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Information by business segment and geographic area
 6 Months Ended
Jun. 30, 2024
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.

In 2024, consistently with the reports analyzed by the executive committee and Board of Directors, the Company changed its adjusted EBITDA definition to include the “EBITDA from associates and joint ventures”, which is a measure of their “equity results” (note 14) excluding (i) net finance costs; (ii) depreciation, depletion, and amortization; (iii) taxation and (iv) impairments.

Therefore, the Company’s adjusted EBITDA is defined as operating income or loss, including the EBITDA from interests in associates and joint ventures; and excluding (i) depreciation, depletion, and amortization; and (ii) impairment and results on disposal of non-current assets, net and other. The comparative information in these interim financial statements was revised to reflect this change in the adjusted EBITDA definition.

Additionally, as a result of the reorganization of assets and the governance established for the Energy Transition Metals segment, the “Other” segment was reorganized for a better allocation of direct effects on the Iron Ore Solutions and Energy Transition Metals businesses. These effects were allocated to each segment starting from the six-month period ended June 30, 2024.

Segment Main activities
Iron Ore Solutions Comprises 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).
Other Includes corporate expenses not allocated to the operating segment, research and development of greenfield exploration projects, as well as expenses related to the Brumadinho event and de-characterization of dams and asset retirement obligations.

 

a) Adjusted EBITDA

 

         
    Three-month period ended June 30, Six-month period ended June 30,
  Notes 2024

2023

(revised)

 2024

2023

(revised)

Iron ore   3,071 3,175 5,578 5,871
Iron ore pellets   724 757 1,606 1,449
Other ferrous products and services   92 150 162 220
Iron Solutions   3,887 4,082 7,346 7,540
           
Nickel   108 240 125 593
Copper   351 236 635 456
Other energy transition metals   (52) - (96)  -
Energy Transition Metals   407 476 664 1,049
           
Other (i)   (301) (560) (579) (877)
           
Adjusted EBITDA   3,993 3,998 7,431 7,712
           
Depreciation, depletion and amortization   (793) (779) (1,507) (1,435)
Impairment and results on disposal of non-current assets, net and other (ii)   928 (118) 855 (157)
EBITDA from associates and joint ventures   (253) (229) (456) (367)
Operating income   3,875 2,872 6,323 5,753
           
Equity results and other results in associates and joint ventures 14 112 5 236 (50)
Financial results 6 (1,252) (157) (1,689) (687)
Income before income taxes   2,735 2,720 4,870 5,016

 

(i) Includes income (expenses) from Vale Base Metals Limited that were not allocated to the operating segment in the amount of US$2 and US$(45) for the three and six-month period ended June 30, 2024, respectively.

(ii) Includes adjustments of US$82 and US$149 for the three and six-month period ended June 30, 2024, respectively, (2023: US$52 and US$87, respectively), to reflect the performance of the streaming transactions at market prices.

 

b) Net operating revenue by shipment destination

 

             
  Three-month period ended June 30, 2024
  Iron Solutions Energy Transition Metals  
  Iron ore Iron ore pellets Other ferrous products and services Nickel and other products Copper Other energy transition metals Total
China 4,787 - - 84 94 29 4,994
Japan 710 87 1 129 - - 927
Asia, except Japan and China 605 112 2 82 136 - 937
Brazil 273 410 172 12 - 1 868
United States of America - 51 - 196 - 7 254
Americas, except United States and Brazil - 107 - 141 39 - 287
Germany 89 49 - 81 67 - 286
Europe, except Germany 265 11 - 141 366 10 793
Middle East, Africa, and Oceania - 567 - 7 - - 574
Net operating revenue 6,729 1,394 175 873 702 47 9,920

 

  Three-month period ended June 30, 2023
  Iron Solutions Energy Transition Metals    
  Iron ore Iron ore pellets Other ferrous products and services Nickel and other products Copper Other Total
China 4,364 2 - 217 55 - 4,638
Japan 623 54 - 147 - - 824
Asia, except Japan and China 519 67 3 227 - - 816
Brazil 361 465 124 18 - 26 994
United States of America - 97 - 334 - - 431
Americas, except United States and Brazil - 102 - 123 2 - 227
Germany 47 - 1 123 123 - 294
Europe, except Germany 321 119 - 181 312 - 933
Middle East, Africa, and Oceania - 507 - 9 - - 516
Net operating revenue 6,235 1,413 128 1,379 492 26 9,673

 

  Six-month period ended June 30, 2024
  Iron Solutions Energy Transition Metals  
  Iron ore Iron ore pellets Other ferrous products and services Nickel and other products Copper Other energy transition metals Total
China 8,315 - - 138 186 29 8,668
Japan 1,230 152 1 226 - - 1,609
Asia, except Japan and China 1,204 151 5 190 200 - 1,750
Brazil 602 931 317 20 - 4 1,874
United States of America - 103 - 374 - 20 497
Americas, except United States and Brazil - 228 - 264 101 - 593
Germany 157 84 - 177 194 - 612
Europe, except Germany 506 52 - 299 598 21 1,476
Middle East, Africa, and Oceania 7 1,278 - 15 - - 1,300
Net operating revenue 12,021 2,979 323 1,703 1,279 74 18,379

 

  Six-month period ended June 30, 2023
  Iron Solutions Energy Transition Metals    
  Iron ore Iron ore pellets Other ferrous products and services Nickel and other products Copper Other Total
China 7,639 2 - 295 109 - 8,045
Japan 1,102 106 - 305 - - 1,513
Asia, except Japan and China 922 108 5 367 44 - 1,446
Brazil 722 874 229 37 - 51 1,913
United States of America - 183 - 759 - - 942
Americas, except United States and Brazil 1 248 - 266 2 - 517
Germany 138 33 1 297 253 - 722
Europe, except Germany 693 258 - 543 574 - 2,068
Middle East, Africa, and Oceania - 923 - 18 - - 941
Net operating revenue 11,217 2,735 235 2,887 982 51 18,107

 

No customer individually represented 10% or more of the Company’s revenues in the periods presented above.

 

c) Assets by segment

 

               
  June 30, 2024 December 31, 2023
  Iron Solutions Energy Transition Metals Other Total Iron Solutions Energy Transition Metals Other Total
Investments in associates and joint ventures 1,320 1,910 485 3,715 1,349 - 523 1,872
Property, plant and equipment and intangibles 34,598 17,483 2,696 54,777 38,376 18,341 3,310 60,027

 

                 
  Three-month period ended June 30,
  2024 2023
  Iron Solutions Energy Transition Metals Other Total Iron Solutions Energy Transition Metals Other Total
Capital expenditures                
Sustaining capital (i) 613 372 15 1,000 472 326 34 832
Project execution 293 33 2 328 255 95 26 376
Total capital expenditures 906 405 17 1,328 727 421 60 1,208

 

                 
  Six-month period ended June 30,
  2024 2023
  Iron Solutions Energy Transition Metals Other Total Iron Solutions Energy Transition Metals Other Total
Capital expenditures                
Sustaining capital (i) 1,294 700 34 2,028 984 589 63 1,636
Project execution 613 72 10 695 491 167 44 702
Total capital expenditures 1,907 772 44 2,723 1,475 756 107 2,338

 

(i) According to the Company's shareholders remuneration policy, minimum remuneration to Vale shareholders are calculated based on 30% of the adjusted EBITDA less sustaining capital investments.

 

d) Assets by geographic area

 

               
  June 30, 2024 December 31, 2023
  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 1,805 8,451 30,317 40,573 1,872 9,822 33,769 45,463
Canada - 1,742 11,703 13,445 - 1,808 11,890 13,698
Americas, except Brazil and Canada - - 4 4 - - 4 4
Indonesia 1,910 - 57 1,967 - - 59 59
China - 1 10 11 - 1 14 15
Asia, except Indonesia and China - - 672 672 - - 731 731
Europe - - 603 603 - - 678 678
Oman - 1 1,216 1,217 - - 1,251 1,251
Total 3,715 10,195 44,582 58,492 1,872 11,631 48,396 61,899