,490
(i) | The increase in “Ores acquired from third parties” is mainly due to the significant increase in the reference price of iron ore compared to 2020.
(ii) | The increase in "Freight" is mainly due to the significant increase in volumes of CFR sales and higher international freight prices.
​ 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 at 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 Brazilian 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 did not apply this increase in the current period and does not expect any impact for the year ending December 31, 2021. The Company is also evaluating other legal aspects to avoid the overcharge in the future. ​ b) Selling and administrative expenses ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three-month period ended June 30, | ​ | Six-month period ended June 30,
​ |  | 2021 |  | 2020 |  | 2021 |  | 2020
Selling | ​ | 25 | ​ | 20 | ​ | 43 | ​ | 37
Personnel | ​ | 52 | ​ | 40 | ​ | 99 | ​ | 87
Services | ​ | 22 | ​ | 33 | ​ | 39 | ​ | 51
Depreciation and amortization | ​ | 10 | ​ | 14 | ​ | 19 | ​ | 31
Others | ​ | 24 | ​ | 17 | ​ | 38 | ​ | 33
Total | ​ | 133 | ​ | 124 | ​ | 238 | ​ | 239
​ c) Other operating expenses (income), net ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three-month period ended June 30, | ​ | Six-month period ended June 30,
​ |  | 2021 |  | 2020 |  | 2021 |  | 2020
Provision for litigations | ​ | 28 | ​ | 44 | ​ | 44 | ​ | 63
Profit sharing program | ​ | 52 | ​ | 13 | ​ | 75 | ​ | 45
COVID-19 expenses | ​ | 16 | ​ | 85 | ​ | 18 | ​ | 85
Others (i) | ​ | (22) | ​ | 95 | ​ | (51) | ​ | 106
Total | ​ | 74 | ​ | 237 | ​ | 86 | ​ | 299
(i) | Includes the gain related to the exclusion of ICMS from the PIS and COFINS computation tax base, as detailed in note 23(e).

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