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Costs and expenses by nature
 12 Months Ended
Dec. 31, 2023
Costs And Expenses By Nature  
Costs and expenses by nature

5. Costs and expenses by nature

a) Cost of goods sold, and services rendered

 

 

     
  Year ended December 31,
  2023 2022 2021
Freight (i) 4,251 4,738 4,575
Services 4,131 3,614 2,878
Personnel 2,931 2,684 2,522
Depreciation, depletion and amortization 2,916 3,049 2,857
Materials 2,731 2,256 2,022
Acquisition of products 2,254 2,566 2,277
Fuel oil and gas 1,626 1,630 1,011
Royalties 1,286 1,268 1,370
Energy 781 719 639
Others 1,182 1,504 1,578
Total 24,089 24,028 21,729

 

(i) The reduction in freight costs in 2023 was mainly due to the decrease of the price of bunker fuel, which is included in the freight price.

 

Mineral Resources Inspection Fare ("TFRM") – Certain Brazilian states, including the Brazilian States of Minas Gerais, Pará and Maranhão, impose the TFRM, a fee calculated based on mineral production.

 

In 2021, through an administrative decree, the State of Pará increased the TFRM rate from one fiscal unit of US$0.39 (R$2.11) to three fiscal units of US$2.07 (R$11.19) per metric ton, updated annually and with immediate requirement. However, the Company did not adopt the new rate in 2021, based on the Principle of Anteriority, which establishes that the rate increase would become due from the year following the publication of the decree.

 

In 2022, the Company joined the “Programa Estrutura Pará”, which aims to promote infrastructure investments in the State of Pará and adopted the rate of three fiscal units prospectively. The program also establishes the conversion of 50% of TFRM payments into the execution of works of constructed assets will be delivered to society and, therefore, will not be owned by the Company. In 2023, the Company disbursed US$451 related to TFRM (2022: US$459).

 

b)       Selling and administrative expenses

 

 

     
  Year ended December 31,
  2023 2022 2021
Personnel 243 230 217
Services 154 142 124
Depreciation and amortization 47 41 42
Advertisement 26 22 27
Other 83 80 71
Total 553 515 481

 

c)       Other operating expenses, net

 

       
      Year ended December 31,
  Notes 2023 2022 2021
Expenses related to Brumadinho event 25 930 1,079 851
Expenses related to de-characterization of dams 27(a) 153 72 1,725
Asset decommissioning obligations 27(b) 5 23 121
Provision for litigations 28(a) 229 153 98
Profit sharing program   147 131 126
Disposals of materials and inventories   74 46 5
COVID-19 expenses   - - 44
Other   (40) 218 6
Total   1,498 1,722 2,976