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Related parties
 12 Months Ended
Dec. 31, 2022
Related Parties  
Related parties

 

31.Related parties

 

The Company’s related parties are subsidiaries, joint ventures, associates, shareholders and its related entities and key management personnel of the Company.

 

Related party transactions were made by the Company on terms equivalent to those that prevail in arm´s-length transactions, with respect to price and market conditions that are no less favorable to the Company than those arranged with third parties.

 

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.

 

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.

 

a) Transactions with related parties

 

                                   
    Year ended December 31,
    2022   2021   2020
    Net operating revenue   Cost and operating expenses   Financial result   Net operating revenue   Cost and operating expenses   Financial result   Net operating revenue   Cost and operating expenses   Financial result
Joint Ventures                                    
     Companhia Siderúrgica do Pecém   434       (3)   640   -   3   353   -   8
     Aliança Geração de Energia S.A.       (121)       5   (105)   -   19   (105)   -
     Pelletizing companies (i)       (337)   (34)   -   (349)   (15)   -   (100)   (17)
     MRS Logística S.A.   1   (397)       -   (279)   -   -   (227)   -
     Norte Energia S.A.       (135)       -   (114)   -   -   (101)   -
     Other   41   (8)       -   (10)   (1)   -   (13)   13
    476   (998)   (37)   645   (857)   (13)   372   (546)   4
Associates                                    
     VLI   289   (26)   (3)   255   (21)   (2)   235   (25)   (1)
     Other   1       -   1   -   -   5   -   3
    290   (26)   (3)   256   (21)   (2)   240   (25)   2
Major shareholders                                    
    Bradesco           381   -   -   (528)   -   -   (49)
    Banco do Brasil           3   -   -   13   -   -   17
    Mitsui   416       -   261   -   -   185   -   -
    416   -   384   261   -   (515)   185   -   (32)
Total of continuing operations   1,182   (1,024)   344   1,162   (878)   (530)   797   (571)   (26)
Discontinued operation - Coal   -   -   -   -   (95)   15   -   (405)   23
Total   1,182   (1,024)   344   1,162   (973)   (515)   797   (976)   (3)

  

(i) Aggregated entities: Companhia Coreano-Brasileira de Pelotização, Companhia Hispano-Brasileira de Pelotização, Companhia Ítalo-Brasileira de Pelotização and Companhia Nipo-Brasileira de Pelotização.

 

b) Outstanding balances with related parties

                       
      December 31, 2022 December 31, 2021
              Assets         Assets
      Cash and cash equivalents   Accounts receivable   Dividends receivable and other assets Cash and cash equivalents   Accounts receivable   Dividends receivable and other assets
Joint Ventures                        
     Companhia Siderúrgica do Pecém     -   91   17 -   74   39
     Companhias de Pelotização (i)     -   -   25 -   -   37
     MRS Logística S.A.     -   -   25 -   -   19
     Other     -   4   50 -   1   1
      -   95   117 -   75   96
Associates                        
     VLI     -   14     -   16   -
     Other     -   -   1 -   2   3
      -   14   1 -   18   3
Major shareholders                        
    Bradesco     335   -   154 1,746   -   5
    Banco do Brasil     30   -   - 79   -   -
    Mitsui     -   89   - -   4   -
      365   89   154 1,825   4   5
Pension plan     -   13   - -   12   -
Total     365   211   272 1,825   109   104

  

(i) Aggregated entities: Companhia Coreano-Brasileira de Pelotização, Companhia Hispano-Brasileira de Pelotização, Companhia Ítalo-Brasileira de Pelotização and Companhia Nipo-Brasileira de Pelotização.

 

 

    December 31, 2022   December 31, 2021
      Liabilities   Liabilities
      Supplier and contractors   Financial instruments and other liabilities   Supplier and contractors   Financial instruments and other liabilities
Joint Ventures                  
     Pelletizing companies (i)     63   400   13   393
     MRS Logística S.A.     57   -   41   -
     Other     31   -   16   -
      151   400   70   393
Associates                  
     VLI     5   53   6   47
     Other     3   -   3   -
      8   53   9   47
Major shareholders                  
    Bradesco     -   75   -   265
    Mitsui     1   -   2   -
      1   75   2   265
Pension plan     11   -   10   -
Total     171   528   91   705

 

 

(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) Key management personnel compensation

 

           
    Year ended December 31,
    2022   2021   2020
Short-term benefits            
Wages   10   9   9
Direct and indirect benefits   2   1   1
Profit sharing program (“PLR”)   12   10   8
Total short- term benefits   24   20   18
Long-term benefits            
Shares based   18   12   12
             
Severance   2   1   7
Total short and long-term benefits    44   33   37