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Investments in associates and joint ventures | 12 Months Ended
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Dec. 31, 2023
Investments In Associates And Joint Ventures |
Investments in associates and joint ventures | 15. Investments in associates and joint ventures
Schedule of investment in associated and joint ventures |  |  |  |  |  |  |  |  |
Associates and joint ventures | % ownership | December 31, 2022 | Additions and capitalizations | Equity results in income statement | Dividends declared | Translation adjustment | Transfer to assets held for sale | Other | December 31, 2023
Iron Ore Solutions |  |  |  |  |  |  |  |  |
Baovale Mineração S.A. | 50.00 | 24 | - | 3 | (2) | 2 | - | 1 | 28
Companhia Coreano-Brasileira de Pelotização | 50.00 | 80 | - | 17 | (30) | 6 | - | - | 73
Companhia Hispano-Brasileira de Pelotização | 50.89 | 48 | - | 16 | (18) | 3 | - | - | 49
Companhia Ítalo-Brasileira de Pelotização | 50.90 | 62 | - | 16 | (20) | 5 | - | - | 63
Companhia Nipo-Brasileira de Pelotização | 51.00 | 145 | - | 39 | (45) | 11 | - | - | 150
MRS Logística S.A. | 48.45 | 509 | - | 118 | (28) | 42 | - | (1) | 640
VLI S.A. | 29.60 | 428 | - | (108) | - | 25 | - | 1 | 346
Samarco Mineração S.A. (note 26) | 50.00 | - | - | - | - | - | - | - | -
|  | 1,296 | - | 101 | (143) | 94 | - | 1 | 1,349
Energy Transition Metals |  |  |  |  |  |  |  |  |
PT Kolaka Nickel Indonesia | 18.30 | - | - | - | - | - | (13) | 13 | -
|  | - | - | - | - | - | (13) | 13 | -
Others |  |  |  |  |  |  |  |  |
Aliança Geração de Energia S.A. | 55.00 | 340 | - | 48 | (60) | 28 | - | - | 356
Aliança Norte Energia Participações S.A. | 51.00 | 106 | - | (8) | - | 8 | - | - | 106
Other |  | 56 | 1 | 3 | - | 5 | - | (4) | 61
|  | 502 | 1 | 43 | (60) | 41 | - | (4) | 523
Equity results in associates and joint ventures |  | 1,798 | 1 | 144 | (203) | 135 | (13) | 10 | 1,872
Other results in associates and joint ventures (notes 16 and 26) (i) |  | - | - | (1,252) | - | - | - | - | -
Equity results and other results in associates and joint ventures |  | 1,798 | 1 | (1,108) | (203) | 135 | (13) | 10 | 1,872
(i) It mainly refers to the addition to the provision related to the Samarco dam failure (note 26) and other results related to investments disposals (note 16). 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, which resulted in a gain of US$1,543 due to the reclassification of the cumulative translation adjustments following our accounting policy for such nature of transaction, presented as “Other financial items, net” (note 6). The remaining balance of cumulative translation adjustments of VISA represents US$4,906 as of December 31, 2023. a) Summarized financial information The summarized financial information about relevant associates and joint ventures for the Company are as follows. 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 26.
Summarized financial information about relevant associates and joint ventures |  |  |  |  |
| December 31, 2023
| Aliança Geração de Energia | Aliança Norte Energia Participações | Pelletizing plants (i) | MRS Logística | VLI S.A.
Current assets | 120 | - | 374 | 954 | 935
Non-current assets | 1,064 | 210 | 420 | 2,779 | 3,309
Total assets | 1,184 | 210 | 794 | 3,733 | 4,244
Current liabilities | 171 | - | 133 | 704 | 933
Non-current liabilities | 365 | 2 | 1 | 1,709 | 2,143
Total liabilities | 536 | 2 | 134 | 2,413 | 3,076
Equity | 648 | 208 | 660 | 1,320 | 1,168
Net revenue | 230 | - | 194 | 1,291 | 1,682
Net income (loss) | 88 | (15) | 172 | 243 | (366)
| 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)
(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) 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 Base Metals Limited |  | United Kingdom |  | Holding |  | 100.0% |  | 100.0% |  | 0.0%
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 |  | 100.0% |  | 100.0% |  | 0.0%
c) Noncontrolling interest Summarized financial information The summarized financial information, prior to the eliminations of the intercompany balances and transactions, about subsidiaries with material noncontrolling interest is as follows. 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, 2023
| PTVI (note 16b) | Other | Total
Current assets | 885 | - | -
Non-current assets | 2,977 | - | -
Related parties – Shareholders | 83 | - | -
Total assets | 3,945 | - | -
Current liabilities | 221 | - | -
Non-current liabilities | 239 | - | -
Related parties – Shareholders | - | - | -
Total liabilities | 460 | - | -
Equity | 3,484 | - | -
Equity (negative reserves) attributable to noncontrolling interests | 1,599 | (79) | 1,520
Net income | 207 | - | -
Net income (loss) attributable to noncontrolling interests | 144 | (22) | 122
Dividends paid to noncontrolling interests | 33 | 8 | 41
| December 31, 2022
| PTVI | Vale Oman Pelletizing (note 16e) | 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 exercises control, defined as having both (i) exposure or rights to variable returns from its involvement and (ii) the ability to direct significant activities of the investee. Subsidiaries are fully consolidated from the acquisition date until the Company ceases to have control. Transactions with noncontrolling interests – Investments held by other investors in Vale's subsidiaries are treated as noncontrolling interests (“NCI”). Transactions with NCI are treated as transactions with the Company's shareholders. For purchases or disposals of NCI, the difference between the consideration paid and the book value of the acquired portion of the subsidiary's net assets is directly recorded 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 entities over which the Company holds significant influence (typically 20% to 50% equity interest). If the equity interest in an associate decrease while retaining significant influence, a proportionate portion of the amounts previously recognized in other comprehensive income is reclassified to profit or loss as appropriate. Dilution gains and losses on associates are recognized in the income statement. Joint arrangements are all entities over which the Company shares control with one or more parties. The classification of joint arrangement investments as joint operations or joint ventures depends on the contractual rights and obligations of each investor. Joint operations are recorded in the financial statements to represent the Company’s contractual rights and obligations. Accordingly, assets, liabilities, income and expenses related to the joint operation are individually recorded in the financial statements. Interests in joint ventures are accounted for using the equity method, recognized initially at cost. The Company's investment in joint ventures includes identified goodwill from the acquisition, net of any impairment loss. The Company's interest in joint venture profits or losses is recognized in the income statement, and participation in changes in reserves is reflected in the Company's reserves. If the Company's interest in the losses of an associate or joint venture equals or exceeds the carrying amount of the investment, including any other receivables, additional losses are not recognized unless obligations or payments have been made on behalf of the joint venture. In addition, the financial information used for associates and joint ventures to account for their impact in these financial statements may diverge from the stand-alone financial statements of those entities due to adjustments to Vale's accounting policy and variations in reporting periods. Cumulative translation adjustments - According to IAS 21, exchange differences arising from transactions and balances of foreign operations are recognized in other comprehensive income and accumulated in equity until the full or partial disposal of the operation. A "partial disposal" of an investment can be construed as (i) a reduction in the percentage of equity interest or (ii) a decrease in the absolute value of the investment through the reduction of the investee's capital, even if the investor's ownership percentage remains unchanged. Consequently, there exists an accounting policy choice concerning the definition of a partial disposal. In alignment with its accounting policy, the Company has chosen to treat a capital reduction in an investment in a foreign operation under the absolute value approach as described in (ii) above. Consequently, the exchange differences initially 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 In certain scenarios, judgment is necessary to determine whether, after considering all relevant factors, the Company exercises control, joint control, or significant influence over an entity. Significant influence includes situations involving 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). However, management has concluded that the Company lacks a sufficiently dominant voting interest to direct the activities of these entities. Consequently, these entities are accounted for using the equity method due to shareholder agreements where relevant decisions are shared with other parties. Vale and Sumitomo Metal Mining Co. Ltd. ("SMM") jointly own a 44.3% and 15% equity interest in PT Vale Indonesia Tbk ("PTVI"), resulting in a total 59.3% interest in PTVI. Vale and SMM have a Shareholders' Agreement ("Block voting agreement"), stipulating that SMM will adhere to Vale's guidelines in decision-making on financial and operational matters crucial to PTVI's management. Consequently, the Company consolidates PTVI in its financial statements.

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