XML 36 R17.htm IDEA: XBRL DOCUMENT
v3.21.1

11. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended
--- | ---
Dec. 31, 2020
Property, plant and equipment [abstract] |
PROPERTY, PLANT AND EQUIPMENT |
11. | PROPERTY, PLANT AND EQUIPMENT
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
| Land |  | Buildings and Infrastructure |  | Machinery, equipment and facilities |  | Furniture and fixtures |  | Construction in progress |  | Right of use (i) |  | Other (*) |  | Total
Balance at December 31, 2019 | 226,949 |  | 3,062,238 |  | 12,603,619 |  | 28,455 |  | 3,217,052 |  | 472,345 |  | 90,286 |  | 19,700,944
Cost | 226,949 |  | 4,250,471 |  | 24,372,514 |  | 170,229 |  | 3,217,052 |  | 531,044 |  | 386,144 |  | 33,154,403
Accumulated depreciation |  |  | (1,188,233) |  | (11,768,895) |  | (141,774) |  |  |  | (58,699) |  | (295,858) |  | (13,453,459)
Balance at December 31, 2019 | 226,949 |  | 3,062,238 |  | 12,603,619 |  | 28,455 |  | 3,217,052 |  | 472,345 |  | 90,286 |  | 19,700,944
Effect of foreign exchange differences | 30,271 |  | 57,838 |  | 186,591 |  | 2,416 |  | 4,727 |  | 4,329 |  | 1,823 |  | 287,995
Acquisitions | 654 |  | 865 |  | 122,744 |  | 874 |  | 1,583,054 |  | 49,934 |  | 4,156 |  | 1,762,281
Capitalized interest (1) (notes 28 and 33) |  |  |  |  |  |  |  |  | 92,506 |  |  |  |  |  | 92,506
Write-offs (note 27) | (188) |  |  |  | (3,073) |  | (33) |  | (9) |  | (7,318) |  | (2,377) |  | (12,998)
Depreciation (note 26) | (458) |  | (780,395) |  | (1,564,525) |  | (6,747) |  |  |  | (62,680) |  | (24,517) |  | (2,439,322)
Transfers to other asset categories | 458 |  | 67,574 |  | 1,112,024 |  | 1,338 |  | (1,212,373) |  |  |  | 30,979 |  |
Transfers to intangible assets |  |  |  |  |  |  |  |  | (4,633) |  |  |  |  |  | (4,633)
Right of use - Remesurement |  |  |  |  |  |  |  |  |  |  | 60,058 |  |  |  | 60,058
Update of the ARO (Asset retirement obligation) |  |  | 269,445 |  |  |  |  |  |  |  |  |  |  |  | 269,445
Others |  |  |  |  | 3 |  | (6) |  | (2) |  |  |  | (48) |  | (53)
Balance at December 31, 2020 | 257,686 |  | 2,677,565 |  | 12,457,383 |  | 26,297 |  | 3,680,322 |  | 516,668 |  | 100,302 |  | 19,716,223
Cost | 257,686 |  | 4,752,412 |  | 26,213,225 |  | 182,974 |  | 3,680,322 |  | 634,786 |  | 414,705 |  | 36,136,110
Accumulated depreciation |  |  | (2,074,847) |  | (13,755,842) |  | (156,677) |  |  |  | (118,118) |  | (314,403) |  | (16,419,887)
Balance at December 31, 2020 | 257,686 |  | 2,677,565 |  | 12,457,383 |  | 26,297 |  | 3,680,322 |  | 516,668 |  | 100,302 |  | 19,716,223
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
| Land |  | Buildings and Infrastructure |  | Machinery, equipment and facilities |  | Furniture and fixtures |  | Construction in progress |  | Right of use (i) |  | Other (*) |  | Total
Balance at December 31, 2018 | 287,854 |  | 2,678,638 |  | 11,687,271 |  | 30,530 |  | 3,282,436 |  | - |  | 80,135 |  | 18,046,864
Cost | 287,854 |  | 3,751,429 |  | 22,426,782 |  | 165,331 |  | 3,282,436 |  | - |  | 355,768 |  | 30,269,600
Accumulated depreciation |  |  | (1,072,791) |  | (10,739,511) |  | (134,801) |  |  |  |  |  | (275,633) |  | (12,222,736)
Balance at December 31, 2018 | 287,854 |  | 2,678,638 |  | 11,687,271 |  | 30,530 |  | 3,282,436 |  | - |  | 80,135 |  | 18,046,864
Effect of foreign exchange differences | 1,499 |  | 2,978 |  | 8,033 |  | 106 |  | 2,464 |  |  |  | 56 |  | 15,136
Acquisitions | 6,125 |  | 16,116 |  | 459,460 |  | 1,763 |  | 1,924,520 |  | 43,111 |  | 41,574 |  | 2,492,669
Capitalized interest (1) (notes 28 and 33) |  |  | 13.0 |  |  |  |  |  | 117,176 |  | - |  |  |  | 117,189
Write-offs (note 27) | (2,143) |  | (130) |  | (80,426) |  | (1) |  | (30,400) |  | (1,354) |  | (149) |  | (114,603)
Depreciation (note 26) |  |  | (135,313) |  | (1,241,026) |  | (5,999) |  |  |  | (58,843) |  | (25,038) |  | (1,466,219)
Transfers to other asset categories | 790 |  | 294,872 |  | 1,766,047 |  | 2,629 |  | (2,053,290) |  | - |  | (11,048) |  | -
Transfers to intangible assets |  |  | (31) |  | - |  | - |  | (11,865) |  | - |  | - |  | (11,896)
Right of use - initial recognition |  |  |  |  | - |  | - |  | - |  | 640,989 |  | - |  | 640,989
Right of use - Remesurement |  |  |  |  | - |  | - |  | - |  | (151,558) |  | - |  | (151,558)
Update of the ARO (Asset retirement obligation) |  |  | 225,125 |  | - |  | - |  | - |  | - |  | - |  | 225,125
Transfers to investment property | (67,176) |  | (20,030) |  | - |  | - |  | (13,989) |  | - |  | - |  | (101,195)
Consolidation CBSI |  |  |  |  | 4,940 |  | (573) |  | - |  | - |  | 4,756 |  | 9,123
Others |  |  |  |  | (680) |  | - |  | - |  | - |  | - |  | (680)
Balance at December 31, 2019 | 226,949 |  | 3,062,238 |  | 12,603,619 |  | 28,455 |  | 3,217,052 |  | 472,345 |  | 90,286 |  | 19,700,944
Cost | 226,949 |  | 4,250,471 |  | 24,372,514 |  | 170,229 |  | 3,217,052 |  | 531,044 |  | 386,144 |  | 33,154,403
Accumulated depreciation |  |  | (1,188,233) |  | (11,768,895) |  | (141,774) |  |  |  | (58,699.0) |  | (295,858) |  | (13,453,459)
Balance at December 31, 2019 | 226,949 |  | 3,062,238 |  | 12,603,619 |  | 28,455 |  | 3,217,052 |  | 472,345 |  | 90,286 |  | 19,700,944
(*) Refer substantially to: i) in the consolidated picture: assets for railway use, such as yards, rails, mines and dormant;
(1) | The cost of capitalized interest is calculated, basically, for Mining projects that substantially refer to the expansion of Casa de Pedra (MG) and TECAR (RJ) - see notes 28 and 33. The average rate used for the capitalization of interest on non-specific projects in the period ended December 31 2020 was 5.62% per year (6.58% per year as of December 31, 2019).
(i) | Right of use
Below the movements of the right of use recognized on December 31, 2020 and 2019:
|  |  |  |  |  |  |  |  | Consolidated
| Land |  | Buildings and Infrastructure |  | Machinery, equipment and facilities |  | Others |  | Total
Balance at December 31, 2019 | 380,566 |  | 64,154 |  | 24,144 |  | 3,481 |  | 472,345
Cost | 401,746 |  | 73,344 |  | 39,455 |  | 16,499 |  | 531,044
Accumulated depreciation | (21,180) |  | (9,190) |  | (15,311) |  | (13,018) |  | (58,699)
Balance at December 31, 2019 | 380,566 |  | 64,154 |  | 24,144 |  | 3,481 |  | 472,345
Effect of foreign exchange differences |  |  | 988 |  | 294 |  | 3,047 |  | 4,329
Addition | 9,039 |  | 4,561 |  | 23,720 |  | 12,614 |  | 49,934
Remesurement | 34,645 |  | 3,827 |  | 21,557 |  | 29 |  | 60,058
Depreciation | (24,467) |  | (983) |  | (14,211) |  | (23,019) |  | (62,680)
Write-offs | (6,580) |  | (399) |  |  |  | (339) |  | (7,318)
Transfers to other asset categories | (188) |  | (6,062) |  | (3,558) |  | 9,808 |  |
Balance at December 31, 2020 | 393,015 |  | 66,086 |  | 51,946 |  | 5,621 |  | 516,668
Cost | 434,689 |  | 75,882 |  | 81,598 |  | 42,617 |  | 634,786
Accumulated depreciation | (41,674) |  | (9,796) |  | (29,652) |  | (36,996) |  | (118,118)
Balance at December 31, 2020 | 393,015 |  | 66,086 |  | 51,946 |  | 5,621 |  | 516,668
|  |  |  |  |  |  |  |  | Consolidated
| Land |  | Buildings and Infrastructure |  | Machinery, equipment and facilities |  | Other |  | Total
Initial recognition – Rights of use | 556,133 |  | 54,513 |  | 9,783 |  | 20,560 |  | 640,989
Addition |  |  | 6,719 |  | 34,197 |  | 2,195 |  | 43,111
Remeasurement | (152,915) |  | 12,112 |  | (4,525) |  | (6,230) |  | (151,558)
Depreciation | (21,314) |  | (9,190) |  | (15,311) |  | (13,028) |  | (58,843)
Write-off | (1,338) |  |  |  |  |  | (16) |  | (1,354)
Balance at December 31, 2019 | 380,566 |  | 64,154 |  | 24,144 |  | 3,481 |  | 472,345
Cost | 401,746 |  | 73,344 |  | 39,455 |  | 16,499 |  | 531,044
Accumulated depreciation | (21,180) |  | (9,190) |  | (15,311) |  | (13,018) |  | (58,699)
Balance at December 31, 2019 | 380,566 |  | 64,154 |  | 24,144 |  | 3,481 |  | 472,345
The average estimated useful lives for the years are as follows (in years):
|  |  | Consolidated
| 12/31/2020 |  | 12/31/2019
Buildings and Infrastructure(1) | 34 |  | 38
Machinery, equipment and facilities | 20 |  | 21
Furniture and fixtures | 12 |  | 12
Others | 10 |  | 14
(1) The decrease was caused by the review of the useful lives of dams infrastructure as a result of technical and functional obsolescence recorded in 2020 as a result of the use of filter and stack dry tailings in our iron ore production. Accounting Policy Property, plant and equipment are carried at cost of acquisition, formation or construction, less accumulated depreciation or depletion and any impairment loss. Depreciation is calculated under the straight-line method based on the remaining economic useful economic lives of assets, as mentioned in note 9. The depletion of mines is calculated based on the quantity of ore mined. Land is not depreciated since their useful life is considered indefinite. However, if the tangible assets are mine-specific, that is, used in the mining activity, they are depreciated over the shorter between the normal useful lives of such assets and the useful life of the mine. The Company recognizes in the carrying amount of property, plant and equipment the cost of replacement, and consequently reducing the carrying amount of the part that is replaced if it is probable that future economic benefits embodied therein will revert to the Company, and if the cost of the asset can be reliably measured. All other disbursements are expensed as incurred.
| • | Capitalized interest
Borrowing costs directly attributable to the acquisition, construction and or production of qualifying assets are capitalized as part of the cost of the asset when it is probable that they will result in future economic benefits and until these projects are completed.
| • | Development Costs of New Ore Deposits
Costs for the development of new ore deposits, or for the expansion of the capacity of the mines in operation are capitalized and amortized by the method of units produced (extracted) based on the probable and proven quantities of ore.
| • | Operating Expenses
Exploration expenses are recognized as expenses until the viability of the mining activity is established; after that period, subsequent costs are capitalized.
| • | Waste Removal Costs
Expenses incurred during the development phase of a mine, prior to the production phase, are accounted for as part of the depreciable development costs. Subsequently, these costs are amortized over the useful life of the mine based on probable and proven reserves.
| • | Sterile Costs
The waste disposal costs incurred in the production phase are added to the stock value, except when a specific extraction campaign is carried out to access deeper deposits of the deposit. In this case, costs are capitalized and classified in non-current assets and are amortized over the useful life of the deposit.

X
- Definition The entire disclosure for property, plant and equipment. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 16 -IssueDate 2020-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=16&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IAS16_g73-79_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfPropertyPlantAndEquipmentExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_PropertyPlantAndEquipmentAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration