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Information by business segment and geographic area | 12 Months Ended
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Dec. 31, 2023
Notes and other explanatory information [abstract] |
Information by business segment and geographic area | 4. Information by business segment and geographic area The segments are aligned with products and reflect the structure used by Management to evaluate the Company’s performance. The responsible bodies for making operational decisions, allocating resources and evaluating performance are the Executive Committee and Board of Directors. Accordingly, the performance of the operating segments is assessed based on a measure of adjusted EBITDA, among other measures. The Company’s adjusted EBITDA is calculated based on the operating income or loss (i) increased by dividends received and interest from associates and joint ventures; excluding (ii) depreciation, depletion, and amortization; and (iii) impairment reversal (impairment) and results on disposal of non-current assets. Due to the reorganization of assets and the governance established by the Company for the Energy Transition Metals segment (notes 15 and 16), the Company is reviewing the items currently included in the EBITDA under "Other", especially the expenditures related to general and administrative expenses, research and development, and the results from associates and joint ventures. As a result, starting from 2024, the Company will reclassify some of these items currently classified under "Other" to Iron Ore Solutions and Energy Transition Metals segments. In 2022, the Company allocated the financial information of the Midwestern System to “Other” as this operation was no longer analyzed by the chief operating decision maker as part of the performance of the Iron Ore Solutions business segment due to the binding agreement to sell this operation (note 16g). The comparative information was reclassified to reflect the revision in the allocation criteria.
Segment | Main activities
Iron Ore Solutions | Comprise the extraction and production of iron ore, iron ore pellets, other ferrous products, and its logistic related services.
Energy Transition Metals | Includes the extraction and production of nickel and its by-products (gold, silver, cobalt, precious metals and others), and copper, as well as its by-products (gold and silver).
Coal (discontinued operation) | Comprise the extraction and production of metallurgical and thermal coal and its logistic related services.
Other | Includes the revenue and cost of other products, services, research and development, investments in joint ventures and associates of other business and corporate expenses unallocated to the reportable segments, as well as the financial information related to Midwestern system and costs related to the Brumadinho event.
a) Adjusted EBITDA
Schedule of adjusted EBITDA |  |  |  |
|  | Year ended December 31,
| Notes | 2023 | 2022 | 2021
Iron ore (i) |  | 14,888 | 15,670 | 26,471
Iron ore pellets |  | 3,122 | 3,653 | 4,873
Other ferrous products and services |  | 117 | 120 | 136
Iron Ore Solutions |  | 18,127 | 19,443 | 31,480
Nickel |  | 851 | 1,924 | 1,576
Copper |  | 1,100 | 569 | 1,617
Energy Transition Metals |  | 1,951 | 2,493 | 3,193
Other (ii) |  | (2,117) | (2,176) | (3,330)
Adjusted EBITDA from continuing operations |  | 17,961 | 19,760 | 31,343
Depreciation, depletion and amortization |  | (3,070) | (3,171) | (3,034)
Impairment reversal (impairment) and results on disposal of non-current assets, net and other (ii) | 16 and 19 | (482) | 773 | (426)
Dividends received and interest from associates and joint ventures (iii) |  | (204) | (154) | (190)
Operating income |  | 14,205 | 17,208 | 27,693
Equity results and other results in associates and joint ventures | 15 | (1,108) | 305 | (1,271)
Financial results | 6 | (1,946) | 2,268 | 3,119
Income before income taxes |  | 11,151 | 19,781 | 29,541
(i) Includes the reclassification of the EBITDA of Midwestern System from the Iron Ore Solutions segment to “Other” in the amounts of US$77 and US$109 for the years ended December 31, 2022 and December 31, 2021, respectively. (ii) Includes adjustments of US$216 for the year ended December 31, 2023, to reflect the performance of the streaming transactions at market prices. (iii) In 2022, the Company received US$65 in dividends from California Steel Industries related to the sale transaction of this investment, which was treated as part of the result of the transaction (note 16h) and, therefore, this amount was not included in the adjusted EBITDA.
|  | Year ended December 31,
| Notes | 2023 | 2022 | 2021
Adjusted EBITDA from discontinued operations (coal) |  | - | 171 | (189)
Depreciation, depletion and amortization |  | - | - | (69)
Impairment and results on disposals of non-current assets, net |  | - | (589) | (3,282)
Dividends received and interest from associates and joint ventures |  | - | - | (78)
Operating loss | 16(l) | - | (418) | (3,618)
Equity results and other results in associates and joint ventures |  | - | - | (26)
Financial results |  | - | 3,065 | 447
Derecognition of noncontrolling interest |  | - | (585) | -
Income (loss) before income taxes from discontinued operations (coal) | 16(l) | - | 2,062 | (3,197)
b) Net operating revenue by shipment destination
Schedule of net operating revenue by shipment destination |  |  |  |  |  |  |
| Year ended December 31, 2023
| Iron Ore Solutions | Energy Transition Metals |  |
| Iron ore | Iron ore pellets | Other ferrous products and services | Nickel and other products | Copper | Other | Total
China | 20,641 | 2 | - | 642 | 292 | - | 21,577
Japan | 2,356 | 279 | 1 | 583 | - | - | 3,219
Asia, except Japan and China | 2,111 | 407 | 10 | 513 | 267 | - | 3,308
Brazil | 1,370 | 1,684 | 502 | 63 | - | 136 | 3,755
United States of America | - | 262 | - | 1,361 | - | - | 1,623
Americas, except United States and Brazil | 1 | 398 | 1 | 456 | 41 | - | 897
Germany | 244 | 55 | 2 | 458 | 592 | - | 1,351
Europe, except Germany | 1,037 | 374 | - | 1,082 | 1,184 | - | 3,677
Middle East, Africa, and Oceania | - | 2,342 | - | 35 | - | - | 2,377
Net operating revenue | 27,760 | 5,803 | 516 | 5,193 | 2,376 | 136 | 41,784
| Year ended December 31, 2022
| Iron Ore Solutions | Energy Transition Metals |  |
| Iron ore | Iron ore pellets | Other ferrous products and services | Nickel and other products | Copper | Other | Total
China | 20,545 | 41 | 7 | 1,538 | 72 | - | 22,203
Japan | 2,557 | 208 | - | 765 | 5 | - | 3,535
Asia, except Japan and China | 2,028 | 393 | 13 | 484 | 154 | 47 | 3,119
Brazil | 1,305 | 1,997 | 447 | 60 | - | 328 | 4,137
United States of America | - | 218 | - | 1,425 | - | - | 1,643
Americas, except United States and Brazil | - | 472 | 5 | 597 | - | 125 | 1,199
Germany | 357 | 16 | - | 597 | 551 | - | 1,521
Europe, except Germany | 1,396 | 317 | - | 1,126 | 997 | - | 3,836
Middle East, Africa, and Oceania | - | 2,594 | - | 27 | - | 25 | 2,646
Net operating revenue | 28,188 | 6,256 | 472 | 6,619 | 1,779 | 525 | 43,839
| Year ended December 31, 2021
| Iron Ore Solutions | Energy Transition Metals |  |
| Iron ore (i) | Iron ore pellets | Other ferrous products and services | Nickel and other products | Copper | Other | Total
China | 27,296 | 159 | 55 | 904 | 189 | - | 28,603
Japan | 3,489 | 488 | - | 514 | 32 | - | 4,523
Asia, except Japan and China | 2,998 | 515 | 23 | 592 | 373 | - | 4,501
Brazil | 1,778 | 2,417 | 425 | 55 | - | 489 | 5,164
United States of America | 23 | 369 | - | 1,151 | - | - | 1,543
Americas, except United States and Brazil | 5 | 725 | 29 | 362 | 40 | 122 | 1,283
Germany | 558 | 48 | 12 | 657 | 759 | - | 2,034
Europe, except Germany | 2,175 | 194 | 4 | 1,126 | 1,197 | - | 4,696
Middle East, Africa, and Oceania | 2 | 2,138 | - | 15 | - | - | 2,155
Net operating revenue | 38,324 | 7,053 | 548 | 5,376 | 2,590 | 611 | 54,502
(i) | Includes the reclassification of the revenues of Midwestern System from the Iron Ore Solutions segment to “Other” in the amounts of US$231 and US$377 for the years ended December 31, 2022 and December 31, 2021, respectively.
The revenue from a single customer from the Iron Ore Solutions segment amounted to US$4,239, individually representing 10% of the Company's total revenue for the year ended December 31, 2023. In 2022 and 2021, no customer individually represented 10% or more of the Company's revenue. c) Assets by segment
Schedule of asset by segment |  |  |  |  |  |  |  |
| December 31, 2023 | December 31, 2022
| Iron Ore Solutions | Energy Transition Metals | Other | Total | Iron Ore Solutions | Energy Transition Metals | Other | Total
Investments in associates and joint ventures | 1,349 | - | 523 | 1,872 | 1,296 | - | 502 | 1,798
Property, plant and equipment and intangibles | 38,376 | 18,341 | 3,310 | 60,027 | 33,048 | 19,655 | 2,473 | 55,176
Capital expenditures |  |  |  |  |  |  |  |
Sustaining capital (i) | 2,539 | 1,610 | 120 | 4,269 | 2,236 | 1,521 | 102 | 3,859
Project execution | 1,219 | 358 | 74 | 1,651 | 866 | 338 | 383 | 1,587
Product inventory | 3,758 | 1,968 | 194 | 5,920 | 3,102 | 1,859 | 485 | 5,446
(i) | According to the Company's shareholders remuneration policy, dividends are calculated based on 30% of the adjusted EBITDA less sustaining capital investments. The calculation also considered the investments made on the coal discontinued operation (note 16l), which was US$38 for the year ended December 31, 2022.
d) Assets by geographic area
Schedule of assets by geographic area |  |  |  |  |  |  |  |
| December 31, 2023 | December 31, 2022
| Investments in associates and joint ventures | Intangible | Property, plant and equipment | Total | Investments in associates and joint ventures | Intangible | Property, plant and equipment | Total
Brazil | 1,872 | 9,822 | 33,769 | 45,463 | 1,798 | 8,391 | 28,210 | 38,399
Canada | - | 1,808 | 11,890 | 13,698 | - | 1,845 | 11,178 | 13,023
Americas, except Brazil and Canada | - | - | 4 | 4 | - | - | 4 | 4
Indonesia (i) | - | - | 59 | 59 | - | 1 | 2,731 | 2,732
China | - | 1 | 14 | 15 | - | 1 | 19 | 20
Asia, except Indonesia and China | - | - | 731 | 731 | - | - | 786 | 786
Europe | - | - | 678 | 678 | - | - | 747 | 747
Oman | - | - | 1,251 | 1,251 | - | - | 1,263 | 1,263
Total | 1,872 | 11,631 | 48,396 | 61,899 | 1,798 | 10,238 | 44,938 | 56,974
(i) | The reduction refers substantially to the reclassification of PTVI's assets presented in these financial statements as “held for sale” in accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations.
Accounting policy Revenue from sales - Revenue from sales is recognized when control of a good or service is transferred to a customer. Given the diverse shipping terms associated with Vale's sales, revenue may be recognized at various stages: (i) when the product is available at the loading port, (ii) upon loading onto the ship, (iii) at the port of discharge, or (iv) at the customer's warehouse. A substantial portion of Vale's sales operates under Cost and Freight ("CFR") and Cost, Insurance, and Freight ("CIF") Incoterms. In these instances, where the Company provides shipping services after the transfer of control, such services are treated as a distinct performance obligation. A portion of the transaction price is allocated and recognized over time as the shipping services are rendered. Typically, contract payment terms involve upfront payments or the utilization of letters of credit. These terms generally do not have a significant financing component. Occasionally, sale prices are provisionally set at the sale date, with subsequent adjustments based on market fluctuations or contractual terms until the final pricing date. Revenue recognition is based on the estimated fair value of the total consideration receivable. The provisional pricing mechanism embedded in these sales arrangements is deemed to have the characteristics of a derivative. Consequently, the fair value of the final sale price adjustment is continuously reassessed, and any changes are recognized as operational revenue in the income statement.

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