07/29/2021 | Press release | Distributed by Public on 07/29/2021 05:29

Interim Financial Statements (Form 6-K)

Interim Financial Statements June 30, 2021

IFRS in US$

Vale S.A. Interim Financial Statements

Contents

	Page
Report of Independent Registered Public Accounting Firm	2
Consolidated Income Statement	3
Consolidated Statement of Comprehensive Income	4
Consolidated Statement of Cash Flows	5
Consolidated Statement of Financial Position	6
Consolidated Statement of Changes in Equity	7
Notes to the Interim Financial Statements	8
1.Corporate information	8
2. Basis of preparation of the interim financial statements	8
3. Significant events in the current period	9
4.Information by business segment and by geographic area	9
5.Costs and expenses by nature	14
6.Financial results	15
7.Income taxes	15
8.Basic and diluted earnings per share	16
9.Accounts receivable	17
10.Inventories	17
11.Other financial assets and liabilities	17
12.Acquisitions and divestitures	18
13.Investments in subsidiaries, associates and joint ventures	20
14.Intangibles	21
15.Property, plant and equipment	22
16.Financial and capital risk management	23
17.Financial assets and liabilities	30
18.Participative stockholders' debentures	31
19.Loans, borrowings, leases, cash and cash equivalents and short-term investments	32
20.Brumadinho's dam failure	34
21.Liabilities related to associates and joint ventures	38
22.Provisions	41
23.Litigations	41
24.Employee benefits	43
25.Stockholders' equity	44
26.Related parties	45

Report of Independent registered Public Accounting Firm

To the Stockholders and Board of Directors of

Vale S.A.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated statement of financial position of Vale S.A. and its subsidiaries (the 'Company') as of June 30, 2021, and the related consolidated income statement, consolidated statement of comprehensive income and consolidated statement of cash flows for the three and six-month periods ended June 30, 2021 and June 30, 2020, and the consolidated statement of changes in equity for the six-month periods ended June 30, 2021 and June 30, 2020, including the related notes (collectively referred to as the 'interim financial statements'). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statement of financial position of the Company as of December 31, 2020, and the related consolidated income statement and consolidated statements of comprehensive income, changes in equity and of cash flows for the year then ended (not presented herein), and in our report dated February 25, 2021, which included a paragraph describing a change in the manner of accounting for leases on January 1, 2019, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of financial position as of December 31, 2020, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ PricewaterhouseCoopers

Auditores Independentes

Rio de Janeiro, RJ, Brazil

July 28, 2021

PricewaterhouseCoopers Auditores Independentes, Rua do Russel 804, Edifício Manchete, 6º e 7º andares, Rio de Janeiro, RJ, Brasil 22210-907, T: (21) 3232-6112, F: (21) 3232-6113, www.pwc.com/br

Consolidated Income Statement

In millions of United States dollars, except earnings per share data

					Three-month period ended June 30,			Six-month period ended June 30,
		Notes			2021			2020			2021			2020
Net operating revenue		4	(c)			16,675				7,518				29,320				14,487
Cost of goods sold and services rendered		5	(a)			(5,805	)			(4,212	)			(10,432	)			(8,490	)
Gross profit						10,870				3,306				18,888				5,997
Operating expenses
Selling and administrative expenses		5	(b)			(133	)			(124	)			(238	)			(239	)
Research and evaluation expenses						(141	)			(90	)			(241	)			(185	)
Pre-operating and operational stoppage		20				(191	)			(238	)			(336	)			(506	)
Brumadinho event		20				(185	)			(130	)			(300	)			(289	)
Other operating expenses, net		5	(c)			(74	)			(237	)			(86	)			(299	)
						(724	)			(819	)			(1,201	)			(1,518	)
Impairment and disposals of non-current assets		12 and 15				(432	)			(403	)			(593	)			(432	)
Operating income						9,714				2,084				17,094				4,047
Financial income		6				86				135				160				242
Financial expenses		6				(177	)			(585	)			(1,563	)			(1,110	)
Other financial items, net		6				441				(35	)			1,676				(1,902	)
Equity results and other results in associates and joint ventures		13 and 21				(454	)			(535	)			(470	)			(701	)
Income before income taxes						9,610				1,064				16,897				576
Income taxes		7	(b)
Current tax						(1,201	)			(326	)			(2,716	)			(673	)
Deferred tax						(872	)			181				(1,167	)			1,177
						(2,073	)			(145	)			(3,883	)			504
Net income						7,537				919				13,014				1,080
Loss attributable to non-controlling interests						(49	)			(76	)			(118	)			(154	)
Net income attributable to Vale's stockholders						7,586				995				13,132				1,234
Earnings per share attributable to Vale's stockholders:
Basic and diluted earnings per share:		8
Common share (US$)						1.49				0.19				2.57				0.24

The accompanying notes are an integral part of these interim financial statements.

Consolidated Statement of Comprehensive Income

In millions of United States dollars

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Net income			7,537				919				13,014				1,080
Other comprehensive income (loss):
Items that will not be reclassified to the income statement
Translation adjustments			5,233				(1,786	)			1,885				(11,249	)
Retirement benefit obligations (note 24)			25				(209	)			316				(200	)
Fair value adjustment to investment in equity securities			(82	)			39				193				(209	)
Total items that will not be reclassified to the income statement, net of tax			5,176				(1,956	)			2,394				(11,658	)
Items that may be reclassified to the income statement
Translation adjustments			(2,762	)			885				(756	)			5,128
Net investments hedge (note 16)			202				(119	)			42				(639	)
Net cash flow hedge (note 16)			(35	)			(49	)			(26	)			15
Reclassification of cumulative translation adjustment to net income (note 12)			(424	)			-				(1,542	)			-
Total items that may be reclassified to the income statement, net of tax			(3,019	)			717				(2,282	)			4,504
Total comprehensive income (loss)			9,694				(320	)			13,126				(6,074	)
Comprehensive loss attributable to non-controlling interests			(47	)			(53	)			(116	)			(129	)
Comprehensive income (loss) attributable to Vale's stockholders			9,741				(267	)			13,242				(5,945	)

Items above are stated net of tax and the related taxes are disclosed in note 7.

The accompanying notes are an integral part of these interim financial statements.

Consolidated Statement of Cash Flows

In millions of United States dollars

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Cash flow from operations (a)			9,277				2,111				17,950				4,116
Interest on loans and borrowings paid (note 19)			(138	)			(168	)			(426	)			(412	)
Cash received (paid) on settlement of Derivatives, net (note 16)			60				(114	)			(139	)			159
Interest on participative stockholders' debentures paid (note 18)			(193	)			(95	)			(193	)			(95	)
Income taxes (including the settlement program)			(1,280	)			(398	)			(2,444	)			(747	)
Net cash provided by operating activities			7,726				1,336				14,748				3,021
Cash flow from investing activities:
Capital expenditures (notes 14 and 15)			(1,139	)			(967	)			(2,148	)			(2,091	)
Additions to investments (note 13)			-				-				(42	)			(75	)
Acquisition of NLC, net of cash (note 12)			(2,345	)			-				(2,345	)			-
Cash paid on the disposal of VNC (note 12)			-				-				(555	)			-
Dividends received from associates and joint ventures (note 13)			43				77				43				77
Short-term investment			543				449				(173	)			630
Investment fund applications			-				(96	)			-				(96	)
Other investments activities, net			(189	)			(133	)			(213	)			(186	)
Net cash used in investing activities			(3,087	)			(670	)			(5,433	)			(1,741	)
Cash flow from financing activities:
Loans and borrowings from third-parties (note 19)			10				-				300				5,000
Payments of loans and borrowings from third-parties (note 19)			(179	)			(116	)			(1,412	)			(491	)
Lease payments (note 19)			(49	)			(49	)			(104	)			(99	)
Dividends and interest on capital paid to stockholders (note 25)			(2,208	)			-				(6,092	)			-
Dividends and interest on capital paid to non-controlling interest			(3	)			(5	)			(6	)			(8	)
Share buyback program (note 25)			(2,004	)			-				(2,004	)			-
Net cash used in financing activities			(4,433	)			(170	)			(9,318	)			4,402
Increase (decrease) in cash and cash equivalents			206				496				(3	)			5,682
Cash and cash equivalents at the beginning of the period			12,883				11,788				13,487				7,350
Effects of exchange rate changes on cash and cash equivalents			560				(171	)			165				(919	)
Cash and cash equivalents at end of the period			13,649				12,113				13,649				12,113
Non-cash transactions:
Additions to property, plant and equipment - capitalized loans and borrowing costs			14				12				30				44
Cash flow from operating activities:
Income before income taxes			9,610				1,064				16,897				576
Adjusted for:
Provisions related to Brumadinho event (note 20)			-				21				-				21
Equity results and other results in associates and joint ventures (note 13)			454				535				470				701
Impairment and disposal of non-current assets			432				403				593				432
Depreciation, depletion and amortization			849				807				1,580				1,622
Financial results, net (note 6)			(350	)			485				(273	)			2,770
Changes in assets and liabilities:
Accounts receivable			(1,105	)			(922	)			296				(301	)
Inventories			(188	)			(125	)			(362	)			(352	)
Suppliers and contractors (i)			291				108				35				(566	)
Provision - Payroll, related charges and other remunerations			82				115				(207	)			(93	)
Payments related to Brumadinho event (note 20) (ii)			(303	)			(155	)			(452	)			(371	)
Other assets and liabilities, net			(495	)			(225	)			(627	)			(323	)
Cash flow from operations (a)			9,277				2,111				17,950				4,116

(i) Includes variable lease payments.

(ii) In addition, the Company has incurred in expenses in the amount of US$185 and US$300 for the three and six-month periods ended June 30, 2021, respectively (US$109 and US$268 for the three and six-month periods ended June 30, 2020).

The accompanying notes are an integral part of these interim financial statements.

Consolidated Statement of Financial Position

In millions of United States dollars

		Notes			June 30, 2021			December 31, 2020
Assets
Current assets
Cash and cash equivalents			19				13,649				13,487
Short-term investments			19				951				771
Accounts receivable			9				4,954				4,993
Other financial assets			11				214				329
Inventories			10				4,701				4,061
Recoverable taxes							668				509
Others							266				253
							25,403				24,403
Non-current assets
Judicial deposits			23	(c)			1,326				1,268
Other financial assets			11				1,430				1,784
Recoverable taxes							1,440				1,091
Deferred income taxes			7	(a)			9,338				10,335
Others							701				651
							14,235				15,129
Investments in associates and joint ventures			13				2,197				2,031
Intangibles			14				10,997				9,296
Property, plant and equipment			15				43,884				41,148
							71,313				67,604
Total assets							96,716				92,007
Liabilities
Current liabilities
Suppliers and contractors							3,777				3,367
Loans, borrowings and leases			19				992				1,136
Other financial liabilities			11				1,547				1,906
Taxes payable							1,678				952
Settlement program ('REFIS')			7	(c)			356				340
Liabilities related to associates and joint ventures			21				1,467				876
Provisions			22				1,156				1,826
Liabilities related to Brumadinho			20				2,223				1,910
De-characterization of dams			20				454				381
Dividends payable							27				1,220
Others							658				680
							14,335				14,594
Non-current liabilities
Loans, borrowings and leases			19				12,870				13,891
Participative stockholders' debentures			18				4,687				3,413
Other financial liabilities			11				3,027				4,564
Settlement program ('REFIS')			7	(c)			2,336				2,404
Deferred income taxes			7	(a)			1,985				1,770
Provisions			22				8,003				8,434
Liabilities related to Brumadinho			20				2,268				2,665
De-characterization of dams			20				1,701				1,908
Liabilities related to associates and joint ventures			21				1,024				1,198
Streaming transactions							1,961				2,005
Others							160				340
							40,022				42,592
Total liabilities							54,357				57,186
Stockholders' equity			25
Equity attributable to Vale's stockholders							41,661				35,744
Equity attributable to non-controlling interests							698				(923	)
Total stockholders' equity							42,359				34,821
Total liabilities and stockholders' equity							96,716				92,007

The accompanying notes are an integral part of these interim financial statements.

Consolidated Statement of Changes in Equity

In millions of United States dollars

		Share capital		Capital reserve		Profit reserves		Treasury shares		Other reserves		Cumulative translation adjustments		Retained earnings		Equity attributable to Vale's stockholders		Equity attributable to non-controlling interests		Total stockholders' equity
Balance at December 31, 2020			61,614			1,139			7,042			(2,441	)		(2,056	)		(29,554	)		-			35,744			(923	)		34,821
Net income (loss)			-			-			-			-			-			-			13,132			13,132			(118	)		13,014
Other comprehensive income			-			-			9			-			518			(417	)		-			110			2			112
Dividends and interest on capital of Vale's stockholders (note 25)			-			-			(4,319	)		-			-			-			(724	)		(5,043	)		-			(5,043	)
Dividends of non-controlling interest			-			-			-			-			-			-			-			-			(24	)		(24	)
Acquisition and disposal of non-controlling interest (note 12)			-			-			-			-			(331	)		-			-			(331	)		1,761			1,430
Share buyback program (note 25)			-			-			-			(2,004	)		-			-			-			(2,004	)		-			(2,004	)
Share-based payment (note 24)						-						-			46									46						46
Treasury shares utilized in the period (note 25)			-			-			-			7			-			-			-			7			-			7
Balance at June 30, 2021			61,614			1,139			2,732			(4,438	)		(1,823	)		(29,971	)		12,408			41,661			698			42,359

		Share capital		Capital reserve		Profit reserves		Treasury shares		Other reserves		Cumulative translation adjustments		Retained earnings		Equity attributable to Vale's stockholders		Equity attributable to non-controlling interests		Total stockholders' equity
Balance at December 31, 2019			61,614			1,139			7,090			(2,455	)		(2,110	)		(25,211	)		-			40,067			(1,074	)		38,993
Net income (loss)			-			-			-			-			-			-			1,234			1,234			(154	)		1,080
Other comprehensive income			-			-			(1,871	)		-			(409	)		(4,899	)		-			(7,179	)		25			(7,154	)
Dividends of non-controlling interest			-			-			-			-			-			-			-			-			(5	)		(5	)
Capitalization of non-controlling interest advances			-			-			-			-			-			-			-			-			6			6
Treasury shares utilized in the period (note 25)			-			-			-			14			-			-			-			14			-			14
Balance at June 30, 2020			61,614			1,139			5,219			(2,441	)		(2,519	)		(30,110	)		1,234			34,136			(1,202	)		32,934

The accompanying notes are an integral part of these interim financial statements.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

1. Corporate information

Vale S.A. and its subsidiaries ('Vale' or the 'Company') are iron ore and iron ore pellets producers, which are key raw materials for steelmaking, and nickel producers, which is used to produce stainless steel and metal alloys employed in the production process of several products. The Company also produces copper, metallurgical and thermal coal, manganese ore and, platinum group metals, gold, silver and cobalt. The information by segment is presented in note 4.

Vale S.A. (the 'Parent Company') is a public company headquartered in the city of Rio de Janeiro, Brazil with securities traded on the stock exchanges of São Paulo - B3 S.A. (VALE3), New York - NYSE (VALE) and Madrid - LATIBEX (XVALO).

2. Basis of preparation of the interim financial statements

a) Statement of compliance

The consolidated interim financial statements of the Company ('interim financial statements') have been prepared and are being presented in accordance with IAS 34 Interim Financial Reporting of the International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board ('IASB').

b) Basis of presentation

The interim financial statements have been prepared to update users about relevant events and transactions that occurred in the period and should be read in conjunction with the financial statements for the year ended December 31, 2020. The accounting policies, accounting estimates and judgements, risk management and measurement methods are the same as those applied when preparing the last annual financial statements, except for the change in the accounting practice for the share-based payment plans as disclosed in note 24.

These interim financial statements were authorized for issue by the Executive Board on July 28, 2021.

The interim financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates ('functional currency'), which in the case of the Parent Company is the Brazilian real ('R$'). For presentation purposes, these interim financial statements are presented in United States dollar ('US$') as the Company believes that this is how international investors analyze the interim financial statements.

The exchange rates used by the Company to translate its foreign operations are as follows:

										Average rate
		Closing rate			Three-month period ended			Six-month period ended
		June 30, 2021			December 31, 2020			June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
United States dollar			5.0022				5.1967				5.2907				5.3854				5.3862				4.9218
Canadian dollar ('CAD')			4.0334				4.0771				4.3096				3.8882				4.3209				3.5992
Euro ('EUR')			5.9276				6.3779				6.3789				5.9279				6.4902				5.4211

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

3. Significant events in the current period

The financial position, cash flows and performance of the Company were particularly affected by the following events and transactions during the three-month period ended June 30, 2021:

•	In April 2021, the Company approved a share buyback program for its common shares, limited to a maximum of 270,000,000 common shares and their respective ADRs. Until June 30, 2021, the Company acquired 93,088,200 shares, in the total amount of US$ 2,004 (note 25).

•	In June 2021, the Company approved and paid dividends to its shareholders in the amount of US$2,200 (note 25).

•

In June 2021, the Company paid US$2,517 in relation to the Project Finance and concluded all precedent conditions to acquire the interests held by Mitsui & Co., Ltd ('Mitsui') in both Moatize coal mine and Nacala Logistics Corridor ('NLC'). Following the conclusion of the transaction, the Company has started consolidating NLC on its balance sheet and recognized a loss in the amount of US$771 as 'Impairment and disposals of non-current assets' (note 12).

•

In June 2021, Fundação Renova reviewed the expected cash outflows to comply with the mitigation and compensation programs, which resulted in an addition of US$560 to the provision. This amount was recognized in the income statement as 'Equity results and other results in associates and joint ventures' for the three-month period ended June 30, 2021 (note 21).

•

In June 2021, production and maintenance employees of Sudbury, Canada, represented by United Steelworkers ('USW') voted to reject the Company's offer of a new five-year collective bargaining agreement. As a result, the Company stopped its operation at that location and recognized a loss in the amount of US$59 as 'Pre-operating and operational stoppage'. However, if the strike continues for an extended period of time, the results of that operations may be materially impacted. The Company will continue discussions with USW to reach an agreement as soon as possible in order to resume its operation.

4. Information by business segment and by geographic area

The Company operates the following reportable segments: Ferrous Minerals, Base Metals and Coal. The segments are aligned with products and reflect the structure used by Management to evaluate Company's performance. The responsible bodies for making operational decisions, allocating resources and evaluating performance ('chief operating decision maker' under IFRS 8 - Operating Segments) are the Executive Boards and the Board of Directors. Accordingly, the performance of the operating segments is assessed based on a measure of adjusted EBITDA.

The Company allocates to 'Others' the revenues and cost of other products, services, research and development, investments in joint ventures and associates of other business and unallocated corporate expenses. Additionally, the costs related to the Brumadinho event are not directly linked to the Company's operating activities and, therefore, are allocated to 'Other' as well.

In the current period, the Company has allocated the financial information of Vale Nouvelle-Calédonie SAS ('VNC') operation to 'Others' as this operation is no longer analyzed by the chief operating decision maker as part of to the performance of the Base Metals business segment due to the sale of this operation. The comparative periods were restated to reflect this change in the allocation criteria.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

a) Adjusted EBITDA

The definition of Adjusted EBITDA for the Company is the operating income or loss plus dividends received and interest from associates and joint ventures, and excluding the amounts charged as (i) depreciation, depletion and amortization and (ii) impairment and disposal of non-current assets.

		Three-month period ended June 30, 2021
		Net operating revenue			Cost of goods sold and services rendered			Sales, administrative and other operating expenses			Research and evaluation			Pre operating and operational stoppage			Dividends received and interest from associates and joint ventures			Adjusted EBITDA
Ferrous minerals
Iron ore			12,200				(2,816	)			(61	)			(43	)			(74	)			-				9,206
Iron ore pellets			1,947				(520	)			2				-				(13	)			22				1,438
Ferroalloys and manganese			52				(39	)			(1	)			-				(4	)			-				8
Other ferrous products and services			98				(71	)			1				(1	)			-				-				27
			14,297				(3,446	)			(59	)			(44	)			(91	)			22				10,679
Base metals
Nickel and other products			1,492				(959	)			(25	)			(18	)			(60	)			-				430
Copper			688				(229	)			(1	)			(21	)			(1	)			-				436
			2,180				(1,188	)			(26	)			(39	)			(61	)			-				866
Coal			161				(323	)			-				(2	)			-				-				(164	)
Others			37				(48	)			(96	)			(56	)			-				21				(142	)
			16,675				(5,005	)			(181	)			(141	)			(152	)			43				11,239
Brumadinho event			-				-				(185	)			-				-				-				(185	)
COVID-19			-				-				(16	)			-				-				-				(16	)
Total			16,675				(5,005	)			(382	)			(141	)			(152	)			43				11,038

		Three-month period ended June 30, 2020
		Net operating revenue			Cost of goods sold and services rendered			Sales, administrative and other operating expenses			Research and evaluation			Pre operating and operational stoppage			Dividends received and interest from associates and joint ventures			Adjusted EBITDA
Ferrous minerals
Iron ore			4,852				(1,739	)			(59	)			(25	)			(122	)			-				2,907
Iron ore pellets			900				(377	)			2				(1	)			(17	)			53				560
Ferroalloys and manganese			68				(42	)			-				(1	)			(10	)			-				15
Other ferrous products and services			75				(56	)			1				-				-				-				20
			5,895				(2,214	)			(56	)			(27	)			(149	)			53				3,502
Base metals
Nickel and other products			891				(546	)			(16	)			(9	)			(29	)			-				291
Copper			523				(185	)			(3	)			(15	)			-				-				320
			1,414				(731	)			(19	)			(24	)			(29	)			-				611
Coal			94				(361	)			3				(5	)			-				-				(269	)
Others (i)			115				(172	)			(190	)			(34	)			(1	)			24				(258	)
			7,518				(3,478	)			(262	)			(90	)			(179	)			77				3,586
Brumadinho event			-				-				(130	)			-				-				-				(130	)
COVID-19			-				-				(85	)			-				-				-				(85	)
Total			7,518				(3,478	)			(477	)			(90	)			(179	)			77				3,371

(i) Includes the reclassification of the EBITDA of VNC in the amount of US$48.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

		Six-month period ended June 30, 2021
		Net operating revenue			Cost of goods sold and services rendered			Sales, administrative and other operating expenses			Research and evaluation			Pre operating and operational stoppage			Dividends received and interest from associates and joint ventures			Adjusted EBITDA
Ferrous minerals
Iron ore			21,354				(4,903	)			(83	)			(76	)			(166	)			-				16,126
Iron ore pellets			3,155				(903	)			31				(1	)			(26	)			22				2,278
Ferroalloys and manganese			98				(62	)			(2	)			-				(8	)			-				26
Other ferrous products and services			195				(137	)			3				(1	)			-				-				60
			24,802				(6,005	)			(51	)			(78	)			(200	)			22				18,490
Base metals
Nickel and other products			2,926				(1,730	)			(35	)			(29	)			(60	)			-				1,072
Copper			1,242				(395	)			(1	)			(39	)			(2	)			-				805
			4,168				(2,125	)			(36	)			(68	)			(62	)			-				1,877
Coal			253				(652	)			2				(4	)			-				78				(323	)
Others (i)			97				(162	)			(202	)			(91	)			(1	)			21				(338	)
			29,320				(8,944	)			(287	)			(241	)			(263	)			121				19,706
Brumadinho event			-				-				(300	)			-				-				-				(300	)
COVID-19			-				-				(18	)			-				-				-				(18	)
Total			29,320				(8,944	)			(605	)			(241	)			(263	)			121				19,388

(i) Includes the EBITDA of VNC in the amount of US$65.

		Six-month period ended June 30, 2020
		Net operating revenue			Cost of goods sold and services rendered			Sales, administrative and other operating expenses			Research and evaluation			Pre operating and operational stoppage			Dividends received and interest from associates and joint ventures			Adjusted EBITDA
Ferrous minerals
Iron ore			9,163				(3,422	)			(84	)			(48	)			(291	)			-				5,318
Iron ore pellets			1,752				(789	)			12				(2	)			(42	)			53				984
Ferroalloys and manganese			114				(91	)			-				(1	)			(11	)			-				11
Other ferrous products and services			162				(127	)			2				(1	)			-				-				36
			11,191				(4,429	)			(70	)			(52	)			(344	)			53				6,349
Base metals
Nickel and other products			1,847				(1,074	)			(35	)			(22	)			(29	)			-				687
Copper			906				(392	)			(2	)			(32	)			-				-				480
			2,753				(1,466	)			(37	)			(54	)			(29	)			-				1,167
Coal			242				(735	)			5				(14	)			-				75				(427	)
Others (i)			301				(397	)			(320	)			(65	)			(5	)			24				(462	)
			14,487				(7,027	)			(422	)			(185	)			(378	)			152				6,627
Brumadinho event			-				-				(289	)			-				-				-				(289	)
COVID-19			-				-				(85	)			-				-				-				(85	)
Total			14,487				(7,027	)			(796	)			(185	)			(378	)			152				6,253

(i) Includes the reclassification of the EBITDA of VNC in the amount of US$94.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

Adjusted EBITDA is reconciled to net income as follows:

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Net income attributable to Vale's stockholders			7,586				995				13,132				1,234
Loss attributable to non-controlling interests			(49	)			(76	)			(118	)			(154	)
Net income			7,537				919				13,014				1,080
Depreciation, depletion and amortization			849				807				1,580				1,622
Income taxes			2,073				145				3,883				(504	)
Financial results			(350	)			485				(273	)			2,770
Equity results and other results in associates and joint ventures			454				535				470				701
Dividends received and interest from associates and joint ventures (i)			43				77				121				152
Impairment and disposal of non-current assets			432				403				593				432
Adjusted EBITDA			11,038				3,371				19,388				6,253

(i) Includes the remuneration of the financial instrument of the Coal segment.

b) Assets by segment

		June 30, 2021			December 31, 2020
		Product inventory			Investments in associates and joint ventures			Property, plant and equipment and intangibles (i)			Product inventory			Investments in associates and joint ventures			Property, plant and equipment and intangibles (i)
Ferrous minerals			2,403				1,250				30,567				2,017				1,154				29,436
Base metals			1,288				17				20,155				1,231				18				19,549
Coal (note 12)			89				-				2,342				25				-				-
Others			-				930				1,817				-				859				1,459
Total			3,780				2,197				54,881				3,273				2,031				50,444

		Three-month period ended June 30,
		2021			2020
		Capital expenditures (ii)						Capital expenditures (ii)
		Sustaining capital			Project execution			Depreciation, depletion and amortization			Sustaining capital			Project execution			Depreciation, depletion and amortization
Ferrous minerals			535				113				455				482				59				478
Base metals			357				69				367				295				63				309
Coal (note 12)			36				-				17				31				-				-
Others (iii)			1				28				10				35				2				20
Total			929				210				849				843				124				807

		Six-month period ended June 30,
		2021			2020
		Capital expenditures (ii)						Capital expenditures (ii)
		Sustaining capital			Project execution			Depreciation, depletion and amortization			Sustaining capital			Project execution			Depreciation, depletion and amortization
Ferrous minerals			1,061				195				852				1,018				150				900
Base metals			648				137				684				595				115				651
Coal (note 12)			65				-				17				111				-				19
Others (iii)			12				30				27				98				4				52
Total			1,786				362				1,580				1,822				269				1,622

(i) Goodwill is allocated to ferrous minerals and base metals segments in the amount of US$1,426 and US$1,975 in June 30, 2021 and US$1,373 and US$1,926 in December 31, 2020, respectively.

(ii) Cash outflows.

(iii) Includes the reclassification of VNC under the captions 'Sustaining capital' and 'depreciation, depletion and amortization', in the amount of US$34 and US$8, respectively, for the three-month period ended on June 30, 2020 and in the amount of US$95 and US$26, respectively, for the six-month period ended on June 30, 2020.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

c) Net operating revenue by geographic area

		Three-month period ended June 30, 2021
		Ferrous minerals			Base metals			Coal			Others			Total
Americas, except United States and Brazil			248				130				-				-				378
United States of America			161				288				-				-				449
Germany			154				463				-				-				617
Europe, except Germany			988				581				5				-				1,574
Middle East, Africa and Oceania			672				7				21				-				700
Japan			943				119				20				-				1,082
China			8,665				264				47				-				8,976
Asia, except Japan and China			987				315				66				-				1,368
Brazil			1,479				13				2				37				1,531
Net operating revenue			14,297				2,180				161				37				16,675

		Three-month period ended June 30, 2020
		Ferrous minerals			Base metals			Coal			Others (i)			Total
Americas, except United States and Brazil			14				45				-				57				116
United States of America			29				148				-				-				177
Germany			67				284				-				-				351
Europe, except Germany			223				370				34				-				627
Middle East, Africa and Oceania			280				5				21				-				306
Japan			288				108				-				-				396
China			4,154				166				-				-				4,320
Asia, except Japan and China			417				245				35				-				697
Brazil			423				43				4				58				528
Net operating revenue			5,895				1,414				94				115				7,518

(i) Includes the reclassification of VNC in the amount of US$57.

		Six-month period ended June 30, 2021
		Ferrous minerals			Base metals			Coal			Others (i)			Total
Americas, except United States and Brazil			467				224				-				4				695
United States of America			259				573				-				-				832
Germany			323				929				-				-				1,252
Europe, except Germany			1,579				1,287				23				-				2,889
Middle East, Africa and Oceania			943				7				39				-				989
Japan			1,470				215				20				-				1,705
China			15,458				424				60				-				15,942
Asia, except Japan and China			1,769				473				109				-				2,351
Brazil			2,534				36				2				93				2,665
Net operating revenue			24,802				4,168				253				97				29,320

(i) Includes the revenue of VNC in the amount of US$4.

		Six-month period ended June 30, 2020
		Ferrous minerals			Base metals			Coal			Others (i)			Total
Americas, except United States and Brazil			114				99				-				145				358
United States of America			73				393				-				-				466
Germany			249				478				-				-				727
Europe, except Germany			509				805				81				-				1,395
Middle East, Africa and Oceania			522				13				49				-				584
Japan			665				202				13				-				880
China			7,218				282				16				-				7,516
Asia, except Japan and China			828				401				79				-				1,308
Brazil			1,013				80				4				156				1,253
Net operating revenue			11,191				2,753				242				301				14,487

(i) Includes the reclassification of VNC in the amount of US$145.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

Provisionally priced commodities sales - The commodity price risk arises from volatility of iron ore, nickel, copper and coal prices. The Company is mostly exposed to the fluctuations in the iron ore and copper price (note 16). The selling price of these products can be measured reliably at each period, since the price is quoted in an active market.

The sensitivity of the Company's risk on final settlement of provisionally priced accounts receivables is presented below:

		June 30, 2021
		Thousand metric tons			Provisional price (US$/tonne)			Change		Effect on Revenue
Iron ore			18,155				181.3			+/-10%			329
Copper			65				11,627.7			+/-10%			76

5. Costs and expenses by nature

a) Cost of goods sold and services rendered

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Personnel			444				362				834				775
Materials and services			819				748				1,521				1,553
Fuel oil and gas			267				206				475				485
Maintenance			800				616				1,449				1,286
Royalties			353				168				604				332
Energy			169				147				318				336
Ores acquired from third parties (i)			691				199				1,034				261
Depreciation, depletion and amortization			800				734				1,488				1,463
Freight (ii)			991				691				1,773				1,387
Others			471				341				936				612
Total			5,805				4,212				10,432				8,490
Cost of goods sold			5,663				4,086				10,156				8,203
Cost of services rendered			142				126				276				287
Total			5,805				4,212				10,432				8,490

(i) The increase in 'Ores acquired from third parties' is mainly due to the significant increase in the reference price of iron ore compared to 2020.

(ii) The increase in 'Freight' is mainly due to the significant increase in volumes of CFR sales and higher international freight prices.

Tax on mineral production (Taxa de Fiscalização de Recursos Minerais - 'TFRM') - Several Brazilian states, including Minas Gerais, Pará and Mato Grosso do Sul, impose a TFRM, which is currently assessed at rates ranging from R$0.50 to R$3.72 per metric ton of minerals produced in or transferred from the state. The expenses related to the TFRM are presented in these interim financial statements under 'Royalties'. In March 2021, a state decree increased the TFRM rate in the state of Para to R$11.19 per metric ton, with effectiveness as at April 2021. According to the prior rule, which would expire in 2031, the TFRM rate was R$3.72 per ton until the production of 10 million metric tons and R$0.74 for volumes over than 10 million metric tons. The Company is evaluating in the legal aspects of this change and, based on the Brazilian constitutional principle of mandatory notice period, which sets out the tax increase would become in force only in the subsequent year of its enactment, therefore the Company did not apply this increase in the current period and does not expect any impact for the year ending December 31, 2021. The Company is also evaluating other legal aspects to avoid the overcharge in the future.

b) Selling and administrative expenses

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Selling			25				20				43				37
Personnel			52				40				99				87
Services			22				33				39				51
Depreciation and amortization			10				14				19				31
Others			24				17				38				33
Total			133				124				238				239

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

c) Other operating expenses (income), net

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Provision for litigations			28				44				44				63
Profit sharing program			52				13				75				45
COVID-19 expenses			16				85				18				85
Others (i)			(22	)			95				(51	)			106
Total			74				237				86				299

(i) Includes the gain related to the exclusion of ICMS from the PIS and COFINS computation tax base, as detailed in note 23(e).

6. Financial result

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Financial income
Short-term investments			41				28				68				80
Others			45				107				92				162
			86				135				160				242
Financial expenses
Loans and borrowings gross interest (note 19)			(176	)			(193	)			(383	)			(407	)
Capitalized loans and borrowing costs			14				12				30				44
Participative stockholders' debentures (note 18)			(278	)			(231	)			(1,261	)			(280	)
Interest on REFIS			(10	)			(12	)			(17	)			(37	)
Interest on lease liabilities (note 19)			(16	)			(17	)			(35	)			(35	)
Financial guarantees (i)			401				(31	)			364				(172	)
Expenses with cash tender offer redemption (note 19)			-				-				(63	)			-
Others			(112	)			(113	)			(198	)			(223	)
			(177	)			(585	)			(1,563	)			(1,110	)
Other financial items, net
Net foreign exchange gains (losses)			(390	)			107				(70	)			(357	)
Derivative financial instruments (note 16)			856				(86	)			417				(1,470	)
Reclassification of cumulative translation adjustment on VNC sale (note 12)			-				-				1,132				-
Indexation gains (losses), net			(25	)			(56	)			197				(75	)
			441				(35	)			1,676				(1,902	)
Total			350				(485	)			273				(2,770	)

(i) Refers to the fair value adjustments on financial guarantees given to associates due to their rating improvement, leading to a decrease in the probability of default on the guaranteed loans. Further details are disclosed in note 13.

7. Income taxes

a) Deferred income tax assets and liabilities

		Assets			Liabilities			Deferred taxes, net
Balance at December 31, 2020			10,335				1,770				8,565
Effect in income statement			(1,130	)			37				(1,167	)
Translation adjustment			196				43				153
Other comprehensive income			(63	)			135				(198	)
Balance at June 30, 2021			9,338				1,985				7,353

		Assets			Liabilities			Deferred taxes, net
Balance at December 31, 2019			9,217				1,882				7,335
Effect in income statement			1,121				(56	)			1,177
Translation adjustment			(2,352	)			(127	)			(2,225	)
Other comprehensive income			1,818				(68	)			1,886
Balance at June 30, 2020			9,804				1,631				8,173

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

b) Income tax reconciliation - Income statement

Income tax expense is recognized based on the estimate of the weighted average effective tax rate expected for the full year. The total amount presented as income taxes in the income statement is reconciled to the statutory rate, as follows:

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Income before income taxes			9,610				1,064				16,897				576
Income taxes at statutory rate - 34%			(3,267	)			(362	)			(5,745	)			(196	)
Adjustments that affect the basis of taxes:
Tax incentives			1,163				179				1,618				489
Equity results			36				14				26				(23	)
Addition (reversal) of tax loss carryforward			(63	)			22				(109	)			448
Others			58				2				327				(214	)
Income taxes			(2,073	)			(145	)			(3,883	)			504

Income tax expense is recognized based on the estimate of the weighted average effective tax rate expected for the full year, adjusted for the tax effect of certain items that are recognized in full on the interim tax calculation. Therefore, the effective tax rate in the interim financial statements may differ from management's estimate of the effective tax rate for the year.

c) Income taxes - Settlement program ('REFIS')

		June 30, 2021			December 31, 2020
Current liabilities			356				340
Non-current liabilities			2,336				2,404
REFIS liabilities			2,692				2,744
SELIC rate			4.25% per year				2.00% per year

The balance mainly relates to the settlement program of the claims related to the collection of income tax and social contribution on equity gains of foreign subsidiaries and affiliates from 2003 to 2012. As at June 30, 2021, the balance is due in 88 remaining monthly installments, bearing the SELIC interest rate (Special System for Settlement and Custody), which is the Brazilian federal funds rate.

d) Uncertain tax positions

There have been no developments on matters related to the uncertain tax positions since the December 31, 2020 financial statements.

8.	Basic and diluted earnings per share

The basic and diluted earnings per share are presented below:

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Net income attributable to Vale's stockholders:
Net income			7,586				995				13,132				1,234
Thousands of shares
Weighted average number of shares outstanding - common shares			5,097,908				5,129,911				5,113,959				5,129,254
Basic and diluted earnings per share:
Common share (US$)			1.49				0.19				2.57				0.24

The Company does not have potential outstanding shares or other instruments with dilutive effect on the earnings per share computation.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

9.	Accounts receivable

		June 30, 2021			December 31, 2020
Accounts receivable			5,002				5,043
Expected credit loss			(48	)			(50	)
			4,954				4,993
Revenue related to the steel sector - %			89.27	%			87.25	%

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Impairment of accounts receivable recorded in the income statement			3				(3	)			2				9

As at June 30, 2021, there is no customer that individually represents more than 10% of the Company's accounts receivable or revenues. In 2020, the Company had a customer of the Ferrous Minerals Segment whose revenue individually represented 10.1% of the Company's total revenue.

10.	Inventories

		June 30, 2021			December 31, 2020
Finished products			3,055				2,626
Work in progress			725				647
Consumable inventory			921				788
Total			4,701				4,061

		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Reversal (provision) for net realizable value			(12	)			23				1				(39	)

Finished and work in progress products inventories by segments are presented in note 4(b) and the cost of goods sold is presented in note 5(a).

11.	Other financial assets and liabilities

		Current			Non-Current
		June 30, 2021			December 31, 2020			June 30, 2021			December 31, 2020
Other financial assets
Restricted cash			-				-				125				38
Derivative financial instruments (note 16)			214				134				208				66
Investments in equity securities			-				-				1,097				757
Related parties (i)			-				195				-				923
			214				329				1,430				1,784
Other financial liabilities
Derivative financial instruments (note 16)			204				328				521				689
Related parties (i)			188				725				-				895
Financial guarantees provided (note 13)			-				-				550				877
Liabilities related to the concession grant (note 14)			350				209				1,956				2,103
Advances received			805				644				-				-
			1,547				1,906				3,027				4,564

(i) The decrease refers to the settlement of the loans due to the transaction for the acquisition of NLC, as detailed in note 12.

Investment in equity securities - Mainly refers to 34.2 million common shares of The Mosaic Company ('Mosaic'), which is accounted for as a financial instrument measured at fair value through other comprehensive income. The recorded amount was calculated based on Mosaic's share price at the end of each financial reporting period.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

12.	Acquisitions and divestitures

a)	Business Combinations

The Company has coal operations in Mozambique, through Vale Moçambique S.A. ('Vale Moçambique'), where the metallurgical and thermal coal extraction and processing are operated. Vale Moçambique is a company controlled by Vale, with a non-controlling interest held by Mitsui & Co. Ltd. ('Mitsui'). Coal products are transported from the Moatize mine to the maritime terminal by the Nacala Logistics Corridor ('NLC'), that is a joint venture between Vale and Mitsui, in which each company holds 50% of the share capital. The NLC's main assets are the railways and port concessions located in Mozambique and Malawi.

In April 2021, the Company signed an Investment Agreement with Mitsui for the acquisition by Vale of the totality of Mitsui´s interest in Vale Moçambique and NLC, which was concluded on June 22, 2021. With the conclusion, the following events have occurred:

(a.i) Acquisition of non-controlling interest in Vale Moçambique

The Company acquired the 15% interest held by Mitsui in Vale Moçambique for an immaterial consideration, which resulted in a loss of US$ 331 due to the negative reserves of Vale Moçambique at the conclusion of the transaction. This transaction with non-controlling interests was recognized in Stockholders' Equity for the period ended June 30,2021 as 'Acquisition and disposal of non-controlling interest'. After the acquisition of the interests previously held by Mitsui, the Company holds 95% of the share capital of Vale Moçambique and the remaining interest is held by the government of Mozambique.

(a.ii) Business combinations - NLC

On June 22, 2021, the acquisition was concluded with the settlement of NLC's loans with third parties ('Project Finance') in the amount of US$ 2,517, satisfying all conditions to acquire the additional 50% held by Mitsui. Therefore, the Company started consolidating the NLC's assets and liabilities on its balance sheet.

Additionally, the Company has updated the discounted cash flow model to assess the fair value of the acquired business, resulting in a loss of US$771 (US$798 as at December 31, 2020) on the fair value of the loans receivable from NLC, mainly due to the decrease in the long-term price assumption for both metallurgical and thermal coal as well as the reduction in the expected production to reflect the operational challenges to reach the ramp-up of the coal business, after the revamp of the processing plants. The cash flows were discounted at a rate of 11.6%, and the loss was recognized as 'Impairment and disposals of non-current assets' for the three-months period ended June 30, 2021.

The fair values of identifiable assets acquired and liabilities assumed as a result of the NLC's acquisition are as follows:

		June 22, 2021
Acquired assets
Cash and cash equivalents			172
Inventory, recoverable tax and other assets			423
Intangible			2,219
Property, plant and equipment			1,363
Assumed liabilities			(158	)
Net identifiable assets acquired			4,019
Fair value adjustments (i)			(1,590	)
Total identifiable net assets at fair value (ii)			2,429
Pre-existing relationship (Loans receivable from NLC)			859
Loss on pre-existing relationship			(771	)
			2,517
Cash consideration			2,517
(-) Balances acquired
Cash and cash equivalents			172
Net cash outflow			2,345

(i)	Of this amount, US$441 was allocated to property, plant and equipment and US$791 was allocated to intangible and the remaining amount was allocated to other assets.

(ii)

The fair value was assessed using the fair value less costs of disposal model, through discounted cash flow techniques, which is classified as 'level 3' in the fair value hierarchy. The cash flows were discounted by using a post-tax discount rate expressed in real terms, which represents an estimate of the rate that a market participant would apply having regard to the time value of money and the asset's specific risk.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

(a.iii) Reclassification of the cumulative translation adjustments

On the announcement of the Investment Agreement with Mitsui, the Company has also informed the market its divestiture intention in the coal segment. However, the Company has assessed that the criteria to classify the coal segment as a discontinued operation have not been met yet, since the conclusion of an eventual sale to a third party within the next 12 months is not deemed highly probable under IFRS 5 - Non-current assets held for sale and discontinued operations. The Company will continue assessing at each reporting date whether the coal segment meets the 'discontinued operation' criteria.

Furthermore, the Company assessed that its Australian entities (part of the coal segment), which are no longer operational, were considered 'abandoned' under IAS 21 - The Effects of Changes in Foreign Exchange Rates and, therefore, the Company recognized a gain related to the accumulated translation adjustments in the amount of US$424, which was reclassified to net income as 'Impairment and disposals of non-current assets' for the three-months period ended June 30, 2021.

b)	Other acquisitions and divestitures

Boston Electrometallurgical Company ('Boston Metal') - In February 2021, the Company made an investment of US$6 in Boston Metal to acquire a non-controlling interest of 3.24%, aiming promote the development of a technology focused on the reduction of carbon dioxide on the steel production. Boston Metal has a diverse shareholding structure which includes venture capital funds, mining companies and private investors. Since the Company does not have significant influence over Boston Metal, this investment has been classified as a financial instrument and recorded as 'Investments in equity securities'.

Vale Nouvelle-Calédonie S.A.S. ('VNC') - In December 2020, the Company signed a binding put option agreement to sell its interest in VNC for an immaterial consideration to a consortium constituted in a new company called 'Prony Resources', led by the current management and employees of VNC and supported by the Caledonian and French authorities with Trafigura Pte. Ltd. as a non-controlling shareholder. Under the terms of agreement, the Company has assumed an obligation to pay to the buyers an amount of US$500 upon closing of the transaction and this amount has been provided for as at December 31, 2020.

In March 2021, the Company signed the share purchase and sale agreement with Prony Resources, concluding the transaction to sell its interest in VNC. With the final agreement, Vale's obligation to pay to buyers increased by US$55, which combined with other working capital adjustments, resulted in an additional loss of US$98, recorded as 'Impairment and disposals of non-current assets'. On March 31, 2021, the Company disbursed US$555 to VNC on the closing of the transaction, thus the liabilities recorded as at December 31, 2020 were settled and there is no outstanding balance in these interim financial statements.

The agreement also established that Vale may purchase a certain amount of VNC's annual nickel production with a cap price over a period of 13 years. Such cap included in contract is an embedded derivative, however, it is deemed closely related to the host contract (nickel supply agreement) because the cap was out of the money on inception of the contract. Therefore, this derivative will not be separated from the host contract, which will be accounted for as an executory contract.

Upon closing of the transaction, the Company also recognized a gain of US$1,132 arising from the accumulated exchange differences reclassified from the stockholders' equity to the income statement under 'Other financial items, net'.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

13.	Investments in associates and joint ventures

a) Investment information

						Investments in associates and joint ventures		Equity results in the income statement		Dividends received
										Three-month period ended June 30,		Six-month period ended June 30,		Three-month period ended June 30,		Six-month period ended June 30,
Associates and joint ventures		% ownership		% voting capital		June 30, 2021		December 31, 2020		2021		2020		2021		2020		2021		2020		2021		2020
Ferrous minerals
Baovale Mineração S.A.			50.00			50.00			23			20			1			1			3			2			-			-			-			-
Companhia Coreano-Brasileira de Pelotização			50.00			50.00			61			48			10			2			16			5			2			17			2			17
Companhia Hispano-Brasileira de Pelotização (i)			50.89			50.89			41			43			-			-			-			3			7			13			7			13
Companhia Ítalo-Brasileira de Pelotização (i)			50.90			51.00			58			44			9			5			13			10			6			23			6			23
Companhia Nipo-Brasileira de Pelotização (i)			51.00			51.11			135			121			9			6			13			8			7			-			7			-
MRS Logística S.A.			48.16			46.75			442			398			19			14			36			12			-			-			-			-
Samarco Mineração S.A. (note 21)			50.00			50.00			-			-			-			-			-						-						-
VLI S.A.			29.60			29.60			490			480			7			8			(8	)		(22	)		-			-			-			-
									1,250			1,154			55			36			73			18			22			53			22			53
Base metals
Korea Nickel Corp.			25.00			25.00			17			18			-			-			-			-			-			-			-			-
									17			18			-			-			-			-			-			-			-			-
Others
Aliança Geração de Energia S.A. (i)			55.00			55.00			372			367			7			7			17			17			21			24			21			24
Aliança Norte Energia Participações S.A. (i)			51.00			51.00			118			117			(2	)		(2	)		(3	)		(3	)		-			-			-			-
California Steel Industries, Inc.			50.00			50.00			295			234			48			5			61			(2	)		-			-			-			-
Companhia Siderúrgica do Pecém ('CSP') (ii)			50.00			50.00			-			-			-			-			(42	)		(75	)		-			-			-			-
Mineração Rio do Norte S.A.			40.00			40.00			70			71			7			(2	)		(3	)		(12	)		-			-			-			-
Others									75			70			(10	)		(1	)		(26	)		(10	)		-			-			-			-
									930			859			50			7			4			(85	)		21			24			21			24
Total									2,197			2,031			105			43			77			(67	)		43			77			43			77

(i) Although the Company held a majority of the voting capital, the entities are accounted under the equity method due to the stockholders' agreement where relevant decisions are shared with other parties.

(ii) CSP is a joint venture and its results are accounted for under the equity method, in which the accumulated losses are capped to the Company ́s interest in the investee's capital based on the applicable law and requirements. That is, after the investment is reduced to zero, the Company does not recognize further losses nor liabilities associated with the investee.

(iii) 'Equity results and other results in associates and joint ventures' presented in the Income Statement considers, in addition to the equity results in associates and joint ventures shown in the table above, the results of Renova Foundation and Samarco (note 21) and other results with group entities.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

b) Movements during the period

		2021			2020
Balance at January 1,			2,031				2,798
Capital contribution to CSP			42				75
Translation adjustment			70				(645	)
Equity results in income statement			77				(67	)
Equity results in statement of comprehensive income			-				(2	)
Dividends declared			(49	)			(100	)
Others			26				12
Balance at June 30,			2,197				2,071

The amount of investments by segments are presented in note 4(b).

c) Financial guarantees provided

As at June 30, 2021 and December 31, 2020, the notional value of corporate financial guarantees provided by the Company (within the limit of its direct or indirect interest) for certain associates and joint ventures were US$1,559 and US$1,557, respectively. The fair value of these financial guarantees is shown in note 17.

14.	Intangibles

Movements during the period

		Goodwill			Concessions			Contract right			Software			Research and development project and patents			Total
Balance at December 31, 2020			3,298				5,391				-				76				531				9,296
Additions			-				57				-				21				-				78
Disposals			-				(5	)			-				-				-				(5	)
Amortization			-				(115	)			-				(16	)			-				(131	)
Acquisition of NLC (note 12)			-				1,428				-				-				-				1,428
Translation adjustment			104				204				-				3				20				331
Balance at June 30, 2021			3,402				6,960				-				84				551				10,997
Cost			3,402				8,097				-				789				551				12,839
Accumulated amortization			-				(1,137	)			-				(705	)			-				(1,842	)
Balance at June 30, 2021			3,402				6,960				-				84				551				10,997

		Goodwill			Concessions			Contract right			Software			Research and development project and patents			Total
Balance at December 31, 2019			3,629				3,970				140				76				684				8,499
Additions			-				69				-				8				-				77
Disposals			-				(3	)			-				-				-				(3	)
Amortization			-				(92	)			(1	)			(12	)			-				(105	)
Translation adjustment			(514	)			(1,042	)			(11	)			(14	)			(181	)			(1,762	)
Balance at June 30, 2020			3,115				2,902				128				58				503				6,706
Cost			3,115				3,792				223				683				503				8,316
Accumulated amortization			-				(890	)			(95	)			(625	)			-				(1,610	)
Balance at June 30, 2020			3,115				2,902				128				58				503				6,706

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

15.	Property, plant and equipment

a) Movements during the period

		Building and land			Facilities			Equipment			Mineral properties			Railway equipment			Right of use assets			Others			Constructions in progress			Total
Balance at December 31, 2020			8,591				7,591				4,933				8,054				2,523				1,563				2,495				5,398				41,148
Additions (i)			-				-				-				-				-				45								2,151				2,196
Disposals			(2	)			(3	)			(12	)			-				(1	)			-								(26	)			(44	)
Assets retirement obligation (ii)			-				-				-				(237	)			-				-				-				-				(237	)
Depreciation, depletion and amortization			(227	)			(234	)			(334	)			(254	)			(79	)			(81	)			(127	)			-				(1,336	)
Impairment (iii)			-				-				-				-				-				-				-				(88	)			(88	)
Acquisition of NLC (note 12)			235				456				102				-				2				33				2				92				922
Translation adjustment			264				271				138				237				93				11				80				229				1,323
Transfers			78				201				301				164				53				-				113				(910	)			-
Balance at June 30, 2021			8,939				8,282				5,128				7,964				2,591				1,571				2,563				6,846				43,884
Cost			15,905				12,739				11,251				17,406				4,047				2,011				5,712				6,846				75,917
Accumulated depreciation			(6,966	)			(4,457	)			(6,123	)			(9,442	)			(1,456	)			(440	)			(3,149	)			-				(32,033	)
Balance at June 30, 2021			8,939				8,282				5,128				7,964				2,591				1,571				2,563				6,846				43,884

		Building and land			Facilities			Equipment			Mineral properties			Railway equipment			Right of use assets			Others			Constructions in progress			Total
Balance at December 31, 2019			10,702				9,604				5,686				8,261				3,241				1,692				3,012				4,378				46,576
Additions (i)			-				-				-				-				-				36				-				1,812				1,848
Disposals			(3	)			(4	)			(4	)			(8	)			(1	)			-				(3	)			(32	)			(55	)
Assets retirement obligation			-				-				-				343				-				-				-				-				343
Depreciation, depletion and amortization			(224	)			(276	)			(396	)			(259	)			(117	)			(83	)			(137	)			-				(1,492	)
Impairment			(168	)			(228	)			(17	)			(123	)			-				-				(61	)			(95	)			(692	)
Translation adjustment			(2,098	)			(2,116	)			(794	)			(972	)			(837	)			(114	)			(566	)			(819	)			(8,316	)
Transfers			128				178				286				359				107				-				153				(1,211	)			-
Balance at June 30, 2020			8,337				7,158				4,761				7,601				2,393				1,531				2,398				4,033				38,212
Cost			14,333				10,825				10,176				15,929				3,579				1,837				5,599				4,033				66,311
Accumulated depreciation			(5,996	)			(3,667	)			(5,415	)			(8,328	)			(1,186	)			(306	)			(3,201	)			-				(28,099	)
Balance at June 30, 2020			8,337				7,158				4,761				7,601				2,393				1,531				2,398				4,033				38,212

(i) Includes capitalized borrowing costs.

(ii) Refers to changes in discount rates.

(iii) Due to the Company's assessment of the fair value of the coal assets, the assets acquired during the year are provided for impairment in full. In the current year, the Company recognized an impairment loss related to coal assets acquired this year in the amount of US$88.

b) Right-of-use assets (Leases)

		December 31, 2020			Additions and contract modifications			Depreciation			Translation adjustment			June 30, 2021
Ports			718				-				(23	)			4				699
Vessels			534				-				(20	)			-				514
Pellets plants			131				37				(18	)			6				156
Properties			112				3				(13	)			1				103
Energy plants			56				-				(3	)			-				53
Mining equipment and locomotives (i)			12				38				(4	)			-				46
Total			1,563				78				(81	)			11				1,571

(i) 'Additions and contract modifications' includes the effects arising from the acquisition of NLC in the amount of US$33.

Lease liabilities are presented in note 19.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

16.	Financial and capital risk management

a) Effects of derivatives on the balance sheet

		Assets
		June 30, 2021			December 31, 2020
			Current				Non-current				Current				Non-current
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap			1				1				-				-
IPCA swap			9				42				7				38
Eurobonds swap			-				-				-				3
Pre-dollar swap and forward (NDF)			98				144				-				9
Libor swap			-				5				-				-
			108				192				7				50
Commodities price risk
Base metals products			6				1				30				-
Gasoil, Brent and freight			100				-				97				-
			106				1				127				-
Others			-				15				-				16
			-				15				-				16
Total			214				208				134				66

		Liabilities
		June 30, 2021			December 31, 2020
			Current				Non-current				Current				Non-current
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap			96				408				111				525
IPCA swap			-				92				72				100
Eurobonds swap			-				-				4				-
Pre-dollar swap and forward (NDF)			48				9				63				58
Libor swap			2				2				1				6
			146				511				251				689
Commodities price risk
Base metals products			46				-				46				-
Gasoil, Brent and freight			-				-				13				-
Thermal coal			2				10				-				-
			48				10				59				-
Others			10				-				18				-
Total			204				521				328				689

a.i) Net exposure

		June 30, 2021			December 31, 2020
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap			(502	)			(636	)
IPCA swap			(41	)			(127	)
Eurobonds swap			-				(1	)
Pre-dollar swap and forward (NDF)			185				(112	)
Libor swap (i)			1				(7	)
			(357	)			(883	)
Commodities price risk
Base metals products			(39	)			(16	)
Gasoil, Brent and freight			100				84
Thermal coal			(12	)			-
			49				68
Others			5				(2	)
			5				(2	)
Total			(303	)			(817	)

(i) In July 2017, the U.K. Financial Conduct Authority (FCA), which regulates the London Interbank Offered Rate (''LIBOR''), announced the effective discontinuation of LIBOR. After June 30, 2023, the FCA will no longer require panel banks to submit quotes for any U.S. dollar LIBOR settings. The Company is currently evaluating the potential impact of the eventual replacement of the LIBOR interest rate.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

a.ii) Effects of derivatives on the income statement and cash flows

		Gain (loss) recognized in the income statement
		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap			326				(185	)			52				(865	)
IPCA swap			54				(24	)			69				(256	)
Eurobonds swap			-				7				(28	)			(27	)
Pre-dollar swap and forward (NDF)			411				(28	)			206				(173	)
Libor swap			(3	)							7				-
			788				(230	)			306				(1,321	)
Commodities price risk
Base metals products			-				-				(2	)			(1	)
Gasoil, Brent and freight			64				99				108				(246	)
			64				99				106				(247	)
Others			4				45				5				98
			4				45				5				98
Total			856				(86	)			417				(1,470	)

		Financial settlement inflows (outflows)
		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Foreign exchange and interest rate risk
CDI & TJLP vs. US$ fixed and floating rate swap			(9	)			(33	)			(99	)			(51	)
IPCA swap			-				-				(18	)			-
Eurobonds swap			-				-				(29	)			(6	)
Pre-dollar swap and forward (NDF)			(2	)			8				(77	)			(13	)
Libor swap			-				-				(1	)			-
			(11	)			(25	)			(224	)			(70	)
Commodities price risk
Base metals products			(1	)			38				(8	)			292
Gasoil, Brent and freight			72				(129	)			92				(130	)
			71				(91	)			84				162
Others			-				2				1				67
			-				2				1				67
Total			60				(114	)			(139	)			159

a.iii) Hedge accounting

		Gain (loss) recognized in the other comprehensive income
		Three-month period ended June 30,			Six-month period ended June 30,
		2021			2020			2021			2020
Net investments hedge			202				(119	)			42				(639	)
Thermal Coal Cash flow hedge			(7	)			-				(7	)			-
Cash flow hedge (Nickel and Palladium)			(28	)			(49	)			(19	)			15

Net investment hedge:

In March 2021, the Company redeemed all its euro bonds (note 19). As a result, the amount of debt designated as a hedge instrument for this investment is US$2,331 as at June 30,2021.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

Cash flow hedge (Thermal Coal):

To reduce the volatility of its cash flow as a result of fluctuations in thermal coal prices, in May 2021, the Company implemented a Thermal Coal Revenue Hedge Program. Under this program, hedge transactions were executed through forward contracts to protect a portion of the projected sales of this product at fluctuating prices that is highly probable to occur. Hedge accounting treatment is being given to the program. The contracts are traded over-the-counter and the cash settlement in/out results are offset by the protected items' loss/gain results due to thermal coal price variations. In July 2021 (subsequent event), the Company also implemented a Metallurgical Coal Revenue Hedge program applying the same strategy.

		Notional (ton)			Fair value			Financial settlement Inflows (Outflows)			Value at Risk			Fair value by year
Flow		June 30, 2021			December 31, 2020			Bought / Sold		Average strike (US$/t oz)			June 30, 2021			December 31, 2020			June 30, 2021			June 30, 2021			2021
Coal Revenue Hedging Program
Call Options			600,000				-			S			108				(10	)			-				(2	)			3				(10	)
Put Options			390,000				-			B			105				(1	)			-				(1	)			6				(1	)
Total																	(11	)			-				(3	)			9				(11	)

Cash Flow Hedge (Nickel):

		Notional (ton)			Fair value			Financial settlement Inflows (Outflows)			Value at Risk			Fair value by year
Flow		June 30, 2021			December 31, 2020			Bought / Sold		Average strike (US$/ton)			June 30, 2021			December 31, 2020			June 30, 2021			June 30, 2021			2021
Nickel Revenue Hedging Program (i)
Call options			35,120				58,620			S			17,618				(41	)			(46	)			(9	)			10				(41	)
Put options			35,120				58,620			B			15,000				3				28				-				1				3
Total																	(38	)			(18	)			(9	)			11				(38	)

(i) With the hedge structure, the company ensures prices between US$15,000/t and US$17,618/t for the program's sales volume.

Cash flow hedge (Palladium):

		Notional (t oz)			Fair value			Financial settlement Inflows (Outflows)			Value at Risk			Fair value by year
Flow		June 30, 2021			December 31, 2020			Bought / Sold		Average strike (US$/t oz)			June 30, 2021			December 31, 2020			June 30, 2021			June 30, 2021			2021
Palladium Revenue Hedging Program
Call Options			67,362				7,200			S			3,437				(11	)			(1	)			-				3				(11	)
Put Options			67,362				7,200			B			2,397				14				-				-				3				14
Total																	3				(1	)			-				6				3

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

b) Protection programs for the R$ and EUR denominated debt instruments and other liabilities

		Notional			Fair value			Financial Settlement Inflows (Outflows)			Value at Risk			Fair value by year
Flow		June 30, 2021			December 31, 2020			Index			Average rate			June 30, 2021			December 31, 2020			June 30, 2021			June 30, 2021			2021			2022			2023+
CDI vs. US$ fixed rate swap																	(368	)			(473	)			(30	)			43				(26	)			(78	)			(264	)
Receivable		R$	8,841			R$	9,445				CDI				100.53	%
Payable		US$	2.072			US$	2.213				Fix				2.57	%
TJLP vs. US$ fixed rate swap																	(134	)			(163	)			(26	)			8				(23	)			(40	)			(71	)
Receivable		R$	1,421			R$	1,651				TJLP +				1.12	%
Payable		US$	390			US$	460				Fix				3.11	%
R$ fixed rate vs. US$ fixed rate swap																	62				(111	)			(85	)			26				10				(26	)			78
Receivable		R$	6,671			R$	2,512				Fix				3.58	%
Payable		US$	1.265			US$	621				Fix				-1.60	%
IPCA vs. US$ fixed rate swap																	(90	)			(173	)			(65	)			9				1				-				(91	)
Receivable		R$	1,617			R$	2,363				IPCA +				4.54	%
Payable		US$	400			US$	622				Fix				3.88	%
IPCA vs. CDI swap																	49				45				-				-				7				42				-
Receivable		R$	726			R$	694				IPCA +				6.63	%
Payable		R$	1,350			R$	550				CDI				98.76	%
EUR fixed rate vs. US$ fixed rate swap																	-				(1	)			(29	)			-				-				-				-
Receivable		-			EUR	500				Fix				0.00	%
Payable		-			US$	613				Fix				0.00	%
Forward		R$	7,020			R$	916				B				5.98				122				(1	)			13				23				17				64				41

c) Protection program for Libor floating interest rate US$ denominated debt

		Notional									Fair value			Financial Settlement Inflows (Outflows)			Value at Risk			Fair value by year
Flow		June 30, 2021			December 31, 2020			Index			Average rate			June 30, 2021			December 31, 2020			June 30, 2021			June 30, 2021			2021			2022			2023+
Libor vs. US$ fixed rate swap																	1				(7	)			(1	)			2				(1	)			-				2
Receivable		US$	950			US$	950				Libor				0.13	%
Payable		US$	950			US$	950				Fix				0.48	%

d) Protection program for product prices and input costs

		Notional								Fair value			Financial settlement Inflows (Outflows)			Value at Risk			Fair value by year
Flow		June 30, 2021			December 31, 2020			Bought / Sold		Average strike (US$/bbl)			June 30, 2021			December 31, 2020			June 30, 2021			June 30, 2021			2021+
Brent crude oil (bbl)
Call options			4,488,809				13,746,945			B			55				48				92				119				7				48
Put options			4,488,809				13,746,945			S			29				-				(12	)			-				-				-
Forward Freight Agreement (days)
Freight forwards (days)			990				1,625			B			23,302				15				4				3				15				-

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

e) Embedded derivatives in contracts

		Notional								Fair value			Financial settlement Inflows (Outflows)			Value at Risk			Fair value
Flow		June 30, 2021			December 31, 2020			Bought / Sold		Average strike			June 30, 2021			December 31, 2020			June 30, 2021			June 30, 2021			2021+
Option related to a Special Purpose Entity 'SPE' (quantity)
Call option			137,751,623				137,751,623			B			3.02				15				18				-				2				15
Embedded derivatives in contracts for the sale of part of its shareholding (quantity)
Put option			1,105,070,863				1,105,070,863			S			4.38				(5	)			(19	)			-				2				(5	)
Embedded Derivative in natural gas purchase agreement (volume/month)
Call options			729,571				746,667			S			233				(4	)			-				-				3				(4	)
Hedge program for finished products
Nickel forwards			604				-			S			18,147				-				-				-				-				-
Fixed prices sales protection
Nickel forwards			626				-			B			16,341				1				-				1				-				1
Embedded in raw material purchase contract (ton)
Nickel forwards			3,436				1,979			S			17,120				(3	)			2				-				2				(3	)
Copper forwards			1,247				976			S			9,620				-				-				-				-				-

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

f) Sensitivity analysis of derivative financial instruments

The following tables present the potential value of the instruments given hypothetical stress scenarios for the main market risk factors that impact the derivatives positions. The scenarios were defined as follows:

- Probable: the probable scenario was defined as the fair value of the derivative instruments as at June 30, 2021

- Scenario I: fair value estimated considering a 25% deterioration in the associated risk variables

- Scenario II: fair value estimated considering a 50% deterioration in the associated risk variables

Instrument		Instrument's main risk events		Probable			Scenario I			Scenario II
CDI vs. US$ fixed rate swap		R$ depreciation			(368	)			(900	)			(1,433	)
		US$ interest rate inside Brazil decrease			(368	)			(396	)			(425	)
		Brazilian interest rate increase			(368	)			(402	)			(437	)
Protected item: R$ denominated liabilities		R$ depreciation			n.a.				-				-
TJLP vs. US$ fixed rate swap		R$ depreciation			(134	)			(236	)			(338	)
		US$ interest rate inside Brazil decrease			(134	)			(137	)			(140	)
		Brazilian interest rate increase			(134	)			(145	)			(155	)
		TJLP interest rate decrease			(134	)			(141	)			(149	)
Protected item: R$ denominated debt		R$ depreciation			n.a.				-				-
R$ fixed rate vs. US$ fixed rate swap		R$ depreciation			62				(246	)			(553	)
		US$ interest rate inside Brazil decrease			62				53				45
		Brazilian interest rate increase			62				19				(21	)
Protected item: R$ denominated debt		R$ depreciation			n.a.				-				-
IPCA vs. US$ fixed rate swap		R$ depreciation			(90	)			(199	)			(307	)
		US$ interest rate inside Brazil decrease			(90	)			(96	)			(103	)
		Brazilian interest rate increase			(90	)			(109	)			(127	)
		IPCA index decrease			(90	)			(101	)			(112	)
Protected item: R$ denominated debt		R$ depreciation			n.a.				-				-
IPCA vs. CDI swap		Brazilian interest rate increase			49				46				44
		IPCA index decrease			49				47				45
Protected item: R$ denominated debt linked to IPCA		IPCA index decrease			n.a.				(47	)			(45	)
US$ floating rate vs. US$ fixed rate swap		US$ Libor decrease			1				(4	)			(10	)
Protected item: Libor US$ indexed debt		US$ Libor decrease			n.a.				4				10
NDF BRL/USD		R$ depreciation			122				(166	)			(454	)
		US$ interest rate inside Brazil decrease			122				116				110
		Brazilian interest rate increase			122				93				66
Protected item: R$ denominated liabilities		R$ depreciation			n.a.				-				-

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

Instrument		Instrument's main risk events		Probable			Scenario I			Scenario II
Fuel oil protection
Options		Price input decrease			48				18				14
Protected item: Part of costs linked to fuel oil prices		Price input decrease			n.a.				18				14
Forward Freight Agreement
Forwards		Freight price decrease			15				5				(4	)
Protected item: Part of costs linked to maritime freight prices		Freight price decrease			n.a.				(5	)			4
Nickel sales fixed price protection
Forwards		Nickel price decrease			1				(2	)			(5	)
Protected item: Part of nickel revenues with fixed prices		Nickel price decrease			n.a.				(2	)			(5	)
Nickel Revenue Hedging Program
Options		Nickel price increase			(38	)			(160	)			(297	)
Protected item: Part of nickel future revenues		Nickel price increase			n.a.				160				297
Palladium Revenue Hedging Program
Options		Palladium price increase			4				(23	)			(56	)
Protected item: Part of palladium future revenues		Palladium price increase			n.a.				23				56
Thermal Coal Revenue Hedging Program
Options		Thermal coal price increase			(11	)			(40	)			(69	)
Protected item: Part of thermal coal future revenues		Thermal coal price increase			n.a.				40				69
Option - SPCs		SPCs stock value decrease			15				5				-

Instrument		Main risks		Probable			Scenario I			Scenario II
Embedded derivatives - Raw material purchase (nickel)		Nickel price increase			(3	)			(19	)			(34	)
Embedded derivatives - Raw material purchase (copper)		Copper price increase			-				(3	)			(6	)
Embedded derivatives - Gas purchase		Pellet price increase			(4	)			(8	)			(13	)
Embedded derivatives - Guaranteed minimum return		Stock value decrease			(5	)			(61	)			(287	)

g) Financial counterparties' ratings

The table below presents the ratings published by Moody's regarding the main financial institutions that we hire derivative instruments, cash and cash equivalents transactions.

		Consolidated
		June 30, 2021			December 31, 2020
		Cash and cash equivalents and short-term investment			Derivatives			Cash and cash equivalents and short-term investment			Derivatives
Aa1			94				-				2,210				36
Aa2			384				13				363				15
Aa3			603				41				1,681				41
A1			4,124				20				2,812				21
A2			4,429				130				4				20
A3			1,034				67				5				36
Baa1			-				-				4				-
Baa2			19				-				1				-
Ba1			-				35				2,986				-
Ba2			2,551				51				4,189				6
Ba3			1,279				13				-				-
Others			83				52				3				25
			14,600				422				14,258				200

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

17. Financial assets and liabilities

a) Financial instruments classification

		June 30, 2021			December 31, 2020
Financial assets		Amortized cost			At fair value through OCI			At fair value through profit or loss			Total			Amortized cost			At fair value through OCI			At fair value through profit or loss			Total
Current
Cash and cash equivalents (note 19)			13,649				-				-				13,649				13,487				-				-				13,487
Short-term investments (note 19)			-				-				951				951				-				-				771				771
Derivative financial instruments (note 16)			-				-				214				214				-				-				134				134
Accounts receivable (note 9)			2,266				-				2,688				4,954				1,514				-				3,479				4,993
Related parties (note 26)			-				-				-				-				195				-				-				195
			15,915				-				3,853				19,768				15,196				-				4,384				19,580
Non-current
Judicial deposits (note 23)			1,326				-				-				1,326				1,268				-				-				1,268
Restricted cash			125				-				-				125				38				-				-				38
Derivative financial instruments (note 16)			-				-				208				208				-				-				66				66
Investments in equity securities			-				1,097				-				1,097				-				757				-				757
Related parties (note 26)			-				-				-				-				923				-				-				923
			1,451				1,097				208				2,756				2,229				757				66				3,052
Total of financial assets			17,366				1,097				4,061				22,524				17,425				757				4,450				22,632
Financial liabilities
Current
Suppliers and contractors			3,777				-				-				3,777				3,367				-				-				3,367
Derivative financial instruments (note 16)			-				-				204				204				-				-				328				328
Loans, borrowings and leases (note 19)			992				-				-				992				1,136				-				-				1,136
Dividends payable			27				-				-				27				1,220				-				-				1,220
Liabilities related to the concession grant (note 14)			350				-				-				350				209				-				-				209
Related parties (note 26)			188				-				-				188				725				-				-				725
Other financial liabilities (note 11)			805				-				-				805				644												644
			6,139				-				204				6,343				7,301				-				328				7,629
Non-current
Derivative financial instruments (note 16)			-				-				521				521				-				-				689				689
Loans, borrowings and leases (note 19)			12,870				-				-				12,870				13,891				-				-				13,891
Related parties (note 26)			-				-				-				-				895				-				-				895
Participative stockholders' debentures (note 18)			-				-				4,687				4,687				-				-				3,413				3,413
Liabilities related to the concession grant (note 14)			1,956				-				-				1,956				2,103				-				-				2,103
Financial guarantees (note 13)			-				-				550				550				-				-				877				877
			14,826				-				5,758				20,584				16,889				-				4,979				21,868
Total of financial liabilities			20,965				-				5,962				26,927				24,190				-				5,307				29,497

b) Hierarchy of fair value

		June 30, 2021			December 31, 2020
		Level 1			Level 2			Level 3			Total			Level 1			Level 2			Level 3			Total
Financial assets
Short-term investments			951				-				-				951				771				-				-				771
Derivative financial instruments			-				407				15				422				-				182				18				200
Accounts receivable			-				2,688				-				2,688				-				3,479				-				3,479
Investments in equity securities			1,097				-				-				1,097				757				-				-				757
Total			2,048				3,095				15				5,158				1,528				3,661				18				5,207
Financial liabilities
Derivative financial instruments			-				719				6				725				-				998				19				1,017
Participative stockholders' debentures			-				4,687				-				4,687				-				3,413				-				3,413
Financial guarantees			-				550				-				550				-				877				-				877
Total			-				5,956				6				5,962				-				5,288				19				5,307

There were no transfers between levels 1, 2 and 3 of the fair value hierarchy during the six-month period ended June 30, 2021.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

b.i) Changes in Level 3 assets and liabilities during the period

			Derivative financial instruments
			Financial assets				Financial liabilities
Balance at December 31, 2020			18				19
Gain and losses recognized in income statement			(4	)			(13	)
Translation adjustments			1				-
Balance at June 30, 2021			15				6

c) Fair value of loans and financing

		June 30, 2021			December 31, 2020
		Carrying amount			Fair value			Carrying amount			Fair value
Quoted in the secondary market:
Bonds			7,448				9,277				7,448				10,025
Eurobonds			-				-				920				985
Debentures			428				435				496				496
Debt contracts in Brazil in:
R$, indexed to TJLP, TR, IPCA, IGP-M and CDI			460				679				860				857
R$, with fixed interest			25				25				34				35
Basket of currencies and bonds in US$ indexed to LIBOR			33				54				56				56
Debt contracts in the international market in:
US$, with variable and fixed interest			3,398				3,401				3,225				3,278
Other currencies, with variable interest			96				96				-				-
Other currencies, with fixed interest			110				123				120				134
Total			11,998				14,090				13,159				15,866

Due to the short-term cycle, the fair value of cash and cash equivalents balances, financial investments, accounts receivable and accounts payable approximate their book values.

18. Participative stockholders' debentures

At the time of its privatization in 1997, the Company issued a total of 388,559,056 debentures to then-existing stockholders, including the Brazilian Government. The debentures' terms were set to ensure that pre-privatization stockholders would participate in potential future benefits that might be obtained from exploration of mineral resources. This obligation will cease when all the relevant mineral resources are exhausted, sold or otherwise disposed of by the Company.

Holders of participative stockholders' debentures have the right to receive semi-annual payments equal to an agreed percentage of revenues less value-added tax, transport fee and insurance expenses related to the trading of the products, derived from these mineral resources. On April 1, 2021, the Company made available for withdrawal as remuneration the amount of US$193 (R$1,073 million) for the second semester of 2020, as disclosed on the 'Shareholders' debentures report' made available on the Company's website.

To calculate the fair value of the liability, the Company uses the weighted average price of trades in the secondary market for the last month of the quarter. The average price increased from R$45.65 per debenture for the year ended December 31, 2020 to R$60.34 per debenture for the period ended June 30, 2021 (R$29.04 for the period ended June 30, 2020), resulting in an expense of US$278 and US$1,261 recorded in the income statement for the three and six-month periods ended June 30, 2021 (US$231 and US$280 for the three and six-month periods ended June 30, 2020), respectively. As at June 30, 2021 the liability was US$ 4,687 (US$ 3,413 as at December 2020).

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

19. Loans, borrowings, leases, cash and cash equivalents and short-term investments

a) Net debt

The Company evaluates the net debt with the objective of ensuring the continuity of its business in the long term.

		June 30, 2021			December 31, 2020
Debt contracts in the international markets			11,194				11,890
Debt contracts in Brazil			960				1,470
Leases			1,708				1,667
Total of loans, borrowings and leases			13,862				15,027
(-) Cash and cash equivalents			13,649				13,487
(-) Short-term investments			951				771
Net debt (cash)			(738	)			769

b) Cash and cash equivalents

Cash and cash equivalents include cash, immediately redeemable deposits and short-term investments with an insignificant risk of change in value. They are readily convertible to cash, being US$3,375 (US$2,849 as at December 31, 2020) denominated in R$, indexed to the CDI), US$9,973 (US$10,195 as at December 31, 2020) denominated in US$ and US$301 (US$443 as at December 31, 2020) denominated in other currencies as at June 30, 2021.

c) Short-term investments

At June 30, 2021, the balance of US$951 (US$771 as at December 31, 2020) is substantially comprised of investments in an exclusive investment fund immediately liquid, whose portfolio is composed of committed transactions and Financial Treasury Bills ('LFTs'), which are floating-rate securities issued by the Brazilian government.

d) Loans, borrowings and leases

i) Total debt

							Current liabilities					Non-current liabilities
			Average interest rate (i)				June 30, 2021				December 31, 2020				June 30, 2021				December 31, 2020
Quoted in the secondary market:
Bonds			6.01	%			-				-				7,448				7,448
Eurobonds							-				-				-				920
Debentures			10.48	%			50				107				378				389
Debt contracts in Brazil in:
R$, indexed to TJLP, TR, IPCA, IGP-M and CDI (ii)			9.29	%			128				320				332				540
R$, with fixed interest			2.76	%			19				20				6				14
Basket of currencies and bonds in US$ indexed to LIBOR			2.32	%			33				45				-				11
Debt contracts in the international market in:
US$, with variable and fixed interest			2.26	%			325				182				3,073				3,044
Other currencies, with variable interest			4.09	%			86				-				10				-
Other currencies, with fixed interest			3.35	%			12				12				98				107
Accrued charges							156				201				-				-
Total							809				887				11,345				12,473

(i) In order to determine the average interest rate for debt contracts with floating rates, the Company used the rate applicable as at June 30, 2021.

(ii) R$ denominated debt that bears interest at IPCA, CDI, TR or TJLP, plus spread. For a total of US$892 the Company entered into derivative transactions to mitigate the exposure to the cash flow variations of the floating rate debt denominated in R$, resulting in an average cost of 2,92% per year in US$.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

Future flows of debt payments, principal and interest

			Principal			Estimated future interest payments (i)
2021				173				300
2022				1,254				593
2023				298				555
2024				2,014				537
Between 2025 and 2029				2,142				1,008
2030 onwards				6,117				3,641
Total				11,998				6,634

(i) Based on interest rate curves and foreign exchange rates applicable as at June 30, 2021 and considering that the payments of principal will be made on their contracted payments dates. The amount includes the estimated interest not yet accrued and the interest already recognized in the interim financial statements.

Credit and financing lines

The Company has two revolving credit facilities to assist the short-term liquidity management and to enable more efficiency in cash management in the available amount of US$5,000, of which US$2,000 will mature in 2022 and US$3,000 in 2024. As at June 30, 2021, these lines are undrawn.

Funding and payments

In January 2021, the Company contracted the credit line US$300 with The New Development Bank maturing at 2035 and indexed to Libor + 2,49% per year.

In March 2021, the Company redeemed all of its 3.750% bonds due January 2023, in the total amount of US$884 (EUR750 million) and for it paid a premium of US$63, which was recorded as 'Expenses with cash tender offer redemption' under the financial results for six-month period ended June 30,2021.

Covenants

Some of the Company's debt agreements with lenders contain financial covenants. The primary financial covenants in those agreements require maintaining certain ratios, such as debt to EBITDA (as defined in note 4(a)) and interest coverage. The Company has not identified any instances of noncompliance as at June 30, 2021.

Reconciliation of debt to cash flows arising from financing activities

		Quoted in the secondary market			Debt contracts in Brazil			Debt contracts on the international market			Total
December 31, 2020			9,046				959				3,355				13,360
Additions			-				-				300				300
Payments (i)			(922	)			(269	)			(221	)			(1,412	)
Interest paid			(279	)			(79	)			(68	)			(426	)
Cash flow from financing activities			(1,201	)			(348	)			11				(1,538	)
Effect of exchange rate			(50	)			(153	)			196				(7	)
Interest accretion			222				63				54				339
Non-cash changes			172				(90	)			250				332
June 30, 2021			8,017				521				3,616				12,154

(i) Includes expenses with the redemption in the amount of US$63.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

ii) Lease liabilities

		December 31, 2020			Additions and contract modifications			Payments (i)			Interest (ii)			Translation adjustment			June 30, 2021
Ports			743				-				(40	)			14				1				718
Vessels			533				-				(31	)			11				-				513
Pellets plants			137				37				(2	)			3				8				183
Properties			142				3				(24	)			2				1				124
Energy plants			62				-				(2	)			3				-				63
Mining equipment and locomotives (iii)			50				58				(5	)			2				2				107
Total			1,667				98				(104	)			35				12				1,708

(i) The total amount of the variable lease payments not included in the measurement of lease liabilities, which have been recognized straight to the income statement, for the three and six-month periods ended June 30, 2021 was US$78 and US$111 (US$10 and US$38 for the three and six-month periods ended June 30, 2020), respectively.

(ii) The interest accretion recognized in the income statement is disclosed in note 6.

(iii) 'Additions and contract modifications' includes the effects arising from the acquisition of NLC in the amount of US$53.

Annual minimum payments

		2021			2022			2023			2024			2025 onwards			Total
Ports			35				63				62				61				802				1,023
Vessels			33				63				62				60				405				623
Pellets plants			44				40				13				13				116				226
Properties			24				29				23				22				41				139
Energy plants			3				7				7				6				61				84
Mining equipment and locomotives			11				21				16				15				79				142
Total			150				223				183				177				1,504				2,237

The amounts in the table above presents the undiscounted lease obligation by maturity date. The lease liability recognized in the balance sheet is measured at the present value of such obligations.

e) Guarantees

As at June 30, 2021 and December 31, 2020, loans and borrowings are secured by property, plant and equipment in the amount of US$88 and US$176, respectively. The securities issued through Vale's wholly-owned finance subsidiary Vale Overseas Limited are fully and unconditionally guaranteed by Vale.

20. Brumadinho dam failure

On January 25, 2019, a tailings dam ('Dam I') failed at the Córrego do Feijão mine, in the city of Brumadinho, state of Minas Gerais. The failure released a flow of tailings debris, destroying some of Vale's facilities, affecting local communities and disturbing the environment. The tailings released have caused an impact of around 315 km in extension, reaching the nearby Paraopeba River. The dam failure in Brumadinho ('event') resulted in 270 fatalities, including 10 victims still missing, and caused extensive property and environmental damage in the region.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

As a result of the dam failure, the Company has recognized provisions to meet its assumed obligations, individual indemnification to those affected by the event, remediation of the affected areas and compensation to the society. The Company also recognized a provision for de-characterization of the dams. Below are the changes in during the current period:

		December 31, 2020			Impact on the income statement			Present value adjustment			Disbursements (ii)			Translation adjustment			June 30, 2021
Global Settlement for Brumadinho			3,989				-				(83	)			(26	)			141				4,021
Provision for individual indemnification and other commitments			586				-				(6	)			(123	)			13				470
Liabilities related to Brumadinho			4,575				-				(89	)			(149	)			154				4,491
De-characterization of dams			2,289				-				(43	)			(163	)			72				2,155
Incurred expenses (i)			-				300				-				(300	)			-				-
			6,864				300				(132	)			(612	)			226				6,646

(i) The Company has incurred expenses, which have been recognized straight to the income statement, in relation to communication services, accommodation and humanitarian assistance, equipment, legal services, water, food aid, taxes, among others. For the three and six-month periods ended June 30, of 2021, the Company incurred expenses in the amount of US$185 and US$300, respectively (US$109 and US$268 for the three and six-month periods ended June 30, 2020).

(ii) Disbursement is presented net of the judicial deposits utilization.

a) Global Settlement for Brumadinho

On February 4, 2021, the Company entered into a Judicial Settlement for Integral Reparation ('Global Settlement'), which was under negotiations since 2019, with the State of Minas Gerais, the Public Defender of the State of Minas Gerais and the Federal and the State of Minas Gerais Public Prosecutors Offices, to repair the environmental and social damage resulting from the Dam I rupture. The Global Settlement was ratified by the Minas Gerais State Court on February 4, 2021 and the res judicata was drawn up on April 7, 2021.

With the Global Settlement, the requests contained in public civil actions regarding the socio-environmental and socioeconomic collective damages caused by the dam rupture were substantially resolved and the parameters for the reparation and compensation of said damages were established. As a result, the Company recorded an additional provision as at December 31, 2020.

The provision is discounted at presented value using an observable rate that reflects the current market assessments of the time value of money and the risks specific to the liability at the reporting date. During the current year, the discount rate applied on the provisions for the Global Settlement, individual indemnification and other commitments, has increased from 2.0% at December 31, 2020 to 3.7% at June 30, 2021.

Based on the present value of the projected cash outflows, the provision related to Global Settlement is detailed as follows:

		June 30, 2021			December 31, 2020
Cash settlement obligation, net of judicial deposits			2,380				2,343
Provision for socio-economic reparation and others			853				860
Provision for social and environmental reparation			788				786
			4,021				3,989

			June 30, 2021				December 31, 2020
Current liabilities			1,956				1,561
Non-current liabilities			2,065				2,428
Liabilities			4,021				3,989

(a.i) Cash settlement obligation

The cash settlement obligation relates to the socio-economic reparation and socio-environmental compensation projects that will be carried out or managed directly by the State of Minas Gerais and Institutions of Justice, mainly aiming to develop the urban mobility program and strengthening public service programs, as well as other projects that will be proposed by the affected population. In addition, resources will be used in a program of income transfer to those affected by the event, which will be carried out by Institutions of Justice. Of the total amount, US$880 (R$4,400 million) relates to the income transfer program that will be fully paid in 2021. The remaining amount of US$1,500 (R$7,505 million) is the present value of the semiannual fixed payments obligation, which will last 5 years on average.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

(a.ii) Provision for socio-economic reparation and others

The Global Settlement includes remediation projects for Brumadinho and other affected municipalities of the Paraopeba basin. The socioeconomic reparation actions aims to strengthen the productive activities of the affected region, through measures for greater economic diversification of the municipality of Brumadinho, reducing its historical dependence on mining, and, for the rest of the Basin, finding ways to support the transformation of the economy of the impacted municipalities. These projects will be carried out directly by the Company for an average period of 3 years.

The estimated amounts for the project execution, although set in the agreement, may vary since the implementation of those projects are Vale's responsibility and changes against the original budget may result in changes in provision in future reporting periods.

(a.iii) Provision for social and environmental reparation

The Global Settlement establishes the rule for the development of the environmental reparation plan, and projects for the compensation of environmental damage already known. These measures aim to repair the damage caused, restore the ecosystems disruption, restore local infrastructure, repair social and economic losses, recover affected areas and repair the loss of memory and cultural heritage caused by the dam rupture. It also includes several actions to clean up the affected areas and improvements to the water catchment system along the Paraopeba River and other water collection points near the affected area. These measures and compensation projects will be carried out directly by the Company for an average period of 5 years.

The estimated amount to carry out the environmental recovery actions is part of the Global Settlement. However, it has no cap due

to the Company's legal obligation to fully repair the environmental damage caused by the dam rupture. Therefore, this provision may change in the future depending on several factors that are not under the control of the Company.

b) Provision for individual indemnification and other commitments

For the individual indemnification, Vale and the Public Defendants of the State of Minas Gerais formalized an agreement on April 5, 2019, under which those affected by the Brumadinho's Dam failure may join an individual or family group out-of-Court settlement agreements for the indemnification of material, economic and moral damages. This agreement establishes the basis for a wide range of indemnification payments, which were defined according to the best practices and case law of Brazilian Courts, following rules and principles of the United Nations ('UN'). As at June 30, 2021, the provision recorded is US$158 (US$179 as at December 31, 2020).

In addition to the Global Settlement, the Company has been working to ensure geotechnical safety of the remaining structures at the Córrego do Feijão mine, in Brumadinho, and the removal and proper disposal of the tailings of Dam I. As at June 30, 2021, the provision recorded is US$252 (US$267 as at December 31, 2020).

In addition, the Company was notified of the imposition of administrative fines by the Brazilian Institute of the Environment and Renewable Natural Resources ('IBAMA'), in the amount of US$50 (R$250 million). The Company signed an agreement with IBAMA, of which US$30 (R$150 million) will be used in environmental projects in 7 parks in the state of Minas Gerais, covering an area of approximately 794 thousand hectares, and US$20 (R$100 million) will be used in basic sanitation programs in the state of Minas Gerais.

c) De-characterization of other dams in Brazil

Following the Brumadinho Dam rupture, the Company has decided to speed up the plan to 'de-characterize' its tailings dams built under the upstream method (same method as Brumadinho's dam), certain 'centerline structures' and dikes, located in Brazil. The observable rate applied to the provision for the de-characterization of dams, increased from 3.5% at December 31, 2020 to 4.4% at June 30, 2021. The Company has a total provision to comply with these assumed obligations in the amount of US$2,155 at June 30, 2021 (US$2,289 as at December 31, 2020).

(c.i) Operation stoppages

The Company has suspended some operations due to judicial decisions or technical analysis performed by Vale on its upstream dam structures. The Company has been recording losses in relation to the operational stoppage and idle capacity of the ferrous mineral segment in the amounts of US$80 and US$193 for the three and six-months periods ended June 30, 2021 (US$104 and US$267 for the three and six-months periods ended June 30, 2020), respectively. The Company is working on legal and technical measures to resume all operations at full capacity.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

d) Contingencies and other legal matters

(d.i) Requests for fines or forfeit of assets

On August 26, 2020, the Public Prosecutor's Office of Minas Gerais ('MPMG') and other plaintiffs of the Public Civil Actions presented a request for ruling condemning Vale to indemnify alleged economic losses of the State of Minas Gerais and collective moral damages, both claims already considered in said Public Civil Actions filed against Vale in January 2019 as a result of the Brumadinho dam rupture. In that submission, the plaintiffs also requested the immediate freezing of US$5,1 billion (R$26,7 billion) from the Company as a guarantee for the reimbursement of the alleged economic losses, which was dismissed by the judge of the 2nd Lower Court of Public Treasury of Belo Horizonte on October 6, 2020. This claim was extinguished with the Global Settlement.

In other proceeding, in May 2020, the MPMG requested the imposition of fines or forfeit of assets, rights and amounts of the Company, allegedly based on Article 5, item V of Brazilian Law 12.846/2013. According to the MPMG, Vale would have, through its employee's actions, hindered the inspection activities of public agencies in the complex. Vale was not required to present any guarantees of US$1,4 billion (R$7,9 billion) based on a judicial decision. The Company believes that the likelihood of loss is remote.

In January 2021, the Comptroller General of the State of Minas Gerais ('CGE') notified Vale to present it defense against the Administrative Liability Proceeding ('PAR') initiated based on the same article. Vale presented its defense in March 2021, and filed a writ of mandamus in the face of the establishment of this PAR, which had the injunction granted to suspend the proceeding of the PAR.

In October 2020, the Company was informed that the Brazilian Office of the Comptroller General ('CGU') initiated an administrative proceeding based on the same allegations made by the MPMG. As this is a discretionary procedure from the CGU, the Company estimates its likelihood of a loss during the administrative phase as possible, but it reaffirms its assessment of loss as remote in the annulment lawsuit to be instituted against any decision by CGU, if necessary.

(d.ii) U.S. Securities putative class action suit

Vale is defending itself in a putative class action brought before a Federal Court in New York and filed by holders of securities - American Depositary Receipts ('ADRs') - issued by Vale. The Lead Plaintiff alleges that we made false and misleading statements or omitted to make disclosures concerning the risks of the operations of Dam I in the Córrego de Feijão mine and the adequacy of the related programs and procedures.

Following the decision of the Court, in May 2020, that denied the Motion to Dismiss presented by the Company, the Discovery phase has started and the fact Discovery was expected to be concluded by June 2021. However, due to the pandemic, the fact Discovery term has been extended to be concluded by March 2022, the fact Discovery is currently ongoing. In parallel, in February 2021 the Plaintiff filed a motion for class certification, which we opposed on April, 2021. On June, 2021 a Reply was filed by the Plaintiff and rebuttal expert reports were filed by the parties. A decision by the Court on the motion for class certification is expected to be issued in the upcoming weeks.

Based on the evaluation of the Company's legal counsel and given the very preliminary stage, the expectation of loss of this process is classified as possible. However, considering the initial stage of this putative class action, it is not possible at this time to reliably estimate the amount of a potential loss.

(d.iii) Arbitration proceedings in Brazil filed by shareholders and a class association

In Brazil, Vale is a defendant in (i) one arbitration filed by 166 minority shareholders, (ii) one arbitration filed by a class association allegedly representing all Vale's minority shareholders, and (iii) one arbitration filed by foreign investment funds.

In the three proceedings, the Claimants argue Vale would be aware of the risks associated with the dam, and failed to disclose it to the shareholders, which would be required under the Brazilian applicable laws and the rules of Comissão de Valores Mobiliários (Securities and Exchange Commission of Brazil). Based on such argument, they claim compensation for losses caused by the decrease of the value of the shares.

Based on the evaluation of the Company's legal counsel and given the very preliminary stage, the expectation of loss of these proceedings is classified as possible.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

Specifically, in the proceeding filed by foreign funds, the Claimants estimated the amount of the alleged losses at approximately US$346 (R$1,800 million). However, the Company disagrees with the estimated losses alleged by the foreign funds and believes that the likelihood of loss is remote based on the current status of the proceeding.

(d.iv) Investigations by the CVM and the Securities and Exchange Commission ('SEC')

The Company is cooperating with the CVM and the SEC by providing documents and other information related to the Dam I rupture in connection with ongoing investigations by both agencies. These investigations relate to Vale's disclosure of relevant information to shareholders, investors and the market in general, especially regarding the conditions and management of Vale's dams. The CVM and SEC investigations may result in the application of fines and administrative penalties either through negotiated resolutions or court proceedings.

(d.v) Criminal proceedings and investigations

In January 2020, the MPMG brought criminal charges against 16 individuals (including former executive officers of Vale and former employees) for a number of potential crimes, including homicide, and against Vale S.A. for alleged environmental crimes. These charges were accepted by the state criminal judge in the city of Brumadinho on February 14, 2020, and a criminal proceeding against these individuals and Vale is ongoing. Vale intends to vigorously defend itself against the criminal claims, and the Company cannot estimate when a decision on this criminal proceeding will be issued. The criminal action is currently suspended while the MPMG organizes the relevant documents to enable defendants to defend themselves properly.

(d.vi) Labor Collective Civil Action

In 2021, public civil actions were filed by a labor union in the Labor Court of Betim in the Brazilian State of Minas Gerais, claiming the indemnification payment for death damage to each direct and outsourced employee who has died due to the Dam I rupture. They are claiming to represent 246 workers and have requested indemnification payments ranging between US$300 thousand (R$1.5 million) and US$600 thousand (R$3 million) to each fatal victim. There has been an initial decision condemning Vale to pay US$200 thousand (R$1 million) per each direct employees (131 fatal victims). Vale is defending itself against these actions and believes that, despite the lack of provision in the Brazilian legal framework, the likelihood of loss is deemed possible.

e) Insurance and financial guarantees

(e.i) Insurance

The Company is negotiating with insurers the payment of indemnification under its operational risk and civil liability. However, these negotiations are still at a preliminary stage, therefore any payment of insurance proceeds will depend on the coverage definitions under these policies and assessment of the amount of loss. Due to uncertainties, no indemnification to the Company was recognized in these interim financial statements.

(e.ii) Financial guarantees

In April 2021, the financial guarantees related to the Brumadinho event were released, due the Global Settlement. As at December 31, 2020, the Company had financial guarantees in the amount of US$1,124.

21. Liabilities related to associates and joint ventures

In November 2015, the Fundão tailings dam owned by Samarco Mineração S.A. (Samarco) failed, releasing tailings downstream, flooding certain communities and causing impacts on communities and the environment along the Doce river. The rupture resulted in 19 fatalities and caused property and environmental damage to the affected areas. Samarco is a joint venture equally owned by Vale S.A. and BHP Billiton Brasil Ltda. (''BHPB'').

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

In June 2016, Samarco, Vale and BHPB created the Fundação Renova, a not-for-profit private foundation, to develop and implement (i) social and economic remediation and compensation programs and (ii) environmental remediation and compensation programs in the region affected by the dam rupture. The creation of Fundação Renova was provided for under the agreement for settlement and conduct adjustment (the ''Framework Agreement'') signed in March 2016 by Vale, BHPB, Samarco, the Brazilian federal government, the two Brazilian states affected by the rupture (Minas Gerais and Espírito Santo) and other governmental authorities.

In June 2018, Samarco, Vale and BHPB entered into a comprehensive agreement with the offices of the federal and state (Minas Gerais and Espírito Santo) prosecutors, public defenders and attorney general, among other parties, improving the governance mechanism of Fundação Renova and establishing, among other things, a process for potential revisions to the remediation programs provided under the Framework Agreement based on the findings of experts hired by Samarco to advise the MPF (Federal Prosecutor's Office) over a two-year period (the ''June 2018 Agreement''). Under the Framework Agreement, the June 2018 Agreement and Renova's by-laws, Fundação Renova must be funded by Samarco, but to the extent that Samarco is unable to fund, Vale and BHPB must ratably bear the funding requirements Under the Framework Agreement.

On April 9, 2021, Samarco announced the request for Judicial Reorganization ('RJ') was filed with the Minas Gerais Court to renegotiate its debt, which is held by bondholders abroad. The purpose of RJ is to restructure Samarco's debts and establish an independent and sustainable financial position, allowing Samarco to keep working to resume its operations safely and to fulfill its obligations related to the Renova Foundation.

The RJ does not affect Samarco's obligation to remediate and compensate the impacts of the Fundão tailings dam failure. However, as Samarco began the gradual resumption of operations in December 2020, it is not yet possible to reliably estimate when Samarco will generate cash to comply with its assumed obligation in the TTAC. Thus, the liability recorded by Vale on June 30, 2021 does not consider Samarco's potential cash flows generation. Therefore, the RJ did not have any additional impact on these interim financial statements.

In addition, the Company has a provision of US$225 (US$ 221 as at December 31,2020) for the de-characterization of the Germano dam.

Movements during the period

		2021			2020
Balance at January 1,			2,074				1,700
Provision			560				566
Disbursements			(137	)			(169	)
Present value valuation			(71	)			40
Translation adjustment			65				(468	)
Balance at June 30,			2,491				1,669

			June 30, 2021				December 31, 2020
Current liabilities			1,467				876
Non-current liabilities			1,024				1,198
Liabilities			2,491				2,074

Renova Foundation

During the second quarter of 2021, Fundação Renova reviewed the assumptions used on the preparation of the estimates incorporated into the mitigation and compensation programs mainly due recent judicial decisions increasing the scope of some TTAC programs. The periodic review, resulted in an additional provision of US$560 (R$2,820 million), which corresponds to its portion of the responsibility to support the Renova Foundation.

Samarco's working capital

In addition to the provision, Vale S.A. made available US$21 during the first quarter of 2021 (2020: US$56), which was fully used to fund Samarco's working capital. This expense was recognized as 'Equity results and other results in associates and joint ventures'. No amount was made available during the three-month period ended June 30, 2021 (2020: US$20). Vale S.A. may provide an additional short-term credit facility up to US$64 in 2021.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

Contingencies related to Samarco accident

These proceedings include public civil actions brought by Brazilian authorities and multiple proceedings involving claims for significant amounts of damages and remediation measures. The Company expects the Framework Agreements to represent the settlement of the public civil action brought by the MPF and other related proceedings. There are also putative securities class actions in the United States against Vale and some of its current and former officers and a criminal proceeding in Brazil. The main updates regarding the lawsuits in the period were as follows:

(i) Public Civil Action filed by the Federal Government and others and public civil action filed by the Federal Public Prosecutors ('MPF')

The Framework Agreement ('TAC-Gov') considers the renegotiation of the Renova Foundation's reparation programs depending on the results of the studies carried out by the experts. The negotiations started in April 2021 and a letter of principles was signed in June 2021 by Vale, BHP and Samarco with the representatives of the government and various justice institutions. Based on terms set on this letter, there has been a request from the MPF to a new suspension of the proceedings for 120 days in order to continue the extrajudicial negotiation.

In March 2021, a new incidental proceeding ('Eixo Prioritário') was initiated, at the request of the Federal Attorney General's Office ('AGU'), with the purpose of discuss a restructure on Renova Foundation's organizational management structure, the 'Eixo Prioritário 13'. There was granted an injunction for an expert procedure and diagnosis report to be made at the Renova Foundation, in particular of its governance mechanisms. The companies filed a motion for clarification, arguing that, in order to remedy the alleged inefficiency of the governance system that permeates the reparation, it is appropriate to expand the scope of the expert's analysis, to consider the entire management structure of such measures, created with the TTAC, and requesting that the expert also assess the external management carried out by the Interfederative Committee ('CIF') in the scope of the preliminary diagnosis.

The 'Eixo Prioritário 7', which relates to the individual compensation of Renova Foundation, has a risk in relation to decisions that could be decided in favor to the claims to include new categories of professional damages and new areas. Depending on the outcome of these proceedings, the provision recorded by the Company may have a material impact in future reporting periods.

(ii) Class Action in the United States

In March 2017, the holders of securities issued by Samarco Mineração S.A. filed a potential collective action in the New York Federal Court against Samarco, Vale, BHP Billiton Limited, BHP Billiton PLC and BHP Brasil Ltda. based on U.S. Federal Securities laws, which was dismissed without prejudice, in June 2019. In December 2019 the plaintiffs filed a Notice of Appeal to the NY Court of Appeals.

In January 2021, it was held a hearing before the Second Circuit of the New York State Court of Appeals. In March 2021 the Second Circuit denied the plaintiff's appeal. This decision became res judicata in June 2021, since no further appeal has been filed by the Plaintiff. Thus, the case is closed and should be filed by the Court.

(iii) Criminal proceeding

In September 2019, the federal court of Ponte Nova dismissed all criminal charges against Vale representatives relating to the first group of charges, which concerns the results of the Fundão dam failure, remaining only the legal entity in the passive pole. The second group of charges against Vale S.A. and one of the Company's employees, which concerns the accusation of alleged crimes committed against the Environmental Public Administration, remained unchanged. In June 2021, the Company filed an appeal with the Superior Court of Justice against the decision of the Federal Regional Court of the 1st Region that did not decided in favor of Vale. In July 2021, the Federal Prosecutor filed an appeal with the Federal Regional Court of the 1st Region, against the judge's decision that rejected the resumption of the procedural instruction, requesting the review of the decision. The Company cannot estimate when a final decision on the case will be issued.

Insurance

Since the Fundão dam rupture, the Company has been negotiating with insurers the indemnification payments based on its general liability policies. For the period ended June 30, 2021, the Company received payments in the amount of US$33, and recognized a gain in the income statement as 'Equity results and other results in associates and joint ventures'.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

22. Provisions

		Current liabilities			Non-current liabilities
		June 30, 2021			December 31, 2020			June 30, 2021			December 31, 2020
Payroll, related charges and other remunerations			692			877				-			-
Onerous contracts			53			58				842			838
Environmental obligations			95			102				214			200
Asset retirement obligations (i)			102			99				3,974			4,121
Provision related to VNC sale (note 12)			-			500				-			-
Provisions for litigation (note 23)			102			87				1,074			1,004
Employee postretirement obligations (note 24)			112			103				1,899			2,271
Provisions			1,156			1,826				8,003			8,434

(i) The Company has issued letters of credit and surety bonds for US$621 as at June 30, 2021 in connection with the Asset retirement obligations for its Base Metals operations.

23. Litigations

a) Provision for legal proceedings

The Company has considered all information available to assess the likelihood of an outflow of resources and in the preparation on the estimate of the costs that may be required to settle the obligations. The main litigations refer to:

Tax litigations -Mainly refers to the lawsuit filed in 2011 by Valepar (merged by Vale) seeking the right to exclude the amount of dividends received in the form of interest on stockholders' equity ('JCP') from the PIS and COFINS tax base. The amount reserved for this proceeding as at June 30, 2021 is US$442 (US$423 as at December 31,2020). This proceeding is guaranteed by a judicial deposit in the amount of US$509 recorded at June 30, 2021 (US$487 as at December 31,2020).

Civil litigations -Refers to lawsuits for: (i) indemnities for losses, payments and contractual fines due to contractual imbalance or non-compliance that are alleged by suppliers, and (ii) land claims referring to real estate Vale's operational activities.

Labor litigations -Refers to lawsuits for individual claims by in-house employees and service providers, primarily involving demands for additional compensation for overtime work, moral damages or health and safety conditions.

Environmental litigations -Refers mainly to proceedings for environmental damages and issues related to environmental licensing.

		Tax litigation			Civil litigation			Labor litigation			Environmental litigation			Total of litigation provision
Balance at December 31, 2020			485				260			335				11				1,091
Additions and reversals, net			(2	)			(1	)		46				1				44
Payments			-				(15	)		(29	)			(4	)			(48	)
Indexation and interest			3				10			23				-				36
Translation adjustment			19				11			17				-				47
Acquisition of NLC (note 12)			-				1			5				-				6
Balance at June 30, 2021			505				266			397				8				1,176
Current liabilities			9				17			76				-				102
Non-current liabilities			496				249			321				8				1,074
			505				266			397				8				1,176

		Tax litigation			Civil litigation			Labor litigation			Environmental litigation			Total of litigation provision
Balance at December 31, 2019			696				300			455				11				1,462
Additions and reversals, net			19				28			14				2				63
Payments			(10	)			(11	)		(34	)			-				(55	)
Indexation and interest			13				16			13				-				42
Translation adjustment			(168	)			(77	)		(120	)			(3	)			(368	)
Balance at June 30, 2020			550				256			328				10				1,144
Current liabilities			7				14			63				-				84
Non-current liabilities			543				242			265				10				1,060
			550				256			328				10				1,144

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

b) Contingent liabilities

The main contingent liabilities, updated by applicable interest rates, for which the likelihood of loss is not considered remote are presented by nature as follows:

		June 30, 2021			December 31, 2020
Tax litigations			8,166			6,911
Civil litigations			1,644			1,348
Labor litigations			572			563
Environmental litigations			1,006			907
Total			11,388			9,729

The contingent liabilities related to the Brumadinho event and Samarco are not presented above. Further information is presented in notes 20 and 21.

As reported in the annual financial statements for 2020, the Company is party in several actions and the main updates on contingent liabilities since then, are discussed as follows:

(b.i) Assessments regarding the disallowance of JCP:

In February 2021 Vale was assessed for collection of corporate income tax (IRPJ, CSLL) and penalties regarding the disallowance of the JCP expenses deducted from the 2017 taxable income, in the amount of US$685 (R$3,426 million). There was also a reduction in tax losses, with the corresponding tax impact of US$140 (R$698 million) in June 30,2021. The Company had filed an administrative appeal and a decision is pending. As at June 30,2021, the likelihood of loss is possible.

(b.ii) Proceeding related to income tax paid abroad:

In March 2021, Vale was assessed for the collection of US$434 (R$2,171 million) due to the disregard of taxes paid abroad that were offset by the IRPJ debt in 2016. Tax authorities allege the Company has failed to comply with the applicable rules relating to the offset, in Brazil, of income taxes paid abroad. The Company had filed an administrative appeal and a decision is pending. As at June 30, 2021, the likelihood of loss is possible.

c) Judicial deposits

		June 30, 2021			December 31, 2020
Tax litigations			1,052			988
Civil litigations			83			85
Labor litigations			168			177
Environmental litigations			23			18
Total			1,326			1,268

d) Guarantees contracted for legal proceedings

In addition to the above-mentioned tax, civil, labor and environmental judicial deposits, the Company contracted US$2.4 billion (R$11.8 billion) in guarantees for its lawsuits.

e) ICMS included in PIS and COFINS computation tax base

Vale has been discussing the issue regarding the exclusion of ICMS in PIS and COFINS tax basis in two judicial proceedings filed before March 2017. In one of the proceedings includes refers to the taxable events from March 2012 onwards and has a definitive favorable decision (res judicata). This proceeding gave rise to the recognition of a gain in the amount of US$63 (R$ 313 million) in the income statement for the year ended December 31, 2020. This amount was calculated based on the thesis that the collected ICMS was supposed to be excluded from the contribution basis. With the definition of the subject by Federal Supreme Court in the leading case (RE 574.706), which is binding to all taxpayers and has determined that the ICMS amount to be excluded shall be the amount stated in the invoices, the Company recognized an additional gain of US$29 (R$146 million) for the three-month period ended June 30, 2021.

The other proceeding, which covers the taxable events occurred between December 2001 and February 2012, resulted in a gain of US$162 (R$808 million) for the three-month period ended June 30, 2021, due to the favorable decision to the Company, which is consistent to the recent decision of the Federal Supreme Court on the leading case with wider repercussion to all taxpayers.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

24. Employee benefits

a) Long-term incentive programs

For the long-term awarding of eligible executives, the Company compensation plans includes Matching program and Performance Share Unit program ('PSU'), with three years-vesting cycles, respectively, with the aim of encouraging employee's retention and encouraging their performance.

Matching Program

For the Matching program, the participants can acquire Vale's common shares in the market without any benefits being provided by Vale. If the shares acquired are held for a period of three years and the participants keep it employment relationship with Vale, the participant is entitled to receive from Vale an award in shares, equivalent to the number of shares originally acquired by the executive. It should be noted that, although a specific custodian of the shares is defined by Vale, the share initially purchased by the executives have no restriction and can be sold at any time. However, if it's done before the end of the three-year-vesting period, they would lose its right of receiving the related award to be paid by Vale.

Performance Shares Units

For PSU program, the eligible executives have the opportunity to receive during a three year-vesting cycle, an award equivalent to the market value of a determined number of common shares and depending on the Vale's performance factor, which is measured based on indicators of the total return to the shareholders ('TSR') and Environmental, Social, and Governance ('ESG'). It is comprised by 80% of TSR metrics and 20% of ESG indicators.

At the Annual and Extraordinary Shareholders' Meeting ('AGOE') held on April 30, 2021, the Company's shareholders approved changes in the PSU program to be implemented as from the 2021 grant, consisting of (i) a change in the payment of the program award, which will be paid with common shares of the Company, and (ii) additional payment at the end of each cycle based on the remuneration that will be paid by Vale to its stockholders during the cycle.

b) Modification altering manner of settlement

Both programs were classified as 'cash-settled' due to the PSU requirements and the Company's settlement practice for the Matching program and, therefore, presented as a liability. However, the decision taken at the AGOE ('modification date') demonstrates the Company's declared intention to change the form of liquidation of the programs. As a result, those programs were modified to become 'equity-settled' and were remeasured at the modification-date fair value.

Fair value at modification date

The fair value of the Matching program was estimated using the Company's stock price and ADR at the modification date, which was R$109.02 and US$20.12 per share, respectively. The number of shares granted for the 2019, 2020 and 2021 cycles were 1,222,721, 2,154,534 and 1,046,255, respectively. The fair value of the program will be expensed on a straight-line basis over the three-year required service period, net of estimated forfeitures.

For the PSU, the program was measured using Monte Carlo simulations to estimate the TSR indicator and ESG indicators. The assumptions used in the Monte Carlo simulation to estimate the fair value of the TSR indicator are shown below:

PSU		2021
Granted shares			1,474,723
Date shares were granted			04/30/2021
VALE (BRL)			109.02
VALE ON (USD)			20.12
Expected volatility			39.00%p.y.
Expected dividend yield (i)			3.18%p.y.
Expected term (in years)			3
Expected value of the total shareholder return (TSR)			51.20	%
Expected value of the performance factor (Total)			60.96	%

(i) Source: Bloomberg 04/30/2021

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

Reclassification from cash-settled to equity-settled

Matching		April 30, 2021			Remeasurement			Reclassification			May 1, 2021			Expense			June 30, 2021
Liability			33				5				(38	)			-				-				-
Stockholders' equity			-				-				38				38				5				43
Net income			-				(5	)			-				(5	)			(5	)			(10	)

PSU		April 30, 2021			Remeasurement			Reclassification			May 1, 2021			Expense			June 30, 2021
Liability			3				(1	)			(2	)			-				-				-
Stockholders' equity			-				-				2				2				1				3
Net income			-				1				-				1				(1	)			-

c) Employee post-retirement obligations

Reconciliation of net liabilities recognized in the statement of financial position

		June 30, 2021			December 31, 2020
		Overfunded pension plans			Underfunded pension plans			Other benefits			Overfunded pension plans			Underfunded pension plans			Other benefits
Amount recognized in the statement of financial position
Present value of actuarial liabilities			(3,183	)			(4,440	)			(1,668	)			(3,105	)			(4,632	)			(1,733	)
Fair value of assets			4,045				4,097				-				3,969				3,991				-
Effect of the asset ceiling			(862	)			-				-				(864	)			-				-
Liabilities			-				(343	)			(1,668	)			-				(641	)			(1,733	)
Current liabilities			-				(41	)			(72	)			-				(47	)			(96	)
Non-current liabilities			-				(302	)			(1,596	)			-				(594	)			(1,637	)
Liabilities			-				(343	)			(1,668	)			-				(641	)			(1,733	)

25. Stockholders' equity

a) Share capital

As at June 30, 2021, the share capital was US$61,614 corresponding to 5,284,474,782 shares issued and fully paid without par value.

		June 30, 2021
Stockholders		Common shares			Golden shares			Total
Shareholders with more than 5% of total capital			1,904,734,340				-				1,904,734,340
Previ			447,780,782				-				447,780,782
Capital World Investors			302,201,922				-				302,201,922
Capital Research Global Investors			294,934,543				-				294,934,543
Bradespar			293,907,266				-				293,907,266
Mitsui&co			286,347,055				-				286,347,055
Blackrock, Inc			279,562,772				-				279,562,772
Others			3,132,978,884				-				3,132,978,884
Golden shares			-				12				12
Total outstanding (without shares in treasury)			5,037,713,224				12				5,037,713,236
Shares in treasury			246,761,546				-				246,761,546
Total capital			5,284,474,770				12				5,284,474,782

The information presented above is based on the communications provided by stockholders in connection with the Instruction 358 issued by the Brazilian Securities and Exchange Commission ('CVM').

b) Share buyback program

On April 1, 2021, the Board of Directors approved a share buyback program for Vale's common share which will be limited to a maximum of 270,000,000 common shares, and their respective ADRs, representing up to 5.3% of the total number of outstanding shares. The program will be carried out over up to a 12-month period and the repurchased shares will be cancelled after the expiration of the program or utilized on the executive compensation programs (note 24). The shares have been acquired in the stock market based on regular trading conditions. Until June 30, 2021, the Company acquired 93,088,200 common shares at an average cost of US$21.52 (R$111.79) per share, which represents a total amount of US$2,004 (R$10,407 million).

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

c) Treasury shares

The Company utilized 890,482 and 1,628,485 units from its treasury shares, for the share-based payment program of its executives (note 24), corresponding to US$7 and US$14 recognized as 'Treasury shares utilized in the period' in the Statement of Changes in Equity, for the periods ended June 30, 2021 and 2020, respectively.

d) Stockholder's remuneration

On February 25, 2021, based on the Company's dividends policy, the Board of Directors approved the stockholder's remuneration in the amount of US$3,972 (R$21,866 million), equivalent to R$4.262386983 per share, which was fully paid on March 15, 2021, Of the total amount, US$762 (R$4,288 million) was in the form of interest on stockholders' equity and US$3,122 (R$17,578 million) in the form of dividends.

On June 17, 2021, the Board of Directors approved an additional stockholder's remuneration in the total amount of US$2,200 (R$ 11,046 million), equivalent to R$2.177096137 per share, which was fully paid on June 30, 2021. Of the total amount, US$724 (R$ 3,634 million) relates to the anticipation of the 2021 year-end result and US$1,476 (R$7,412 million) was paid from the balance on the Company's profit reserves.

26. Related parties

The Company's related parties are subsidiaries, joint ventures, associates, stockholders and its related entities and key management personnel of the Company. Transactions between the parent company and its subsidiaries are eliminated on consolidation and are not disclosed in this note.

In June 2021, the Company concluded the transaction for the acquisition of the interests held by Mitsui (related party) in Vale Moçambique and Nacala Logistics Corridor (note 12).

a) Transactions with related parties

		Three-month period ended June 30,
		2021			2020
		Joint Ventures			Associates			Stockholders			Total			Joint Ventures			Associates			Stockholders			Total
Net operating revenue			180				67				61				308				68				57				55				180
Cost and operating expenses			(152	)			(4	)			-				(156	)			(261	)			(5	)			-				(266	)
Financial result			(21	)			(1	)			141				119				8				2				(13	)			(3	)

		Six-month period ended June 30,
		2021			2020
		Joint Ventures			Associates			Stockholders			Total			Joint Ventures			Associates			Stockholders			Total
Net operating revenue			341				127				114				582				137				118				87				342
Cost and operating expenses			(329	)			(9	)			-				(338	)			(528	)			(11	)			-				(539	)
Financial result			(8	)			(1	)			(380	)			(389	)			29				4				(36	)			(3	)

Purchases, accounts receivable and other assets, and accounts payable and other liabilities relate largely to amounts charged by joint ventures and associates related to the pelletizing plants operational lease and railway transportation services.

Net operating revenue relates to sale of iron ore to the steelmakers and right to use capacity on railroads. Cost and operating expenses mostly relates to the variable lease payments of the pelletizing plants and the logistics costs for using the Nacala Logistics Corridor, which has been consolidated since June 2021 as described in note 12.

Selected Notes to the Interim Financial Statements Expressed in millions of United States dollar, unless otherwise stated

b) Outstanding balances with related parties

		June 30, 2021			December 31, 2020
		Joint Ventures			Associates			Stockholders			Total			Joint Ventures			Associates			Stockholders			Total
Assets
Cash and cash equivalents (i)			-				-				1,352				1,352				-				-				2,082				2,082
Accounts receivable			175				28				2				205				109				45				2				156
Dividends receivable			26				-				-				26				19				-				-				19
Loans (ii)			-				-				-				-				1,118				-				-				1,118
Derivatives financial instruments (i)			-				-				112				112				-				-				2				2
Other assets			38				3				-				41				68				2				-				70
Liabilities			-				-				-				-
Supplier and contractors			157				4				23				184				121				10				35				166
Loans (ii)			-				-				-				-				-				1,385				944				2,329
Derivatives financial instruments (i)			-				-				283				283				-				-				242				242
Other liabilities			188				120				-				308				235				48				-				283

(i) Refers to regular financial instruments with large financial institutions that are deemed related parties

(ii) Refers to loans settled upon completion of the acquisition of NLC (note 12).