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Information by business segment and geographic area
 12 Months Ended
Dec. 31, 2024
Notes and other explanatory information [abstract]  
Information by business segment and geographic area

5. Information by business segment and geographic area

 

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 15) excluding (i) net finance costs; (ii) depreciation, depletion, and amortization; (iii) taxation and (iv) (impairment), reversal of impairment and gains (losses) on disposal of non-current assets, net.

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), reversal of impairment and gains (losses) on disposal of non-current assets, net and other. The comparative information in these 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, due to the sale of noncontrolling interest in this segment (note 17e), 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 year ended December 31, 2024.

Segment Main activities
Iron Solutions Comprise the extraction and production of iron ore, iron ore pellets, briquettes, 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 (note 17l) Comprise the extraction and production of metallurgical and thermal coal and its logistic related services.
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 decharacterization of dams and asset retirement obligations.

 

a) Adjusted EBITDA

 

       
    Year ended December 31,
  Notes 2024 2023 (revised) 2022 (revised)
Iron ore   11,598 15,205 15,929
Iron ore pellets   3,166 3,136 3,758
Other ferrous products and services   321 473 410
Iron Solutions   15,085 18,814 20,097
         
Nickel   114 851 1,924
Copper   1,521 1,100 569
Other energy transition metals   (182) 12 -
Energy Transition Metals   1,453 1,963 2,493
         
Other (i)   (1,698) (2,176) (2,210)
         
Adjusted EBITDA from continuing operations   14,840 18,601 20,380
         
Depreciation, depletion and amortization   (3,057) (3,070) (3,171)
(Impairment), reversal of impairment and gains (losses) on disposal of non-current assets, net and other (ii) 17 and 20 (55) (482) 773
EBITDA from associates and joint ventures   (940) (844) (774)
Operating income   10,788 14,205 17,208
         
Equity results and other results in associates and joint ventures 16 (269) (1,108) 305
Financial results, net 7 (3,823) (1,946) 2,268
Income before income taxes from continuing operations   6,696 11,151 19,781

 

(i)Includes US$145 related to expenses of Vale Base Metals Limited that were not allocated to the operating segment for the year ended December 31, 2024.
(ii)Includes an adjustment of US$356 for the year ended December 31, 2024 (2023: US$216), to reflect the performance of streaming transactions at market prices.

 

         
    Year ended December 31,
  Notes 2024 2023 2022
Adjusted EBITDA from discontinued operations (coal)   - - 171
         
(Impairment), reversal of impairment and gains (losses) on disposal of non-current assets, net   - - (589)
Operating loss 17(l) - - (418)
         
Financial results, net   - - 3,065
Derecognition of noncontrolling interest   - - (585)
Net income from discontinued operations (coal) 17(l) - - 2,062

 

b) Net operating revenue by shipment destination

 

                 
  Year ended December 31, 2024
  Iron Solutions Energy Transition Metals Net operating revenue
  Iron ore Iron ore pellets Other ferrous products and services Total Iron Solutions Nickel and other products Copper Other energy transition metals Total Energy Transition Metals
China (i) 18,157 - - 18,157 432 717 69 1,218 19,375
Japan 2,380 278 2 2,660 360 - 30 390 3,050
Asia, except Japan and China 2,040 378 11 2,429 381 77 - 458 2,887
Brazil 1,085 1,706 704 3,495 50 - 20 70 3,565
United States of America 26 172 - 198 855 - 22 877 1,075
Americas, except United States and Brazil - 443 1 444 429 97 - 526 970
Germany 316 188 - 504 401 562 - 963 1,467
Europe, except Germany 794 146 - 940 727 1,352 - 2,079 3,019
Middle East, Africa, and Oceania 7 2,610 - 2,617 31 - - 31 2,648
Net operating revenue 24,805 5,921 718 31,444 3,666 2,805 141 6,612 38,056

  

 

  Year ended December 31, 2023
  Iron Solutions Energy Transition Metals Other Net operating revenue
  Iron ore Iron ore pellets Other ferrous products and services Total Nickel and other products Copper Total
China (i) 21,061 2 - 21,063 693 454 1,147 - 22,210
Japan 2,356 279 1 2,636 583 - 583 - 3,219
Asia, except Japan and China 1,691 407 10 2,108 462 105 567 - 2,675
Brazil 1,370 1,684 502 3,556 63 - 63 136 3,755
United States of America - 262 - 262 1,361 - 1,361 - 1,623
Americas, except United States and Brazil 1 398 1 400 456 41 497 - 897
Germany 244 55 2 301 458 592 1,050 - 1,351
Europe, except Germany 1,037 374 - 1,411 1,082 1,184 2,266 - 3,677
Middle East, Africa, and Oceania - 2,342 - 2,342 35 - 35 - 2,377
Net operating revenue 27,760 5,803 516 34,079 5,193 2,376 7,569 136 41,784

 

  Year ended December 31, 2022
  Iron Solutions Energy Transition Metals Other Net operating revenue
  Iron ore Iron ore pellets Other ferrous products and services Total Nickel and other products Copper Total
China (i) 21,021 41 7 21,069 1,627 128 1,755 - 22,824
Japan 2,557 208 - 2,765 765 5 770 - 3,535
Asia, except Japan and China 1,552 393 13 1,958 395 98 493 47 2,498
Brazil 1,305 1,997 447 3,749 60 - 60 328 4,137
United States of America - 218 - 218 1,425 - 1,425 - 1,643
Americas, except United States and Brazil - 472 5 477 597 - 597 125 1,199
Germany 357 16 - 373 597 551 1,148 - 1,521
Europe, except Germany 1,396 317 - 1,713 1,126 997 2,123 - 3,836
Middle East, Africa, and Oceania - 2,594 - 2,594 27 - 27 25 2,646
Net operating revenue 28,188 6,256 472 34,916 6,619 1,779 8,398 525 43,839

 

(i)Includes operating revenue of China Mainland in the amount of US$18,556 (2023: US$21,577 and 2022: US$22,203) and Taiwan in the amount of US$819 (2023: US$633 and 2022: US$621).

 

In 2024 and 2022, no customer individually represented 10% or more of the Company's revenue. In 2023, the revenue from a single customer from the Iron Solutions segment totaled US$4,239, individually representing 10% of the Company's total revenue.

 

c) Cost of goods sold and services rendered

 

       
  Year ended December 31,
  2024 2023 2022
Iron ore 12,846 12,357 11,929
Iron ore pellets 2,920 2,759 2,682
Other ferrous products and services 556 335 335
Iron Solutions 16,322 15,451 14,946
       
 Nickel 3,414 4,169 4,541
Copper 1,472 1,357 1,049
Other energy transition metals 154 - -
Energy Transition Metals 5,040 5,526 5,590
       
Other (i) - 196 443
       
  21,362 21,173 20,979
Depreciation, depletion and amortization 2,903 2,916 3,049
Cost of goods sold and services rendered 24,265 24,089 24,028

  

(i)It includes costs of the Midwestern system (note 17i) and the discontinued operation of coal (note 17l).

 

d) Assets by geographic area

 

 

               
  December 31, 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 2,046 8,847 28,706 39,599 1,872 9,822 33,769 45,463
Canada - 1,666 9,452 11,118 - 1,808 11,890 13,698
Americas, except Brazil and Canada - - 3 3 - - 4 4
Indonesia 1,885 - 61 1,946 - - 59 59
China - 1 4 5 - 1 14 15
Asia, except Indonesia and China - - 654 654 - - 731 731
Europe - - 589 589 - - 678 678
Oman 616 - 515 1,131 - - 1,251 1,251
Total 4,547 10,514 39,984 55,045 1,872 11,631 48,396 61,899

 

 

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.