XML 78 R31.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Leases
 12 Months Ended
Dec. 31, 2023
Disclosure Leases Abstract  
Leases

24. Leases

 

a) Right of use

 

 

           
  December 31, 2022 Additions and contract modifications Depreciation Transfer to asset held for sale Translation adjustment December 31, 2023
Ports 657 24 (59) - 6 628
Vessels 453 4 (42) - - 415
Pelletizing plants 204 24 (51) - 16 193
Properties 87 12 (25) - 6 80
Energy plants 39 - (5) - - 34
Equipment and Installment of mining 15 10 (8) (8) - 9
Total 1,455 74 (190) (8) 28 1,359

 

b) Leases liabilities

 

             
  December 31, 2022 Additions and contract modifications Payments (i) Interest Transfer to liabilities held for sale Translation adjustment December 31, 2023
Ports 690 24 (66) 31 - 3 682
Vessels 441 4 (63) 15 - - 397
Pelletizing plants 222 24 (64) 9 - 16 207
Properties 105 12 (27) 4 - 8 102
Energy plants 52 - (6) 3 - - 49
Mining equipment 21 10 (7) - (9) - 15
Total 1,531 74 (233) 62 (9) 27 1,452
Current liabilities 182           197
Non-current liabilities 1,349           1,255
Total 1,531           1,452

 

(i) The total amount of the variable lease payments not included in the measurement of lease liabilities was US$112 recorded in the income statement for the year ended December 31, 2023, (2022:US$ 367).

 

Annual minimum payments and remaining lease term

 

The following table presents the undiscounted lease obligation by maturity date. The lease liability recognized in the statement of financial position is measured at the present value of such obligations.

 

 

                               
    2024   2025   2026   2027   2028 onwards   Total   Remaining term (years)   Discount rate
Ports   70   69   56   43   737   975   3 to 20   4% to 5%
Vessels   60   59   54   53   292   518   2 to 10    3% to 4%
Pelletizing plants   60   50   17   17   115   259   1 to 10    2% to 6%
Properties   28   18   16   14   38   114   1 to 10    2% to 6%
Energy plants   10   10   6   5   46   77   1 to 7    5% to 6%
Mining equipment   8   4   2   -   -   14   1 to 5    3% to 6%
Total   236   210   151   132   1,228   1,957        

 

 

Accounting policy

 

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the lease term or the end of the useful life of the right-of-use asset.

Leases

The Company does not recognize right-of-use assets and liabilities for leases with less than 12 months of lease term and/or leases of low-value assets. The payments associated to these leases are recognized as an expense on a straight-line basis over the lease term.

 

The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise: (i) fixed payments, including in-substance fixed payments; (ii) variable lease payments that depend on an index or a rate; and (iii) the exercise price under a purchase option or renewal option that are under the Company’s control and is reasonably certain to be exercised.

 

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate. When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.