XML 72 R25.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Property, plant, and equipment | 12 Months Ended
--- | ---
Dec. 31, 2023
Notes and other explanatory information [abstract] |
Property, plant, and equipment | 18. Property, plant, and equipment
Schedule of movements in property, plant and equipment |  |  |  |  |  |  |  |  |  |
|  | Consolidated
| Notes | Building and land | Facilities | Equipment | Mineral properties | Railway equipment | Right of use assets | Other | Constructions in progress | Total
Balance as of December 31, 2021 |  | 8,137 | 7,232 | 4,743 | 7,742 | 2,334 | 1,537 | 2,484 | 7,722 | 41,931
Additions (i) |  | - | - | - | - | - | 77 | - | 5,496 | 5,573
Disposals |  | (22) | (24) | (19) | (3) | (7) | - | (2) | (144) | (221)
Assets retirement obligation | 27(b) | - | - | - | (562) | - | - | - | - | (562)
Depreciation, depletion and amortization |  | (409) | (478) | (700) | (436) | (160) | (185) | (301) | - | (2,669)
Impairment reversal |  | 56 | 34 | 64 | 39 | - | - | 21 | - | 214
Transfer to asset held for sale - Midwestern System |  | (56) | (34) | (64) | (39) | - | - | (21) | - | (214)
Translation adjustment |  | 308 | 340 | 102 | (131) | 159 | 26 | 43 | 39 | 886
Transfers |  | 899 | 972 | 858 | 502 | 149 | - | 408 | (3,788) | -
Balance as of December 31, 2022 |  | 8,913 | 8,042 | 4,984 | 7,112 | 2,475 | 1,455 | 2,632 | 9,325 | 44,938
Cost |  | 16,027 | 12,819 | 11,647 | 16,405 | 4,099 | 2,120 | 5,899 | 9,325 | 78,341
Accumulated depreciation |  | (7,114) | (4,777) | (6,663) | (9,293) | (1,624) | (665) | (3,267) | - | (33,403)
Balance as of December 31, 2022 |  | 8,913 | 8,042 | 4,984 | 7,112 | 2,475 | 1,455 | 2,632 | 9,325 | 44,938
Additions (i) |  | - | - | - | - | - | 74 | - | 6,368 | 6,442
Disposals |  | (35) | (11) | (15) | (7) | (13) | - | (8) | (131) | (220)
Assets retirement obligation | 27(b) | - | - | - | 324 | - | - | - | - | 324
Depreciation, depletion and amortization |  | (462) | (517) | (736) | (446) | (168) | (190) | (323) | - | (2,842)
Transfer to asset held for sale |  | (670) | - | (759) | (791) | (41) | (8) | (2) | (521) | (2,792)
Translation adjustment |  | 578 | 574 | 214 | 286 | 187 | 28 | 138 | 541 | 2,546
Transfers |  | 1,795 | 1,151 | 762 | 447 | 172 | - | 47 | (4,374) | -
Balance as of December 31, 2023 |  | 10,119 | 9,239 | 4,450 | 6,925 | 2,612 | 1,359 | 2,484 | 11,208 | 48,396
Cost |  | 17,381 | 14,858 | 10,326 | 15,663 | 4,435 | 2,208 | 5,391 | 11,208 | 81,470
Accumulated depreciation |  | (7,262) | (5,619) | (5,876) | (8,738) | (1,823) | (849) | (2,907) | - | (33,074)
Balance as of December 31, 2023 |  | 10,119 | 9,239 | 4,450 | 6,925 | 2,612 | 1,359 | 2,484 | 11,208 | 48,396
(i) | The additions are mainly related to the expansion of the Voisey’s Bay mine and the Salobo III project, Sol do Cerrado (solar energy plant) and the execution of the Capanema project. It also includes capitalized interest.
For more details regarding right of use and lease liability see note 24. Accounting policy Property, plant, and equipment are recorded at the cost of acquisition or construction, net of accumulated depreciation and impairment charges. Mineral properties developed internally are determined by (i) direct and indirect costs attributed to build the mining facilities, (ii) financial charges incurred during the construction period, (iii) depreciation of other fixed assets used during construction, (iv) estimated decommissioning and site restoration expenses, and (v) other capitalized expenditures during the development phase (phase when the project demonstrates its economic benefit to the Company, and the Company has ability and intention to complete the project). The depletion of mineral properties is determined based on the ratio between production and total proven and probable mineral reserves. Property, plant and equipment, other than mineral properties are depreciated using the straight-line method based on the estimated useful lives, from the date on which the assets become available for their intended use and are capitalized, except for land which is not depreciated. The estimated useful lives are as follows:
Schedule of estimated useful lives of property, plant and equipment |  |
|  | Useful life
Buildings |  | 3 to 50 years
Facilities |  | 3 to 50 years
Equipment |  | 3 to 40 years
Wagons |  | 30 to 45 years
Railway equipment |  | 5 to 37 years
Vessels |  | 20 to 25 years
Other |  | 2 to 50 years
The residual values and useful lives of assets are reviewed each reporting period and adjusted if necessary. Expenditures and stripping costs (i) Research and development expenditures - Expenditures on mining research are accounted for as operating expenses and recorded as “Research and development” in the income statement, until the effective proof of economic feasibility and commercial viability of a given field can be demonstrated. From then on, the expenditures incurred are capitalized as mineral properties. (ii) Expenditures on feasibility studies, new technologies and others research - The Company also conducts feasibility studies for many businesses which it operates including researching new technologies to optimize the mining process. After these costs are proven to generate future benefits to the Company, the expenditures incurred are capitalized. (iii) Maintenance costs - Significant industrial maintenance costs, including spare parts, assembly services, and others, are recorded in property, plant and equipment and depreciated through the next programmed maintenance overhaul. (iv) Stripping Costs - The cost associated with the removal of overburden and other waste materials (“stripping costs”) incurred during the development of mines, before production takes place, are capitalized as part of the depreciable cost of the mineral properties. These costs are subsequently amortized over the useful life of the mine. Post-production stripping costs are included in the cost of inventory, except when a new project is developed to permit access to a significant ore deposit. In such cases, the cost is capitalized as a non-current asset and is amortized during the extraction of the ore deposits, over the useful life of the ore deposits. Critical accounting estimates and judgments Mineral reserves - The estimates of proven and probable reserves are regularly evaluated and updated. These reserves are determined using generally accepted geological estimates. The calculation of reserves requires the Company to make assumptions about expected future conditions that are uncertain, including future ore prices, exchange rates, inflation rates, mining technology, availability of permits and production costs. Changes in assumptions could have a significant impact on the proven and probable reserves of the Company. The estimated volume of mineral reserves is used as basis for the calculation of depletion of the mineral properties, and also for the estimated useful life which is a major factor to quantify the provision for asset retirement obligation, environmental recovery of mines and impairment of long-lived asset. Any changes to the estimates of the volume of mine reserves and the useful lives of assets may have a significant impact on the depreciation, depletion and amortization charges and assessments of impairment.

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