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Leases
 12 Months Ended
Dec. 31, 2024
Disclosure Leases Abstract  
Leases

25. Leases

 

a) Right of use

 

             
  December 31, 2023 Additions and contract modifications Depreciation Acquisition of Aliança Energia Deconsolidation of VODC Translation adjustment December 31, 2024
Ports 628 3 (44) - (525) (11) 51
Vessels 415 - (62) - - - 353
Pelletizing plants 193 - (48) - - (36) 109
Properties 80 49 (20) 4 - (19) 94
Energy plants 34 - (5) - - (1) 28
Other 9 31 (8) - - (7) 25
Total 1,359 83 (187) 4 (525) (74) 660

 

b) Leases liabilities

 

               
  December 31, 2023 Additions and contract modifications Payments (i) Interest Acquisition of Aliança Energia Deconsolidation of VODC Translation adjustment December 31, 2024
Ports 682 3 (63) 19 - (583) (4) 54
Vessels 397 - (55) 14 - - - 356
Pelletizing plants 207 - (46) 8 - - (43) 126
Properties 102 49 (24) 4 4 - (28) 107
Energy plants 49 - (6) 3 - - (3) 43
Other 15 31 (8) 1 - - (12) 27
Total 1,452 83 (202) 49 4 (583) (90) 713
Current liabilities 197             147
Non-current liabilities 1,255             566
Total 1,452             713

 

(i)The total amount of the variable lease payments not included in the measurement of lease liabilities was US$253 recorded in the income statement for the year ended December 31, 2024, (2023: US$112 and 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.

 

                               
    2025   2026   2027   2028   2029 onwards   Total   Remaining term (years)   Discount rate
Ports   25   12   1   1   18   57   2 to 18   4% to 5%
Vessels   59   54   53   51   188   405   1 to 8    3% to 4%
Pelletizing plants   39   13   13   13   63   141   1 to 8    2% to 6%
Properties   15   14   12   12   22   75   1 to 14    2% to 6%
Energy plants   8   6   5   5   33   57   2 to 5    5% to 6%
Other   9   6   3   3   1   22   1 to 4    3% to 6%
Total   155   105   87   85   325   757        

 

 

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.

 

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.