XML 45 R33.htm IDEA: XBRL DOCUMENT

Related parties

6 Months Ended

Jun. 30, 2021

26.	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.

In June 2021, the Company concluded the transaction for the acquisition of the interests held by Mitsui (related party) in Vale Moçambique and Nacala Logistics Corridor (note 12).

a) Transactions with related parties


	Three-month period ended June 30,
	2021				2020
	Joint				Joint
	Ventures	Associates	Stockholders	Total	Ventures	Associates	Stockholders	Total
Net operating revenue	180	67	61	308	68	57	55	180
Cost and operating expenses	(152)	(4)	—	(156)	(261)	(5)	—	(266)
Financial result	(21)	(1)	141	119	8	2	(13)	(3)


	Six-month period ended June 30,
	2021				2020
	Joint				Joint
	Ventures	Associates	Stockholders	Total	Ventures	Associates	Stockholders	Total
Net operating revenue	341	127	114	582	137	118	87	342
Cost and operating expenses	(329)	(9)	—	(338)	(528)	(11)	—	(539)
Financial result	(8)	(1)	(380)	(389)	29	4	(36)	(3)

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 Logistics Corridor, which has been consolidated since June 2021 as described in note 12.

b) Outstanding balances with related parties


	June 30, 2021				December 31, 2020
	Joint				Joint
	Ventures	Associates	Stockholders	Total	Ventures	Associates	Stockholders	Total
Assets
Cash and cash equivalents (i)	—	—	1,352	1,352	—	—	2,082	2,082
Accounts receivable	175	28	2	205	109	45	2	156
Dividends receivable	26	—	—	26	19	—	—	19
Loans (ii)	—	—	—	—	1,118	—	—	1,118
Derivatives financial instruments (i)	—	—	112	112	—	—	2	2
Other assets	38	3	—	41	68	2	—	70

Liabilities	—	—	—	—
Supplier and contractors	157	4	23	184	121	10	35	166
Loans (ii)	—	—	—	—	—	1,385	944	2,329
Derivatives financial instruments (i)	—	—	283	283	—	—	242	242
Other liabilities	188	120	—	308	235	48	—	283

(i) Refers to regular financial instruments with large financial institutions that are deemed related parties

(ii) Refers to loans settled upon completion of the acquisition of NLC (note 12).