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PROPERTY, PLANT AND EQUIPMENT
 12 Months Ended
Dec. 31, 2024
Notes and other explanatory information [abstract]  
PROPERTY, PLANT AND EQUIPMENT

 

10.PROPERTY, PLANT AND EQUIPMENT

 

                                   
                                    Consolidated
    Ref.   Land   Buildings and Infrastructure   Machinery, equipment and facilities   Furniture and fixtures   Construction in progress (*)   Right of use (i)   Others (**)   Total
Balance at December 31, 2022        485,107    4,451,114    16,525,293   40,882    4,025,550   644,880    197,619    26,370,445
Cost        485,107    8,741,911    36,373,386    284,863    4,025,550    1,057,566    643,304    51,611,687
Accumulated depreciation         (4,290,797)   (19,848,093)   (243,981)      (412,686)   (445,685)   (25,241,242)
Balance at December 31, 2022        485,107    4,451,114    16,525,293   40,882    4,025,550   644,880    197,619    26,370,445
Effect of foreign exchange differences       (4,586)   (5,859)   (19,497)    (1,877)   (2,973)    (1,667)   (104)   (36,563)
Acquisitions        49,434    45,852    265,728   2,791    4,040,151   73,215   59,035    4,536,206
Capitalized interest    28             182,799            182,799
Write-offs    27   (1,627)   (12,021)   (15,118)   (27)   (82,136)        (6,590)   (117,519)
Depreciation    26     (282,612)   (2,600,210)    (10,245)      (165,952)    (69,220)   (3,128,239)
Transfers to other asset categories        3,025    347,730    3,250,098   13,901   (3,737,635)        122,881  
Transfer between groups - intangible assets and investment property       (6,637)   (21,528)    3,420    101   (13,979)        42   (38,581)
Right of use - Remesurement                   124,310        124,310
Mazet Acquisition       591    9,468    8,281    391          814    19,545
Others         175    1,527        13,353            15,055
Balance at December 31, 2023        525,307    4,532,319    17,419,522   45,917    4,425,130   674,786    304,477    27,927,458
Cost        525,307    9,110,694    39,597,174    297,916    4,425,130    1,126,977    860,818    55,944,016
Accumulated depreciation         (4,578,375)   (22,177,652)   (251,999)      (452,191)   (556,341)   (28,016,558)
Balance at December 31, 2023        525,307    4,532,319    17,419,522   45,917    4,425,130   674,786    304,477    27,927,458
Effect of foreign exchange differences        9,943    14,711    209,148   2,991   (93,527)   14,627    916    158,809
Acquisitions        1,105    19,464    147,439   9,562    5,313,404   14,117   32,533    5,537,624
Capitalized interest    28             206,764            206,764
Write-offs   27       (22,978)   (19)   (37,463)    (855)   (204)   (61,519)
Depreciation    26     (290,195)   (2,981,703)    (11,689)      (231,394)    (54,260)   (3,569,241)
Transfers to other asset categories        57,087    464,518    3,197,335   58,293   (3,839,459)       62,226  
Transfer between groups - intangible assets and investment property        (726)           (73,625)       (838)   (75,189)
Right of use - Remesurement                   285,533        285,533
Others          31,695   303       (19,888)       3,674    15,784
Balance at December 31, 2024        592,716    4,772,512    17,969,066    105,055    5,881,336   756,814    348,524    30,426,023
Cost        592,716    9,664,220    43,110,825    372,094    5,881,336    1,269,089    922,119    61,812,399
Accumulated depreciation         (4,891,708)   (25,141,759)   (267,039)      (512,275)   (573,595)   (31,386,376)
Balance at December 31, 2024        592,716    4,772,512    17,969,066    105,055    5,881,336   756,814    348,524    30,426,023

 

(*) Highlights of project advancements include: (i) business expansion, mainly port expansion in Itaguaí and Casa de Pedra, Itabirito project and tailings recovery (ii) new integrated cement plant projects and (iii) comprehensive overhaul of blast furnace and coke batteries at Presidente Vargas Plant.
(**) Refer substantially to assets classified as vehicles and hardware.

 

The estimated average useful lives are as follows (in years):

     
      Consolidated
  12/31/2024   12/31/2023
Buildings and Infrastructure 33   33
Machinery, equipment and facilities 17   18
Furniture and fixtures 10   11
Others 10   10

 

(i)Right of use

 

Below are the changes in the right of use:

 

                 
                  Consolidated
  Land   Buildings and Infrastructure   Machinery, equipment and facilities   Others   Total
Balance at December 31, 2022 465,048    62,431   83,161    34,240   644,880
Cost 548,756   107,782   277,865   123,164   1,057,567
Accumulated depreciation  (83,708)   (45,351)    (194,704)    (88,924)    (412,687)
Balance at December 31, 2022 465,048    62,431   83,161    34,240   644,880
Effect of foreign exchange differences      (503)    (340)    (824)    (1,667)
Addition 65,081    4,400        3,734   73,215
Remesurement 16,704    37,506   64,755    5,345   124,310
Depreciation   (31,751)   (18,116)    (97,181)    (18,904)    (165,952)
Transfers to other asset categories (2,159)   339   3,754   (1,934)    
Balance at December 31, 2023 512,923   86,057   54,149   21,657    674,786
Cost  629,004   143,926    254,640    99,407   1,126,977
Accumulated depreciation (116,081)    (57,869)   (200,491)   (77,750)   (452,191)
Balance at December 31, 2023 512,923   86,057   54,149   21,657    674,786
Effect of foreign exchange differences     9,939   2,209   2,479    14,627
Addition 4,272       6,549   3,296    14,117
Remesurement 58,103   3,627    202,990    20,813    285,533
Depreciation   (38,290)    (16,511)   (150,430)   (26,163)   (231,394)
Write-offs         (855)       (855)
Balance at December 31, 2024 537,008   83,112   114,612   22,082    756,814
Cost  655,481   150,311    360,925    102,372   1,269,089
Accumulated depreciation (118,473)    (67,199)   (246,313)   (80,290)   (512,275)
Balance at December 31, 2024 537,008   83,112   114,612   22,082    756,814

 

 

Accounting Policy

 

Property, plant and equipment are recorded at acquisition, formation, or construction cost less depreciation or accumulated depletion and impairment. Depreciation is calculated using the linear method based on the remaining useful life of the assets or the contract term, whichever is shorter. The exhaustion of mines is calculated based on the quantity of ore extracted and lands are not depreciated since they are considered to have an indefinite useful life. Other expenses are posted to the expense account when incurred.

 

·Capitalized interest

 

Borrowing costs directly attributable to the acquisition, construction, and/or production of qualifying assets are capitalized as part of the asset cost when it is probable that they will result in future economic benefits and when they are ready to perform their functions according to the Company's intended purpose.

 

·Costs of Development of New Ore Deposits

 

Costs for the development of new ore deposits, or for the expansion of the capacity of mines in operation are capitalized and amortized using the produced (extracted) units method based on probable and proven quantities of ore.

 

·Expenses with Exploration

 

Exploration expenses are recognized as expenses until the viability of the mining activity is established after this period, subsequent costs are capitalized.

 

·Overburden Removal Expenses

 

Expenses incurred during the mine development phase, before the production phase, are recorded as part of the depreciable development costs. Subsequently, these costs are amortized during the mine's useful life based on probable and proven reserves.

 

·Overburden Costs

 

The overburden costs incurred in the production phase are added to the inventory value, except when a specific extraction campaign is carried out to access deeper deposits of the ore body. In this case, costs are capitalized and classified in non-current assets and are amortized over the life of the mine.