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Employee benefits (Tables)

12 Months Ended

Dec. 31, 2021

Employee benefits

Schedule of changes in benefit obligation


		Overfunded pension plans		Underfunded pension plans		Other benefits
Benefit obligation as at December 31, 2019		4,006		4,421		1,505
Service costs		7		53		18
Interest costs		222		134		64
Benefits paid		(368)		(248)		(53)
Effect of changes in the actuarial assumptions		118		271		243
Translation adjustment		(880)		1		(44)
Benefit obligation as at December 31, 2020		3,105		4,632		1,733
Service costs		10		68		1
Interest costs		196		122		33
Benefits paid		(235)		(257)		(56)
Participant contributions		—		(31)		—
Effect of changes in the actuarial assumptions		(330)		(246)		(261)
Translation adjustment		(208)		(10)		(23)
Transfer		295		(295)		—
Benefit obligation as at December 31, 2021		2,833		3,983		1,427

Schedule of evolution of assets fair value


		Overfunded pension plans		Underfunded pension plans		Other benefits
Fair value of plan assets as at December 31, 2019		5,304		3,726		—
Interest income		298		109		—
Employer contributions		(39)		54		53
Benefits paid		(368)		(248)		(53)
Return on plan assets (excluding interest income)		(114)		305		—
Translation adjustment		(1,112)		46		—
Fair value of plan assets as at December 31, 2020		3,969		3,992		—
Interest income		253		102		—
Employer contributions		29		40		56
Benefits paid		(235)		(257)		(56)
Return on plan assets (excluding interest income)		(269)		181		—
Translation adjustment		(276)		2		—
Transfer		281		(281)		—
Fair value of plan assets as at December 31, 2021		3,752		3,779		—

Summary of reconciliation of net liabilities recognized in the statement of financial position


		Plans in Brazil
		December 31, 2021						December 31, 2020
		Overfunded		Underfunded		Other		Overfunded		Underfunded		Other
		pension plans		pension plans		benefits		pension plans		pension plans		benefits
Balance at beginning of the year		864		—		—		1,298		—		—
Interest income		58		—		—		74		—		—
Changes on asset ceiling		16		—		—		(278)		—		—
Translation adjustment		(62)		—		—		(230)		—		—
Balance at end of the year		876		—		—		864		—		—

Amount recognized in the statement of financial position
Present value of actuarial liabilities		(2,572)		(237)		(301)		(3,105)		(317)		(465)
Fair value of assets		3,448		94		—		3,969		109		—
Effect of the asset ceiling		(876)		—		—		(864)		—		—
Liabilities		—		(143)		(301)		—		(208)		(465)

Current liabilities		—		(40)		(5)		—		(32)		(49)
Non-current liabilities		—		(103)		(296)		—		(176)		(416)
Liabilities		—		(143)		(301)		—		(208)		(465)


		Foreign plan
		December 31, 2021						December 31, 2020
		Overfunded
		pension		Underfunded				Underfunded
		plans		pension plans		Other benefits		pension plans		Other benefits
Movements of assets ceiling
Changes on asset ceiling and onerous liability		44		—		—		—		—
Balance at December 31,		44		—		—		—		—

Amount recognized in the statement of financial position
Present value of actuarial liabilities		(261)		(3,746)		(1,127)		(4,315)		(1,268)
Fair value of assets		305		3,685		—		3,883		—
Effect of the asset ceiling		(44)		—		—		—		—
Liabilities		—		(61)		(1,127)		(432)		(1,268)

Current liabilities		—		(7)		(47)		(7)		(47)
Non-current liabilities		—		(54)		(1,080)		(425)		(1,221)
Liabilities		—		(61)		(1,127)		(432)		(1,268)


		Total
		December 31, 2021						December 31, 2020
		Overfunded		Underfunded		Other		Overfunded		Underfunded		Other
		pension plans		pension plans		benefits		pension plans		pension plans		benefits
Balance at beginning of the year		864		—		—		1,298		—		—
Interest income		58		—		—		74		—		—
Changes on asset ceiling		60		—		—		(278)		—		—
Translation adjustment		(63)		—		—		(230)		—		—
Balance at end of the year		919		—		—		864		—		—

Amount recognized in the statement of financial position
Present value of actuarial liabilities		(2,833)		(3,983)		(1,428)		(3,105)		(4,632)		(1,733)
Fair value of assets		3,752		3,779		—		3,969		3,991		—
Effect of the asset ceiling		(919)		—		—		(864)		—		—
Liabilities		—		(204)		(1,428)		—		(641)		(1,733)

Current liabilities		—		(47)		(52)		—		(47)		(96)
Non-current liabilities		—		(157)		(1,376)		—		(594)		(1,637)
Liabilities		—		(204)		(1,428)		—		(641)		(1,733)

Summary of assumptions used in the Monte Carlo simulation to estimate the fair value of the TSR indicator


PSU		2021
Granted shares		1,474,723
Date shares were granted		04/30/2021
VALE (BRL)		109.02
VALE ON (USD)		20.12
Expected volatility		39.00%p.y.
Expected dividend yield		3.18%p.y.
Expected term (in years)		3
Expected shareholder return indicator		51.20	%
Expected performance factor		60.96	%

Summary of costs recognized in the income statement


		Year ended December 31,
		2021						2020						2019
		Overfunded		Underfunded				Overfunded		Underfunded				Overfunded		Underfunded
		pension		pension		Other		pension		pension		Other		pension		pension		Other
		plans		plans		benefits		plans		plans		benefits		plans		plans		benefits
Service cost		10		68		1		7		52		18		7		55		10
Interest expense		196		122		33		222		134		64		317		153		57
Interest income		(253)		(102)		—		(297)		(107)		—		(432)		(123)		—
Interest expense on effect of (asset ceiling)/ onerous liability		58		—		—		74		—		—		114		—		—
Total of cost, net		11		88		34		6		79		82		6		85		67

Summary of costs recognized in the statement of comprehensive income


		Year ended December 31,
		2021						2020						2019
		Overfunded		Underfunded				Overfunded		Underfunded				Overfunded		Underfunded
		pension		pension		Other		pension		pension		Other		pension		pension		Other
		plans		plans		benefits		plans		plans		benefits		plans		plans		benefits
Balance at beginning of the year		(101)		(400)		(363)		(173)		(459)		(238)		(166)		(468)		(128)
Effect of changes actuarial assumptions		330		246		261		(118)		(271)		(243)		(718)		(373)		(182)
Return on plan assets (excluding interest income)		(269)		181		—		(114)		305		—		757		385		—
Change of asset ceiling		(60)		—		—		278		—		—		(60)		—		—
Others		(5)		3		(4)		—		9		11		—		—		—
		(4)		430		257		46		43		(232)		(21)		12		(182)
Deferred income tax		5		(130)		(83)		(15)		(12)		82		7		(5)		63
Others comprehensive income		1		300		174		31		31		(150)		(14)		7		(119)
Translation adjustments		7		8		17		41		28		25		7		2		9
Accumulated other comprehensive income		(93)		(92)		(172)		(101)		(400)		(363)		(173)		(459)		(238)

Schedule of actuarial and economic assumptions and sensitivity analysis


		Brazil
		December 31, 2021						December 31, 2020
		Overfunded		Underfunded				Overfunded		Underfunded
		pension plans		pension plans		Other benefits		pension plans		pension plans		Other benefits
Discount rate to determine benefit obligation		8.62% - 8.82	%	10.25	%	8.68% - 8.86	%	6.62% - 7.32	%	6.50	%	6.16% - 7.17%
Nominal average rate to determine expense/ income		8.62% - 8.82	%	10.25	%	N/A		6.62% - 7.32	%	6.50	%	N/A
Nominal average rate of salary increase		3.25% - 5.32	%	7.50	%	N/A		3.80	%	6.00	%	N/A
Nominal average rate of benefit increase		3.25	%	7.50	%	N/A		3.80	%	6.00	%	N/A
Immediate health care cost trend rate		N/A		N/A		6.35	%	N/A		N/A		6.35% - 6.91%
Ultimate health care cost trend rate		N/A		N/A		6.35	%	N/A		N/A		6.35% - 6.91%
Nominal average rate of price inflation		3.25	%	5.00	%	3.25	%	3.31% - 3.80	%	3.50	%	3.25% - 3.80%


		Foreign
		December 31, 2021				December 31, 2020
		Underfunded				Underfunded
		pension plans		Other benefits		pension plans		Other benefits
Discount rate to determine benefit obligation		2.84	%	3.03	%	2.43	%	2.62	%
Nominal average rate to determine expense/ income		2.62	%	2.62	%	3.04	%	3.04	%
Nominal average rate of salary increase		3.28	%	N/A		3.21	%	N/A
Nominal average rate of benefit increase		3.00	%	N/A		3.00	%	N/A
Immediate health care cost trend rate		N/A		5.11	%	N/A		5.35	%
Ultimate health care cost trend rate		N/A		4.57	%	N/A		4.56	%
Nominal average rate of price inflation		2.10	%	N/A		2.08	%	N/A


		Brazil
		December 31, 2021
		Overfunded pension plans		Underfunded pension plans		Other benefits
Nominal discount rate - 1% increase
Actuarial liability adjusted for the sensitivity test		2,434		276		386
Assumptions made		9.72	%	7.50	%	9.68	%
Nominal discount rate - 1% reduction
Actuarial liability adjusted for the sensitivity test		2,723		317		299
Assumptions made		7.72	%	5.50	%	7.68	%


		Foreign
		December 31, 2021
		Overfunded pension plans		Underfunded pension plans		Other benefits
Nominal discount rate - 1% increase
Actuarial liability adjusted for the sensitivity test		221		3,291		971
Assumptions made		2.85	%	3.84	%	4.03	%

Nominal discount rate - 1% reduction
Actuarial liability adjusted for the sensitivity test		324		4,260		1,313
Assumptions made		0.85	%	1.84	%	2.03	%

Schedule of expected benefit payments


		December 31, 2021
		Overfunded pension plans		Underfunded pension plans		Other benefits
2022		230		229		69
2023		232		228		70
2024		235		227		72
2025		237		226		70
2026		237		223		72
2027 and thereafter		1,196		1,085		388

Summary of assumptions used for the Monte Carlo simulation


PSU		2021
Granted shares		1,474,723
Date shares were granted		04/30/2021
VALE (BRL)		109.02
VALE ON (USD)		20.12
Expected volatility		39.00%p.y.
Expected dividend yield		3.18%p.y.
Expected term (in years)		3
Expected shareholder return indicator		51.20	%
Expected performance factor		60.96	%

Summary of reclassification from cash-settled to equity-settled


Matching		April 30, 2021		Remeasurement		Reclassification		May 1, 2021		Expense		December 31, 2021
Liability		33		5		(38)		—		—		—
Stockholders' equity		—		—		38		38		19		57
Net income		—		(5)		—		(5)		(19)		(24)


PSU		April 30, 2021		Remeasurement		Reclassification		May 1, 2021		Expense		December 31, 2021
Liability		3		(1)		(2)		—		—		—
Stockholders' equity		—		—		2		2		4		6
Net income		—		1		—		1		(4)		(3)

Overfunded pension plans

Employee benefits

Schedule of evolution of assets fair value


		December 31, 2021								December 31, 2020
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents		—		1		—		1		—		—		—		—
Debt securities - Corporate		1		74		—		75		—		42		—		42
Debt securities - Government		2,042		—		—		2,042		1,840		—		—		1,840
Investments funds - Fixed Income		1,910		175		—		2,085		2,242		—		—		2,242
Investments funds - Equity		452		—		—		452		396		—		—		396
International investments		91		—		—		91		32		—		—		32
Structured investments - Private Equity funds		—		129		103		232		—		—		126		126
Structured investments - Real estate funds		—		—		5		5		124		—		5		129
Real estate		—		—		212		212		—		—		255		255
Loans to participants		—		—		106		106		—		—		105		105
Total		4,496		379		426		5,301		4,633		42		491		5,166
Funds not related to risk plans (i)								(1,549)								(1,197)
Fair value of plan assets at end of year								3,752								3,969

(i) Financial investments not related to coverage of overfunded pension plans. Funds are related to the Company´s unconsolidated entities and former employees.

Schedule of measurement of plan assets at fair value with no observable market variables (Level 3)


		December 31, 2021
		Private equity funds		Real estate funds		Real estate		Loans to participants		Total
Balance as at December 31, 2019		157		17		323		140		637
Return on plan assets		18		(8)		9		19		38
Assets purchases		1		1		10		117		129
Assets sold during the year		(15)		—		(14)		(141)		(170)
Translation adjustment		(35)		(5)		(73)		(30)		(143)
Balance as at December 31, 2020		126		5		255		105		491
Return on plan assets		10		—		(15)		16		11
Assets purchases		—		—		4		67		71
Assets sold during the year		(25)		—		(14)		(74)		(113)
Translation adjustment		(8)		—		(18)		(8)		(34)
Balance as at December 31, 2021		103		5		212		106		426

Underfunded pension plans

Employee benefits

Schedule of evolution of assets fair value


		December 31, 2021								December 31, 2020
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents		5		70		—		75		—		102		—		102
Equity securities		1,708		3		—		1,711		1,565		—		—		1,565
Debt securities - Corporate		—		556		—		556		—		519		—		519
Debt securities - Government		133		683		—		816		132		690		—		822
Investments funds - Fixed Income		38		—		—		38		36		158		—		194
Investments funds - Equity		3		173		53		229		1		350		—		351
Structured investments - Private Equity funds		—		—		181		181		—		—		250		250
Real estate		—		—		3		3		—		—		5		5
Loans to participants		—		—		1		1		—		—		2		2
Others		—		—		168		168		—		—		179		179
Total		1,887		1,485		406		3,778		1,735		1,819		437		3,991

Schedule of measurement of plan assets at fair value with no observable market variables (Level 3)


		Private equity funds		Equity pool		Real estate		Loans to participants		Others		Total
Balance as at December 31, 2019		212		—		55		3		165		435
Return on plan assets		1		—		(1)		—		—		—
Assets purchases		20		—		—		—		—		20
Assets sold during the year		(33)		—		—		—		—		(33)
Translation adjustment		50		—		(49)		(1)		15		15
Balance as at December 31, 2020		250		—		5		2		180		437
Return on plan assets		11		14		—		—		(14)		11
Assets purchases		28		39		—		—		—		67
Assets sold during the year		(108)		—		(1)		—		—		(109)
Translation adjustment		—		—		(1)		(1)		2		—
Balance as at December 31, 2021		181		53		3		1		168		406