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Participative shareholders’ debentures
 12 Months Ended
Dec. 31, 2022
Participative Shareholders Debentures  
Participative shareholders’ debentures

 

22.Participative shareholders’ debentures

 

At the time of its privatization in 1997, the Company issued a total of 388,559,056 debentures to then-existing shareholders, including the Brazilian Government. The debentures’ terms were set to ensure that pre-privatization shareholders would participate in potential future benefits that might be obtained from exploration of mineral resources. This obligation related to the debentures will cease when all the relevant mineral resources are exhausted, sold or otherwise disposed of by the Company.

 

Holders of participative shareholders’ debentures have the right to receive semi-annual payments equal to an agreed percentage of revenues less value-added tax, transport fee and insurance expenses related to the trading of the products, derived from these mineral resources.

 

The effects on the statement of income and on the balance sheet are shown below:

 

                                   
    December 31, 2022   December 31, 2021   December 31, 2020
    Average price (R$)   Financial income   Liabilities   Average price (R$)   Financial expense   Liabilities   Average price (R$)   Financial expense   Liabilities
Participative shareholders’ debentures   36.59   659   2,725   49.10   (716)   3,419   45.65   (1,565)   3,413

 

 

The Company made available for withdrawal as remuneration the following amounts, as disclosed on the “Shareholders’ debentures report” available on the Company’s website, which were not incorporated by reference:

 

       
    Availability date   Remuneration amount
Remuneration for the first half of 2022   October 3, 2022   137
Remuneration for the second half of 2021   April 1, 2022   234
Year ended December 31, 2022   -   371
         
Remuneration for the first half of 2021   October 1, 2021   225
Remuneration for the second half of 2020   April 1, 2021   193
Year ended December 31, 2021   -   418
         
Remuneration for the first half of 2020   October 1, 2020   79
Remuneration for the second half of 2019   April 1, 2020   104
Year ended December 31, 2020   -   183

 

 

Accounting policy

 

The participative shareholders’ debentures are measured at fair value through profit or loss based on the market approach, representing the amount that would be paid for the acquisition of these securities on the measurement date and, therefore, also implicitly includes the remuneration to the debenture holder. To calculate the fair value of the liabilities, the Company uses the weighted average price of the secondary market trades in the last month of period.