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Investments in subsidiaries, associates, and joint ventures | 12 Months Ended
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Dec. 31, 2022
Investments In Subsidiaries Associates And Joint Ventures |
Investments in subsidiaries, associates, and joint ventures |
| 15. | Investments in subsidiaries, associates, and joint ventures
Schedule of investments in associates and joint ventures, equity results and dividends received |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Investments in associates and joint ventures |  | Equity results in the income statement |  | Dividends received
|  |  |  |  |  | December 31, |  | Year ended December 31, |  | Year ended December 31,
Associates and joint ventures |  | % ownership |  | % voting capital |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
Iron Solutions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Baovale Mineração S.A. |  | 50.00 |  | 50.00 |  | 24 |  | 21 |  | 3 |  | 4 |  | 1 |  | - |  | 1 |  | -
Companhia Coreano-Brasileira de Pelotização |  | 50.00 |  | 50.00 |  | 80 |  | 51 |  | 37 |  | 46 |  | 8 |  | 17 |  | 33 |  | 34
Companhia Hispano-Brasileira de Pelotização |  | 50.89 |  | 50.00 |  | 48 |  | 38 |  | 18 |  | 1 |  | 11 |  | 6 |  | 7 |  | 27
Companhia Ítalo-Brasileira de Pelotização |  | 50.90 |  | 50.00 |  | 62 |  | 48 |  | 31 |  | 40 |  | 10 |  | 24 |  | 23 |  | 23
Companhia Nipo-Brasileira de Pelotização |  | 51.00 |  | 50.00 |  | 145 |  | 129 |  | 52 |  | 40 |  | 8 |  | 59 |  | 8 |  | 32
MRS Logística S.A. |  | 48.16 |  | 47.09 |  | 509 |  | 418 |  | 81 |  | 75 |  | 34 |  | 14 |  | 9 |  | 22
Samarco Mineração S.A. (note 25) |  | 50.00 |  | 50.00 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
VLI S.A. |  | 29.60 |  | 29.60 |  | 428 |  | 408 |  | (9) |  | (40) |  | (22) |  | - |  | - |  | 2
|  |  |  |  |  | 1,296 |  | 1,113 |  | 213 |  | 166 |  | 50 |  | 120 |  | 81 |  | 140
Energy Transition Materials |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Korea Nickel Corp. |  | 25.00 |  | 25.00 |  | - |  | 17 |  | 3 |  | 1 |  | - |  | - |  | - |  | -
|  |  |  |  |  | - |  | 17 |  | 3 |  | 1 |  | - |  | - |  | - |  | -
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aliança Geração de Energia S.A. |  | 55.00 |  | 55.00 |  | 340 |  | 367 |  | 31 |  | 53 |  | 28 |  | 34 |  | 25 |  | 24
Aliança Norte Energia Participações S.A. |  | 51.00 |  | 51.00 |  | 106 |  | 105 |  | (7) |  | (4) |  | (8) |  | - |  | - |  | -
California Steel Industries, Inc. |  | 50.00 |  | 50.00 |  | - |  | - |  | - |  | 228 |  | (7) |  | 65 |  | 84 |  | -
Companhia Siderúrgica do Pecém |  | 50.00 |  | 50.00 |  | - |  | 99 |  | - |  | 56 |  | (131) |  | - |  | - |  | -
Mineração Rio do Norte S.A. |  | 40.00 |  | 40.00 |  | - |  | - |  | - |  | (5) |  | (3) |  | - |  | - |  | 9
Other |  |  |  |  |  | 56 |  | 50 |  | 6 |  | (1) |  | (5) |  | - |  | - |  | -
|  |  |  |  |  | 502 |  | 621 |  | 30 |  | 327 |  | (126) |  | 99 |  | 109 |  | 33
Equity results in associates and joint ventures |  |  |  |  |  | 1,798 |  | 1,751 |  | 246 |  | 494 |  | (76) |  | 219 |  | 190 |  | 173
Other results in associates and joint ventures |  |  |  |  |  | - |  | - |  | 59 |  | (1,765) |  | (944) |  | - |  | - |  | -
Equity results and other results in associates and joint ventures |  |  |  |  |  | 1,798 |  | 1,751 |  | 305 |  | (1,271) |  | (1,020) |  | 219 |  | 190 |  | 173
Schedule of changes in investments in associates and joint ventures |  |  |  |
| Notes | 2022 |  | 2021
Balance at January 1, |  | 1,751 |  | 2,031
Capital contribution to CSP |  | - |  | 42
Equity results in income statement |  | 246 |  | 494
Dividends declared |  | (186) |  | (228)
Translation adjustment |  | 116 |  | (128)
Impairment of CSP | 16(d) | (111) |  | -
Transfer the equity results to discontinued operations | 16(a) | - |  | (26)
Transfer of CSI to assets held for sale | 16(c) | - |  | (377)
Other |  | (18) |  | (57)
Balance at December 31, |  | 1,798 |  | 1,751
Capital reduction in a foreign subsidiary – In August 2022, the Company approved a capital reduction in the amount of US$1,500 of Vale International SA (“VISA”), a wholly-owned foreign subsidiary, leading to a reduction in the absolute value of the investment held by the Parent Company, leading to a gain of US$1,543 presented as “Other financial items, net” (note 6). The remaining balance of cumulative translation adjustments of VISA represents US$4,623 as at December 31, 2022. In December 2021, the Company approved a capital reduction in the amount of US$3,000 in VISA, generating a gain of US$2,413 related to the reclassification of the cumulative translation adjustments of this investment, recorded in the equity to the income statement for year ended December 31, 2021, presented as “Other financial items, net” (note 6). b) 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 and using the most recent financial information available adjusted for the effects of significant transactions or events that occur between the date of the financial information and the date of the Company’s financial statements. The summarized financial information about Samarco is presented in note 25.
Summarized financial information about relevant associates and joint ventures |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2022
|  | Aliança Geração de Energia |  | Aliança Norte Energia Participações |  | CSP |  | Pelletizing plants (i) |  | MRS Logística |  | VLI S.A.
Current assets |  | 140 |  | - |  | 827 |  | 497 |  | 387 |  | 760
Non-current assets |  | 921 |  | 209 |  | 2,709 |  | 328 |  | 2,398 |  | 3,649
Total assets |  | 1,061 |  | 209 |  | 3,536 |  | 825 |  | 2,785 |  | 4,409
Current liabilities |  | 161 |  | - |  | 491 |  | 164 |  | 509 |  | 810
Non-current liabilities |  | 282 |  | 1 |  | 2,450 |  | 1 |  | 1,219 |  | 2,153
Total liabilities |  | 443 |  | 1 |  | 2,941 |  | 165 |  | 1,728 |  | 2,963
Equity |  | 618 |  | 208 |  | 595 |  | 660 |  | 1,057 |  | 1,446
Net revenue |  | 215 |  | - |  | 2,399 |  | 420 |  | 1,083 |  | 1,376
Net income (loss) |  | 57 |  | (13) |  | 387 |  | 272 |  | 169 |  | (29)
|  | December 31, 2021
|  | Aliança Geração de Energia |  | Aliança Norte Energia Participações |  | CSP |  | Pelletizing plants (i) |  | MRS Logística |  | VLI S.A.
Current assets |  | 112 |  | - |  | 566 |  | 425 |  | 497 |  | 494
Non-current assets |  | 824 |  | 206 |  | 2,615 |  | 267 |  | 1,910 |  | 3,550
Total assets |  | 936 |  | 206 |  | 3,181 |  | 692 |  | 2,407 |  | 4,044
Current liabilities |  | 46 |  | - |  | 438 |  | 166 |  | 447 |  | 580
Non-current liabilities |  | 223 |  | - |  | 2,545 |  | 1 |  | 1,092 |  | 2,085
Total liabilities |  | 269 |  | - |  | 2,983 |  | 167 |  | 1,539 |  | 2,665
Equity |  | 667 |  | 206 |  | 198 |  | 525 |  | 868 |  | 1,379
Net revenue |  | 185 |  | - |  | 2,242 |  | 396 |  | 820 |  | 1,109
Net income (loss) |  | 96 |  | (7) |  | 891 |  | 250 |  | 155 |  | (136)
(i) | Aggregated entities: Companhia Coreano-Brasileira de Pelotização, Companhia Hispano-Brasileira de Pelotização, Companhia Ítalo-Brasileira de Pelotização, and Companhia Nipo-Brasileira de Pelotização.
c) Subsidiaries The significant consolidated entities in each business segment are as follows:
Schedule of material consolidated entities in each business segment |  |  |  |  |  |  |  |  |  |
|  | Location |  | Main activity/Business |  | % Ownership |  | % Voting capital |  | % Noncontrolling interest
Direct and indirect subsidiaries |  |  |  |  |  |  |  |  |  |
Companhia Portuária da Baía de Sepetiba |  | Brazil |  | Iron ore |  | 100.0% |  | 100.0% |  | 0.0%
Minerações Brasileiras Reunidas S.A. (“MBR”) |  | Brazil |  | 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 Oman Distribution Center LLC |  | Oman |  | Iron ore and pelletizing plant |  | 100.0% |  | 100.0% |  | 0.0%
Vale Oman Pelletizing Company LLC |  | Oman |  | Pelletizing plant |  | 70.0% |  | 70.0% |  | 30.0%
Associates and joint ventures |  |  |  |  |  |  |  |  |  |
Aliança Geração de Energia S.A. |  | Brazil |  | Energy |  | 55.0% |  | 55.0% |  | 45.0%
Aliança Norte Energia Participações S.A. |  | Brazil |  | Energy |  | 51.0% |  | 51.0% |  | 49.0%
Companhia Coreano-Brasileira de Pelotização |  | Brazil |  | Pellets |  | 50.0% |  | 50.0% |  | 50.0%
Companhia Hispano-Brasileira de Pelotização |  | Brazil |  | Pellets |  | 50.9% |  | 50.0% |  | 49.1%
Companhia Ítalo-Brasileira de Pelotização |  | Brazil |  | Pellets |  | 50.9% |  | 50.0% |  | 49.1%
Companhia Nipo-Brasileira de Pelotização |  | Brazil |  | Pellets |  | 51.0% |  | 50.0% |  | 49.0%
Samarco Mineração S.A. |  | Brazil |  | Pellets |  | 50.0% |  | 50.0% |  | 50.0%
Companhia Siderúrgica do Pecém |  | Brazil |  | Steel industry |  | 50.0% |  | 50.0% |  | 50.0%
Mineração Rio do Norte S.A. |  | Brazil |  | Bauxite |  | 40.0% |  | 40.0% |  | 60.0%
MRS Logística S.A. |  | Brazil |  | Logistics |  | 48.2% |  | 47.1% |  | 51.8%
VLI S.A. |  | Brazil |  | Logistics |  | 29.6% |  | 29.6% |  | 70.4%
d) Noncontrolling interest Summarized financial information The summarized financial information, prior to the eliminations of the intercompany balances and transactions, of 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 .
Summarized financial information of noncontrolling interest |  |  |  |  |  |  |  |  |  |
|  | December 31, 2022
|  |  | PTVI |  | Vale Oman Pelletizing (note 16n) |  |  | Other |  | Total
Current assets |  |  | 853 |  | 84 |  |  | - |  | -
Non-current assets |  |  | 2,147 |  | 581 |  |  | - |  | -
Related parties – Shareholders |  |  | 113 |  | 81 |  |  | - |  | -
Total assets |  |  | 3,113 |  | 746 |  |  | - |  | -
Current liabilities |  |  | 183 |  | 96 |  |  | - |  | -
Non-current liabilities |  |  | 249 |  | 149 |  |  | - |  | -
Related parties – Shareholders |  |  | - |  | 297 |  |  | - |  | -
Total liabilities |  |  | 432 |  | 542 |  |  | - |  | -
Equity |  |  | 2,681 |  | 204 |  |  | - |  | -
Equity (negative reserves) attributable to noncontrolling interests |  |  | 1,492 |  | 61 |  |  | (62) |  | 1,491
Net income |  |  | 181 |  | 29 |  |  | - |  | -
Net income (loss) attributable to noncontrolling interests |  |  | 101 |  | 9 |  |  | (28) |  | 82
Dividends paid to noncontrolling interests |  |  | - |  | 12 |  |  | - |  | 12
| December 31, 2021
|  | PTVI |  | Vale Moçambique |  |  | Vale Oman Pelletizing |  | Other |  | Total
Current assets |  | 771 |  | 420 |  |  | 92 |  | - |  | -
Non-current assets |  | 1,875 |  | 195 |  |  | 633 |  | - |  | -
Related parties – Shareholders |  | 82 |  | 6 |  |  | 25 |  | - |  | -
Total assets |  | 2,728 |  | 621 |  |  | 750 |  | - |  | -
Current liabilities |  | 174 |  | 224 |  |  | 97 |  | - |  | -
Non-current liabilities |  | 70 |  | 74 |  |  | 157 |  | - |  | -
Related parties – Shareholders |  | - |  | 12,072 |  |  | 296 |  | - |  | -
Total liabilities |  | 244 |  | 12,370 |  |  | 550 |  | - |  | -
Equity (negative reserves) |  | 2,484 |  | (11,749) |  |  | 200 |  | - |  | -
Equity (negative reserves) attributable to noncontrolling interests |  | 1,383 |  | (587) |  |  | 60 |  | (21) |  | 834
Net income |  | 198 |  | 326 |  |  | 27 |  | - |  | -
Net income (loss) attributable to noncontrolling interests |  | 110 |  | (85) |  |  | 8 |  | (10) |  | 23
Dividends paid to noncontrolling interests |  | 18 |  | - |  |  | 12 |  | - |  | 30
Accounting policy Subsidiaries – The Company consolidates all entities over which it has control, that is, when: (i) the Company is exposed or has rights over variable returns from its involvement with the investee; and (ii) has the ability to direct the investee’s significant activities. Subsidiaries are fully consolidated from the date on which control is acquired by the Company. Consolidation is interrupted from the date on which the Company ceases to have control over the investee. Transactions with noncontrolling interests – 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 the Company’s shareholders. For purchases or disposals of non-controlling interests, the difference between the consideration paid and the book value of the acquired portion of the subsidiary's net assets is recorded directly in equity under “Acquisitions and disposals of non-controlling interests”. Loss of control – When the Company ceases to have control, any interest retained in the entity is remeasured at its fair value, with the change in the carrying amount recognized in profit or loss. Amounts previously recognized in other comprehensive income are reclassified to the income statement. Investments in associates and joint arrangements – Associates are all entities over which the Company has significant influence, but not control, generally through an equity interest of 20% to 50% of the voting rights. If the equity interest in the associate is reduced, but significant influence is retained, only a proportionate portion of the amounts previously recognized in other comprehensive income will be reclassified to profit or loss, when appropriate. Dilution gains and losses, incurred on interests in associates, are recognized in the income statement. 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. Accordingly, the assets, liabilities, income and expenses related to the joint operation are recorded individually in the financial statements. 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. In addition, the financial information of associates and joint ventures used to account for their impact in these financial statements may differ from the stand-alone financial statements of those entities due to adjustments to Vale's accounting policy and the length of the reporting periods. Cumulative translation adjustments - IAS 21 defines that exchange differences arising from transactions and balances of foreign operations are recognized in other comprehensive income and accumulated in equity until this operation is fully or partially disposed. “Partial disposal” of an investment can be interpreted as (i) reduction in the percentage of equity interest; or (ii) reduction in the absolute value of the investment through the reduction of the investee's capital, even if the investor’s percentage of ownership interest is not changed. Therefore, there is an accounting policy choice regarding the definition of partial disposal. Thus, the Company has determined as its accounting policy that a capital reduction in an investment in a foreign operation should be treated under the absolute value approach as described in ii) above. Therefore, the exchange differences recorded in equity are reclassified to the income statement in the same proportion as the reduction in the net investment held in the foreign operation. 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 has 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. Vale and Sumitomo Metal Mining Co. Ltd. (“SMM”) own a 44.3% and 15% equity interest in PT Vale Indonesia Tbk (“PTVI”), respectively, for a total of 59.3% interest in PTVI. Vale and SMM have a Shareholders' Agreement ("Block voting agreement"), establishing that SMM will follow Vale's guidelines in decision-making on financial and operational matters relevant to the management of PTVI and, therefore, the Company consolidates PTVI in its financial statements.

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