Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Entity Registrant Name | NATIONAL STEEL CO |
Entity Central Index Key | 0001049659 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Trading Symbol | SID |
Title of 12(g) Security | Common Shares without Par Value |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | D5 |
Entity a Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity Reporting Status Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Annual Report | true |
ICFR Auditor Attestation Flag | true |
Document Shell Company Report | false |
Document Transition Report | false |
Entity Common Stock, Shares Outstanding | 1,387,524,047 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | R$ 9944586 | R$ 1088955 |
Financial investments | 3,783,362 | 2,633,173 |
Trade receivables | 2,867,352 | 2,047,931 |
Inventories | 4,817,586 | 5,282,750 |
Recoverable taxes | 1,605,494 | 1,282,415 |
Other current assets | 367,814 | 390,581 |
Total current assets | 23,386,194 | 12,725,805 |
Long-term assets | ||
Financial investments | 123,409 | 95,719 |
Deferred income taxes | 3,874,946 | 2,473,304 |
Inventories | 347,304 | 144,499 |
Recoverable taxes | 938,452 | 2,119,940 |
Other non-current assets | 3,603,047 | 2,793,115 |
Total | 8,887,158 | 7,626,577 |
Investments in associates and joint controlled entities | 3,695,780 | 3,584,169 |
Property, plant and equipment | 19,716,223 | 19,700,944 |
Intangible assets | 7,316,794 | 7,231,781 |
Total non-current assets | 39,615,955 | 38,143,471 |
TOTAL ASSETS | 63,002,149 | 50,869,276 |
CURRENT LIABILITIES | ||
Borrowings and financing | 4,126,453 | 5,125,843 |
Payroll and related taxes | 282,630 | 317,510 |
Trade payables | 4,819,539 | 3,012,654 |
Taxes payable | 2,058,362 | 541,027 |
Provisions for tax, social security, labor and civil risks | 81,073 | 96,479 |
Advances from customers | 1,100,772 | 787,604 |
Proposed dividends and interests on net equity | 946,133 | 13,252 |
Other payables | 1,310,734 | 1,725,588 |
Total current liabilities | 14,725,696 | 11,619,957 |
NONCURRENT LIABILITIES | ||
Borrowings and financing | 31,144,200 | 22,841,193 |
Other payables | 3,145,336 | 2,493,702 |
Deferred income taxes | 618,836 | 589,539 |
Provisions for tax, social security, labor and civil risks | 554,315 | 526,768 |
Pension and healthcare plan | 758,426 | 912,184 |
Provision for environmental liabilities and asset retirement obligations | 803,835 | 524,001 |
Total non current liabilities | 37,024,948 | 27,887,387 |
Shareholders' equity | ||
Paid-in capital | 6,040,000 | 4,540,000 |
Capital reserves | 32,720 | 32,720 |
Legal reserves | 468,291 | 278,576 |
Earnings reserves | 5,414,323 | 4,210,888 |
Treasury shares | (58,264) | (58,264) |
Other comprehensive income | (1,983,619) | 1,170,624 |
Total equity attributable to owners of the Company | 9,913,451 | 10,174,544 |
Non-controlling interests | 1,338,054 | 1,187,388 |
Total Shareholders' equity | 11,251,505 | 11,361,932 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | R$ 63002149 | R$ 50869276 |
Consolidated Statements of Inco
Consolidated Statements of Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Net Revenue from sales | R$ 30064020 | R$ 25436417 | R$ 22968885 |
Cost of sales | (19,124,901) | (17,263,264) | (16,105,657) |
Gross profit | 10,939,119 | 8,173,153 | 6,863,228 |
Operating income (expenses) | (5,224,682) | (4,631,236) | 83,332 |
Selling expenses | (2,004,417) | (2,342,805) | (2,263,688) |
General and administrative expenses | (504,458) | (511,065) | (494,023) |
Equity in results of affiliated companies | 71,755 | 125,715 | 135,706 |
Other operating income | 482,494 | 503,770 | 4,036,043 |
Other operating expenses | (3,270,056) | (2,406,851) | (1,330,706) |
Income before financial results and income taxes | 5,714,437 | 3,541,917 | 6,946,560 |
Financial income | 1,802,728 | 379,042 | 1,310,514 |
Financial expenses | (2,599,039) | (2,510,226) | (2,806,157) |
Income before income taxes | 4,918,126 | 1,410,733 | 5,450,917 |
Income tax and social contribution | (625,508) | 833,778 | (250,334) |
Net income for the year | 4,292,618 | 2,244,511 | 5,200,583 |
Net income for the year attributed to: | |||
Controlling interests | 3,794,295 | 1,789,067 | 5,074,136 |
Non-controlling interests | R$ 498323 | R$ 455444 | R$ 126447 |
Earnings (loss) per common share - (reais/share) | |||
Basic (reais/share) | R$ 2.74926 | R$ 1.29632 | R$ 3.69498 |
Diluted (reais/share) | R$ 2.74926 | R$ 1.29632 | R$ 3.69498 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Net income for the year | R$ 4292618 | R$ 2244511 | R$ 5200583 |
Items that will not be subsequently reclassified to the statement of income | |||
Actuarial (losses)/gains on defined benefit plan from investments in subsidiaries | 879 | 424 | 903 |
Actuarial (losses)/gains on defined benefit pension plan | 132,059 | (113,518) | 413 |
Total Items that will not be subsequently reclassified to the statement of income | 132,938 | (113,094) | 1,316 |
Items that could be subsequently reclassified to the statement of income | |||
Cumulative translation adjustments for the year | 581,175 | 32,922 | (87,101) |
(Loss)/gain on change in percentage of investments | 6,102 | (2,288) | (105) |
Fair value through other comprehensive income | (1,559,680) | ||
(Loss) / gain on business combination | (651) | ||
(Loss)/gain on net investment hedge in foreign subsidiaries | (4,824) | 2,472 | (21,852) |
(Loss)/gain cash flow hedge accounting, net of taxes | (5,537,174) | (604,828) | (1,415,962) |
Cash flow hedge accounting reclassified to income upon realization, net of taxes | 1,667,886 | 790,353 | 370,191 |
Cash flow hedge accounting - "Platts" reclassified to income upon realization, net of taxes | 186,878 | ||
(Loss)/gain cash flow hedge accounting - "Platts" | (187,423) | ||
Total Items that could be subsequently reclassified to the statement of income | (3,287,380) | 218,631 | (2,715,160) |
Other comprehensive income | (3,154,442) | 105,537 | (2,713,844) |
Comprehensive income for the year | 1,138,176 | 2,350,048 | 2,486,739 |
Attributable to: | |||
Attributed to owners of the Company | 640,052 | 1,894,503 | 2,360,292 |
Attributed to non-controlling interests | R$ 498124 | R$ 455545 | R$ 126447 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of cash flows [abstract] | |||
Net income for the year | R$ 4292618 | R$ 2244511 | R$ 5200583 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Accrued charges on borrowings and financing | 1,909,546 | 1,879,116 | 1,938,077 |
Charges on loans and financing granted | (32,684) | (58,728) | (50,239) |
Depreciation/ depletion / amortization | 2,522,063 | 1,519,331 | 1,273,021 |
Equity in results of affiliated companies | (71,755) | (125,715) | (135,706) |
Charges on lease liabilities. | 54,236 | 52,607 | |
Deferred income tax and social contribution | (1,426,696) | (2,398,400) | (576,895) |
Provision for tax, social security, labor and civil risks | 4,405 | (164,223) | (34,279) |
Monetary variations and exchange differences | 2,010,056 | 853,449 | 1,002,137 |
Contractual agreement | (131,817) | ||
Proceeds from disposal of fixed and intangible assets | 12,998 | 114,603 | 38,245 |
Provision (Reversal) for consumption and services | (29,057) | (130,339) | 55,726 |
Provision for actuarial liabilities | (24,019) | (20,194) | (20,984) |
PIS and COFINS credits | (160,609) | (2,208,462) | |
Net gain on sale of a foreign subsidiary | (1,164,294) | ||
Provision for environmental liabilities and decommissioning of assets | 10,388 | 17,110 | (55,247) |
Unrealized loss (gains) on shares - Fair value through profit or loss | (1,203,068) | 118,780 | (1,655,813) |
Receivables by indemnity | (517,183) | ||
Other provisions | (7,651) | 104,869 | (21,877) |
Total Adjustments to reconcile net income to net cash provided by operations | 7,504,197 | 3,714,351 | 3,583,993 |
Changes in assets and liabilities | |||
Trade receivables - third parties | (594,731) | 49,338 | 99,223 |
Trade receivables - related parties | 49,412 | (77,271) | 22,071 |
Inventories | 755,571 | (218,242) | (800,050) |
Receivables from related parties/Dividends | 90,306 | 99,276 | 113,800 |
Recoverable taxes | 865,984 | 14,051 | 238,181 |
Judicial deposits | 50,028 | 19,312 | (7,496) |
Trade payables | 2,103,283 | (354,288) | 925,176 |
Trade payables - Drawee risk | (497,451) | 1,055,546 | 65,766 |
Payroll and related taxes | (43,649) | 36,271 | (1,100) |
Taxes in installments - REFIS | 1,654,135 | 280,413 | (23,806) |
Payables to related parties | 12,019 | 1,956 | 129,031 |
Advances from customer | (10,011) | 2,524,826 | |
Interest paid | (1,922,130) | (2,039,112) | (2,141,710) |
Derivative instrument cash settlement | (299,585) | ||
Others | (140,504) | (234,548) | 5,026 |
Increase (decrease) in assets and liabilities | 2,072,677 | 1,157,528 | (1,375,888) |
Net cash provided by operating activities | 9,576,874 | 4,871,879 | 2,208,105 |
Investments / acquisition of shares | (132,197) | (209,832) | (218,840) |
Purchase of property, plant and equipment | (1,683,839) | (2,214,456) | (1,317,102) |
Receipt/(Payment) in derivative transactions | (230) | (372) | |
Purchase of intangible assets | (1,427) | (2,200) | |
Loans granted to related parties | (101,631) | (101,913) | (101,908) |
Loans received from related parties | 14,584 | 23,623 | |
Financial investment, net of redeemed amount | 39,428 | 289,213 | (167,773) |
Cash received by disposal of Usiminas' shares | 39,377 | ||
Net cash received from the sale of a foreign subsidiary | 1,670,359 | ||
Cash used to acquire interest in CBSI | (21,345) | ||
Net cash used in investing activities | (1,863,655) | (2,236,367) | (98,459) |
New borrowings and financing | 8,085,902 | 10,068,627 | 2,143,679 |
Cost of transaction | (39,174) | (67,362) | (92,287) |
Repayment of borrowings | (6,448,658) | (11,775,093) | (5,019,978) |
Amortization of leases | (103,648) | (94,727) | |
Payment of dividends and interests on net equity | (309,350) | (1,920,309) | (502,002) |
Treasury shares | 213,402 | ||
Net cash provided by (used in) financing activities | 1,185,072 | (3,788,864) | (3,257,186) |
Exchange rate changes on cash and cash equivalents of foreign subsidiaries | (42,660) | (5,697) | (16,028) |
Increase (decrease) in cash and cash equivalents | 8,855,631 | (1,159,049) | (1,163,568) |
Cash and cash equivalents at the beginning of the year | 1,088,955 | 2,248,004 | 3,411,572 |
Cash and cash equivalents at the end of the year | R$ 9944586 | R$ 1088955 | R$ 2248004 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - BRL (R$) R$ in Thousands | Paid-in Capital [member] | Capital Reserve [member] | Earnings Reserve [member] | Retained earnings/(accumulated losses) [member] | Other comprehensive income [member] | Shareholders' Equity [member] | Non-Controlling interests [member] | Total |
Beginning balance at Dec. 31, 2017 | R$ 4540000 | R$ 30 | R$ 1291689 | R$ 3779032 | R$ 7027373 | R$ 1260856 | R$ 8288229 | |
Capital transactions with shareholders | 32,690 | R$ 180712 | (898,332) | (684,930) | (684,930) | |||
Sales of treasury shares | 180,712 | 180,712 | 180,712 | |||||
Dividends | (898,332) | (898,332) | (898,332) | |||||
Profit on disposal of shares | 32,690 | 32,690 | 32,690 | |||||
Total comprehensive income | 5,074,136 | (2,713,844) | 2,360,292 | 126,447 | 2,486,739 | |||
Net income for the year | 5,074,136 | 5,074,136 | 126,447 | 5,200,583 | ||||
Other comprehensive income | (2,713,844) | (2,713,844) | (2,713,844) | |||||
Cumulative translation adjustments for the period | (87,101) | (87,101) | (87,101) | |||||
Actuarial gain/(loss) on defined benefit pension plan, net of taxes | 1,316 | 1,316 | 1,316 | |||||
Gain/(Loss) on available-for-sale assets, net of taxes | (1,559,680) | (1,559,680) | (1,559,680) | |||||
(Loss) / gain on the percentage change in investments | (105) | (105) | (105) | |||||
Gain/(loss) on cash flow hedge accounting, net of taxes | (1,045,771) | (1,045,771) | (1,045,771) | |||||
Gain/(loss) on hedge of net investments in foreign subsidiaries | (21,852) | (21,852) | (21,852) | |||||
Gain/(loss) on business combination | (651) | (651) | (651) | |||||
Constitution of reserves | 2,884,115 | (2,884,115) | ||||||
Non-controlling interests in subsidiaries | (76,598) | (76,598) | ||||||
Ending balance at Dec. 31, 2018 | 4,540,000 | 32,720 | 3,064,827 | 1,065,188 | 8,702,735 | 1,310,705 | 10,013,440 | |
Capital transactions with shareholders | (422,694) | (422,694) | (578,862) | (1,001,556) | ||||
Dividends | (424,903) | (424,903) | (513,842) | (938,745) | ||||
Interests on net equity | (65) | (65) | ||||||
Reversal by prescription of dividends and interest on shareholder's equity | 2,209 | 2,209 | 2,209 | |||||
Total comprehensive income | 1,789,067 | 105,436 | 1,894,503 | 455,545 | 2,350,048 | |||
Net income for the year | 1,789,067 | 1,789,067 | 455,444 | 2,244,511 | ||||
Other comprehensive income | 105,436 | 105,436 | 101 | 105,537 | ||||
Cumulative translation adjustments for the period | 32,922 | 32,922 | 32,922 | |||||
Actuarial gain/(loss) on defined benefit pension plan, net of taxes | (113,195) | (113,195) | (193) | (113,388) | ||||
(Loss) / gain on the percentage change in investments | (2,288) | (2,288) | 294 | (1,994) | ||||
Gain/(loss) on cash flow hedge accounting, net of taxes | 185,525 | 185,525 | 185,525 | |||||
Gain/(loss) on hedge of net investments in foreign subsidiaries | 2,472 | 2,472 | 2,472 | |||||
Constitution of reserves | 1,366,373 | (1,366,373) | ||||||
Ending balance at Dec. 31, 2019 | 4,540,000 | 32,720 | 4,431,200 | 1,170,624 | 10,174,544 | 1,187,388 | 11,361,932 | |
Capital transactions with shareholders | 1,500,000 | (1,500,000) | (901,145) | (901,145) | (347,458) | (1,248,603) | ||
Proposed capital increase | 1,500,000 | (1,500,000) | ||||||
Dividends | (901,145) | (901,145) | (296,936) | (1,198,081) | ||||
Interests on net equity | (50,522) | (50,522) | ||||||
Total comprehensive income | 3,794,295 | (3,154,243) | 640,052 | 498,124 | 1,138,176 | |||
Net income for the year | 3,794,295 | 3,794,295 | 498,323 | 4,292,618 | ||||
Other comprehensive income | (3,154,243) | (3,154,243) | (199) | (3,154,442) | ||||
Cumulative translation adjustments for the period | 581,175 | 581,175 | 581,175 | |||||
Actuarial gain/(loss) on defined benefit pension plan, net of taxes | 133,069 | 133,069 | (131) | 132,938 | ||||
(Loss) / gain on the percentage change in investments | 6,102 | 6,102 | 6,102 | |||||
Gain/(loss) on cash flow hedge accounting, net of taxes | (3,869,765) | (3,869,765) | (68) | (3,869,833) | ||||
Gain/(loss) on hedge of net investments in foreign subsidiaries | (4,824) | (4,824) | (4,824) | |||||
Internal changes in shareholders' equity | 2,893,150 | (2,893,150) | ||||||
Constitution of reserves | 2,893,150 | (2,893,150) | ||||||
Ending balance at Dec. 31, 2020 | R$ 6040000 | R$ 32720 | R$ 5824350 | R$ 1983619 | R$ 9913451 | R$ 1338054 | R$ 11251505 |
1. DESCRIPTION OF BUSINESS
1. DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2020 | |
Description Of Business | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS Companhia Siderúrgica Nacional “CSN”, also referred to as the “Company”, is a publicly-held company incorporated on April 9, 1941, under the laws of the Federative Republic of Brazil (Companhia Siderúrgica Nacional, its subsidiaries, joint ventures, joint operations and associates are collectively referred to herein as the "Group”). The Company’s registered office is located in São Paulo, SP, Brazil. CSN is listed on the São Paulo Stock Exchange (B3 S.A.- Brasil, Bolsa, Balcão) and on the New York Stock Exchange (NYSE). The Group's main operating activities are divided into five (5) segments as follows: Steel: The Company’s main industrial facility is the Presidente Vargas steelworks (“UPV”), located in the city of Volta Redonda, State of Rio de Janeiro. This segment consolidates all operations related to the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel. In addition to the facilities in Brazil, CSN has commercial operations in the United States and operations in Portugal and Germany to achieve markets and providing excellent services for final consumers. Its steel is used in home appliances, civil construction and automobile industries. Mining: The production of iron ore is developed in the cities of Congonhas, Ouro Preto and Belo Vale, State of Minas Gerais – by subsidiary CSN Mineração. Iron ore is sold basically in the international market, especially in Europe and Asia. The prices charged in these markets are historically cyclical and subject to significant fluctuations over short periods of time, driven by several factors related to global demand, strategies adopted by the major steel producers, and the foreign exchange rate. All these factors are beyond the Company’s control. The ore transportation is carried out through Terminal de Carvão e Minérios do Porto de Itaguai – (“TECAR”), a solid bulk terminal, one of the four terminals that comprise the Port of Itaguai, located in the State of Rio de Janeiro. Imports of coal and coke are also carried out through this terminal by provision of services by CSN Mineração to CSN. The Company´s mining activities also comprises tin exploitation, which is based in the State of Rondônia, to supply the needs of UPV. The excess of raw material is sold to subsidiaries and third parties. As a pioneer in the use of technologies that result in the possibility of stacking the tailings generated in the iron ore production process, the Company has had its iron ore production since January 2020, 100% independent of tailings dams. After significant investments in recent years to raise the level of reliability, mischaracterization and dry stacking, the Company has moved on to a scenario in which 100% of its waste goes through a dry filtration process and is disposed of in geotechnically controlled batteries, areas exclusively destined for stacking. Approximately R$250 million was invested in the two tailings filtration plants that have a combined total filtration capacity of 9 million tons per year. As a consequence of these measures, the decommissioning of the dams is the natural way of processing dry waste. All of our mining dams are positively certified and comply with the environmental legislation in force. Cements CSN entered the cement production market in 2009, catapulted by the synergy between this activity and CSN's current business. Beside the UPV facilities, in Volta Redonda / RJ, the Company installed a new business unit, which produces CP-III type cement using the slag produced by the UPV’s own blast furnaces. It also explores limestone and dolomite at the Arcos / MG unit, to meet the needs of the UPV and the cement plant. Additionally, in Arcos / MG, the clinker production operation is located. As a result, the Company is self-sufficient in the production of cement, with an installed capacity of 4.7 million tons per year. Logistics: Railroads: CSN has interests in three railroad companies: MRS Logística S.A., which manages the former Southeast Railway System of Rede Ferroviária Federal S.A (“RFFSA”)., Transnordestina Logística S.A. (“TLSA”) and FTL - Ferrovia Transnordestina Logística S.A. (“FTL”), which the the latter two hold the concession to operate the former Northeast Railway System of RFFSA, in the States of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas and Sergipe, with TLSA being responsible for the rail links of Eliseu Martins – Trindade, Trindade – Salgueiro, Salgueiro – Porto Suape, Salgueiro – Missão Velha and Missão Velha - Pecém (Railway System II), under construction, and FTL being responsible for the rail links of São Luis - Altos, Altos - Fortaleza, Fortaleza – Souza, Souza - Recife/Jorge Lins, Recife/Jorge Lins – Salgueiro, Jorge Lins – Propriá, Paula Cavalcanti – Cabedelo, Itabaiana - Macau (Railway System I). Ports : The Company operates in the State of Rio de Janeiro, by means of its subsidiary Sepetiba Tecon S.A., operates the Container Terminal (“TECON”) and by means of its subsidiary CSN Mineração, the TECAR, both located at the Itaguaí Port. Established in the harbor of Sepetiba, the mentioned port has a privileged highway, railroad and maritime access. (“TECON”) is responsible for the shipments of CSN´s steel products, movement and storage of containers, vehicles, general cargo, among other products; and TECAR performs the operational activities of loading and unloading of solid bulk ships, storage and distribution (road and rail) of coal, coke, zinc concentrate, sulfur, iron ore and other bulk, intended for the seaborne market, for our own operation and for third parties. Energy: Since the energy supply is fundamental in CSN´s production process, the Company owns and operates facilities to generate electric power for guaranteeing its self-sufficiency. The note 29 - “Segment Information” details the financial information per each of CSN´s business segment. GOING CONCERN In 2020, the Company repaid approximately R$8.4 billion of its borrowings and financing. In 2021, we expect to repay R$4.2 billion. Financial leverage may adversely affect the Company’s business, financial conditions and operating results, with the following main impacts considered by Management: Use of cash generated from operations for the repayment of borrowings and financing; Exposure to (i) interest rate fluctuations, due to the renegotiation of debts and possible new borrowings and financing; and (ii) foreign exchange, since a significant portion of borrowings and financing are U.S. Dollar denominated; Increase in the economic and financial vulnerability in the event of adverse conditions in the industry and segment, due to the limited resources available in the short term, considering the high financial leverage and expected cash disbursements; Limitation of the Company’s ability to conduct new business (acquisitions) until the financial leverage is reduced; Limitation of the Company’s ability to obtain new lines of credit at more favorable interest conditions due to the risks related to the current financial leverage. The Company’s ability to continue operating on a going concern basis, therefore, depends on the achievement of operating targets determined by Management, in addition to refinancing the contracted debts, and / or actions related to financial deleveraging. In addition to the continuous focus on improving operating results, Management continues with initiatives to increase the Company’s liquidity by extending payment terms for loans and financing. See note 13.a - Maturities of loans, financing and debentures presented in current and non-current liabilities. Additionally, Management is studying alternatives to financial deleveraging from the sale of non-strategic assets and other initiatives, such as the recently concluded Initial Public Offering of Shares of the subsidiary CSN Mineração SA, whereby the CSN Group improved its liquidity by R$4,155 million. Other alternatives are also considered, but it is not possible to ensure that they will occur within a period of 12 months. Accordingly, the Company did not segregate and reclassify any assets in the financial statements as discontinued operations in accordance with IFRS 5. Based on Management’s cash flow projections that covered the operational period |
2. SUMMARY OF SIGNIFICANT ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of changes in accounting estimates [abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.a) Declaration of conformity The consolidated financial statements have been prepared and are being presented in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (IASB) and includes all of the relevant information of the financial statements, and only this information, which correspond to those used by the Company’s management in its activities. 2.b) Basis of presentation The financial statements have been prepared using the historical cost as the basis of value, the net realizable value, the fair value or the recovery value, except when otherwise indicated. The preparation of these financial statements requires Management to use certain accounting estimates, judgments and assumptions that affect the application of Accounting Polices and the amounts reported on the balance sheet date of assets, liabilities, income and expenses may differ from actual future results. The assumptions used are based on history and other factors considered relevant and are reviewed by the Company’s management. The accounting policies and critical estimates, when applicable and relevant, are included in the respective explanatory notes and are consistent with the previous year presented, as shown below: Explanatory note 10 e - Recoverability test of investment on Transnordestina Logística SA (“TLSA”); Explanatory note 12 a - Goodwill impairment test; Explanatory note 14 - Derivative financial instruments and hedge accounting (“hedge accounting”); Explanatory note 18 d - Deferred income and social contribution taxes: availability of future taxable income against which deductible temporary differences and tax losses can be used; Explanatory note 20 - Provision for tax, social security, labor, civil, environmental risks and judicial deposits; Explanatory note 21 - Provisions for environmental liabilities and asset retirement obligations; Explanatory note 30 - Employee benefits. The consolidated financial statements were approved by Board of Directors on April 12, 2021. 2.c) Functional currency and presentation currency The accounting records included in the financial statements of each of the Company’s subsidiaries are measured using the currency of the principal of the economic environment in which each subsidiary operates (“the functional currency”). The consolidated financial statements are presented in R$ (reais), which is the Company’s functional and reporting currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the transaction or valuation dates, in which the items are remeasured. The balances of the asset and liability accounts are translated using the exchange rate on the balance sheet date. As of December 31, 2020, US$1,00 is equivalent to R$5.1967 (R$4.0307 on December 31, 2019) and €1,00 is equivalent to R$6.3779 (R$4.5305 on December 31, 2019), as stated on the website of the Brazilian Central Bank. 2.d) Explanatory notes for basis of presentation In 2020, the Company improved the presentation of its financial statements to users. As a result, the relevant information for assessing the Company's financial position was changed and, accordingly, accounting practices related to assets, liabilities, revenues and expenses are now presented in the explanatory notes of each relevant item. Additionally, in order to improve the presentation with more qualitative aspects, the Company discloses long-term inventory in note 7 and the current and non-current recoverable taxes in note 8, which were previously presented as other current and non-current assets. 2.e) Adoption of new and revised International Financial Reporting Standards (IFRS) During the year of 2020, the IASB issued the revision of the referred standards below, already in force in the year of 2020. Some accounting pronouncements that became effective as of January 1, 2020, having been adopted and without significant impacts on the Company’s results and financial position were as follows: Business definition (changes to IFRS 3) Definition of materiality (changes to IAS 1 and IAS 8) Reform of the benchmark interest rate (changes to IFRS 9, IAS 39 and IFRS 7) Changes to references to the basic conceptual framework (various standards) Concessions related to COVID-19 (amendments to IFRS 16) The changes were evaluated and adopted by the Company’s management, and there were no impacts on its financial statements regarding their application. New standards, changes and interpretations to existing standards that are not yet effective and have not been adopted in advance by the Company (for which no significant impact is expected in the initial adoption period and that, therefore, additional disclosures are not being made): IFRS 17 — Insurance Contracts Changes to IFRS 17 Insurance contracts (changes to IFRS 17 and IFRS 4) References to the Conceptual Framework Products before intended use (changes to IAS 16) Onerous contracts - cost of fulfilling a contract (changes to IAS 37) Annual cycle of improvements to IFRS 2018-2020 (changes to IFRS 1, IFRS 9, IFRS 16 and IAS 41) Classification of liabilities as current and non-current (changes to IAS 1) |
3. IMPACTS OF COVID-19
3. IMPACTS OF COVID-19 | 12 Months Ended |
Dec. 31, 2020 | |
Impacts Of Covid-19 | |
IMPACTS OF COVID-19 | 3. IMPACTS OF COVID-19 At the end of 2019, the COVID-19 virus spread worldwide, and in March 2020, the WHO (World Health Organization) declared a pandemic of this disease. Since the beginning of the pandemic, the Company has adopted several precautionary measures in all its areas to reduce the exposure of its employees and to guarantee the continuity of its business. In this sense, all employees in chronic conditions of vulnerability (risk group) were mapped and put on vacation together with most other employees in order to reduce their corporate staff by around 50%. In addition, masks were provided for all employees, hand sanitizer was made available in all company facilities, and we also released internal communications with preventive measures in order to reinforce the hygiene protocols recommended by the competent authorities. The Company permanently assesses the effects caused by COVID-19 on its business, since, mainly in the 2nd quarter of 2020, economic activities in Brazil were drastically reduced, with restrictions and measures of social distancing having been imposed in order to reduce the virus circulation. Many of these restrictions were relieved by the authorities in the 3rd quarter and the Company did not suffer significant impact to its business during the year. The Company’s economic activity is directly linked to the demand for steel products in the automotive, domestic and civil construction sectors, as well as iron ore, both in the domestic and international markets. Any reduction in the activity of these sectors could affect the demand and the price of products and have significant impact to the Company’s financial position and results. Below we present the main economic effects to the Company in relation to COVID-19: a) Operational effects The Company’s investment budget for 2020 has been revised considering the adverse effects of the global economic slowdown. In this sense, the review reduced the amount of investments, giving priority to the execution of current investment projects that are fundamental for the maintenance of conditions of operational capacity, environment and safety. The Company stifled the Blast Furnace 2 located at the Presidente Vargas Steelworks (UPV), in the municipality of Volta Redonda - RJ, in early June 2020. The decision was based on the weak global economic scenario since CSN is a major supplier of raw material to the automotive, appliances and civil construction industries The effects of the pandemic were perceived in the 2nd quarter of the year, having caused some impact to revenues, mainly from the steel manufacturing operations. The other segments did not suffer significant impacts. The Company did not suffer any significant impact to its railway and maritime logistics. There was also no impact to the availability of supplies that would interrupt operational activities. b) Recoverability of financial and non-financial assets and liabilities The pandemic did not have a significant impact on the fair value of the Company’s assets and liabilities, with the exception of a temporary adverse impact on the market value of Usiminas’ shares, which up to March 31, 2020 had accumulated losses of R$962 million in that quarter, having if fully recovered by the end of the year and contributed positively to the Company’s result with a gain in the year of R$1,190 million. In limited situations some covenants There was no material impact to the Company’s financial assets. A portion of receivables that had been past due was received during the 2nd quarter. The Company’s average term of receipt has not changed. Our portfolio of investments and the nature of our industrial plants have long-term characteristics . The long-term operational and economic context to which the Company operates allows greater flexibility in the strategies and plans to mitigate the risks and effects of the pandemic on its business and, consequently, ensure the maintenance of the expected recoverability of its non-financial assets, whether investments, fixed assets and tax credits. At the beginning of the pandemic, Management conducted tests stressing several assumptions used in business projections, especially for 2020 and 2021. These stressed assumptions remained unchanged throughout the year and, consequently, the was no need to recognize any losses due to impairment According to the guidelines of the Brazilian Securities and Exchange Commission (CVM), the Company assessed any effects that are related to business continuity and its accounting estimates. Despite some adverse effects perceived at the beginning of the pandemic, which over the rest of the year dissipated, such adverse effects did not bring risks of continuity or the need for adjustments to accounting estimates that would produce significant effects on the Company’s business and consequently on its position equity and financial. The Company maintains all of its medium and long-term production and sales forecasts. |
4. CASH AND CASH EQUIVALENTS
4. CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents | |
CASH AND CASH EQUIVALENTS | 4. CASH AND CASH EQUIVALENTS Consolidated 12/31/2020 12/31/2019 Cash and banks In Brazil 245,185 42,736 Abroad 3,899,282 454,033 4,144,467 496,769 Investments In Brazil 5,800,119 531,924 Abroad 60,262 5,800,119 592,186 9,944,586 1,088,955 Our investments are basically in private and public securities with yields linked to the variation of Interbank Deposit Certificates (CDI) and repo operations backed by National Treasury Notes respectively. The Company invests part of the funds through exclusive investment funds which have been consolidated in these financial statements. Our investments abroad are in private securities in top-rated banks and are remunerated at pre-fixed rates. Accounting Policy Cash and cash equivalents include cash, bank deposits and other short-term investments of immediate liquidity, redeemable within 90 days of the contracting date, readily convertible into an amount known as cash and with an insignificant risk of changing its market value. |
5. FINANCIAL INVESTMENTS
5. FINANCIAL INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Financial Investments | |
FINANCIAL INVESTMENTS | 5. FINANCIAL INVESTMENTS Consolidated Current Non Current 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Investments(1) 478,253 518,553 Usiminas shares(2) 3,305,109 2,114,620 Bonds (3) 123,409 95,719 3,783,362 2,633,173 123,409 95,719 (1) These are restricted financial investments and linked to a Bank Deposit Certificate (CDB) to guarantee a letter of guarantee from financial institutions and financial investments in Public Securities (LFT - Letras Financeiras do Tesouro) managed by their exclusive funds. (2) P art of the shares guarantees a portion of the Company's debt (3) B onds Accounting Policy Short-term investments that are not classified as cash equivalents and are measured at amortized cost and at fair value through profit or loss. |
6. TRADE RECEIVABLES
6. TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables [abstract] | |
TRADE RECEIVABLES | 6. TRADE RECEIVABLES Consolidated 12/31/2020 12/31/2019 Trade receivables Third parties Domestic market 910,657 1,118,632 Foreign market 2,063,867 1,003,905 2,974,524 2,122,537 Allowance for doubtful debts (228,348) (245,194) 2,746,176 1,877,343 Related parties (note 22 b) 121,176 170,588 2,867,352 2,047,931 The composition of the gross balance of accounts receivable from third party customers is shown as follows: Consolidated 12/31/2020 12/31/2019 Current 2,537,567 1,739,746 Past-due up to 30 days 222,972 132,845 Past-due up to 180 days 17,915 23,877 Past-due over 180 days 196,070 226,069 2,974,524 2,122,537 The changes in credit losses are as follows: Consolidated 12/31/2020 12/31/2019 Opening balance (245,194) (237,352) (Loss)/Reversal estimated 7,513 (43,313) Recovery and write-offs of receivables 9,333 35,471 Closing balance (228,348) (245,194) Accounting Policy Accounts receivable are initially recognized by the transaction price, provided they do not contain financing components, and subsequently measured at amortized cost. When applicable, it is adjusted to present value including the respective taxes and ancillary expenses, and customer credits in foreign currency are restated at the exchange rate on the date of the financial statements. The Company measures credit losses annually expected for the instrument, where it considers all possible loss events over the life of its receivables, using a loss rate matrix by maturity range adopted by the Company, from the initial moment (recognition) of the asset. This model considers the client’s history, default rate, financial situation and the position of its legal advisors to estimate expected credit losses. The Company performs operations relating to assignment of receivables without co-obligation in which |
7. INVENTORIES
7. INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
INVENTORIES | 7. INVENTORIES Consolidated 12/31/2020 12/31/2019 Finished goods 1,627,676 1,691,842 Work in progress (1) 1,358,905 1,438,868 Raw materials 1,289,653 1,493,129 Spare parts 928,158 902,135 Advances to suppliers 69,536 35,828 Provision for losses (109,038) (134,553) 5,164,890 5,427,249 Classified: Current 4,817,586 5,282,750 Non-current 347,304 144,499 5,164,890 5,427,249 1. Long-term iron ore inventories that will be used after the construction of the processing plant, which will produce pellet feed, In 2020, the Company defined the construction project for the new plant for processing Itabirito, which until then was considered as waste, and started to be incorporated into the long-term ore inventory. The changes in estimated losses on inventories are as follows: 12/31/2020 12/31/2019 Opening balance (134,553) (157,754) (Estimated losses) / Reversal of inventories with low turnover and obsolescence 25,515 23,201 Closing balance (109,038) (134,553) Accounting Policy The inventory is recorded at the lower of cost and net realizable value. The cost is determined using the weighted average cost method for the purchase of raw materials. The cost of finished products and work in process comprises raw materials, labor, other direct costs (based on normal production capacity). The net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to realize the sales. Estimated losses on slow-moving or obsolete inventories are recognized when deemed necessary. |
8. RECOVERABLE TAXES
8. RECOVERABLE TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Recoverable Taxes | |
RECOVERABLE TAXES | 8. RECOVERABLE TAXES Consolidated 12/31/2020 12/31/2019 State Value-Added Tax 1,002,926 1,109,887 Brazilian federal contributions (1) 1,417,081 2,230,793 Other taxes 123,939 61,675 2,543,946 3,402,355 Classified: Current 1,605,494 1,282,415 Non-current 938,452 2,119,940 2,543,946 3,402,355 1. Refers mainly to PIS / COFINS (VAT Federal) all to be recovered and income tax and social contribution to be offset. In respect to PIS and COFINS to be recoverable on September 20, 2018, the writ of mandamus and special appeal filed in 2006, in which CSN and the Federal Union are parties, related to the discussion about the non-inclusion of ICMS in the PIS and COFINS calculation basis, was judged in final court decision, confirmed the right of CSN to offset the amounts unduly paid as a result of the PIS and COFINS base being increased by the inclusion of ICMS in the period from 2001 to 2014. Accounting Policy The balance of recoverable taxes maintained as current asset is expected to be offset in the next 12 months, as well as based on analysis and budget projection approved by Management. We do not foresee risks of non-realization of these tax credits. |
9. OTHER CURRENT AND NON-CURREN
9. OTHER CURRENT AND NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Other current and non-current assets [Abstract] | |
OTHER CURRENT AND NON-CURRENT ASSETS | 9. OTHER CURRENT AND NON-CURRENT ASSETS Other current and non-current assets are as follows: Consolidated Current Non-current 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Judicial deposits (note 20) 325,117 328,371 Credits with the PGFN (1) 46,774 Prepaid expenses 136,527 107,428 115,636 126,213 Prepaid expenses with sea freight (2) 74,500 96,305 Actuarial asset (note 30) 13,819 13,714 Derivative financial instruments (note 14 I) 1,364 4,203 Securities held for trading (note 14 I) 5,065 4,034 Loans with related parties (nota 14 I and 22.b) 966,050 846,300 Other receivables from related parties (note 22 b) 6,242 1,830 664,020 428,672 Other receivables (note 14 I) 2,445 7,059 Eletrobrás compulsory loan (note 14 I) (3) 852,532 845,284 Dividends receivables (note 22 b) 38,088 44,554 Employee debts 28,054 33,045 Receivables by indemnity (4) 517,183 Others 79,338 102,021 146,245 146,525 367,814 390,581 3,603,047 2,793,115 1. In September 2020, the Company reclassified the amount to judicial deposits. 2. Refers a payment of freight expenses and maritime insurance over revenues didn’t recognized. 3. This is a certain and due amount, arising from the res judicata favorable decision to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in the conviction of Eletrobrás to the payment of the correct interest and monetary adjustment of the Compulsory Loan. The res judicata decision, as well as the certainty about the amounts involved in the liquidation of the sentence (judicial procedure to request the satisfaction of the right), allowed the conclusion that the entry of this value is certain. In addition to this amount already recorded, the Company continues to seek alternatives for the recovery of additional credits and the estimate can reach an amount greater than R$350 million. 4. This is a net, certain and enforceable amount, resulting from the final and unappealable decision of the Court in favor of the Company, due to losses and damages resulting from the sinking of the voltage in the supply of energy in the periods from January / 1991 to June / 2002. The receivable for indemnification in the amount of R$147,612 was recognized in the income statement for the year in other operating income and expenses and in the financial result, the amount of R$369,571. See notes 27 and 28, respectively. |
10. BASIS OF CONSOLIDATION AND
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES | 12 Months Ended |
Dec. 31, 2020 | |
Basis Of Consolidation And Investments In Subsidiaries And Affiliates | |
BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES | 10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES The accounting policies have been consistently applied to all consolidated companies. The consolidated financial statements for the years ended December 31, 2020 and 2019 include the following direct and indirect subsidiaries, joint ventures and joint operations, as well as the exclusive funds, as follows: Number of shares held by CSN in units Equity interests (%) Companies 12/31/2020 12/31/2019 Core business Direct interest in subsidiaries: full consolidation CSN Islands VII Corp. 20,001,000 100.00 100.00 Financial transactions CSN Inova Ventures (1) 50,000 100.00 100.00 Financial transactions CSN Islands XII Corp. 1,540 100.00 100.00 Financial transactions CSN Steel S.L.U. 22,042,688 100.00 100.00 Equity interests and Financial transactions TdBB S.A (*) - 100.00 100.00 Equity interests Sepetiba Tecon S.A. 254,015,052 99.99 99.99 Port services Minérios NacionalS.A. 141,719,295 99.99 99.99 Mining and Equity interests Companhia Florestal do Brasil 66,354,391 99.99 99.99 Reforestation Estanho de Rondônia S.A. 195,454,162 99.99 99.99 Tin Mining Companhia Metalúrgica Prada 555,142,354 99.99 99.99 Manufacture of containers and distribution of steel products CSN Mineração S.A. 158,419,480 87.52 87.52 Mining CSN Energia S.A. 43,149 99.99 99.99 Sale of electric power FTL - Ferrovia Transnordestina Logística S.A. 486,592,830 92.38 92.38 Railroad logistics Nordeste Logística S.A. 99,999 99.99 99.99 Port services CSN Inova Ltd. - 100.00 100.00 Advisory and implementation of new development projec CSN Equipamentos S.A (2) - - 99.99 Rental of commercial and industrial machinery and equipment CBSI - Companhia Brasileira de Serviços de Infraestrutura 4,669,986 99.99 100.00 Equity interests and product sales and iron ore CSN Cimentos S.A .(3) 90 90.00 - Manufacturing and sale of cement Indirect interest in subsidiaries: full consolidation Lusosider Projectos Siderúrgicos S.A. 100.00 100.00 Equity interests and product sales Lusosider Aços Planos, S. A. 99.99 99.99 Steel and Equity interests CSN Resources S.A. 100.00 100.00 Financial transactions and Equity interests Companhia Brasileira de Latas 99.99 99.99 Sale of cans and containers in general and Equity interests Companhia de Embalagens Metálicas MMSA 99.67 99.67 Production and sale of cans and related activities Companhia de Embalagens Metálicas - MTM 99.67 99.67 Production and sale of cans and related activities CSN Steel Holdings 1, S.L.U. 100.00 100.00 Financial transactions, product sales and Equity interests CSN Productos Siderúrgicos S.L. 100.00 100.00 Financial transactions, product sales and Equity interests Stalhwerk Thüringen GmbH 100.00 100.00 Production and sale of long steel and related activities CSN Steel Sections UK Limited (4) 100.00 Sale of long steel CSN Steel Sections Polska Sp.Z.o.o 100.00 100.00 Financial transactions, product sales and Equity interests CSN Mining Holding, S.L 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining GmbH 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining Asia Limited 87.52 87.52 Commercial representation Lusosider Ibérica S.A. 100.00 100.00 Steel, commercial and industrial activities and equity interests CSN Mining Portugal, Unipessoal Lda. 87.52 87.52 Commercial and representation of products Companhia Siderúrgica Nacional, LLC 100.00 100.00 Import and distribution/resale of products CSN Cimentos S.A. (3) 10 10.00 Manufacturing and sale of cement Direct interest in joint operations: proportionate consolidation Itá Energética S.A. 253,606,846 48.75 48.75 Electric power generation Consórcio da Usina Hidrelétrica de Igarapava 17.92 17.92 Electric power consortium Direct interest in joint ventures: equity method MRS Logística S.A. (5) 63,377,198 18.64 18.64 Railroad transportation Aceros Del Orinoco S.A. 31.82 31.82 Dormant company Transnordestina Logística S.A. (6) 24,670,093 47.26 47.26 Railroad logistics Equimac S.A (2) 1,117 50.00 - Rental of commercial and industrial machinery and equipment Indirect interest in joint ventures: equity method MRS Logística S.A. (5) 16.30 16.30 Railroad transportation Direct interest in associates: equity method Arvedi Metalfer do Brasil S.A. 49,074,882 20.00 20.00 Metallurgy and Equity interests Exclusive funds: full consolidation Diplic II- Fundo de investimento multimercado crédito privado 100.00 100.00 Investment fund Caixa Vértice - Fundo de investimento multimercado crédito privado 100.00 100.00 Investment fund VR1 - Fundo de investimento multimercado crédito privado 100.00 100.00 Investment fund (*) Dormant companies. 1. On June 29, 2020, CSN Islands XI Corp. changed its corporate name to CSN Inova Ventures. 2. On June 26, 2020, CSN Equipamentos SA had its corporate name changed to Equimac SA and its capital increased by Unidas Guindastes Eireli. With this capital increase, CSN’s stake in Equimac’s share capital increased to 50% and was classified as joint venture. 3. Company acquired on October 2, 2020. 4. Company liquidated on March 11, 2020. 5. As of December 31, 2020, the Company directly held 63,377,198 shares, of which 26,611,282 were common and 36,765,916 were preferred, and indirectly 63,338,872 shares, of which 25,802,872 were common and 37,536,000 were preferred 6. As of December 31, 2020, the Company had 24,168,304 common shares and 501,789 Class B preferred shares. 10.a) Investments in joint ventures, joint operations, associates and other investments The number of shares, the balances of assets and liabilities, shareholders’ equity and the profit / (loss) amounts for the period in those investees are as follows: 12/31/2020 12/31/2019 Companies Participation in Participation in Assets Liabilities Shareholders’ equity Profit /(Loss) for the period Assets Liabilities Shareholders’ equity Profit /(Loss) for the period Joint-venture and Joint-operation MRS Logística S.A. 4,175,249 2,567,882 1,607,367 160,371 4,145,205 2,616,218 1,528,987 187,597 Fair Value - MRS Logística S.A. 421,888 (11,747) 433,635 (11,747) CSBI - Companhia Brasileira de Serviços de Infraestrutura - - - 6,665 Transnordestina Logística S.A. (*) 4,657,691 3,497,587 1,160,104 (28,952) 4,398,434 3,209,378 1,189,056 (17,100) Fair Value (*) - Transnordestina - 271,116 - - 271,116 - Equimac S.A 7,536 301 7,235 (329) - - - - 8,840,476 6,065,770 3,467,710 119,343 8,543,639 5,825,596 3,422,794 165,415 Associates Arvedi Metalfer do Brasil S.A. 40,528 32,490 8,038 (6,765) 44,435 31,712 12,723 (1,682) 40,528 32,490 8,038 (6,765) 44,435 31,712 12,723 (1,682) Classified at fair value through profit or loss (note 12 I) Panatlântica 59,879 47,300 59,879 47,300 Eliminations (30,856) (38,219) Other investments Others 279 (9,967) 157 171 279 (9,967) 157 171 Total investments in affillated companies 3,535,906 3,484,974 Total Equity in results of affillated companies 71,755 125,715 Investments properties 159,874 101,195 Total investments 3,695,780 3,584,169 (*) As of December 31, 2020 and December 31, 2019, the net balance of R$271,116 refers to the Fair Value generated by the loss of control of Transnordestina Logística SA in the amount of R$659,105 and impairment of R$387,989. The number of shares, the balances of assets and liabilities, shareholders’ equity and the profit / (loss) values for the year refer to the interest held by CSN in these companies. 10.b) Changes in investments in subsidiaries, jointly controlled companies, joint operations, associates and other investments Consolidated 12/31/2020 12/31/2019 Opening balance of investments 3,482,974 5,630,613 Capital increase/acquisition of shares 3,400 27,909 Dividends (1) (82,642) (94,603) Comprehensive income (2) 6,895 (2,592) Equity in results of affiliated companies(3) 124,324 175,524 Update of shares measured at fair value through profit or loss (Note 14 II) 12,579 (118,780) Reclassification of Usiminas’ shares (2,114,620) Consolidation of CBSI (8,775) Amortization of fair value - investment MRS (11,747) (11,747) Others 123 45 Closing balance of investments 3,535,906 3,482,974 1. In 2020, it mainly refers to dividends of the subsidiary CSN Mineração SA in the amount of R$2,437,482 (R$4,060,816 on December 31, 2019). 2. Refers to translation to the reporting currency of the foreign investments of which functional currency is not the Brazilian Reais, actuarial gain/loss and gain/loss on investment hedge from investments accounted for under the equity method. 3. The table below shows the reconciliation of the equity in results of affiliated companies classified as joint venture and associates and the amount disclosed in the income statement and it is due to the elimination of the results of the CSN´s transactions with these companies. Consolidated 12/31/2020 12/31/2019 Equity in results of affiliated companies MRS Logística S.A. 160,370 187,597 CBSI - Companhia Brasileira de Serviços de Infraestrutura (1) 6,695 Transnordestina Logística S.A. (28,952) (17,100) Arvedi Metalfer do Brasil S.A. (6,765) (1,682) Equimac S.A. (329) Others 14 124,324 175,524 Eliminations To cost of sales (46,751) (57,908) To taxes 15,895 19,689 Others Amortizated at fair value - Investment in MRS (11,747) (11,747) Others (9,966) 157 Equity in results 71,755 125,715 (1) Refers to equity income until November 30, 2019, as of this date, the joint venture started to be controlled and consolidated, according to note 10 c. 10.c)Additional information on operating controlled companies With the primary objective of reducing the Company’s financial leverage, Management is committed to a plan to dispose of a set of assets, however, it is not possible to confirm that the sale within a period of 12 months is highly probable for any of the assets contemplated in the plan. The Company considers several sales scenarios that vary according to different macroeconomic and operational assumptions. In this context, the Company did not segregate and did not reclassify such assets in the financial statements as discontinued operations in accordance with IFRS 5. SEPETIBA TECON SA (“Tecon”) It aims to explore Container Terminal No. 1 at the Port of Itaguaí, located in Itaguaí, in the State of Rio de Janeiro. The terminal is connected to the UPV by the Southeastern railway network, which is granted to MRS Logística SA The services provided are handling operations and storage of containers, steel products and cargo in general, among other products and services for washing, maintenance and hygiene of containers. Tecon won a bidding procedure and entered into the lease agreement in October 23, 1998 for operation of the port terminal for a period of 25 years, extendable for an equal period. Upon termination of the lease, all rights and benefits transferred to Tecon will return to the Federal Government, together with the assets owned by Tecon and those resulting from investments made by it in leased assets, declared reversible by the Federal Government as they are necessary for the continuity of the provision. of the service granted. The assets declared reversible will be indemnified by the Federal Government at the residual value of their cost, determined by Tecon’s accounting records after deducting depreciation. ESTANHO DE RONDÔNIA SA (“ERSA”) Headquartered in the state of Rondônia, the subsidiary operates two units, one in the city of Itapuã do Oeste / RO and the other in Ariquemes / RO. Mining is located in Itapuã do Oeste, where cassiterite (tin ore) is extracted, and in Ariquemes, the foundry where metallic tin is obtained, which is the raw material used at UPV for the manufacture of metal sheets. COMPANHIA METALÚRGICA PRADA (“Prada”) Prada operates in two segments: metal steel packaging and flat steel processing and distribution. Packaging In the steel metallic packaging segment, Prada produces the best and safest in cans, buckets and aerosols. It serves the chemical and food segments, providing packaging and lithography services to the main companies in the market. Distribution Prada also operates in the flat steel processing and distribution area, with a diversified product line. Supplies coils, rolls, plates, strips, blanks CSN ENERGIA S.A. Its main objective is the distribution of the excess electric power generated by CSN and Companies, consortiums or other entities in which CSN holds an interest. FTL - FERROVIA TRANSNORDESTINA LOGÍSTICA SA (“FTL”) Company created for the purpose of incorporating the spun-off portion of Transnordestina Logística SA It operates public cargo transportation services in the northeast of Brazil, in the stretches between the cities of São Luís and Altos, Altos and Fortaleza, Fortaleza and Sousa, Sousa and Recife / Jorge Lins, Recife / Jorge Lins and Salgueiro, Jorge Lins and Propriá, Paula Cavalcante and Cabedelo (Branch of Cabedelo) and Itabaiana and Macau (Branch of Macau) (“Malha I”) On November 13, 2019, CSN subscribed FTL shares through the capitalization of credits arising from Advances for Future Capital Increase (AFAC) in the amount of R$27,670, passing its interest in FTL’s capital from 91.69% to 92.38%. As a result of the operations described above, which caused a change in shareholder participation, the Company recorded a loss in the amount of R$293, recorded in shareholders’ equity under “Other comprehensive income” There was no change in the corporate structure in 2020. CSN MINERAÇÃO S/A (“CSN Mineração”) Headquartered in Congonhas, in the State of Minas Gerais, CSN Mineração SA has as its main objective the production, purchase and sale of iron ore, and has the foreign market as its main focus in the commercialization of its products. As of November 30, 2015, CSN Mineração SA started to centralize CSN’s mining operations, including the establishments of the Casa de Pedra mine, the TECAR port and an 18.63% stake in MRS. CSN’s interest in this subsidiary is 87.52% as of December 31, 2020. MINÉRIOS NACIONAL SA (“Minérios Nacional”) Headquartered in Congonhas, in the State of Minas Gerais, Minérios Nacional has as main objective the production and sale of iron ore. The subsidiary concentrates the mining rights assets related to the Fernandinho, Cayman and Pedras Pretas mines, all in Minas Gerais transferred to Minérios Nacional SA in the business combination operation that took place in 2015. CBSI - COMPANHIA BRASILEIRA DE INFRASTRUCTURE SERVICES (“CBSI”) Previously located in the city of Araucária-PR, CBSI is currently headquartered in the city of Volta Redonda and its main purpose is to render services to CSN, CSN’s subsidiaries and third parties related to the recovery and maintenance of industrial machinery and equipment, civil maintenance, industrial cleaning, preparation product logistics, among others. The investment is the result of a joint venture between CSN and CKTR Brasil Serviços Ltda. in 2011 which previously held a 50% stake. On November 29, 2019, the Company completed the acquisition of the remaining 50% of CBSI’s shares for R$24,000. The goodwill for expected future profitability generated on the acquisition was R$15,225 and is separately classified within Investments in non-current assets. 10.d) Joint ventures and joint operations financial information The balance sheet and income statement balances of the companies whose control is shared are shown below and refer to 100% of the companies’ results: 12/31/2020 12/31/2019 Joint-Venture Joint-Operation Joint-Venture Joint-Operation Equity interest (%) MRS Logística Transnordestina Logística Equimac S.A. Itá Energética MRS Logística Transnordestina Logística Itá Energética 34.94% 47.26% 50.00% 48.75% 34.94% 47.26% 48.75% Balance sheet Current Assets Cash and cash equivalents 1,206,484 1,390 1,351 48,919 670,296 17,166 65,793 Advances to suppliers 27,312 1,948 742 20,100 3,240 363 Other current assets 823,204 51,793 2,356 89,521 1,326,281 59,405 15,955 Total current assets 2,057,000 55,131 3,707 139,182 2,016,677 79,811 82,111 Noncurrent Assets Other non-current assets 608,878 225,492 - 20,807 789,562 258,391 24,361 Investments, PP&E and intangible assets 8,537,009 9,574,588 11,365 390,672 8,316,033 8,968,447 426,403 Total non-current assets 9,145,887 9,800,080 11,365 411,479 9,105,595 9,226,838 450,764 Total Assets 11,202,887 9,855,211 15,072 550,661 11,122,272 9,306,649 532,875 Current Liabilities Borrowings and financing 828,439 241,029 653,784 103,877 Lease liabilities 317,526 256,034 Other current liabilities 1,117,975 125,794 602 19,721 1,561,684 171,821 16,793 Total current liabilities 2,263,940 366,823 602 19,721 2,471,502 275,698 16,793 Noncurrent Liabilities Borrowings and financing 2,162,657 6,368,070 2,369,615 6,084,424 Lease liabilities 1,674,594 1,650,758 Other non-current liabilities 788,862 665,653 15,900 527,871 430,603 16,550 Total non-current liabilities 4,626,113 7,033,723 15,900 4,548,244 6,515,027 16,550 Shareholders’ equity 4,312,834 2,454,665 14,470 515,040 4,102,526 2,515,924 499,532 Total liabilities and shareholders’ 11,202,887 9,855,211 15,072 550,661 11,122,272 9,306,649 532,875 01/01/2020 to 12/31/2020 01/01/2019 to 11/30/2019 01/01/2019 to 12/31/2019 Joint-Venture Joint-Operation Joint-Venture Joint-Operation Equity interest (%) MRS Logística Transnordestina Logística Equimac S.A. Itá Energética CBSI MRS Logística Transnordestina Logística Itá Energética 34.94% 47.26% 50.00% 48.75% 50.00% 34.94% 46.30% 48.75% Statements of Income Net revenue 3,604,965 35 2,308 173,426 267,436 3,200,809 163,048 Cost of sales and services (2,521,991) (2,386) (74,048) (233,830) (2,382,828) (83,129) Gross profit 1,082,974 35 (78) 99,378 33,606 817,981 79,919 Operating (expenses) income (105,267) (42,108) (576) (67,885) (12,328) 207,840 (18,077) (62,660) Financial income (expenses), net (330,756) (19,186) (4) (764) (1,460) (268,089) (18,386) 1,183 Income before income tax and social 646,951 (61,259) (658) 30,729 19,818 757,732 (36,463) 18,442 Current and deferred income tax (216,649) - (10,391) (6,428) (254,378) (6,147) Profit / (loss) for the period 430,302 (61,259) (658) 20,338 13,390 503,354 (36,463) 12,295 ITÁ ENERGÉTICA SA - (“ITASA”) ITASA is a corporation established in July 1996 that was engaged to operate under a concession, the Itá Hydropower Plant (“UHE Itá”), with 1,450 MW of installed power, located on the Uruguay River, on the Santa Catarina and Rio Grande do Sul state border. The UHE Itá concession is shared with ENGIE Brasil Energia S.A., with CSN holding 48.75%. MRS LOGISTICA S.A. Located in the city of Rio de Janeiro-RJ, the company aims to exploit, for an onerous concession, the public service of railway cargo transportation in the areas of the Southeast Network, located on the Rio de Janeiro, São Paulo and Minas Gerais axis, previously held by the extinct Rede Ferroviária Federal SA - RFFSA. The concession has a term of 30 years from December 1, 1996, extendable for an equal period by exclusive decision of the grantor. MRS can also explore modal transport services related to rail transport and participate in projects aimed at expanding the rail services granted. For the provision of services, MRS leased from RFFSA, for the same period of the concession, the assets necessary for the operation and maintenance of rail freight transport activities. At the end of the concession, all leased assets will be transferred to the possession of the railway transport operator designated in that same act. The Company directly holds an 18.64% interest in the capital of MRS and indirectly, through its subsidiary CSN Mineração SA, a 16.30% interest in the capital of MRS, totaling a 34.94% interest. CONSÓRCIO DA USINA HIDRELÉTRICA DE IGARAPAVA The Igarapava Hydroelectric Plant is located in Rio Grande, in the city of Conquista - MG, and has an installed capacity of 210 MW, formed by 5 Bulb-type generating units. CSN holds 17.92% of the investment in the consortium, whose object is the distribution of electricity, which is distributed according to the percentage of participation of each company. The balance of property, plant and equipment, net of depreciation on December 31, 2020 is R$21,287 (R$22,441 on December 31, 2019) and the expense amount in 2020 was R$6,611 (R$6,497 in 2019). TRANSNORDESTINA LOGÍSTICA SA (“TLSA”) Its main objective is the exploration and development of the public rail freight transport service in the Northeast network of Brazil, comprising the stretches of Eliseu Martins-Trindade, Trindade-Salgueiro, Salgueiro-Porto Suape, Salgueiro - Missão Velha and Missão Velha - Pecém (Malha II). It is in the pre-operational phase and should remain so until the completion of Mesh II. The approved schedule, which provided for the completion of the work for January 2017, is currently under discussion with the responsible bodies, as described in note 31.b. Its Management understands that new deadlines for the completion of the project will not substantially negatively imply the expected return on investment. In May 2019, the Northeast Investment Fund - FINOR transferred to CSN, BNDES and BNDESPAR, 1,677,816 (one million six hundred and seventy-seven thousand, eight hundred and sixteen) class “B preferred shares, of which 501,789 (five hundred and one thousand, seven hundred and eighty-nine) shares were transferred specifically to CSN. As of December 31, 2020 and 2019, the Company’s interest in the capital of TLSA is 47.26% of the total capital and 92.60% of the voting capital. Management relies on resources from its shareholders and third parties to complete the work, as described in item 31.b, which it expects to be available, based on previously concluded agreements and recent discussions between the parties involved. After evaluating this matter, Management concluded that the use of the project’s business continuity accounting basis in the preparation of the financial statements for the year ended December 31, 2020 was considered appropriate. In this sense, TLSA performed a recoverability test of its own long-lived assets using the discounted cash flow method. To carry out the test, TLSA adopted the following main premises: Measurement of recoverable value Cash Flow Projection By 2057 Gross margin Estimated based on market study to capture cargo and operating costs according to market trend studies Cost estimate Study-based costs and market trends Perpetuity growth rate Growth rate was not considered as a result of the projection model until the end of the concession. Discount rate Range from 5.83% to 7.41% in real terms Additionally, CSN, as an investor, carried out its impairment test of its interest in TLSA through the ability to distribute dividends by TLSA, a methodology known as the Dividend Discount Model, or DDM, to remunerate the capital invested by its shareholders. For the performance of this test, some factors were taken into account, such as: The dividend flow was extracted from TLSA’s nominal cash flow; The dividend flow was calculated considering the percentages of annual participation, considering the dilutions of CSN’s participation resulting from the amortization of debts; This dividend flow was then discounted to present value using the cost of equity (Ke) embedded in TLSA’s WACC rate; and This extracted Ke was the one calculated in “ rolling WACC Due to the sharing of investors’ risks and the fact that the asset being tested represents the cash-generating unit itself, which in turn equals the legal entity, the risk determined by CSN’s Management is the same as that applied by TLSA when evaluation of the investment of its own assets, with no additional risk factor to the model. As a result of the test carried out, it was not necessary to record losses due to impairment EQUIMAC SA In August 2019, CSN Equipamentos SA was incorporated, which had its corporate name changed to Equimac SA (“Equimac”) on June 26, 2020. The joint venture 10.e) Additional information on indirect participation in abroad operations STAHLWERK THÜRINGEN GMBH (“SWT”) SWT was formed from the defunct Maxhütte steel industrial complex in the city of Unterwellenborn in Germany. SWT produces steel profiles used for civil construction in accordance with international quality standards. Its main raw material is steel scrap, and its installed production capacity is 1.1 million tons of steel / year. SWT is a wholly and indirectly controlled company through CSN Steel SLU, a CSN subsidiary. COMPANHIA SIDERURGICA NACIONAL - LLC (“CSN LLC”) Incorporated in 2001 with the assets and liabilities of the defunct Heartland Steel Inc., CSN LLC, an industrial plant in Terre Haute, State of Indiana - USA, where is the complex composed of cold rolling, hot coil stripping line and line of galvanizing, its installed production capacity is 800 thousand tons / year. CSN LLC is wholly and indirectly controlled through CSN Steel SLU after the merger, formerly CSN Americas SLU, a subsidiary of CSN. On June 5, 2018, CSN LLC had its corporate name changed to “Heartland Steel Processing, LLC”. On the same date, a new company was created under the name “Companhia Siderúrgica Nacional, LLC”, a wholly owned subsidiary of Heartland Steel Processing, LLC. On June 28, 2018, Companhia Siderúrgica Nacional, LLC., Became a wholly-owned subsidiary of CSN Steel, and, on June 29, 2018, Heartland Steel Processing, LLC. was sold to Steel Dynamics, Inc. (“SDI”) for the base transaction price of US$400 million. The new “Companhia Siderúrgica Nacional, LLC” is an importer and trader of steel products and maintains its activities in the United States. LUSOSIDER AÇOS PLANOS, SA (“Lusosider”) Founded in 1996, in continuity with Siderurgia Nacional - a company privatized by the Portuguese government that year, Lusosider is the only Portuguese industry in the steel sector to produce cold-rolled flat steel with an anti-corrosion coating. Lusosider has an installed capacity of around 550 thousand tons / year to produce four major groups of steel products: galvanized sheet, cold rolled sheet, pickled sheet and oiled sheet. The products manufactured by Lusosider can be applied in the packaging industry, civil construction (tubes and metallic structures) and in home appliance components. 10.f) Other investments PANATLÂNTICA SA (“Panatlântica”) Publicly-held corporation headquartered in Gravataí-RS, whose purpose is the industrialization, trade, import, export and processing of steel and metals, ferrous or non-ferrous, coated or not. This investment is classified at fair value through profit or loss. The Company currently holds 11.31% on December 31, 2020 and 2019) of Panatlântica’s total share capital. USINAS SIDERÚRGICAS DE MINAS GERAIS SA - USIMINAS (“USIMINAS”) USIMINAS is headquartered in Belo Horizonte, State of Minas Gerais, with the objective of exploring the steel industry and related companies. USIMINAS produces flat-rolled steel at the Intendente Câmara and José Bonifácio de Andrada e Silva plants, located in Ipatinga / MG and Cubatão / SP, respectively, for the domestic and export markets. It also owns and operates iron ore mines located in the city of Itaúna / MG, which aims to meet the strategies of verticalization and optimization of production costs. USIMINAS maintains service and distribution centers located in various regions of the country, in addition to the ports of Cubatão in São Paulo and Praia Mole in Espírito Santo, as strategic points for the flow of its production. On April 9, 2014, CADE issued a decision regarding the Usiminas shares held by CSN, and CSN signed a Performance Commitment Term (“TCD”), with CADE in this regard. Pursuant to the decision of CADE and TCD, CSN must reduce its participation in USIMINAS, within a specified period. The term and percentage of reduction are confidential. In addition, political rights at Usiminas will remain suspended until the Company reaches the limits established in the TCD. In December 2019, the Company opted to reclassify the investment measured at fair value through profit or loss to current assets through a new decision by Management regarding the maintenance of shares in line with its asset sale strategy. USIMINAS is listed on the São Paulo Stock Exchange (“B3 SA”: USIM3 and USIM5). As of December 31, 2020 and December 31, 2019, the Company’s stake in USIMINAS ‘capital was 15.19% in common shares and 20.29% in preferred shares. ARVEDI METALFER DO BRASIL SA (“Arvedi”) Arvedi, headquartered in Salto, State of São Paulo, is engaged in pipe production . As of December 31, 2020 and 2019, CSN had a 20.00% interest in Arvedi’s share capital. Accounting Policy Equity method of accounting The equity method of accounting for subsidiaries, jointly controlled and affiliated companies is applied. Other investments are held at fair value or cost. Subsidiaries: Jointly Controlled: Joint operations Jointly controlled entities Affiliates: are all entities in which the Company has significant influence, but not control. Usually, 20% to 50% voting interest investments in associates are initially recognized at cost and subsequently measured using the equity method. Exclusive funds The exclusive funds are private investment funds in which CSN’s resources are allocated according to the Company’s intention. They are managed by BNY Mellon Serviços Financeiros DTVM SA and Caixa Econômica Federal (CEF). Transactions between subsidiaries, affiliates, joint ventures joint operations Unrealized balances and gains on transactions with subsidiaries, joint ventures and associates are eliminated proportionally to CSN’s interest in the entity in question in the consolidation process. Unrealized losses are eliminated in the same way as unrealized gains, but only insofar as there is no evidence of impairment. The effects on the results of transactions with jointly controlled subsidiaries are also eliminated, where part of the equity in results of jointly controlled entities is reclassified to financial expenses, cost of products sold and income and social contribution taxes. The subsidiaries and jointly controlled entities have the same reporting date and accounting policies as those adopted by the Company. Foreign currency transactions and balances The transactions in foreign currencies are translated into the functional currency using the exchange rates in effect at the dates of the transactions or valuations when their values are remeasured. Foreign exchange gains and losses resulting from the settlement of those transactions and from the translation at exchange rates in effect as of December 31, 2019 related to monetary assets and liabilities denominated in foreign currencies are recognized in the income statement as financial result, except when they are recognized in shareholders' equity as a result of foreign operation characterized as foreign investment. According to IAS 21 and IFRIC 22 – foreign currency transactions and advance consideration, the transactions in which the Company recognizes a non-monetary asset or non-monetary liability involving prepayments or receipts in foreign currency are recorded at the exchange rate of the date the entity initially recognized (transaction date) the non-monetary asset or non-current liability monetary . Impairment testing Investments are reviewed for verification of impairment 10.g) Investment property The balance of investment properties as of December 31, 2020 is shown below: Consolidated Land Buildings Total Balance at December 31, 2019 68,877 32,318 101,195 Cost 68,877 53,816 122,693 Accumulated depreciation (21,498) (21,498) Balance at December 31, 2019 68,877 32,318 101,195 Acquisitions 28,733 32,864 61,597 Depreciation (2,786) (2,786) Write-off (132) (132) Balance at December 31, 2020 97,610 62,264 159,874 Cost 97,610 86,548 184,158 Accumulated depreciation (24,284) (24,284) Balance at December 31, 2020 97,610 62,264 159,874 The Company’s estimate of the fair value of investment properties was of R$1,863,563 at December 31, 2020 (R$1,781,019 at December 31, 2019). The average estimated useful lives for the years are as follows (in years): Consolidated 12/31/2020 12/31/2019 Buildings 27 21 Accounting Policy The Company’s investment properties consist of land and buildings maintained to earn rental income and capital appreciation. The measurement method used is that of the acquisition or construction cost less accumulated depreciation and reduction to its recoverable value, when applicable. The accumulated depreciation of buildings is calculated using the straight-line method based on the estimated useful life of the properties subject to depreciation. Land is not depreciated because it has an indefinite useful life. |
11. PROPERTY, PLANT AND EQUIPME
11. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 11. PROPERTY, PLANT AND EQUIPMENT Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Furniture and fixtures Construction in progress Right of use (i) Other (*) Total Balance at December 31, 2019 226,949 3,062,238 12,603,619 28,455 3,217,052 472,345 90,286 19,700,944 Cost 226,949 4,250,471 24,372,514 170,229 3,217,052 531,044 386,144 33,154,403 Accumulated depreciation (1,188,233) (11,768,895) (141,774) (58,699) (295,858) (13,453,459) Balance at December 31, 2019 226,949 3,062,238 12,603,619 28,455 3,217,052 472,345 90,286 19,700,944 Effect of foreign exchange differences 30,271 57,838 186,591 2,416 4,727 4,329 1,823 287,995 Acquisitions 654 865 122,744 874 1,583,054 49,934 4,156 1,762,281 Capitalized interest (1) (notes 28 and 33) 92,506 92,506 Write-offs (note 27) (188) (3,073) (33) (9) (7,318) (2,377) (12,998) Depreciation (note 26) (458) (780,395) (1,564,525) (6,747) (62,680) (24,517) (2,439,322) Transfers to other asset categories 458 67,574 1,112,024 1,338 (1,212,373) 30,979 Transfers to intangible assets (4,633) (4,633) Right of use - Remesurement 60,058 60,058 Update of the ARO (Asset retirement obligation) 269,445 269,445 Others 3 (6) (2) (48) (53) Balance at December 31, 2020 257,686 2,677,565 12,457,383 26,297 3,680,322 516,668 100,302 19,716,223 Cost 257,686 4,752,412 26,213,225 182,974 3,680,322 634,786 414,705 36,136,110 Accumulated depreciation (2,074,847) (13,755,842) (156,677) (118,118) (314,403) (16,419,887) Balance at December 31, 2020 257,686 2,677,565 12,457,383 26,297 3,680,322 516,668 100,302 19,716,223 Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Furniture and fixtures Construction in progress Right of use (i) Other (*) Total Balance at December 31, 2018 287,854 2,678,638 11,687,271 30,530 3,282,436 - 80,135 18,046,864 Cost 287,854 3,751,429 22,426,782 165,331 3,282,436 - 355,768 30,269,600 Accumulated depreciation (1,072,791) (10,739,511) (134,801) (275,633) (12,222,736) Balance at December 31, 2018 287,854 2,678,638 11,687,271 30,530 3,282,436 - 80,135 18,046,864 Effect of foreign exchange differences 1,499 2,978 8,033 106 2,464 56 15,136 Acquisitions 6,125 16,116 459,460 1,763 1,924,520 43,111 41,574 2,492,669 Capitalized interest (1) (notes 28 and 33) 13.0 117,176 - 117,189 Write-offs (note 27) (2,143) (130) (80,426) (1) (30,400) (1,354) (149) (114,603) Depreciation (note 26) (135,313) (1,241,026) (5,999) (58,843) (25,038) (1,466,219) Transfers to other asset categories 790 294,872 1,766,047 2,629 (2,053,290) - (11,048) - Transfers to intangible assets (31) - - (11,865) - - (11,896) Right of use - initial recognition - - - 640,989 - 640,989 Right of use - Remesurement - - - (151,558) - (151,558) Update of the ARO (Asset retirement obligation) 225,125 - - - - - 225,125 Transfers to investment property (67,176) (20,030) - - (13,989) - - (101,195) Consolidation CBSI 4,940 (573) - - 4,756 9,123 Others (680) - - - - (680) Balance at December 31, 2019 226,949 3,062,238 12,603,619 28,455 3,217,052 472,345 90,286 19,700,944 Cost 226,949 4,250,471 24,372,514 170,229 3,217,052 531,044 386,144 33,154,403 Accumulated depreciation (1,188,233) (11,768,895) (141,774) (58,699.0) (295,858) (13,453,459) Balance at December 31, 2019 226,949 3,062,238 12,603,619 28,455 3,217,052 472,345 90,286 19,700,944 (*) Refer substantially to: i) (1) The cost of capitalized interest is calculated, basically, for Mining projects that substantially refer to the expansion of Casa de Pedra (MG) and TECAR (RJ) - see notes 28 and 33. The average rate used for the capitalization of interest on non-specific projects in the period ended December 31 2020 was 5.62% per year (6.58% per year as of December 31, 2019). (i) Right of use Below the movements of the right of use recognized on December 31, 2020 and 2019: Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Others Total Balance at December 31, 2019 380,566 64,154 24,144 3,481 472,345 Cost 401,746 73,344 39,455 16,499 531,044 Accumulated depreciation (21,180) (9,190) (15,311) (13,018) (58,699) Balance at December 31, 2019 380,566 64,154 24,144 3,481 472,345 Effect of foreign exchange differences 988 294 3,047 4,329 Addition 9,039 4,561 23,720 12,614 49,934 Remesurement 34,645 3,827 21,557 29 60,058 Depreciation (24,467) (983) (14,211) (23,019) (62,680) Write-offs (6,580) (399) (339) (7,318) Transfers to other asset categories (188) (6,062) (3,558) 9,808 Balance at December 31, 2020 393,015 66,086 51,946 5,621 516,668 Cost 434,689 75,882 81,598 42,617 634,786 Accumulated depreciation (41,674) (9,796) (29,652) (36,996) (118,118) Balance at December 31, 2020 393,015 66,086 51,946 5,621 516,668 Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Other Total Initial recognition – Rights of use 556,133 54,513 9,783 20,560 640,989 Addition 6,719 34,197 2,195 43,111 Remeasurement (152,915) 12,112 (4,525) (6,230) (151,558) Depreciation (21,314) (9,190) (15,311) (13,028) (58,843) Write-off (1,338) (16) (1,354) Balance at December 31, 2019 380,566 64,154 24,144 3,481 472,345 Cost 401,746 73,344 39,455 16,499 531,044 Accumulated depreciation (21,180) (9,190) (15,311) (13,018) (58,699) Balance at December 31, 2019 380,566 64,154 24,144 3,481 472,345 The average estimated useful lives for the years are as follows (in years): Consolidated 12/31/2020 12/31/2019 Buildings and Infrastructure (1) 34 38 Machinery, equipment and facilities 20 21 Furniture and fixtures 12 12 Others 10 14 (1) The decrease was caused by the review of the useful lives of dams infrastructure as a result of technical and functional obsolescence recorded in 2020 as a result of the use of filter and stack dry tailings in our iron ore production. Accounting Policy Property, plant and equipment are carried at cost of acquisition, formation or construction, less accumulated depreciation or depletion and any impairment loss. Depreciation is calculated under the straight-line method based on the remaining economic useful economic lives of assets, as mentioned in note 9. The depletion of mines is calculated based on the quantity of ore mined. Land is not depreciated since their useful life is considered indefinite. However, if the tangible assets are mine-specific, that is, used in the mining activity, they are depreciated over the shorter between the normal useful lives of such assets and the useful life of the mine. The Company recognizes in the carrying amount of property, plant and equipment the cost of replacement, and consequently reducing the carrying amount of the part that is replaced if it is probable that future economic benefits embodied therein will revert to the Company, and if the cost of the asset can be reliably measured. All other disbursements are expensed as incurred . Capitalized interest Borrowing costs directly attributable to the acquisition, construction and or production of qualifying assets are capitalized as part of the cost of the asset when it is probable that they will result in future economic benefits and until these projects are completed. Development Costs of New Ore Deposits Costs for the development of new ore deposits, or for the expansion of the capacity of the mines in operation are capitalized and amortized by the method of units produced (extracted) based on the probable and proven quantities of ore. Operating Expenses Exploration expenses are recognized as expenses until the viability of the mining activity is established; after that period, subsequent costs are capitalized. Waste Removal Costs Expenses incurred during the development phase of a mine, prior to the production phase, are accounted for as part of the depreciable development costs. Subsequently, these costs are amortized over the useful life of the mine based on probable and proven reserves. Sterile Costs The waste disposal costs incurred in the production phase are added to the stock value, except when a specific extraction campaign is carried out to access deeper deposits of the deposit. In this case, costs are capitalized and classified in non-current assets and are amortized over the useful life of the deposit. |
12. INTANGIBLE ASSETS
12. INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | 12. INTANGIBLE ASSETS Consolidated Goodwill Customer relationships Software Trademarks Rights and licenses (*) Others Total Balance at December 31, 2019 3,606,156 246,139 53,859 153,103 3,170,960 1,564 7,231,781 Cost 3,846,563 585,407 171,152 153,103 3,189,789 1,564 7,947,578 Accumulated amortization (131,077) (339,268) (117,293) (18,829) (606,467) Adjustment for accumulated recoverable value (109,330) (109,330) Balance at December 31, 2019 3,606,156 246,139 53,859 153,103 3,170,960 1,564 7,231,781 Effect of foreign exchange differences 94,998 584 62,429 638 158,649 Acquisitions and expenditures 1,837 1,837 Transfer of property, plant and equipment 633 4,000 4,633 Amortization (note 26) (63,096) (11,248) (5,611) (79,955) Others (151) (151) Balance at December 31, 2020 3,606,156 278,041 45,665 215,532 3,169,349 2,051 7,316,794 Cost 3,846,563 823,540 182,059 215,532 3,193,787 2,051 8,263,532 Accumulated amortization (131,077) (545,499) (136,394) (24,438) (837,408) Adjustment for accumulated recoverable value (109,330) (109,330) Balance at December 31, 2020 3,606,156 278,041 45,665 215,532 3,169,349 2,051 7,316,794 Consolidated Goodwill Customer relationships Software Trademarks Rights and licenses (*) Others Total Balance at December 31, 2018 3,590,931 288,773 54,972 150,009 3,166,999 1,491 7,253,175 Cost 3,831,338 573,614 161,067 150,009 3,185,701 1,491 7,903,220 Accumulated amortization (131,077) (284,841) (106,095) - (18,702) - (540,715) Adjustment for accumulated recoverable value (109,330) - - - - - (109,330) Balance at December 31, 2018 3,590,931 288,773 54,972 150,009 3,166,999 1,491 7,253,175 Effect of foreign exchange differences - 4,711 3 3,092 - 33 7,839 Acquisitions and expenditures - $0.00 1,387 - - 40 1,427 Transfer of property, plant and equipment - $0.00 7,808 - 4,088 11,896 Amortization (note 26) - (47,345) (10,657) - (127) (58,129) Goodwill - acquisition 50% CBSI (note 8.d) 15,225 - - - - 15,225 Consolidated CBSI on November 30, 2019 - - 346 2 - 348 Balance at December 31, 2019 3,606,156 246,139 53,859 153,103 3,170,960 1,564 7,231,781 Cost 3,846,563 585,407 171,152 153,103 3,189,789 1,564 7,947,578 Accumulated amortization (131,077) (339,268) (117,293) - (18,829) - (606,467) Adjustment for accumulated recoverable value (109,330) - - - - - (109,330) Balance at December 31, 2019 3,606,156 246,139 53,859 153,103 3,170,960 1,564 7,231,781 (*) Composed mainly of mining rights. Amortization is based on production volume. The average useful life by nature is as follows (in years): Consolidated 12/31/2020 12/31/2019 Software 9 9 Customer relationships 13 13 Accounting Policy Intangible assets basically comprise assets acquired from third parties, including through business combinations. These assets are recorded at acquisition or formation cost and deducted from amortization calculated using the straight-line method based on the economic useful life of each asset, within the estimated periods of exploration or recovery. Mineral exploration rights are classified as rights and licenses in the intangible group. Intangible assets with an indefinite useful life are not amortized. 12.a) Goodwill impairment test Goodwill arising from expected future profitability of acquired companies and intangible assets with indefinite useful lives (brands) were allocated to CSN’s cash generating units (CGUs) which represent the lowest level of assets or group of assets of the Company. According to IAS36, when a CGU has an intangible asset with no defined useful life allocated, the Company must perform an impairment test. The CGUs with intangible assets in this situation are shown below: Consolidated Goodwill Trademarks Total Cash generating of units Segment 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Packaging (1) Steel 158,748 158,748 158,748 158,748 Long steel (2) Steel 235,595 235,595 215,532 153,103 451,127 388,698 Mining (3) Mining 3,196,588 3,196,588 3,196,588 3,196,588 Other Steel (4) Steel 15,225 15,225 15,225 15,225 3,606,156 3,606,156 215,532 153,103 3,821,688 3,759,259 (1) The goodwill of the Packaging cash-generating unit is shown net of impairment loss in the amount of R$109,330, recognized in 2011 (2) The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows. (3) Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineração concluded in December 2015, which recoverability is tested annually. (4) On November 29, 2019, CSN acquired the stake held by CKTR Brasil Serviços Ltda., corresponding to 50% of CBSI's shares, and now holds 100% of CBSI's share capital. The impairment testing of the goodwill and the trademark include the balance of property, plant and equipment of the cash-generating units and the intangible assets. The test is based on the comparison between the actual balances and the value in use of those units, determining based on the projections of discounted cash flows and use of such assumptions and judgements as: growth rate, costs and expenses, discount rate, working capital, future Capex investment and macroeconomic assumptions observable in the market. The main assumptions used in the calculation of the value in use on December 31, 2020, are as follows: Packaging Mining Other Steelmaking Flat Steel Logistics Measurement of recoverable value DCF DCF DCF DCF DCF Cash Flow Projection Until 2030 + perpetuity Until 2064 Until 2030 + perpetuity Until 2030 + perpetuity by 2027 Gross margin Update of gross margin based on historical data, incorporation of the impacts of business restructuring and market trends. It reflects projection of costs due to the progress of the mining plan as well as startup and project ramp up. Prices and exchange rates projected according to sectoral reports. Update of gross margin based on historical data and market trends. Update gross margin based on historical data and market trends. Estimated based on market study to capture cargo and operating costs according to market trend studies Update costs Update of costs based on historical data for each product and incorporation of the impacts of business restructuring. Update of costs based on historical data, progress of the mining plan as well as startup and project ramp up Update of costs based on historical data and market trends. Update of costs based on historical data and market trends. Study-based costs and market trends Perpetuity growth rate No growth. Without perpetuity. No growth. Growth of 1.4% per year in real terms, updated by long-term inflation of 1.7% per year in the Eurozone. Without perpetuity. Discount Rate For packaging, cash flow was discounted using a discount rate of around 8% per year in real terms. For mining, flat steel and other steel (CBSI), cash flows were discounted using a discount rate between 7% to 9.5% pa in nominal terms. For logistics, cash flow was discounted using a discount rate between 5.87% to 6.40% pa in real terms. The discount rate was based on the weighted average cost of capital (“WACC”) which reflects the specific risk of each segment. (*) refer to the assets of the subsidiary Lusosider, located in Portugal. The discount rate was applied to the discounted cash flow prepared in Euros, the functional currency of this subsidiary. (**) refer to the assets of the subsidiary FTL - Ferrovia Transnordestina Logística SA For the subsidiary SWT long steel, the measurement of recoverable value was based on fair value and classified as Level 3, based on unobservable inputs that reflect the assumptions that market participants would use for pricing, including risk assumptions and discount rate. Based on the analyzes carried out by Management, it was not identified the need to record any impairment losses on the balances of these assets in the year ended December 31, 2020. Accounting Policy Goodwill Goodwill represents the positive difference between the amount paid and/or payable for the acquisition of a business and the net fair value of assets and liabilities of the subsidiary acquired. Goodwill on acquisitions in business combinations is recorded as intangible assets in the consolidated financial statements. The gain on bargain purchase is recorded as a gain in the income statement for the period of the acquisition. Goodwill is tested for impairment annually or at any time when circumstances indicate a possible loss. Recognized impairment losses on goodwill, if any, are not reversed. Gains and losses on the disposal of a Cash Generating Unit ("CGU"), if any, include the carrying amount of goodwill related to the CGU sold. Impairment of Non-financial Assets Assets that have an indefinite useful life, such as goodwill, are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization and/or depreciation, such as fixed assets and investment properties, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The latter is the higher of an asset's fair value less costs to sell and its value in use. For impairment assessment purposes, assets are grouped at the lowest levels for which there are separately identifiable incoming cash flows (Cash Generating Units). Non-financial assets other than goodwill that have suffered impairment are reviewed subsequently each year for possible reversal of the impairment. |
13. BORROWINGS AND FINANCING
13. BORROWINGS AND FINANCING | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings And Financing | |
BORROWINGS AND FINANCING | 13. BORROWINGS AND FINANCING The balances of loans, financing and debentures that are recorded at amortized cost are as follows: Consolidated Current Liabilities Noncurrent Liabilities 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Foreign Debt Floating Rates: Prepayment (1) 1,119,558 1,769,975 3,457,105 2,563,928 Fixed Rates: Bonds, Perpetual bonds and Advance on Foreign Exchange Contract (2) 426,676 2,047,032 19,898,213 10,177,517 Intercompany Fixed interest in EUR Intercompany Facility 326,970 223,204 143,503 147,241 1,873,204 4,040,211 23,498,821 12,888,686 Debt agreements in Brazil Floating Rate Securities in R$: BNDES/FINAME, Debentures, NCE and CCB (3) 2,282,279 1,086,985 7,716,307 10,049,783 Fixed Rate Securities in R$: Intercompany 25,038 2,282,279 1,112,023 7,716,307 10,049,783 Total Borrowings and Financing 4,155,483 5,152,234 31,215,128 22,938,469 Transaction Costs and Issue Premiums (29,030) (26,391) (70,928) (97,276) Total Borrowings and Financing + Transaction cost 4,126,453 5,125,843 31,144,200 22,841,193 (1) In 2020, the Company renegotiated part of the Prepayment debt in the total amount of U$311 million, postponing part of the maturities of 2020 and 2021 to 2022. (2) In 2020, the Company issued debt securities representing the foreign market (“Notes”), through its subsidiary CSN Inova Ventures, with maturity in 2028 and interest rate of 6.75% per year, totaling US$1, 3 billion, of which US$1 billion in January and US$300 million in November. Additionally, we used US$263 million in the repurchase offer (“Tender Offer”) of the Notes issued by CSN Resources SA in January 2020. All Notes mentioned above are unconditionally and irrevocably guaranteed by the Company. (3) In June 2020, the Company renegotiated a debt rollover in the amount of R$300 million, shifting the maturities of 2020 to the years 2021, 2022 and 2023. The following table shows the average interest rate: Consolidated 12/31/2020 Average interest rate (i) Total debt US$ 6.63% 24,901,552 EUR 1.50% 470,473 R$ 2.82% 9,998,586 35,370,611 (i) To determine the average interest rate on debt contracts with floating rates, the Company used the rates applied on December 31, 2020. In The Company, it considers the interest rate of the contracts intercompany 13.a) Maturities of loans, financing and debentures presented in current and non-current liabilities Consolidated 12/31/2020 Principal Borrowings and financing in foreign currency Borrowings and financing in national currency Total 2021 1,873,204 2,282,279 4,155,483 2022 2,683,224 2,859,423 5,542,647 2023 5,567,133 3,036,338 8,603,471 2024 178,033 1,238,275 1,416,308 2025 68,595 68,595 2026 3,118,021 68,587 3,186,608 After 2026 6,755,710 445,089 7,200,799 Perpetual bonds 5,196,700 5,196,700 25,372,025 9,998,586 35,370,611 13.b)Borrowing and amortization, financing and debentures The following table shows amortization and funding during the year: Consolidated 12/31/2020 12/31/2019 Opening balance 27,967,036 28,827,074 New debts 8,116,247 10,149,381 Repayment (6,448,658) (11,775,093) Payments of charges (1,922,130) (2,039,112) Accrued charges (Note 28) 2,002,052 1,996,305 Consolidation of CBSI 19,722 Others (1) 5,556,106 788,759 Closing balance 35,270,653 27,967,036 1. Including unrealized exchange and monetary variations and funding cost. In 2020, the Commpany entered into new debt agreements and amortized borrowings as shown below: Funding and Amortization Consolidated 12/31/2020 Nature New debts Repayment Interest payment Prepayment 177,420 (1,028,606) (245,125) Bonds, Perpetual bonds, ACC, CCE and Facility 7,917,929 (4,458,888) (1,237,396) BNDES/FINAME, Debentures, NCE and CCB 20,898 (961,164) (439,609) 8,116,247 (6,448,658) (1,922,130) Covenants The Company is compliant with its financial and non-financial obligations (covenants). On December 31, 2019, the Company has provisioned R$10,531 for risk assumption. Accounting Policy Borrowings and financing are initially recognized at fair value, net of transaction costs and subsequently measured at amortized cost using the effective interest and charge methods. Interest, commissions and possible financial charges are recorded pro-rata on an accrual basis. The Company's debt agreements establish the fulfillment of certain non-financial obligations, as well as maintenance of certain parameters and performance indicators, such as disclosure of its audited financial statements according to regulatory deadlines or payment of commission on risk assumption if certain financial indicators are triggered. |
14. FINANCIAL INSTRUMENTS
14. FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS | 14. FINANCIAL INSTRUMENTS I - Identification and valuation of financial instruments The Company may operate with several financial instruments, with emphasis on cash and cash equivalents, including financial investments, marketable securities, accounts receivable from customers, accounts payable to suppliers and borrowings and financing. Additionally, we may also operate with derivative financial instruments, such as swap exchange rate, swap interest and derivatives with commodities. Considering the nature of the instruments, the fair value is basically determined by the use of quotations in the capital markets in Brazil and the Mercantile and Futures Exchange. The amounts recorded in current assets and liabilities have immediate liquidity. Considering the term and characteristics of these instruments, fair values do not differ from the recorded amounts. Classification of financial instruments Consolidated Consolidated 12/31/2020 12/31/2019 Notes Fair value through profit or loss Measured at amortized cost Balances Fair value through profit or loss Measured at amortized cost Balances Assets Current Cash and cash equivalents 4 9,944,586 9,944,586 1,088,955 1,088,955 Short-term investments 5 3,305,109 478,253 3,783,362 2,114,620 518,553 2,633,173 Trade receivables 6 2,867,352 2,867,352 2,047,931 2,047,931 Dividends and interest on equity 9 38,088 38,088 44,554 44,554 Derivative financial instruments 9 1,364 1,364 Trading securities 9 5,065 5,065 4,034 4,034 Total 3,310,174 13,328,279 16,638,453 2,120,018 3,699,993 5,820,011 Non-current Investments 5 123,409 123,409 95,719 95,719 Other trade receivables 9 2,445 2,445 7,059 7,059 Eletrobrás compulsory loan 9 852,532 852,532 845,284 845,284 Receivables by indemnity 9 517,183 517,183 Loans - related parties 9 966,050 966,050 846,300 846,300 Investments 10 59,879 59,879 47,300 47,300 Derivative financial instruments 9 4,203 4,203 Total 59,879 2,461,619 2,521,498 51,503 1,794,362 1,845,865 Total Assets 3,370,053 15,789,898 19,159,951 2,171,521 5,494,355 7,665,876 Liabilities Current Borrowings and financing 13 4,155,483 4,155,483 5,152,234 5,152,234 Trade payables 17 4,819,539 4,819,539 3,012,654 3,012,654 Trade payables - drawee risk 15 623,861 623,861 1,121,312 1,121,312 Dividends and interest on capital 15 946,133 946,133 13,252 13,252 Leases 16 93,626 93,626 35,040 35,040 Derivative financial instruments 8,722 8,722 Total 8,722 10,638,642 10,647,364 9,334,492 9,334,492 Non-current Borrowings and financing 13 31,215,128 31,215,128 22,938,469 22,938,469 Trade payables 17 543,527 543,527 Derivative financial instruments 97,535 97,535 Leases 16 436,505 436,505 439,350 439,350 Total 97,535 32,195,160 32,292,695 23,377,819 23,377,819 Total Liabilities 106,257 42,833,802 42,940,059 32,712,311 32,712,311 Fair value measurement The table below shows the financial instruments recorded at fair value through profit or loss, classifying them according to the fair value hierarchy: Consolidated 12/31/2020 12/31/2019 Level 1 Level 2 Balances Level 1 Level 2 Balances Assets Current Financial assets at fair value through profit or loss Financial investments 3,305,109 3,305,109 2,114,620 2,114,620 Derivative financial instruments 1,364 1,364 Trading securities 5,065 5,065 4,034 4,034 Non-current Financial assets at fair value through profit or loss Investments 59,879 59,879 47,300 47,300 Derivative financial instruments 4,203 4,203 Total Assets 3,370,053 3,370,053 2,165,954 5,567 2,171,521 Liabilities Current Financial liabilities at fair value through profit or loss Derivative financial instruments 8,722 8,722 Non-current Financial liabilities at fair value through profit or loss Derivative financial instruments 97,535 97,535 Total Liabilities 106,257 106,257 Level 1 Level 2 inputs There are no assets or liabilities classified as level 3. II - Investments in securities valued at fair value through profit or loss The Company has common shares (USIM3), preferred shares (USIM5) of Usiminas (“Usiminas shares”) and shares of Panatlântica SA (PATI3), which are designated as fair value through profit or loss. Usiminas shares are classified as current assets in financial investments and Panatlântica shares are classified as non-current assets under the investment item. They are recorded at fair value ( fair value In accordance with the Company’s policy, the gains and losses arising from the variation in the share price are recorded directly in the income statement as financial result in the case of financial investments, or as other operating income and expenses in the case of long-term investments. Class of shares 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Quantity Equity interest (%) Share price Closing Balance Quantity Equity interest (%) Share price Closing Balance Fair value adjustment recognized in profit or loss (note 27 and 28) USIM3 107,156,651 15.19% 15.69 1,681,288 107,156,651 15.19% 9.87 1,057,636 623,652 (168,236) USIM5 111,144,456 20.29% 14.61 1,623,821 111,144,456 20.29% 9.51 1,056,984 566,837 32,232 3,305,109 2,114,620 1,190,489 (136,004) PATI3 2,065,529 11.31% 28.99 59,879 2,065,529 11.31% 22.90 47,300 12,579 17,224 3,364,988 2,161,920 1,203,068 (118,780) III - Financial risk management: The Company uses risk management strategies with guidance on the risks incurred by us. The nature and general position of financial risks are regularly monitored and managed in order to assess results and the financial impact on cash flow. Credit limits and hedge quality of counterparties are also reviewed periodically. Market risks are hedged when we consider necessary to support the corporate strategy or when it is necessary to maintain the level of financial flexibility. We are exposed to exchange rate, interest rate, market price and liquidity risks. The Company may manage some of the risks through the use of derivative instruments not associated with any speculative trading or short selling. 14.a) Exchange rate, market price and interest rate risk: Exchange rate risk The exposure arises from the existence of assets and liabilities denominated in Dollar or Euro, since the Company’s functional currency is substantially the Real and is called natural exchange exposure. The net exposure is the result of the offsetting of the natural exchange exposure by the instruments of hedge The consolidated net exposure as of December 31, 2020 is shown below: 12/31/2020 Foreign Exchange Exposure (Amounts in US$’000) (Amounts in €’000) Cash and cash equivalents overseas 664,951 13,372 Trade receivables 387,039 2,560 Financial investments 23,748 Other assets 9,158 4,474 Total Assets 1,084,896 20,406 Borrowings and financing (4,812,268) Trade payables (139,672) (9,258) Iron ore derivative (172) Other liabilities (9,305) (1,010) Total Liabilities (4,961,417) (10,268) Foreign exchange exposure (3,876,521) 10,138 Cash flow hedge accounting 3,992,200 Exchange rate swap CDI x Dollar (67,000) Net foreign exchange exposure 48,679 10,138 CSN uses as a strategy the Hedge Accounting Sensitivity analysis of Derivative Financial Instruments and Consolidated Foreign Exchange Exposure The Company considered scenarios 1 and 2 to be 25% and 50% deterioration for currency volatility, using the exchange rate closing rate as of December 31, 2020 as a reference. The currencies used in the sensitivity analysis and their respective scenarios are shown below: 12/31/2020 Currency Exchange rate Probable scenario Scenario 1 Scenario 2 USD 5.1967 5.2617 6.4959 7.7951 EUR 6.3779 6.3867 7.9724 9.5669 USD x EUR 1.2271 1.2124 1.5339 1.8407 The effects on the result, considering scenarios 1 and 2 are shown below: 12/31/2020 Instruments Notional Risk Probable scenario (*) R$ Scenario 1 R$ Scenario 2 R$ Gross exchange position (3,876,521) Dollar (251,974) (5,036,279) (10,072,558) Cash flow hedge accounting 3,992,200 Dollar 259,493 5,186,566 10,373,133 Exchange rate swap CDI x Dollar (67,000) Dollar (4,355) (87,045) (174,089) Net exchange position 48,679 Dollar 3,164 63,242 126,486 Net exchange position 10,138 Euro 89 16,165 32,330 Exchange rate swap Dollar x Euro 40,697 Dollar 5,264 50,134 78,337 (*) The probable scenarios were calculated considering the following variations for risks: Real x Dollar - devaluation of the Real by 1.25% / Real x Euro - devaluation of the Real by 0.14% / Euro x Dollar - appreciation of Euro by 1.20%. Source: Central Bank of Brazil and European Central Bank quotations on 1/14/2021. Stock market price risks The Company is exposed to the risk of changes in share prices due to investments valued at fair value through the result that are quoted based on the market price at B3. Sensitivity analysis for stock price risks We present below the sensitivity analysis for share price risks. The Company considered scenarios 1 and 2 to be 25% and 50% devaluation in the share price using the closing price on December 31, 2020 as a reference. The probable scenario considered a 5% devaluation in the share price. The effects on the result, considering the probable scenarios, 1 and 2 are shown below: 12/31/2020 Class of shares Probable scenario Scenario 1 Scenario 2 USIM3 (84,064) (420,322) (840,644) USIM5 (81,191) (405,955) (811,910) PATI3 (2,994) (14,970) (29,940) Interest rate risk: This risk arises from financial investments, borrowings and financing and debentures linked to the fixed and floating interest rates of the CDI, TJLP and Libor, exposing these financial assets and liabilities to interest rate fluctuations as shown in the sensitivity analysis table below. Sensitivity analysis of changes in interest rates We present below the sensitivity analysis for interest rate risks. The Company considered scenarios 1 and 2 to be 25% and 50% deterioration for interest rate volatility using the closing rate as of December 31, 2020 as a reference. The interest rates used in the sensitivity analysis and their respective scenarios are shown below: 12/31/2020 Interest Interest Rate Scenario 1 Scenario 2 CDI 1.90% 2.38% 2.85% TJLP 4.55% 5.69% 6.38% LIBOR 0.26% 0.32% 0.39% The effects on the result, considering scenarios 1 and 2 are shown below: Consolidated Impact on profit or loss Changes in interest rates % p.a Assets Liabilities Probable scenario (*) Scenario 1 Scenario 2 CDI 1.90 5,779,452 (9,104,416) (10,673) (15,794) (31,588) TJLP 4.55 (817,374) (2,155) (9,298) (18,596) Libor 0.26 (4,533,341) (43,321) (2,920) (5,840) (*) The sensitivity analysis is based on the premise of maintaining the market values as of December 31, 2020 as a probable scenario recorded in the company’s assets and liabilities. Market price risk: The Company is also exposed to market risks related to the volatility of commodity prices. In line with its risk management policy, risk mitigation strategies involving commodities can be used to reduce cash flow volatility. These mitigation strategies may incorporate derivative instruments, predominantly forward transactions, futures and options. Sensitivity analysis for price risks “ Platts index” Below we present the sensitivity analysis for price risks. The Company considered scenarios 1 and 2 to be 25% and 50% increase in the index “Platts” The effects on the result, considering scenarios 1 and 2 are shown below: 12/31/2020 Maturity Probable scenario (*) R$ Scenario 1 R$ Scenario 2 R$ 2/2/2021 (33,677) (120,262) (240,524) 3/2/2021 (43,144) (127,915) (255,830) (76,821) (248,177) (496,354) (*) The probable scenario was calculated considering the quotation of “ Platts In item 14.b), we show derivatives and hedging strategies to hedge against exchange and price risks and hedge price risk Platts. 14.b) Instruments protection: Derivatives and Hedge accounting net CSN uses instruments to hedge against exchange rate risk, price risk Platts · Derivative financial instruments portfolio position Swap The subsidiary Lusosider has derivative transactions to hedge its dollar exposure against the euro. Swap The subsidiary Lusosider had derivative transactions to hedge its GBP exposure against the euro, it was settled in the third quarter of 2020. Swap The Company has derivative transactions with Banco Bradesco to protect its debt in NCE raised in September 2019 with maturity in October 2023 in the amount of US$67 million (equivalent to R$278 million) at a cost compatible with that usually practiced by the Company. Consolidated 12/31/2020 Appreciation (R$) Fair value (market) Impact on financial income (expenses) in 2020 Counterparties Maturity Functional Currency Notional amount Asset position Liability position Amounts receivable / (payable) Exchange rate swap Dollar x Euro 04/26/2021 to 06/08/2021 Dollar 17,377 90,315 (93,823) (3,508) (4,749) Exchange rate swap Dollar x Euro 01/06/2021 a 06/11/2021 Dollar 23,320 121,207 (125,528) (4,321) (4,321) Total dollar-to-euro swap 40,697 211,522 (219,351) (7,829) (9,070) Exchange rate swap GBP x Euro Settled GBP 3,956 (602) Total Swap GBP x Euro 3,956 (602) Exchange rate swap CDI x Dollar 02/10/2023 Dollar (67,000) 289,544 (387,079) (97,535) (106,143) Total Swap CDI x dollar (67,000) 289,544 (387,079) (97,535) (106,143) 501,066 (606,430) (105,364) (115,815) Cash flow hedge accounting Foreign exchange hedge accounting The Company formally designates relations of hedge With the objective of better reflecting the accounting effects of the hedge hedge hedge The table below presents a summary of the relations of hedge 12/31/2020 Designation Date Hedging Instrument Hedged item Type of hedged risk Hedged period Exchange rate on designation Designated amounts (US$’000) Amortizated part (USD'000) Effect on Result (*) (R$'000) Impact on Shareholders' equity (R$'000) 12/18/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate May 2020 2.6805 30,000 (30,000) (82,374) - 12/18/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate May 2020 2.678 35,000 (35,000) (96,190) - 12/18/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate May 2020 2.676 35,000 (35,000) (96,261) - 07/21/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2019 - March 2021 3.1813 60,000 (45,000) (58,475) (30,231) 07/23/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2019 - March 2021 3.285 100,000 (75,000) (92,026) (47,793) 07/23/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.285 30,000 (18,000) (14,185) (22,940) 07/24/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3254 100,000 (60,000) (46,474) (74,852) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3557 25,000 (15,000) (11,467) (18,410) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3557 70,000 (42,000) (32,108) (51,548) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3557 30,000 (18,000) (13,760) (22,092) 07/28/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3815 30,000 (18,000) (13,605) (21,782) 3/8/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2018 - October 2022 3.394 355,000 (276,500) (338,777) (141,512) 2/4/2018 Bonds Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2018 - February 2023 3.3104 1,170,045 (820,045) (306,189) (660,205) 07/31/2019 Bonds and Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate January 2020 - April 2026 3.7649 1,342,761 (247,061) (329,966) (1,568,823) 10/1/2020 Bonds without express maturity and Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate March 2020 - December 2050 4.0745 1,416,000 (102,000) (136,029) (1,474,571) 01/28/2020 Bonds Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate March 2017 - January 2028 4.2064 1,000,000 - - (990,299) Total 5,828,806 (1,836,606) (1,667,886) (5,125,058) (*) On December 31, 2020, the amount of (R$1,667,886) was recorded in Other Operating Expenses. As of December 31, 2019, (R$790,353). In the hedging relationships described above, the amounts of the debt instruments were fully designated for equivalent iron ore export portions . The changes in the hedge accounting amounts recognized in shareholders’ equity as of December 31, 2020 are as follows : Consolidated 12/31/2019 Movement Realization 12/31/2020 Cash flow hedge accounting 1,255,770 5,537,174 (1,667,886) 5,125,058 The realization of Hedge accounting As of December 31, 2020, the hedging relationships established by the Company were effective according to the retrospective and prospective tests performed. Thus, no reversal for hedge accounting ineffectiveness was recognized. Cash flow hedge accounting - “Platts” index The Company has iron ore derivative instruments, entered into by its subsidiary CSN Mineração S.A., in order to reduce the volatility of its exposure to the commodity. The Company formally designated the hedge relationship and, consequently, applied the hedge accounting with the derivative instrument designated as hedging instrument and the Platts index applicable to a portion of its highly probable future sales of iron ore was designated as the hedged item. Accordingly, fluctuations of the “ Platts The table below shows the result of the derivative instrument on December 31, 2020 recognized in Other Comprehensive Income and, when carrying out shipments, the amount reclassified to Other Operating Income and Expenses: 12/31/2020 12/31/2020 Appreciation (R$) Fair value (market) Other income and expenses Other comprehensive income Exchange variation Maturity Notional Asset position Liability position Amounts receivable / (payable) 09/02/2020 (Settled) Platts (31,678) (136) 10/02/2020 (Settled) Platts (132,997) (9,051) 11/04/2020 (Settled) Platts (85,164) (7,301) 12/02/2020 (Settled) Platts (33,310) 52 2/2/2021 Platts 486,852 (493,925) (7,073) (6,888) (185) 2/3/2021 Platts 527,684 (521,504) 6,180 6,063 117 1,014,536 (1,015,429) (893) (283,149) (825) (16,504) The change in the amounts related to cash flow hedge accounting - “Platts” index recorded in shareholders’ equity on December 31, 2020 is shown as follows: 12/31/2019 Movement Realization 12/31/2020 Cash flow hedge accounting – “Platts” 283,974 (283,149) 825 Income tax and social contribution on cash flow hedge accounting (96,551) 96,271 (280) Fair Value of cash flow accounting - Platts, net 187,423 (186,878) 545 Cash flow hedge accounting - index “Platts” The Company prepares formal documentation indicating how the designation of the hedge accounting “Platts” Accounting Policy The Company adopts the hedge accounting and designates certain financial liabilities as hedging instruments for foreign exchange commodity price risks (“Platts” index) associated with expected cash flows from highly probable exports (cash flow hedge). The Company documents, at the beginning of the operation, the relationships between hedging instruments and hedged items as well as the objectives of risk management and the strategy for carrying out these hedging relationships. In addition, we document our assessment at the beginning of the hedging relationship, as well as during the life of the hedge to monitor the hedge effectiveness. The amounts accumulated in net equity are realized to the operating results in the periods the forecasted exports affect the result. When a hedge instrument expires or is settled in advance, or the hedge relationship no longer meets the Hedge Accounting , Net investment hedge in foreign subsidiaries CSN has a natural foreign exchange exposure in Euros substantially arising from a loan made by a foreign subsidiary with functional currency in Reais, for the acquisition of investments abroad whose functional currency is Euro. Such exposure arises from transla ting the balance sheets of these subsidiaries for consolidation in CSN, and the exchange rate of the loans affected the income statement in the financial result item and the exchange variation of the net assets of the foreign operation directly affected the equity in other comprehensive income. In order to eliminate this exposure and cover future fluctuations in the Euro on these loans, non-derivative financial liabilities were designated, represented by loan contracts with financial institutions in the amount of € 120 million which matured on January 31, 2020, when was settled financially. 12/31/2020 Designation Date Hedging Instrument Hedged item Type of hedged risk Exchange rate on designation Designated amounts (EUR'000) Impact on shareholders' equity 09/30/2015 Non-derivative financial liabilities in EUR – Debt contract Investments in subsidiaries which EUR is the functional currency Foreign exchange - R$ vs. EUR spot rate 4.0825 120,000 6,293 Total 120,000 6,293 Accounting Policy The Company designates for the hedge hedge The Company documents, at the beginning of the operation, the relationships between the hedge hedge hedge hedge hedge hedge The effective part of the changes in the fair value of the financial liabilities designated and qualified as hedge Hedge Accounting hedge The amounts accumulated in net equity will be realized in the income statement upon a total or partial sale of the foreign operation. Classification of derivatives in the balance sheet and income 12/31/2020 12/31/2019 Instruments Liabilities Other operating income expenses Other comprehensive income Financial income (expenses), net (note 28) Current Non-current Total Exchange rate swap Dollar x Euro (7,829) (7,829) (9,070) 783 Exchange rate swap GBP x Euro (602) Exchange rate swap CDI x Dollar (97,535) (97,535) (106,143) 4,203 Iron ore derivative (893) (893) (283,149) (825) (16,504) (8,722) (97,535) (106,257) (283,149) (825) (132,319) 4,986 14.c) Liquidity risk It is the risk that the Company may not have sufficient net funds to settle its financial commitments, as a result of the mismatch of term or volume between expected receipts and payments. Future receipt and payment premises are established to manage cash liquidity in domestic and foreign currencies, which are monitored on a day-to-day basis by the Treasury Department. The payment schedules for long-term installments of borrowings and financing and debentures are presented in note 13. The following are the contractual maturities of financial liabilities including interest. Consolidated At December 31, 2020 Less than one year From one to two years From two to five years Over five years Total Borrowings, financing and debentures (note 13) 4,155,483 14,146,118 4,671,511 12,397,499 35,370,611 Lease Liabilities (note 16) 93,626 143,227 115,398 177,880 530,131 Derivative financial instruments (note 14 I) 8,722 97,535 106,257 Trade payables (note 17) 4,819,539 528,551 14,976 5,363,066 Trade payables – Drawee risk (note 14 I) 623,861 623,861 Dividends and interest on equity (note 15) 946,133 946,133 Total 10,647,364 14,817,896 4,899,420 12,575,379 42,940,059 IV - Fair values of assets and liabilities in relation to the book value Financial assets and liabilities measured at fair value through profit or loss are recorded in current and non-current assets and liabilities and gains and losses are recorded as financial income and expenses, respectively. The amounts are recorded in the financial statements at their amortized cost, which are substantially similar to those that would be obtained if they were traded on the market. The fair values of other long-term assets and liabilities do not differ significantly from their book values, except for the amounts below. The estimated fair value for certain consolidated long-term borrowings and financing was calculated at current market rates, considering the nature, term and risks similar to those of the registered contracts, as follows: 12/31/2020 12/31/2019 Closing Balance Fair value Closing Balance Fair value Perpetual bonds 5,203,773 5,157,465 4,036,186 3,706,553 Fixed Rate Notes 15,067,341 15,744,067 8,090,297 8,345,471 Source: Bloomberg 14.d) Credit risk The exposure to credit risks of financial institutions complies with the parameters established in the financial policy. The Company practices a detailed analysis of the financial position of its customers and suppliers, the determination of a credit limit and the permanent monitoring of its outstanding balance. With respect to financial investments, the Company only invests in institutions with low credit risk assessed by credit rating agencies. Since part of the funds is invested in repo operations that are backed by Brazilian government bonds, there is also exposure to the credit risk of the country. As for the exposure to credit risk in accounts receivable and other receivables, the Company has a credit risk committee, in which each new customer is analyzed individually regarding their financial condition, before granting the credit limit and payment terms, and periodically reviewed based on procedures and circumstances of each business area. 14.e) Capital management The Company seeks to optimize its capital structure in order to reduce its financial costs and maximize the return to its shareholders. The table below shows the evolution of the Company’s consolidated capital structure, with financing by equity and third-party capital: Thousands of reais 12/31/2020 12/31/2019 Shareholder's equity (equity) 11,251,505 11,361,932 Borrowings and Financing (Third-party capital) 35,270,653 27,967,036 Gross Debit/Shareholder's equity 3.13 2.46 Accounting Policy The Company’s financial instruments are classified according to the definition of the business model adopted by the Company and the characteristics of the cash flow, in the case of financial assets. Upon initial recognition, financial assets can be classified into three categories: assets measured at amortization cost, fair value through profit or loss and fair value through other comprehensive income. Financial assets are derecognized when the rights to receive cash flows of the investments have expired or been transferred; in the latter case, provided that the Company has substantially transferred all risks and benefits of the property. If the company substantially holds all the risks and rewards of ownership of the financial asset, it must continue to recognize the financial asset. Financial liabilities are classified as amortized cost or fair value through profit or loss. Management determines the classification of its financial assets and liabilities upon initial recognition. Financial liabilities are derecognized only when they are extinguished, that is, when the obligation specified in the contract is settled, canceled or expires. The Company also derecognizes a financial liability when the terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle them on a net basis, or realize the asset and settle the liability simultaneously. Derivative Financial Instruments and Hedging Activities Initially, derivatives are recognized at fair value on the date that a derivative contract is entered into and are subsequently measured at fair value with the changes recorded in the income statement in the caption Financial Result in the income statement, unless a hedge designation is not formally applied. |
15. OTHER PAYABLES
15. OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2020 | |
Other Payables [Abstract] | |
OTHER PAYABLES | 15. OTHER PAYABLES The other obligations classified in current and non-current liabilities have the following composition: Consolidated Current Non-current 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Payables to related parties (note 22 b) 70,458 46,063 78,083 88,021 Derivative financial instruments (note 14 I) 8,722 97,535 Dividends and interest on capital (note 14 I) 946,133 13,252 Advances from customers (1) 1,100,772 787,604 1,725,838 1,845,248 Taxes in installments 45,331 19,498 160,247 67,727 Profit sharing - employees 150,341 162,866 Taxes payable 38,493 8,805 Provision for consumption and services 175,242 204,299 Third party materials in our possession 84,832 78,820 Trade payables - Drawee Risk (note 17) 623,861 1,121,312 Trade payables (note 17) 543,527 Lease Liabilities (note 16) 93,626 35,040 436,505 439,350 Other payables 58,321 57,690 65,108 44,551 3,357,639 2,526,444 3,145,336 2,493,702 1. Advances from customers: During 2019, the subsidiary CSN Mineração entered into an agreement with a major international player for the supply of approximately 22 million tons of iron ore and an additional supply of 11 million tons of iron ore. Accordingly, CSN Mineração S.A. received in advance the amounts of US$496 million (R$1,951,303) and US$250 million (R$956,440) on March 29, 2019 and August 5, 2019, respectively. The term for the execution of the contracted volumes is 5 years. Finally, on September 16, 2019, the parties again amended the contract to adjust the delivery conditions for iron ore. In July 2020, the subsidiary concluded the contract for the additional supply of approximately 4 million tons of iron ore, which was received in advance, on August 28, 2020, the amount of US$115 million (R$629 million). The term for the execution of the contract is 3 years. |
16. LEASES
16. LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |
LEASES | 16. LEASES Lease liabilities are shown below: Consolidated 12/31/2020 12/31/2019 Leases 1,623,523 1,501,960 Present value adjustment - Leases (1,093,392) (1,027,570) 530,131 474,390 Classified: Current 93,626 35,040 Non-current 436,505 439,350 530,131 474,390 The Company adopted IFRS 16 as of January 1, 2019, using the modified retrospective approach that does not require the presentation of comparative balances. As a result of adopting IFRS 16, the Company changed the accounting policy for lease agreements. The Company has lease agreements for port terminals in Itaguaí, the Solid Bulk Terminal - TECAR, used for loading and unloading coal and iron ores and the Container Terminal - TECON, with remaining terms of 27 and 31 years, respectively, and lease agreement for railway operation using the Northeast network with a remaining term of 7 years. Additionally, the Company has property lease agreements, used as operational facilities and administrative and sales offices, in several locations where the Company operates, with remaining terms of 2, 5 and 15 years. CSN also has lease contracts for operating equipment, used in mining operations and in the steel industry, with terms of 2 to 5 years. The present value of future obligations was measured using the implicit rate observed in the contracts and for contracts that did not have a rate, the Company applied the incremental rate of loans - IBR, both in nominal terms. The incremental loan rate - IBR was acquired through consultation with the Company’s relationship banks according to the average term of the contracts, according to the guidelines of Official Letter / CVM / SNC / SEP No. 02/2019. The average incremental rate used to measure lease and use liabilities over the term of the five-year contract is 8.28% The movement of lease liabilities is shown in the table below: Consolidated 12/31/2020 12/31/2019 Opening balance 474,390 640,989 New leases 52,835 106,584 Present Value Adjustments - New leases (6,511) (54,080) Contract review 63,250 (175,609) Write-off (7,757) (1,374) Payments (103,648) (94,727) Interest appropriated 54,236 52,607 Exchange variation 3,336 - Net balance 530,131 474,390 The estimated future minimum payments for the lease agreements include variable payments, fixed in essence when based on minimum performance and contractually fixed rates. As of December 31, 2020 are the following: Consolidated Less than one year Between one and five years Over five years Total Leases 98,788 368,659 1,156,076 1,623,523 Present value adjustment - Leases (5,162) (110,034) (978,196) (1,093,392) 93,626 258,625 177,880 530,131 Recoverable PIS / COFINS Lease liabilities were measured at the amount of consideration with suppliers, that is, without considering the tax credits incurred after payment. The potential right of PIS and COFINS embedded in the lease liability is shown below. Consolidated 12/31/2020 12/31/2019 Leases 1,603,100 1,489,789 Present value adjustment - Leases (1,091,275) (1,026,919) Potencial PIS and COFINS credit 148,287 137,805 Present value adjustment – Potential PIS and COFINS credit (100,943) (96,461) Lease payments not recognized as a liability: The Company chose not to recognize lease liabilities in contracts with a term of less than 12 months and for low value assets. Payments made for these contracts are recognized as expenses when incurred. The Company has contracts for the right to use ports (TECAR) and railways (FTL) which, even if they establish minimum performance, it is not possible to determine its cash flow since these payments are fully variable and will only be known when they occur. In such cases, payments will be recognized as expenses when incurred. The expenses related to payments not included in the measurement of the lease liability during the year are: Consolidated 12/31/2020 12/31/2020 Contract less than 12 months 549 10,819 Lower Assets value 9,563 3,853 Variable lease payments 270,449 177,460 280,561 192,132 In accordance with the guidelines of IFRS 16, the Company uses the discounted cash flow technique to measure and remeasured liabilities and use rights, without considering the projected inflation in the flows to be discounted. Considering Circular Letter / CVM / SNC / SEP No. 02/2019, the Company discloses below the comparative balances of lease liabilities, right to use, financial expenses and depreciation expenses with the use of rates in real terms to discount a present value of flows also in real terms. Consolidated 12/31/2020 12/31/2019 Rate in nominal terms and actual flow Rate and actual flow in nominal terms Rate in nominal terms and actual flow Rate and actual flow in nominal terms Lease Liability 530,131 595,193 474,390 579,390 Right of net use 511,882 547,671 472,345 567,905 Financial expenses (50,513) (63,744) (49,118) (57,556) Depreciation (57,342) (59,560) (53,826) (57,356) In order to measure the balances using the rate in real terms, the inflation projection (IPCA) released by the Central Bank of Brazil was used. The Company analyzed CVM Deliberation No. 859, of July 7, 2020, which alters IFRS 16 with guidelines for recognizing the possible impacts generated by contractual changes as a result of COVID-19, however we do not have any material changes to the contracts current lease terms. Accounting Policy When entering into a contract, the Company assesses whether the contract is, or contains, a lease. The lease is characterized by a lease or transmission of the right to use for a fixed period in exchange for monthly payments. The leased asset must be clearly specified. The Company determines in the initial recognition, the lease term or non-cancellable term, which will be used in the measurement of the right to use and the lease liability. The lease term will be reevaluated by the Company when a significant event or significant change occurs in the circumstances that are under the control of the lessee and affects the non-cancellable term. The Company adopts exemption from recognition, as provided for in the standard, for the lessee of contracts with terms of less than 12 (twelve) months, or whose underlying asset object of the contract is of low value. At inception, the Company recognizes the right to use the asset and the lease liability at present value. The right-to-use asset should be measured at cost. The cost includes the lease liability, upfront costs, advance payments, estimated costs to dismantle, remove or restore. The lease liability is measured at the present value of the lease payments expected to be made during the life of the agreement, discounted at the implicit interest rate of the lease or, if the rate is not determinable, an incremental rate will be used to determine the present value. For contracts that the Company determines the business rate, it is understood that this rate is the rate implied in nominal terms and to which it is applied in discounting the flow of future payments. In contracts with no rate definition, the Company applied the incremental loan rate, obtaining it through consultations with banks where it has a relationship, adjusted for the inflation forecast for the coming years. For the subsequent measurement, the cost method to the right-of-use asset is used and, in depreciation, the requirements of IAS 16 - Property, Plant and Equipment are applied. However, for the purpose of depreciation, the Company determines the use of the straight-line method based on the remaining useful life of the assets or the term of the contract, whichever is the shorter. The effects of PIS and COFINS recoverable generated after the effective payment of the obligations will be recorded as a reduction of the depreciation expenses of the right to use and of the financial expenses recognized monthly. IAS 36 - Impairment of Assets will also be applied in order to determine whether the right-of-use asset has impairment problems and to account for any impairment loss identified. |
17. TRADE PAYABLES
17. TRADE PAYABLES | 12 Months Ended |
Dec. 31, 2020 | |
Trade Payables | |
TRADE PAYABLES | 17. TRADE PAYABLES Consolidated Current Non-current 12/31/2020 12/31/2019 12/31/2020 Trade payables 4,893,589 3,012,654 594,051 (-) Adjustment present value (74,050) (50,524) 4,819,539 3,012,654 543,527 Accounting Policy Trade payables are initially recognized at fair value, and subsequently measured at amortized cost, using the effective interest rate method and adjusted to present value when applicable, based on the estimated rate of the Company’s cost of capital. The Company classifies drawee risk operations with suppliers in other liabilities as per note 15. These are negotiated with financial institutions, by which suppliers anticipate receivables and, on the other hand, extend our payment terms. The effective prepayment of receivables depends on acceptance by the suppliers, given that their participation is not mandatory. The Company is not reimbursed and / or benefited by the financial institution for discounts for payment executed before the maturity date agreed with the supplier, there is no change in the degree of subordination of the security in the event of judicial execution, nor changes in the existing commercial conditions between Company and its suppliers. |
18. INCOME TAX AND SOCIAL CONTR
18. INCOME TAX AND SOCIAL CONTRIBUTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contributions | |
INCOME TAX AND SOCIAL CONTRIBUTIONS | 18. INCOME TAX AND SOCIAL CONTRIBUTIONS 18.a)Tax of income and social contribution recognized in profit or loss: The income tax and social contribution recognized in net income for the year are as follows: Consolidated 12/31/2020 12/31/2019 12/31/2018 Income tax and social contribution income (expense) Current (2,052,204) (1,564,622) (827,229) Deferred 1,426,696 2,398,400 576,895 (625,508) 833,778 (250,334) The reconciliation of income and social contribution expenses and income of the consolidated and the product of the current tax rate on income before income tax and social contribution are shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Income before income tax and social contribution 4,918,126 1,410,733 5,450,917 Tax rate 34% 34% 34% Income tax and social contribution at combined statutory rate (1,672,163) (479,649) (1,853,312) Adjustment to reflect the effective rate: Equity in results of affiliated companies 28,391 46,737 50,134 Profit with differentiated rates or untaxed (519,840) (236,404) (46,006) Transfer price adjustment (15,645) (18,494) (74,836) Tax loss carryforwards without recognizing deferred taxes (27,758) (21,095) (27,683) Indebtdness limit (25,087) (20,393) (38,486) Unrecorded deferred taxes on temporary differences 5,142 (2,835) (11,964) Reversal for deferred income tax and social contribution credit 1,540,087 1,530,185 1,807,909 Income taxes and social contribution on foreign profit (13,011) (14,424) (30,219) Tax incentives 64,818 39,042 36,710 Deferred taxes on exchange variation in equity (43,667) Interest on equity 17,177 22,107 Other permanent deductions (additions) (7,619) (10,999) (18,914) Income tax and social contribution in net income for the year (625,508) 833,778 (250,334) Effective tax rate 13% -59% 79% 18.b)Deferred income tax and social contribution Deferred income tax and social contribution balances are as follows: Consolidated 12/31/2018 Movement 12/31/2019 Movement 12/31/2020 Shareholders' P&L Others Shareholders' P&L Others Deferred Income tax losses 959,240 651,561 1,610,801 238,198 1,848,999 Social contribution tax losses 367,358 242,688 610,046 78,162 688,208 Temporary differences (1,838,935) (2,357) 1,504,151 59 (337,082) (59,380) 1,110,336 5,029 718,903 - Provision for tax. social security, labor, civil and environmental risks 334,380 (70,367) 264,013 15,136 279,149 - Asset impairment losses 181,516 915 182,431 (26,444) 5,029 161,016 - (Gains)/losses on financial instruments 359,776 54,719 414,495 (409,468) 5,027 - Actuarial liability (pension and healthcare plan) 276,032 38,569 314,601 (44,732) (7,412) 262,457 - Accrued supplies and services 95,644 36,767 132,411 22,041 154,452 - Unrealized exchange variation (1) 1,010,532 170,969 1,181,501 (29,175) 1,152,326 - Gain upon loss of control in Transnordestina (92,180) (92,180) (92,180) - Cash flow hedge accounting 490,041 (63,080) 426,961 1,315,839 1,742,800 - Acquisition at fair value of SWT and CBL (172,114) (52,071) 39,672 (184,513) (57,651) 30,149 (212,015) - Deferred taxes not computed (252,940) (39,021) (291,961) (25,966) (317,927) - (Losses) estimated /reversals to deferred taxes credits (3,086,572) 25,159 1,435,415 (1,625,998) (1,270,110) 1,548,640 (1,347,468) - Business Combination (1,030,812) 7,471 (1,023,341) 8,292 (1,015,049) - Consolidation of CBSI (12) 62 50 50 - Others 47,762 49,066 (132,377) (3) (35,552) (2,726) (15,457) (53,735) Total (512,337) (2,357) 2,398,400 59 1,883,765 (59,380) 1,426,696 5,029 3,256,110 Total Deferred Assets 89,394 2,473,304 3,874,946 Total Deferred Liabilities (601,731) (589,539) (618,836) Total Deferred (512,337) 1,883,765 3,256,110 (1) The Company taxes exchange variations on a cash basis to calculate income tax and social contribution on net income. The Company has in its corporate structure subsidiaries abroad, whose income are taxed by the income tax in the respective countries where they were constituted at rates lower than those in force in Brazil. In the period between 2015 and 2020, these subsidiaries generated income in the amount of R$1,284,483. If the Brazilian tax authorities understand that these profits are subject to additional taxation in Brazil for income tax and social contribution, these, if due, would reach approximately R$412,420. The Company, based on the position of its legal advisors, assessed only the likelihood of loss as possible in the event of possible tax questioning and, therefore, no provision was recognized in the financial statement. In addition, management evaluated the precepts of IFRIC 23 - “Uncertainty Over Income Tax Treatments” and considers that there are no reasons for the tax authorities to differ from the tax positions adopted by the Company. Accordingly, no additional provisions for income tax and social contribution were recognized as a result of the assessment of the application of IFRIC 23 in the financial statement at December 31, 2020. A sensitivity analysis of consumption of tax credits was carried out considering a variation in macroeconomic assumptions, operating performance and liquidity events. Thus, considering the results of the study carried out, which indicates that it is probable the existence of taxable profit to use the balance of deferred income tax and social contribution. The estimated recovery of deferred tax assets of IRPJ and CSLL are netted when referring to a single jurisdiction as shown in the table below: In millions of reais Consolidated 2021 1,018 2022 1,315 2023 1,257 2024 495 2025 618 Deferred asset 4,703 Deferred liabilities - Parent Company (828) Net deferred asset 3,875 Deferred liabilities - subsidiaries (619) Net deferred asset 3,256 18.c)Income tax and social contribution recognized in equity: Income tax and social contribution recognized directly in equity are shown below: Consolidated 12/31/2020 12/31/2019 Income tax and social contribution Actuarial gains on defined benefit pension plan 170,604 215,306 Estimated losses for deferred income and social contribution tax credits - actuarial gains (172,520) (217,969) Exchange differences on translating foreign operations (325,350) (325,350) Cash flow hedge accounting 1,742,765 426,961 Estimated losses for deferred income and social contribution tax credits - cash flow hedge (1,742,520) (426,961) (327,021) (328,013) 18.d)Test of recoverability of income tax and social contribution of deferred assets The Company's management constantly evaluates the ability to use its tax credits. In this direction, CSN periodically updates a technical study to demonstrate if the generation of future taxable profits support the realization of tax credits and, consequently support the accounting recognition of tax credits, the maintenance on the balance sheet or the constitution of a provision for loss in the realization of these credits. This study is prepared at Entity level, in accordance with the Brazilian tax legislation, and is performed considering the Company’s projections, which is the entity that generates a significant amount of tax credits, mainly, temporary differences. The Company covers the following businesses. Deferred income tax / social contribution on tax losses and temporary differences refers mainly to the following items: Nature Brief description Tax losses The Company incurs tax losses in the Parent Company as a result of financial expenses on its indebtedness, since it substantially holds all the loans and financing of the CSN Group. However, the Parent Company reported taxable income in two quarters of 2020. Exchange variation expenses Since 2012, the Company has opted for taxing exchange rate variations on a cash basis. As a result, taxes are due and expenses are deductible when the underlying asset or liability is settled. Differences Temporary Loss on investment in Usiminas shares Changes in investment in Usiminas shares are recognized on an accrual basis; however, the event that generates taxation or deductibility will only occur when the investment is sold. Other provisions Other provisions are recognized on an accrual basis and their taxation occurs only at the time of their realization, such as: provision for contingencies, loss for impairment The study is prepared based on the Company’s long-term business plan designed for a period reasonably estimated by Management and considers several scenarios that vary according to different macroeconomic and operational assumptions. The taxable income projection model considers two main indicators: Income before taxes, reflecting the projected EBITDA plus depreciation, other income and expenses and the financial result, and; Taxable income, which is comprised of pre-tax income plus (minus) the items of income and expense that are taxable or deductible in future periods (temporary differences). In addition, a sensitivity analysis of consumption of tax credits is carried out considering a variation in macroeconomic assumptions, operating performance and liquidity events. The deterioration of the Brazilian political and macroeconomic environment that occurred in recent years has generated tax losses at CSN, as well as the growth of its financial leverage. These two aspects combined culminated in an imbalance between the financial and operating results of the Company. In view of this context, the Company works with a business plan aimed at rebalancing the Parent Company’s financial and operating results, the main measures of which are: Continuity of divestment efforts; Reduction of financial leverage; Improvement in operating results due to increased sales volume, improved prices for its products and greater efficiency in controlling production costs; and Reprofiling of the Company’s indebtedness, with negotiations to extend amortization terms and decentralization of indebtedness by redirecting contracts to subsidiaries according to the nature and application of funds. With the continuation of the execution of the above measures, the Company’s management expects to return with high levels of profitability with sustainability. Consequently, Management considers that the gradual recognition of tax credits, initially using a projection period of less than 10 years, more adequately reflects the expectation of using the credits maintained in the Company’s tax records. As a result of the study, the Company reversed during 2020 the amount of R$1,369 million of estimated losses recorded in previous years totaling a balance in the deferred tax asset of R$4,628 million on December 31, 2020. The tax losses carryforward and negative base of social contribution and temporary differences maintained in the Company’s tax records for future use amount, respectively, to R$1,681 million and R$627 million on December 31, 2020 (R$1,466 million and R$550 million on December 31, 2019). Accounting Policy Current income tax and social contribution are calculated based on the tax laws enacted by the end of the reporting period, including in the countries where the Group entities operate and generate taxable profit. Management periodically assesses the positions taken in the tax calculations with respect to situations where applicable tax regulations are open to interpretations. The Group recognizes provisions where appropriate, based on the estimated payments to tax authorities. The income tax and social contribution expense comprises current and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they are related to business combinations or items recognized directly in shareholders' equity. Current tax expense is the expected payment of taxable income for the year, using the nominal rate approved or substantially approved on the balance sheet date, and any adjustment of taxes payable related to previous years. Current income tax and social contribution are posted net in liabilities whenever there are amounts payable, or in assets whenever such amounts paid in advance exceed the total amount due at the reporting date. Deferred tax is recognized in relation to temporary differences between the tax bases of assets and liabilities and their book values in the financial statements. Deferred tax is not recognized for temporary differences arising from the initial recognition of assets and liabilities in a transaction that is not a business combination, that does not affect nor accounting profit nor tax profit or loss, differences related to investments in subsidiaries and controlled entities when it is probable that they will not revert in a foreseeable future and from the initial recognition of goodwill, in accordance with IAS 12 - Taxes on Profit. The amount of the deferred tax determined is based on the expectation of realization or settlement of the temporary difference and uses the nominal rate approved or substantially approved Assets and liabilities deferred income tax are presented net in the balance sheet whenever there is a legal right and the intention to offset them upon the calculation of current taxes, usually related to the same legal entity and the same taxation authority. Deferred income tax and social contribution assets are recognized on recoverable balances of tax loss and negative basis of CSLL, tax credits and deductible temporary differences. Such assets are reviewed at each year-end date and will be reduced to the extent that their realization is less likely to occur. |
19. TAXES IN INSTALLMENTS
19. TAXES IN INSTALLMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Taxes in Installments [Abstract] | |
TAXES IN INSTALLMENTS | 19. TAXES IN INSTALLMENTS The position of Refis debts and other installments, recorded in installment taxes in current and non-current liabilities, as shown in note 15, are shown below: Consolidated Current Non-current 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Federal REFIS Law 11.941/09 (a) 12,214 12,172 15,529 17,436 Federal REFIS Law 12.865/13 (b) 6,633 6,481 42,883 48,306 Other taxes in installments 26,484 845 101,835 1,985 45,331 19,498 160,247 67,727 (a) The refinancing program of Law 11,941 / 09 has a balance arising from the adhesion to the REFIS of taxes on profit (IRPJ and CSLL) for the years 2006, 2007 and 2012 and taxes on billing (PIS and COFINS) for the years 2006 and 2007. The installment payment is paid in monthly installments, with interest at the SELIC rate, which is the rate of the Brazilian federal funds. (b) The refinancing program of Law 12.865 / 13 has a balance resulting from the adhesion to the REFIS of taxes on profit (IRPJ and CSLL) for the payment of the amounts related to taxes on the profit of the affiliates or subsidiaries abroad in 2009 to 2011. It is due in monthly installments, with interest at the SELIC rate, which is the rate of Brazilian federal funds. |
20. PROVISION FOR TAX, SOCIAL S
20. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
Provision For Tax Social Security Labor Civil Environmental Risks And Judicial Deposits | |
PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS | 20. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS Claims of different nature are being challenged at the appropriate courts. Details of the accrued amounts and related judicial deposits are as follows: Consolidated Accrued liabilities Judicial deposits 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Tax 134,645 128,411 2,444 31,060 Social security 8,170 7,039 Labor 328,334 305,309 212,737 227,213 Civil 151,776 138,990 67,819 53,771 Environmental 12,463 43,498 17,683 3,731 Deposit of a guarantee 24,434 12,596 635,388 623,247 325,117 328,371 Classified: Current 81,073 96,479 Non-current 554,315 526,768 325,117 328,371 635,388 623,247 325,117 328,371 The changes in tax, social security, labor, civil and environmental provisions in the year ended December 31, 2020 can be summarized as follows: Consolidated Current + Non-current Nature 12/31/2019 Additions Accrued charges Net utilization of reversal 12/31/2020 Tax 128,411 8,626 4,267 (6,659) 134,645 Social security 7,039 5,892 192 (4,953) 8,170 Labor 305,309 44,693 39,507 (61,175) 328,334 Civil 138,990 46,577 15,579 (49,370) 151,776 Environmental 43,498 4,525 326 (35,886) 12,463 623,247 110,313 59,871 (158,043) 635,388 Tax proceedings The main lawsuits that are considered by the external legal advisors as probable loss of tax nature are (i) some tax assessment notices; (ii) divergences between calculated and paid VAT (ICMS); (iii) Requests for compensation not approved due to the lack of credit rights. Labor proceedings The Company appears as a defendant, on December 31, 2020, in 8,784 labor claims. The majority of claims for actions are related to subsidiary and / or joint liability, equal pay, unhealthy and hazardous work premiums, overtime, health insurance, indemnity claims arising from alleged involvement of occupational diseases or accidents at work, intra-day break and differences in profit sharing in the years 1997 to 1999 and 2000 to 2003. During the year ended December 31, 2020 there were addition or write-off movements in labor lawsuits arising from the definite conclusion and the constant revision of the Company’s accounting estimates related to the provision for contingencies that take into consideration the different nature of the claims made, as required by the Company’s accounting policies. Civil proceedings Among the civil lawsuits in which he is a defendant, there are mainly suits for damages. Such processes, in general, result from work accidents, occupational diseases, contractual discussions, related to the Group’s industrial activities, real estate actions, health insurance. Environmental Proceedings Among the environmental administrative / judicial proceedings in which the Company is a defendant, there are administrative procedures aimed at finding possible occurrences of environmental irregularities and regularizing environmental licenses; at the judicial level, there are actions for the enforcement of fines imposed as a result of such alleged irregularities and public civil actions with a request for regularization combined with indemnities, which consist of environmental recovery, in most cases. Such processes, in general, result from discussions of alleged impact to the environment related to the Company’s industrial activities. Processes of an environmental nature are highly complex in estimating the value at risk, as the procedural evolution, the extent of possible damage and the projection of repair costs must be taken into account, among various aspects. There are other processes of an environmental nature for which it is not yet possible to assess the risk and the contingency amount due to the aforementioned complexity of estimation, the peculiarities of the matters that involve them and the procedural stages in which they are. The main environmental judicial and administrative procedures are listed below: • In July 2012, the Public Ministry of the State of Rio de Janeiro (MPE / RJ) and the Federal Public Ministry (MPF) filed separate public civil actions in the State and Federal Courts alleging the existence of an allegedly contaminated area in the Volta Grande IV Condominium. In view of the conflict of competence to judge the actions, the Superior Court of Justice (STJ) declared the competence of the Federal Justice to process and judge such actions. In brief summary, the MPF maintains that the Company should (i) remove all the waste disposed of in the area used as an industrial landfill in the city of Volta Redonda and (ii) transfer 750 residences located in the Volta Grande IV condominium, also in the city of Volta Redonda . These requests were denied by the Court, and it was determined that a timetable was presented to investigate the area and, if necessary, to remedy the potential issues raised by the MPF. This schedule was presented, indicating the completion of all studies related to the investigation phases, including the risk assessment and intervention plan, which were completed on April 30, 2014. In addition, there are pending indemnity suits filed by the owners of houses in the Volta Grande IV condominium, with requests for compensation for the alleged moral and material damages sustained, which have not yet been judged. Currently, the process (ACP) is awaiting the start of the investigation phase. • In January 2014, an Annulment Action was issued with the objective of declaring the nullity of the Notice of Infraction drawn up by INEA for the alleged contamination of the soil and groundwater in the Condominium Volta Grande IV. The penalty applied was a simple fine, in the original amount of R$35 million. The request for a preliminary suspension of the demand for the debt was not considered, which is why INEA filed a Tax Enforcement Action. Currently, due to harmful external issues, the proceedings have been temporarily suspended, until the conclusion of the expert examination at ACP Volta Grande IV and / or contrary decisions of the courts. • With regard to other areas allegedly contaminated in the city of Volta Redonda, the Public Ministry filed three other public civil actions aimed at environmental remediation and compensation for areas called Marcia I, II, III and IV, Wandir I and II and Recycle. Regarding the area called Marcia I, the phase of producing evidence ended on 03/04/20, there was a decision converting the trial into a conciliation hearing, given the great length of time elapsed in the conclusion of the sentence (2017 to 2019), the which was postponed without setting a new date due to the pandemic. At this hearing, the parties must present the status of the area’s environmental management measures. The other two ACPs are in the initial stage and CSN is currently conducting environmental studies that will determine the extent of possible environmental damage caused by soil contamination, as well as the implementation of actions to comply with applicable laws. • In 2015, the Federal Public Ministry filed a public civil action against CSN requesting the adaptation and regularization of the particulate matter emission at the Presidente Vargas Steelworks, with the consequent paralysis of its activities. According to CONAMA Resolution No. 436/2011, companies would have until December 2018 to adjust the emission of particulates to the new required legal standards. This was made compatible with INEA with the schedule of actions and measures provided for in TAC 07/2018. Currently, the process is awaiting the start of the investigation phase. • In 2016, CSN was cited in a public civil action filed by the Federal Public Ministry and the Public Ministry of the State of Rio de Janeiro, due to the alleged irregular deposit of waste in the area called “Aterro Panco”. In this action, there are requests for recovery of degraded areas, repair of damage to flora and fauna, and human health, as well as compensation for material and moral damage caused to the environment. Currently, the process is awaiting the start of the investigation phase. • In 1988, the Federal Public Ministry filed a public civil action against CSN for alleged environmental contamination and pollution of the Paraíba do Sul River, allegedly caused by industrial activity in the area. In 1995, the court determined the meeting of cases No. 15,497; 17,563; No. 7,304; and, No. 7,624, in view of the connection characterized and determined the joining of the 4 shares. The Federal Regional Court of the Second Region upheld the first instance conviction, reiterating the Company’s obligation to compensate for possible environmental damage caused to the ecosystem. The Company appealed to the Superior Court of Justice (STJ), which accepted the appeal and annulled the previous decisions, determining the return of the records to the 1st Instance to resume the process. Currently, the process awaits the new beginning of the investigation phase. • In 2009 and 2010, Terms of Judicial Agreements (TAJ’s) were signed with the Federal Public Ministry seeking the recovery of environmental liabilities caused by coal mining in the Southeast Region of Santa Catarina until the 1990s. The environmental liabilities covered by the agreements include the restoration of certain degraded areas. In March 2018, the parties renegotiated a new agreement, with the extension of the works schedule until 2030, which was ratified in court on 06/06/18. Currently, the Company negotiates with the MPF the suspension of the TAJ terms for negotiation and adjustment of the obligations and compensatory measures provided for. • In July 2018, the Company and the company Harsco Metals (“Harsco”), a company providing services to CSN, were cited in a new public civil action filed jointly by the Federal Public Ministry and the Public Ministry of the State of Rio de Janeiro, due to the supposed irregular deposit of waste (steel slag) in the area called “Slag Processing Yard”. A preliminary decision was issued that established a certain limitation in the monthly sending of slag to the referred yard, reducing the height of the piles and removing the excess of the stored material. However, recent studies carried out by independent companies, attest to the absence of environmental risks or impacts. The Company and Harsco have been looking for feasible alternative solutions to end the process. Currently, the process is awaiting the start of the investigation phase. • In January 1995, the ACP was filed by the Municipality of Volta Redonda / RJ (“MVR”), pleading CSN’s condemnation of compliance with 26 items of Compensatory Environmental Programs. After the contestation, the parties entered into an instrument of Transaction (1995), establishing the effective obligations of CSN, as well as the environmental compensation, ratified in court by sentence. The municipality of Volta Redonda disagreed about the compliance with the ratified agreement and in 2015 the process of liquidating unfulfilled obligations was initiated. On 12/27/18, a new agreement was signed between CSN and MVR to end the legal dispute, through reciprocal concessions from the parties, with the MVR expressly waiving the right on which the lawsuit is founded and CSN the additional investment in the amount of R$21 million, 30% of which should be allocated to services of environmental interest, works for the preservation, improvement and recovery of the quality of the environment in Volta Redonda. In 2019, the agreement signed between CSN and MVR was approved with the actual disbursement by CSN of R$25MM, which was appealed by the Public Prosecutor’s Office, however dismissed by the Rio de Janeiro Court of Justice, confirming the decision of the lower court that ratified the agreement signed between the Company and the MVR. • In August 2017, CSN initiated an annulment action against the tax assessment notice that imposed a fine on CSN (R$25 million - updated until December / 19), for alleged water pollution in the Paraíba do Sul River, with the launch of effluents from the Alto Forno 2 ETE, due to an accident that occurred on 11/27/2010. The enforceability of the fine is suspended due to a preliminary injunction, and the process is awaiting the start of the investigation phase. • In December 2019, a Public Civil Action was initiated against Sepetiba TECON and INEA with a view to suspending the environmental licensing processes of the Sepetiba TECON container terminal until the study of the environmental support capacity of Sepetiba Bay is carried out, and the INEA refrain from licensing new ventures or potentially polluting activities on the site, which may harm the socio-environmental balance of the Bay and the preservation of marine fauna. Sepetiba TECON became aware of the action through news published on the MPF website. On 12/19/19, the court dismissed the request for emergency relief requested by the MPF, as well as the Federal Union and IBAMA’s decision was determined. After the challenge is submitted by TECON, the process awaits the start of the investigation phase. • In June 2019, CSN filed a lawsuit against the INEA Notification that determined the suspension of solid bulk handling operations at TECON due to the alleged lack of activity forecast under the respective Operation License. A preliminary injunction was granted to suspend the effects of the Notification and allow the continuation of the solid bulk handling operation until the final judgment of the action. After the favorable decision is confirmed by the Court on appeal, the case awaits the initiation of the investigation phase. administrative and judicial proceedings The Company does not make provisions for lawsuits, which Management’s expectation, based on the opinion of legal counsel, is a possible loss. The following table shows a summary of the balance of the main matters classified as possible risk compared to the balance at December 31, 2020 and December 31, 2019. Consolidated 12/31/2020 12/31/2019 Assessment Notice and imposition of fine (AIIM) / Tax Enforcement - Income tax and social contribution - Capital gain on sale of NAMISA's shares 12,694,021 12,412,964 Assessment Notice and Imposition of fine (AIIM) - Income tax and Social contribution - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by NAMISA. 3,930,093 3,867,663 Assessment Notice and Imposition of fine (AIIM) / Tax Enforcement - Income tax and Social contribution - Disallowance of interest on prepayment arising from supply contracts of iron ore and port services 1,956,898 2,249,708 Assessment Notice and imposition of fine (AIIM) - Income tax and social contribution due to profits from foreign subsidiaries for years 2008, 2010, 2011, 2012 and 2014 3,461,574 2,946,288 Tax foreclosures - ICMS - Electricity credits 841,401 1,022,371 Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS and IPI 1,845,379 1,100,564 Disallowance of the ICMS credits - Transfer of iron ore 624,645 567,534 ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation 317,848 310,349 Disallowance of the tax loss and negative basis of social contribution arising from the adjustments in the SAPLI 583,478 538,268 Assessment Notice- IRRF- Capital Gain of CFM vendors located abroad 260,326 254,850 CFEM – difference of understanding between CSN and DNPM on the calculation basis 1,051,661 1,020,266 Assessment Notice- ICMS- questions about sales for incentive area 1,111,034 1,015,812 Other tax lawsuits (federal, state, and municipal) 3,886,976 4,478,014 Social security lawsuits 233,116 325,492 Action to discuss the balance of the construction contract – Tebas 487,124 468,776 Action related to power supply payment’s charge - Light 288,390 253,569 Indemnity action due to the supply contract termination - Indumill 237,795 215,281 Enforcement action applied by Brazilian antitrust authorities (CADE) 95,833 93,212 Civil Public Action - Districts / School / Nursery relocation-CdP Dam (1) 12,207 20,000 Other civil lawsuits 777,850 764,127 Labor and social security lawsuits 1,506,626 1,565,237 Tax foreclosures – Fine – Volta Redonda IV (2) 94,304 84,599 ACP landfill Márcia (3) 306,389 - Assessment Notice and imposition of fine (AIIM) - Charge of IRRF- RFB - Business combination (year 2015) between Namisa, Congonhas Minérios (current CSN Mineração) and consortium 862,324 - Assessment Notice and imposition of fine (AIIM) - SEFAZ/RJ - ICMS on purchases of intermediate products (4) 498,002 - Assessment Notice and imposition of fine (AIIM) - RFB - Disallowance of credits PIS/COFINS of inputs and freight 1,082,517 - Other environmental lawsuits 257,965 215,691 39,305,776 35,790,635 (1) In May 2019, the State Prosecutor’s Office of the State of Minas Gerais filed an ACP order to compel CSN Mineração SA to adopt mitigating measures regarding the psychological risks and losses allegedly generated by the Casa de Pedra Dam, reallocating residents, who so wish, with rents and social assistance, as well as relocating children who attended a new daycare and school that were closed, rebuilding new daycare and school in a safe place. In a preliminary injunction, the 1st Instance Magistrate ordered the blocking of three million reais for the construction of the day care center and school, a decision suspended by the 2nd Instance Court. The State Public Prosecutor of the State of Minas Gerais also pleaded for the payment of moral damages collective actions, as well as for the permanent reallocation of people, at the expense of CSN Mineração SA The lawsuit is in its initial phase and there is still no judicial sentence related to the case. (2) On April 8, 2013, INEA applied a fine of R$35 million to CSN in relation to aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the public civil action filed in July 2012. In relation to the application of this fine, an annulment action was filed, distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, aiming at the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action, with an adjusted amount of R$42 million, in order to enforce the amount of the fine imposed. The Tax Foreclosure action mentioned was distributed in May 2014 to the 4th Registry of Active Debt of Volta Redonda, in the State of Rio de Janeiro. Currently, these actions are suspended until the conclusion of the investigation to be carried out in the Environmental Public Civil Action of the Condominium Volta Grande IV, whose merit discusses possible contamination of the site. (3) This is an Environmental Public Civil Action, proposed by the MPF, with a claim for indemnity for collective moral damages and material damages, for allegedly irregular deposit of steel residues, in addition to being set aside for non-compliance with the injunction. (4) Infraction Notice (AIIM) drawn up by SEFAZ / RJ for ICMS and Fine requirement for the alleged improper use of ICMS credit for the period 2015 to 2020 resulting from the acquisition of intermediate products used in the UPV (refractories, belts, cylinders, chemical agents, etc.), which were classified by the Inspection as of use / consumption and without the right to credit. The Company has been offering judicial guarantees (Guarantee Insurance / Letter of Guarantee) in the total and updated amount of R$4,542,786, as determined by the procedural legislation in force. The assessments made by legal advisors define these administrative and judicial proceedings as a possible risk of loss and, consequently, no loss provisions have been recognized. Accounting Policy Only provisions estimated as probable risk of loss are recorded, substantiated in the assessment of our legal advisors, and at amounts that will be required to settle the litigations. The obligation is updated in accordance with the evolution of the lawsuit or financial charges incurred and will be reversed if the estimated loss is no longer considered probable due to changes in circumstances or derecognized when the obligation is settled. |
21. PROVISION FOR ENVIRONMENTAL
21. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Provision For Environmental Liabilities And Asset Retirement Obligations | |
PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMENT OBLIGATIONS | 21. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMMENT OBLIGATIONS The balance of provisions for environmental liabilities and deactivation of assets can be shown as follows: Consolidated 12/31/2020 12/31/2019 Environmental liabilities 192,830 192,270 Asset retirement obligations 611,005 331,731 803,835 524,001 21.a) Environmental liabilities As of December 31, 2020, a provision is maintained for application in expenses related to services for the investigation and environmental recovery of potential contaminated, degraded areas and in the process of exploration under the responsibility of the Company in the states of Rio de Janeiro, Minas Gerais and Santa Catarina. Expenditure estimates are periodically reviewed, adjusting, whenever necessary, the amounts already accounted for. These are the Management’s best estimates considering studies and environmental recovery projects. These provisions are recorded in the account for other operating expenses. Provisions are measured at the present value of the expenses that must be required to settle the obligation, using a pre-tax rate, which reflects current market valuations of money at the time and the specific risks of the obligation. The increase in the obligation due to the passage of time is recognized as other operating expenses. Some contingent environmental liabilities are monitored by the environmental area and have not been provisioned because their characteristics do not meet the recognition criteria in IAS 37. 21.b) Asset retirement obligation In 2020, after anticipating the discontinuation of the dams used in its mining activities, the Company updated the study to recognize the costs of deactivating mining assets. The study resulted in an increase of the provision by R$279 million, mainly due to: i) expansion of operational areas with the implementation of new technologies; ii) revision in the process of de-characterization of dams and iii) application of inflation indices on costs. Accounting Policy The Company recognizes a provision for recovery costs, when a loss is probable, and the amounts of the related costs are reasonably determined. Generally, the provisioning period for the amount to be used for recovery coincides with the completion of a feasibility study or commitment to a formal action plan. Expenses related to compliance with environmental regulations are charged to income or capitalized, as appropriate. Capitalization is considered appropriate when expenses refer to items that will continue to benefit the Company and that are basically relevant to the acquisition and installation of equipment for pollution control and / or prevention. Asset retirement obligation (ARO) liabilities consist of cost estimates for deactivation, demobilization or restoration of areas at the end of mining activities and extraction of mineral resources. The initial measurement is recognized as a liability discounted to present value and, subsequently, carried to expenses over time. The asset deactivation cost equivalent to the initial liability is capitalized as part of the asset’s carrying amount and depreciated over the asset’s useful life. |
22. RELATED-PARTY BALANCES AND
22. RELATED-PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
RELATED-PARTY BALANCES AND TRANSACTIONS | 22. RELATED-PARTY BALANCES AND TRANSACTIONS 22.a)Transactions with holding companies Vicunha Aços SA is the main shareholder of the Company with a 49.24% interest in the voting capital. Also part of the Company’s control is Rio Iaco Participações SA, which holds a 4.22% interest in the voting capital of CSN. The corporate structure of Vicunha Aços SA is as follows: - Vicunha Steel S.A. - holds 67.93% interest in Vicunha Aços S.A.; - CFL Participações S.A. - holds a 12.82% interest in Vicunha Aços S.A. and a 40% interest in Vicunha Steel S.A.; - Rio Purus Participações S.A. - holds a 19.25% interest in Vicunha Aços S.A. and a 60% interest in Vicunha Steel S.A. · Liabilities As of December 31, 2020, the distribution of mandatory minimum dividend in the amount of R$443,694 to the shareholder Vicunha Aços SA and R$37,997 to Rio Iaco Participações SA was proposed, which will be submitted for approval at the Annual Shareholders’ Meeting. 22.b) Transactions with subsidiaries, joint ventures, associates, exclusive founds and other related parties Consolidated 12/31/2020 12/31/2019 Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total Assets Current Assets Investments (1) 3,763,603 3,763,603 2,116,560 2,116,560 Trade receivables (note 6) (2) 7,686 8 113,482 121,176 39,435 797 130,356 170,588 Dividends receivable (note 9) (3) 38,088 38,088 44,554 44,554 Other current assets (note 9) 4,413 1,829 6,242 1,830 1,830 7,686 42,509 3,878,914 3,929,109 39,435 45,351 2,248,746 2,333,532 Noncurrent Assets Investments (1) 123,409 123,409 95,719 95,719 Loans (note 9) (4) 3,375 962,675 966,050 1,874 844,426 846,300 Actuarial asset (note 30) 13,819 13,819 13,714 13,714 Other non-current assets (note 9) (5) 664,020 664,020 428,672 428,672 3,375 1,626,695 137,228 1,767,298 1,874 1,273,098 109,433 1,384,405 11,061 1,669,204 4,016,142 5,696,407 41,309 1,318,449 2,358,179 3,717,937 Liabilities Current Liabilities Intercompany Loans (note 13) 25,038 25,038 Trade payables 106,946 9,455 116,401 98,496 142,488 240,984 Accounts payable (note 15) 23,555 2,437 25,992 23,566 23,566 Provision for consumption (note 15) 44,466 44,466 22,497 22,497 174,967 11,892 186,859 144,559 167,526 312,085 Noncurrent Liabilities Accounts payable (note 15) 78,083 78,083 88,021 88,021 Actuarial liability (note 30) 79,546 79,546 19,788 19,788 78,083 79,546 157,629 88,021 19,788 107,809 253,050 91,438 344,488 232,580 187,314 419,894 12/31/2020 12/31/2019 12/31/2018 Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total P&L Sales 104,400 843 1,568,992 1,674,235 75,630 1,047,204 1,122,834 100,608 414 1,177,730 1,278,751 Cost and expenses (1,036,420) (104,212) (1,140,632) (231,140) (1,133,142) (594,676) (1,958,958) (1,307,695) (110,587) (1,418,282) Financial income (expenses) Interest (note 28) 19,095 18,421 37,516 43,790 20,499 64,289 234 33,911 14,651 48,796 Exchange rate variations and monetary, net 3,586 3,586 13,611 13,611 Financial investments (note 28) 1,190,489 1,190,489 Other operating income and expenses (14,939) (136,004) (150,943) - 104,400 (1,016,482) 2,673,690 1,761,608 (155,510) (1,104,291) 340,609 (919,192) 100,842 (1,273,369) 1,095,404 (77,123) Main operations: 1. Financial investments: Investments in Usiminas shares are R$3,305,109 (R$2,114,620 in December 2019) and cash and cash equivalents with Banco Fibra totaling R$458,494 in December 2020 (R$1,940 in December 2019) and no current amount R$123,409 (R$95,719 in December 2019) from Bonds 2. Trades receivable: joint venture joint-operation 3. Dividends receivable 4. Loans (Assets): refers mainly to loan agreements with an average rate of 125.0% to 130.0% of the CDI with Transnordestina Logística SA of R$962,675 (R$844,426 as of December 31, 2019). 5. Others (Assets): 22.c) Other unconsolidated related parties · CBS Social Security The Company is its main sponsor, being a non-profit civil society established in July 1960 and whose main objective is the payment of benefits complementary to those of the official social security for the participants. As a sponsor, it maintains transactions for payment of contributions and recognition of actuarial liabilities determined in defined benefit plans. · Banco Fibra Banco Fibra is under the control structure of Vicunha Aços S.A., the major shareholder of the Company and the financial transactions carried out with this bank are limited to movements in checking accounts and financial investments in fixed-income securities. · CSN Foundation The Company develops socially responsible policies concentrated in the CSN Foundation, of which it is the founder. Transactions between the parties are related to operational and financial support for the Foundation to conduct social projects developed mainly in the locations where it operates. · Related Parties under the control of a member of the Company’s Management The following companies are under the control of a member of the Management, which maintain some minor transactions with the Company: · Partifib Projetos Imobiliários Ltda · Vicunha Imóveis Ltda. · Vicunha Serviços Ltda. · Ibis Participações e Serviços Ltda 22.d) Key management personal The key management personnel with authority and responsibility for planning, directing and controlling the Company’s activities include members of the Board of Directors and statutory officers. The following is information on the compensation of such personnel and the related balances as of P&L 12/31/2020 12/31/2019 12/31/2018 Short-term benefits for employees and officers 40,522 37,452 32,848 Post-employment benefits 111 109 105 40,633 37,561 32,953 22.e) Guarantees The Company is liable for guarantees of its subsidiaries and joint ventures as follows: Currency Maturities Borrowings Tax foreclosure Others Total 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Transnordestina Logísitca R$ Up to 09/19/2056 and Indefinite 2,478,105 2,428,194 35,496 37,406 3,298 8,702 2,516,899 2,474,302 FTL - Ferrovia Transnordestina R$ Up to 04/01/2021 43,118 43,118 Cia Metalurgica Prada R$ Indefinite 196 457 244 235 440 692 CSN Energia R$ Up to 11/26/2023 and indefinite 3,141 1,920 1,920 1,920 5,061 CSN Mineração R$ Up to 12/21/2024 846,749 1,184,048 846,749 1,184,048 Estanho de Rondônia R$ 7/15/2022 1,154 1,902 1,154 1,902 Minérios Nacional S.A. R$ Up to 09/10/2021 1,946 4,544 1,946 4,544 Total in R$ 3,327,954 3,661,806 35,692 41,004 5,462 10,857 3,369,108 3,713,667 CSN Inova Ventures US$ 01/28/2028 1,300,000 1,300,000 CSN Islands XII US$ Perpetual 1,000,000 1,000,000 1,000,000 1,000,000 CSN Resources US$ Up to 04/17/2026 1,525,000 1,958,603 1,525,000 1,958,603 Total in US$ 3,825,000 2,958,603 3,825,000 2,958,603 CSN Steel S.L. EUR 24,000 24,000 Total in EUR 24,000 24,000 Total in R$ 19,877,378 12,033,973 19,877,378 12,033,973 23,205,332 15,695,779 35,692 41,004 5,462 10,857 23,246,486 15,747,640 Accounting Policy Transactions with related parties were carried out by the Company on terms equivalent to those prevailing in market transactions, observing the price and the usual market conditions. Therefore, these transactions are in conditions that are no less favorable for the Company than those negotiated with third-parties. Transactions between the Parent and its subsidiaries are eliminated and adjusted to ensure consistency with the practices adopted by the Parent. The Company’s related parties are subsidiaries, joint ventures, affiliates, shareholders and their related companies and the key personnel of the Company’s management |
23. SHAREHOLDERS' EQUITY
23. SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
SHAREHOLDERS' EQUITY | 23. SHAREHOLDERS´ EQUITY 23.a) Paid-in capital The fully subscribed and paid-in capital on December 31, 2020 R$6,040 million (R$4,540 million on December 31, 2019) is divided into 1,387,524,047 common and book-entry shares, with no par value. Each common share entitles its holder to one vote in the resolutions of the General Meetings. The Board of Directors, at a meeting held on February 22, 2021, approved the capitalization of part of the Income Reserve, in the amount of R$1,500 million, without changing the number of shares, increasing the Company’s capital to R$6,040 million . 23.b) Authorized capital The Company’s bylaws in effect on December 31, 2020 define that the share capital may be increased to up to 2,400,000,000 shares, by decision of the Board of Directors. 23.c) Legal Reserve It is constituted at the rate of 5% of the net income calculated in each fiscal year pursuant to art. 193 of Law 6.404/76, up to a limit of 20% of the capital stock. 23.d) Ownership structure As of December 31, 2020, the Company’s ownership structure was as follows : 12/31/2020 12/31/2019 Number of common shares % of total shares % of voting capital Number of common shares % of total shares % of voting capital Vicunha Aços S.A. (*) 679,522,254 48.97% 49.24% 679,522,254 48.97% 49.24% Rio Iaco Participações S.A. (*) 58,193,503 4.19% 4.22% 58,193,503 4.19% 4.22% NYSE (ADRs) 248,763,533 17.93% 18.02% 262,206,103 18.90% 19.00% Other shareholders 393,635,257 28.37% 28.52% 380,192,687 27.40% 27.55% Outstanding shares 1,380,114,547 99.47% 100.00% 1,380,114,547 99.47% 100.00% Treasury shares 7,409,500 0.53% 7,409,500 0.53% Total shares 1,387,524,047 100.00% 1,387,524,047 100.00% (*) Controlling group companies. 23.e) Treasury shares As of December 31, 2020, the position of treasury shares was as follows: Program Board’s Authorization Authorized quantity Program period Average buyback price Minimum and maximum buyback price Sale of shares Balance in treasury 04/20/2018 30,391,000 From 4/20/2018 to 4/30/2018 Not applicable Not applicable 22,981,500 7,409,500 As of December 31, 2020, the position of treasury shares was as follows: Quantity purchased (in units) Amount paid for the shares Share price Share market price as of 12/31/2020 (*) Minimum Maximum Average 7,409,500 R$ 58,264 R$ 4.48 R$ 10.07 R$ 7.86 R$ 235,993 (*) The average share price on December 31, 2020 was used in the amount of R$31.85 per share. 23.f) Policy on investments and payment of interest on net equity and dividends The Company adopts a profit distribution policy which, in compliance with the provisions of Law No. 6,404 / 76 as amended by Law No. 9,457 / 97, will imply the allocation of all net income to its shareholders, provided that the following priorities are preserved, regardless of its order: (i) business strategy; (ii) compliance with obligations; (iii) making the necessary investments; and (iv) the maintenance of a good financial situation for the Company. 23.g) Earnings per share The earnings per share are shown below: 12/31/2020 12/31/2019 12/31/2018 Common Shares Profit for the year 3,794,295 1,789,067 5,074,136 Weighted average number of shares 1,380,114,547 1,380,114,547 1,373,250,595 Basic and diluted earnings (loss) per share 2.74926 1.29632 3.69498 Accounting Policy Share Capital Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the amount raised, net of taxes. Earnings/(loss) per share Basic earnings per share is calculated using the net income for the year attributable to the Company’s controlling shareholders and the weighted average number of outstanding common shares in the respective period. Diluted earnings per share is calculated using the aforementioned average of outstanding shares, adjusted by instruments potentially convertible into shares, with a dilutive effect, in the periods presented. The Company does not have potential instruments convertible into shares and, consequently, the diluted and basic earnings per share are the same. Treasury shares When the Company purchases shares of the capital stock of the Company itself (treasury shares), the amount paid, including any directly attributable additional costs (net of income tax), is deducted from the shareholders’ equity attributable to the shareholders of the Company until the shares are canceled or reissued. When such shares are subsequently reissued, any amounts received, net of any directly attributable additional transaction costs and the respective income tax and social contribution effects, are included in the shareholders’ equity attributable to the Company’s shareholders. Non-controlling interest and transactions The Company considers transactions with non-controlling interests as transactions with owners of the Company’s assets. For non-controlling interests, the difference between any consideration paid and the acquired portion of the carrying amount of the subsidiary's net assets is recorded in the shareholders' equity. Gains or losses on disposals for non-controlling interests are also recorded directly in shareholders' equity. When the Company ceases to have control, any interest held in the entity is remeasured at fair value, with the change in book value recognized in the income statement. The fair value is the initial carrying amount for the subsequent accounting of the retained interest in an associate, a joint venture |
24. Shareholders' Compensation
24. Shareholders' Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders Compensation | |
Shareholders' Compensation | 24. Shareholders' Compensation The Company’s Bylaws provide for the distribution of minimum dividends of 25% of the adjusted net income in accordance with the law, to the holders of their shares. Dividends are calculated in accordance with the bylaws and the Joint Stock Company Act. The profit destination for 2020 is shown below: Allocation of profit 12/31/2020 Profit for the year Capital reserve (189,715) Profit for allocation 3,604,580 Proposed destination: Mandatory minimum dividends (901,145) Statutory reserve (2,703,435) (3,604,580) Weighted average number of shares 1,380,114,547 Dividends for share 0.652949 In current liabilities Balance of dividends payable as December 31, 2019 13,252 Dividends paid in year (12,414) Proposed dividends in 2020 exercise 901,145 Balance of dividends payable as December 31, 2020 901,983 At the Annual General Meeting (AGM), the proposal for the allocation of profit presented in the financial statements will likely be approved. Accounting Policy In accordance with article 33 of the Company’s Bylaws, at least 25% of the net income for the year, adjusted under the terms of article 202 of Law No. 6,404 / 76, will be distributed as dividends in each fiscal year, which will be reflected in current liabilities. In addition, the Board of Directors may pay interest on net equity by allocating the amount of interest paid or credited to the minimum mandatory dividend mentioned above. If the Company reports a dividend higher than the mandatory minimum in the allocation proposal, this amount is highlighted in a specific account in shareholders’ equity under “Proposed Additional Dividend”. At the Annual Shareholders’ Meeting (AGM), the resolution on the proposal for allocation in the financial statement will be made. |
25. NET REVENUE FROM SALES
25. NET REVENUE FROM SALES | 12 Months Ended |
Dec. 31, 2020 | |
Net Revenue From Sales | |
NET REVENUE FROM SALES | 25. NET REVENUE FROM SALES Net sales revenue is as follows: Consolidated 12/31/2020 12/31/2019 12/31/2018 Gross revenue Domestic market 16,652,801 14,220,420 14,752,901 Foreign market 17,396,259 14,663,297 11,817,559 34,049,060 28,883,717 26,570,460 Deductions Sales returns, discounts and rebates (248,821) (325,794) (234,851) Taxes on sales (3,736,219) (3,121,506) (3,366,724) (3,985,040) (3,447,300) (3,601,575) Net revenue 30,064,020 25,436,417 22,968,885 Accounting Policy a) Nature of goods and services. The Company generates revenue from (i) the production and sale of steel, cement and iron ore, (ii) the provision of maritime freight services, in the case of iron ore export sales, and rail and port logistics services and (iii) sales of energy. b) Timing of revenue recognition. The Company recognizes revenue once all of the following conditions are satisfied: 1. Identification of the contract for sale of goods or provision of services; 2. Identification of the performance obligations; 3. Determination of the contract value; 4. Determination of the value allocated to each performance obligation included in the contract; and 5. Revenue recognition over time or at the time the performance obligations are completed. In the case of sales of goods, performance obligations are usually completed upon delivery of the goods to the destination specified by customers, which may be customers’ warehouses or, in the case of iron ore export sales, when the product is loaded on the ship. In certain cases, judgment may be required to determine when performance obligations are completed, based on the following indicators: I. Whether the customer has the significant risks and rewards of ownership and has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the good; and II. Whether the customer has a present obligation to pay in accordance with the terms of the sales contract. Accordingly, the Company discloses revenue from each of its business segments as follows: Steel: The Company recognizes revenues from sales of steel products when control of the product passes to customers, which may be either upon delivery of the goods to the destination specified by customers or when the customer picks up the goods for delivery, depending on whether the customer contracts logistics services from the Company. Cement The Company recognizes revenues from sales of cement when control of the product passes to customers, which may be either upon delivery of the goods to the destination specified by customers or when the customer picks up the goods for delivery, depending on whether the customer contracts logistics services from the Company. Mining: The Company recognizes revenues from sales of iron ore when control of the product passes to customers, which generally occurs, in the case of export sales, when the product is loaded on the ship and, in the case of domestic sales, when the product is loaded on the train. Iron ore export sales pursuant to the Incoterms “Cost, Insurance and Freight – CIF” and “Cost and Freight – CFR” include maritime freight service embedded in the same invoice. In this case, the performance obligation of the maritime freight service is considered separately from the shipment of iron ore and the Company recognizes revenue from the provision of this service upon delivery of the goods to the destination specified by customers. Logistics: Rail logistics services. The Company’s rail logistics services are provided by its subsidiary Ferrovia Transnordestina Logística S.A. (“FTL”). The Company recognizes revenues from rail logistics services when the performance obligation, which is the contracted service, is completed, which occurs upon delivery of the goods to the destination specified by customers. Port logistics services. The Company’s port logistics services, which comprise handling of containers and storage, are provided by its subsidiary Sepetiba Tecon S.A. (“TECON”). The Company recognizes revenues from port logistics services when the performance obligation is completed. In the case of handling of containers, the performance obligation comprises the pool of services contracted. In the case of storage services, each month of storage represents a performance obligation and, consequently, the Company recognizes revenue on a monthly basis. Energy: The Company recognizes revenues from sales of energy that it has not used in its operations. This excess energy is made available through the public network and the Chamber of Electric Energy Commercialization (Câmara de Comercialização de Energia Elétrica), which is the governmental agency responsible for managing the network, redirects the energy to the electric system and, on a monthly basis, informs the Company of the amount of energy that was redirected to the electric system. Accordingly, the Company issues its invoice to this governmental agency and simultaneously recognizes the revenue from the sale of energy. The Company’s only variable consideration arises when iron ore is provisionally priced and there is a difference with the final price, which depends on future index prices. In this case, the Company initially recognizes revenue based on the applicable forward market price and then accounts for any eventual adjustment based on the final price. The period between provisional pricing and final invoicing is typically between 60 and 120 days. Where the Company has contracts with unfulfilled performance obligations at the end of a fiscal period, it discloses the transaction price allocated to these performance obligations. The Company does not disclose this information for contracts with an expected duration of one year or less. The Company presents revenues on a consolidated basis in its income statement and by segment in the explanatory note 29 - Segment Information. c) Payment terms. Generally, all sales of goods and provisions of services are payable within 30 days of the invoice date. |
26. EXPENSES BY NATURE
26. EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2020 | |
Expenses by nature [abstract] | |
EXPENSES BY NATURE | 26. EXPENSES BY NATURE Consolidated 12/31/2020 12/31/2019 12/31/2018 Raw materials and inputs (6,928,517) (7,287,933) (6,759,275) Labor cost (3,187,428) (2,807,280) (2,743,460) Supplies (2,150,452) (1,981,547) (1,782,576) Maintenance cost (services and materials) (1,340,255) (1,340,135) (1,326,894) Outsourcing services (2,217,657) (2,392,626) (2,368,387) Freight (216,506) (334,509) (109,756) Distribution freight (1,421,079) (1,787,979) (1,692,785) Depreciation, amortization and depletion (2,421,458) (1,421,704) (1,175,107) Others (1,750,424) (763,421) (905,128) (21,633,776) (20,117,134) (18,863,368) Classified as: Cost of sales (19,124,901) (17,263,264) (16,105,657) Selling expenses (2,004,417) (2,342,805) (2,263,688) General and administrative expenses (504,458) (511,065) (494,023) (21,633,776) (20,117,134) (18,863,368) The depreciation, amortization and depletion additions for the period were distributed as follows. Consolidated 12/31/2020 12/31/2019 12/31/2018 Production costs (1) (2,374,046) (1,385,306) 1,145,793 Selling expenses (13,978) (11,539) 5,850 General and administrative expenses (33,434) (24,859) 23,464 (2,421,458) (1,421,704) 1,175,107 Other operational (2) (95,270) (97,627) 97,914 (2,516,728) (1,519,331) 1,273,021 (1) The Company’s iron ore extraction in 2020 started using dry waste filtering and stacking in 100% of its production process. As a normal consequence of the operation, the use of dams has become obsolete, and consequently, the assets of dams reached the end of their useful lives on December 31, 2020. As a result of the technical and functional obsolescence of the dams, the book balance of these assets in their entirety, (R$515,491), was fully depreciated in 2020 and appropriated to the cost of production. The cost of production includes PIS and COFINS credits on lease agreements on December 31, 2020, in the amount of R$5,335. (2) They mainly refer to the depreciation of investment properties, paralyzed equipment and amortization of the SWT Client Portfolio, see note 27. |
27. OTHER OPERATING INCOME AND
27. OTHER OPERATING INCOME AND EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Other Operating Income And Expenses | |
OTHER OPERATING INCOME AND EXPENSES | 27. OTHER OPERATING INCOME AND EXPENSES Consolidated 12/31/2020 12/31/2019 12/31/2018 Other operating income Receivables by indemnity (1) 245,945 56,180 46,256 Rentals and leases 9,096 9,462 5,430 Dividends received 1,197 32,747 9,188 PIS, COFINS and INSS to compensate (2) 120,452 123,677 1,102,365 Contractual fines 4,783 4,486 3,965 Actuarial pension plan 55,695 47,151 20,983 Updated shares – Fair Value through profit or loss (VJR) (Note 14II) 12,579 1,655,813 Contractual agreement (5) 131,817 Other revenues 32,747 98,250 27,749 482,494 503,770 4,036,043 - - - Other operating expenses Taxes and fees (46,338) (95,873) (26,197) Expenses with environmental liabilities, net 16,151 (82,669) (60,311) Write-off/(Provision) of judicial lawsuits (130,869) (19,685) (113,549) Contractual fines (106,926) (104,086) Depreciation of equipment paralyzed and amortization of intangible assets (note 26) (95,270) (97,627) (97,914) Write- off of PP&E and intangible assets (note 10, 11 and 12) (13,130) (114,603) (27,260) Estimated (Loss)/reversal in inventories (179,012) (136,827) (149,704) Idleness in stocks and paralyzed equipment (3) (303,975) (546,968) Studies and project engineering expenses (27,137) (26,171) (33,738) Research and development expenses (620) (1,741) (2,688) Healthcare plan expenses (117,193) (119,560) (108,369) Cash flow hedge realized (Note 14 b) (4) (1,951,035) (790,353) (370,191) Updated shares – Fair value through profit or loss (Note 14II) (118,780) Other expenses (421,628) (149,068) (218,701) (3,270,056) (2,406,851) (1,330,706) Other operating income (expenses), net (2,787,562) (1,903,081) 2,705,337 1. In June 2020, the Company received R$84,435 of indemnity after a court decision, of which R$58,785 for rent arrears arising from one of its investment properties and R$25,650 relating to an action for the collection of insurance for material damage caused by contractor in the construction of the long steel plant. Additionally, in June, the principal amount was recognized in the amount of R$147,612 of receivables for indemnity (see note 9). 2. In 2020, consist of the recovery of INSS credit on benefits granted to employees that should not be considered in the contribution calculation basis. In 2019, this is the exclusion of ICMS from the PIS and COFINS calculation basis. 3. Refers to the idle capacity arisen from production volumes lower than normal it was generated from the refurbishment of the blast furnace No.3 and in the iron ore mining operation due to delays in the release of environmental licenses, which postponed the start of new ore mining fronts, as well as new dry tailing processes still in ramp-up stage. 4. As of December 31, 2020, foreign exchange cash flow hedge was realized and reclassified from Other Comprehensive Income to Other Operating Expenses (R$1,667,886), as well as cash flow hedge of PLATTS index (R$283,149), totaling R$1,951,035 of hedge realization in the year. See note 14. 5. Referring to the contractual agreement signed for the supply of new equipment. |
28. FINANCIAL INCOME (EXPENSES)
28. FINANCIAL INCOME (EXPENSES) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Income | |
FINANCIAL INCOME (EXPENSES) | 28. FINANCIAL INCOME (EXPENSES) Consolidated 12/31/2020 12/31/2019 12/31/2018 Financial income Related parties (note 22 b) 51,124 79,228 64,888 Income from financial investments 58,061 93,471 111,235 Updated shares – Fair value through profit or loss (Note 14 II) (1) 1,190,489 - - Other income (2) 503,054 206,343 1,134,391 1,802,728 379,042 1,310,514 Financial expenses Borrowings and financing - foreign currency (note 13 b) (1,600,973) (1,128,520) (988,821) Borrowings and financing - local currency (note 13 b) (401,079) (867,785) (1,020,867) Related parties (13,608) (14,939) (16,092) Lease liabilities (50,804) (49,118) - Capitalised interest (notes 11 and 33) 92,506 117,189 71,611 Interest and fines (290,673) (158,794) (71,100) (-) Adjustment present value of trade payables (139,566) - - Commission, bank fees, Guarantee and bank fees (162,085) (217,784) (182,179) PIS/COFINS over financial income (39,149) (25,176) (84,404) Other financial expenses (270,764) (217,864) 19,614 (2,876,195) (2,562,791) (2,272,238) Others financial items, net Foreign exchange and monetary variation, net 392,971 47,579 (533,918) Gains and (losses) on exchange derivatives (*) (115,815) 4,986 (1) 277,156 52,565 (533,919) (2,599,039) (2,510,226) Financial income (expenses), net (796,311) (2,131,184) (1,495,643) (*) Statement of gains and (losses) on derivative transactions (note 14) Exchange rate swap Dollar x Euro (9,070) 783 (1) Exchange rate swap GBP x Euro (602) Exchange rate swap CDI x Dollar (106,143) 4,203 (115,815) 4,986 (1) (1) It refers to the appreciation of Usiminas’ shares in the amount of R$1,190,489 as of December31, 2020. As of December 31, 2019, Usiminas’ shares were reclassified to financial investments and their pricing fluctuation started to be recognized in the financial result. (2) It mainly refers to the recognition of the exclusion of ICMS in the PIS and COFINS calculation base in the amount of R$81,758 on December 31, 2020 (R$160,609 on December 31, 2019) in the Consolidated, and updating in the amount of R$369,571 of receivables for indemnity (see note 9). |
29. SEGMENT INFORMATION
29. SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
SEGMENT INFORMATION | 29. SEGMENT INFORMATION According to the Company’s structure, the businesses are distributed and managed in five operating segments as follows: Steel The Steel Segment consolidates all the operations related to the production, distribution and sale of flat steel, long steel, metallic containers and galvanized steel, with operations in Brazil, United States, Portugal and Germany. The Segment supplies the following markets: construction, steel containers for the Brazilian chemical and food industries, home appliances, automobile and OEM (motors and compressors). The Company’s steel units produce hot and cold rolled steel, galvanized and pre-painted steel of great durability. They also produce tinplate, a raw material used to produce metallic containers. Overseas, Lusosider, which is based in Portugal, produces cold rolled steel and galvanized steel. CSN LLC in the U.S.A. meets local market needs, import and export of steel products. In January 2012, CSN acquired Stahlwerk Thüringen (SWT), a manufacturer of long steel located in Unterwellenborn, Germany. SWT is specialized in the production of shapes used for construction. In January 2014 the production of long steel products started in Brazil and consolidates the company as a source of complete construction solutions, complementing its portfolio of products with high value added in the steel chain. Mining This segment encompasses the activities of iron ore and tin mining. The high-quality iron ore operations are located in the Iron Quadrilateral in Minas Gerais, which has its own mines and sells third party iron ore. At the end of 2015, CSN and the Asian Consortium formalized a shareholders' agreement for the combination of assets linked to iron ore operations and the related logistics structure, forming a new company that has focused in mining of the Group activities from December 2015. In this context, the new company, currently named CSN Mineração S.A., holds the TECAR arraignment, the Casa de Pedra mine and all the shares of Namisa, which was incorporated on December 31, 2015. CSN still owns 100% of Minérios Nacional which includes the mines of Fernandinho (operational), Cayman and Pedras Pretas (mineral resources), all located in Minas Gerais. Moreover, CSN controls the Estanho de Rondônia S.A., a company with mining units and tin casting, in the state of Rondônia. Logistics i. Railway CSN has equity interests in three railroad companies: MRS Logística, which manages the former Southeast Network of Rede Ferroviária Federal S.A. (RFFSA), Transnordestina Logística S.A. and FTL - Ferrovia Transnordestina Logística S.A., which has the concession to operate the former Northeast Network of the RFFSA in the states of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas. a) MRS The railroad transportation services provided by MRS are fundamental to the supply of raw materials and the shipment of final products. The total amount of iron ore, coal and coke consumed by the Presidente Vargas Mill as well as part of the steel produced by CSN for the domestic market and for export are carried by MRS. The Southeast Brazilian railroad system, encompassing 1,674 kilometers of tracks, serves the tri-state industrial area of São Paulo-Rio de Janeiro-Minas Gerais, in the southeast region, linking the mines located in Minas Gerais to the ports located in São Paulo and Rio de Janeiro, and the steel mills of CSN, Companhia Siderúrgica Paulista, or Cosipa, and Gerdau Açominas. Besides serving other customers, the railroad system carries iron ore from the Company’s mines in Casa de Pedra, Minas Gerais, and coke and coal from the Itaguaí Port, in Rio de Janeiro, to Volta Redonda, and carries CSN’s export products to the ports of Itaguaí and Rio de Janeiro. b) TLSA and FTL TLSA and FTL hold the concession for the former Malha Nordeste by RFFSA. The northeastern railway system covers 4,238 km of railway network divided into two sections: i) Mesh I, which integrates the sections of São Luiz - Mucuripe, Arrojado - Recife, Itabaiana - Cabedelo, Paula Cavalcante - Macau - and Propriá - Jorge Lins (Mesh I); and ii) Malha II, which includes the sections of Missão Velha - Salgueiro, Salgueiro - Trindade, Trindade - Eliseu Martins, Salgueiro - Porto de Suape and Missão Velha - Porto de Pecém. In addition, it connects to the main ports in the region, thereby offering an important competitive advantage through opportunities for combined transport solutions and tailor-made logistics projects. ii. Port The port logistics segment consolidates the terminal’s operation from Sepetiba built after the port modernization law (Law 8.630 / 1993) that allowed the transfer of port activities to the private sector. The Sepetiba terminal has a complete infrastructure to meet all the needs of exporters, importers and shipowners. Its installed capacity exceeds that of most Brazilian terminals. It has cribs and a large storage area, as well as the most modern and adequate equipment, systems and intermodal connections. The Company’s constant investment in terminal projects consolidates the Itaguaí Port Complex as one of the most modern in the country. Energy CSN is one of the largest industrial consumers of electric energy in Brazil. As energy is fundamental in its production process, the Company invests in electricity generation assets to guarantee its self-sufficiency. These assets are: Itá Hydroelectric Plant, located in the State of Santa Catarina, with a capacity of 1,450 MW, in which CSN participates with 29.5%; Igarapava Hydroelectric Plant, located in Minas Gerais, with a capacity of 210 MW, in which CSN holds 17.9% of the capital; and 238 MW thermoelectric cogeneration plant, in operation at the Presidente Vargas Steelworks since 1999, which uses waste gas from the steel production itself as fuel. Cement The Cement segment consolidates the production, sale and distribution of cement using slag that is produced by the blast furnaces of the Presidente Vargas Steelworks, in Volta Redonda / RJ. The clinker production is located in Arcos / MG, using limestone from its own mine and also two cement mills in addition to the mills that already operate in Volta Redonda / RJ. The information presented to Management regarding the performance of each segment is generally derived directly from accounting records combined with some intercompany allocations. Sales by geographic area Sales by geographic area are determined based on the customers’ location. On a consolidated basis, domestic sales are represented by revenues from customers located in Brazil and export sales are represented by revenues from customers located abroad. Results by segment For the purpose of preparing and presenting the information by business segment, Management decided to maintain the proportional consolidation of the joint ventures as historically presented. For purposes of reconciliation of the consolidated result, the amounts recorded by these companies are not included in the "Corporate expenses/elimination" column. 12/31/2020 P&L Steel Mining Logistics Energy Cement Corporate expenses/ elimination Consolidated Port Railroads Net revenue (note 25) 16,602,895 12,683,231 256,371 1,489,647 172,859 858,192 (1,999,175) 30,064,020 Cost of sales and services (note 26) (14,170,692) (5,531,763) (187,860) (1,094,130) (128,227) (647,132) 2,634,903 (19,124,901) Gross profit 2,432,203 7,151,468 68,511 395,517 44,632 211,060 635,728 10,939,119 General and administrative expenses (note 26) (922,862) (179,806) (21,949) (114,970) (30,243) (88,232) (1,150,813) (2,508,875) Other operating (income) expenses, net (note 27) (392,061) (665,881) (5,420) 52,569 (2,967) (44,893) (1,728,909) (2,787,562) Equity in results of affiliated companies (note 10) - - - - - - 71,755 71,755 Operating result before Financial Income and Taxes 1,117,280 6,305,781 41,142 333,116 11,422 77,935 (2,172,239) 5,714,437 Sales by geographic area Asia 7,461,791 1,144,614 8,606,405 North America 922,299 922,299 Latin America 327,900 995 328,895 Europe 3,627,011 3,688,851 7,315,862 Others 4,346 4,346 Foreign market 4,881,556 11,150,642 995 1,144,614 17,177,807 Domestic market 11,721,339 1,532,589 256,371 1,489,647 172,859 857,197 (3,143,789) 12,886,213 Total 16,602,895 12,683,231 256,371 1,489,647 172,859 858,192 (1,999,175) 30,064,020 12/31/2019 P&L Steel Mining Logistics Energy Cement Corporate expenses/ elimination Consolidated Port Railroads Net revenue (note 25) 13,949,032 10,027,649 240,451 1,321,355 325,343 570,805 (998,218) 25,436,417 Cost of sales and services (note 26) (12,962,861) (4,396,247) (173,344) (1,030,210) (266,754) (607,719) 2,173,871 (17,263,264) Gross profit 986,171 5,631,402 67,107 291,145 58,589 (36,914) 1,175,653 8,173,153 General and administrative expenses (note 26) (834,977) (186,189) (34,560) (109,770) (29,034) (91,466) (1,567,874) (2,853,870) Other operating (income) expenses, net (note 27) (1,055,190) (218,009) (3,860) 147,155 (1,486) (40,630) (731,061) (1,903,081) Equity in results of affiliated companies (note 10) 125,715 125,715 Operating result before Financial Income and Taxes (903,996) 5,227,204 28,687 328,530 28,069 (169,010) (997,567) 3,541,917 Sales by geographic area Asia 2,980 6,742,946 1,463,870 8,209,796 North America 767,977 767,977 Latin America 169,036 169,036 Europe 2,978,994 2,357,867 5,336,861 Others 2,046 2,046 Foreign market 3,921,033 9,100,813 1,463,870 14,485,716 Domestic market 10,027,999 926,836 240,451 1,321,355 325,343 570,805 (2,462,088) 10,950,701 Total 13,949,032 10,027,649 240,451 1,321,355 325,343 570,805 (998,218) 25,436,417 12/31/2018 P&L Steel Mining Logistics Energy Cement Corporate expenses/ elimination Consolidated Port Railroads Net revenue (note 25) 15,634,143 5,984,781 266,378 1,506,114 410,606 588,230 (1,421,366) 22,968,887 Cost of sales and services (note 26) (12,613,216) (3,585,691) (189,999) (1,049,071) (286,734) (544,266) 2,163,321 (16,105,656) Gross profit 3,020,927 2,399,091 76,378 457,043 123,872 43,965 741,956 6,863,231 General and administrative expenses (note 26) (984,980) (144,754) (35,423) (106,412) (27,948) (95,893) (1,362,302) (2,757,711) Other operating (income) expenses, net (note 27) 1,993,790 (222,957) (2,469) (34,911) (387) 299 971,970 2,705,335 Equity in results of affiliated companies (note 10) 135,706 135,706 Operating result before Financial Income and Taxes 4,029,736 2,031,379 38,486 315,721 95,537 (51,628) 487,330 6,946,561 Sales by geographic area Asia 40,681 4,422,377 1,297,258 5,760,316 North America 1,506,041 1,506,041 Latin America 369,830 369,830 Europe 3,330,991 590,043 3,921,034 Others 58,229 58,229 Foreign market 5,305,771 5,012,420 1,297,258 11,615,450 Domestic market 10,328,372 972,360 266,378 1,506,114 410,606 588,230 (2,718,623) 11,353,437 Total 15,634,143 5,984,781 266,378 1,506,114 410,606 588,230 (1,421,366) 22,968,887 Accounting Policy An operating segment is a component of the Company committed to business activities, from which it can earn revenue and incur expenses, including income and expenses related to transactions with any other components of the Company. All operating results of operating segments are regularly reviewed by CSN’s Executive Board to make decisions about the resources to be allocated to the segment and to evaluate its performance, and for which different financial information is available. |
30. EMPLOYEE BENEFITS
30. EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
EMPLOYEE BENEFITS | 30. EMPLOYEE BENEFITS The pension plans granted cover substantially all employees. The plans are managed by Caixa Beneficente dos Empregados de CSN (“CBS”), a private, non-profit pension fund established in July 1960, which has as members (and former employees) who have joined the fund. through a membership agreement, in addition to CBS employees themselves. The CBS Executive Board is made up of a president and two directors, all appointed by CSN, the main sponsor of CBS. The Deliberative Council is the decision-making and superior guidance body of CBS, composed of the president and ten members, six of them chosen by CSN and four of them elected by the participants. Until December 1995, CBS Previdência managed two defined benefit plans based on years of service, salary and social security benefits. On December 27, 1995, the then Supplementary Pension Secretariat (“SPC”) approved the implementation of a new benefit plan, effective as of that date, called the Supplementary Benefit Mixed Plan (“Mixed Plan”), structured under the form of a variable contribution plan, which has been closed to new members since September 2013. As of that date, all new employees must join the CBSPrev Plan, structured in the form of defined contribution, also created in September 2013. The CBS guarantee funds are mainly invested in repo operations (backed by federal government bonds), federal government bonds indexed to inflation, stocks, loans and real estate. As of December 31, 2020, CBS held 4,450,652 CSN common shares (1,870,652 as of December 31, 2019). The entity’s total guarantee resources totaled R$5.7 billion on December 31, 2020 (R$5.5 billion on December 31, 2019). CBS fund managers seek to combine plan assets with long-term benefit obligations to be paid. Pension funds in Brazil are subject to certain restrictions related to their ability to invest in foreign assets and, consequently, the funds invest primarily in securities in Brazil. Guarantee Funds are considered to be the available and investment assets of the Benefit Plans, not including the amounts of debts contracted with sponsors. For defined benefit plans, called “35% of Average Salary” and “Supplementary Average Salary Plan”, the Company maintains a financial guarantee with CBS Previdência, the entity that manages the aforementioned plans, in order to maintain the financial balance and actuarial, should any future actuarial loss or actuarial gain occur. In compliance with current legislation, specific to the pension fund market, for the last 4 years ended (2017, 2018, 2019 and 2020), there was no need to pay installments by CSN, since the benefit plans defined actuarial gains in the year. 30.a) Description of pension plans Plan of 35% of the average salary This plan started on February 1, 1966 and is a defined benefit plan, the purpose of which is to pay retirement benefits (length of service, special, disability or old age) for life, equivalent to 35% of the adjusted average of the last 12 salaries of the participant. The plan also guarantees the payment of sickness benefit to the participant licensed by the Official Social Security and also guarantees the payment of savings, death and monetary assistance. This plan was deactivated on October 31, 1977, when the plan to supplement the average salary came into effect. Average salary supplementation plan This plan started on November 1, 1977 and is a defined benefit plan. Its objective is to complement the difference between the corrected average of the last 12 wages of the participant and the benefit of the Official Social Security for retirements, also for life. As with the 35% plan, there is coverage for sickness benefit, death benefit and pension benefits. This plan was deactivated on December 26, 1995, with the creation of the mixed supplementary benefit plan. Mixed supplementary benefit plan Started on December 27, 1995, it is a variable contribution plan. In addition to the programmed retirement benefit, payment of risk benefits (active pension, disability and sickness / accident benefits) is also provided. In this plan, the retirement benefit is calculated based on what was accumulated by the monthly contributions of the participants and the sponsors, as well as the option of each participant in the form of receiving the same, which can be for life (with or without continuity of pension for death) or by a percentage applied to the balance of the benefit-generating fund (loss for an indefinite period). After retirement, the plan will have the characteristic of a defined benefit plan, if the participant has opted to receive his benefit in the form of lifetime monthly income. This plan was deactivated on September 16, 2013, when the CBSPrev plan came into effect. CBS Prev Plan On September 16, 2013, the new CBSPrev pension plan began, which is a defined contribution plan. In this plan, the retirement benefit is determined based on what has been accumulated by the monthly contributions of participants and sponsors. The option of each participant to receive it can be: (a) receive a part in cash (up to 25%) and the remaining balance, through monthly income for a percentage applied to the benefit generating fund, not being applicable to death pension benefits, (b) receive only monthly income for a percentage applied to the benefit generating fund. With the creation of the CBSPrev plan, the Mixed Supplementary Benefit Plan was deactivated for the entry of new participants as of September 16, 2013. CBSPREV Namisa Plan It is a Defined Contribution plan with risk benefits during the activity (projection of the balances in case of disability or death and sickness / accident benefits). It has been in operation since January 6, 2012, when it was created to serve exclusively the employees of Nacional Minérios S / A. After the corporate reorganization, which took place in 2016, other Sponsors joined this Plan, among them, CSN Mineração SA In this plan, all benefits offered are calculated based on what has been accumulated by the monthly contributions of participants and sponsors and are paid through a percentage applied to the balance of the benefit generating fund. The CBSPREV Namisa Plan has been closed to the entry of new participants since July 2017 and in 2020 the plan’s extinction process was finalized due to the total withdrawal of sponsorship. 30.b) Investment policy The investment policy establishes the principles and guidelines that should govern the investment of resources entrusted to the entity, with the objective of promoting the security, liquidity and profitability necessary to ensure the balance between the plan’s assets and liabilities, based on the ALM study ( Asset Liability Management The investment plan is reviewed annually and approved by the Deliberative Council, considering a 5-year horizon, as established by CGPC resolution no. 7, of December 4, 2003. The investment limits and criteria established in the policy are based on Resolution 4,661 / 18, published by the National Monetary Council (“CMN”). 30.c) Employee benefits The actuarial calculations are updated, at the end of each year, by external actuaries and presented in the financial statements in accordance with IAS 19 - Employee Benefits Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Actuarial asset Actuarial liabilities Benefits of pension plans (13,819) (13,714) 79,546 19,788 Post-employment healthcare benefits - - 678,880 892,396 (13,819) (13,714) 758,426 912,184 The reconciliation of assets and liabilities of employee benefits is presented below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Present value of defined benefit obligation 3,645,822 3,581,460 3,087,433 Fair value of plan assets (3,766,194) (3,894,488) (3,403,906) Deficit(Surplus) (120,372) (313,028) (316,473) Restriction to actuarial assets due to recovery limitation 186,099 319,102 224,561 Liabilities (Assets), net 65,727 6,074 (91,912) Liabilities 79,546 19,788 7,982 Assets (13,819) (13,714) (99,894) Net (assets) recognized in the balance sheet 65,727 6,074 (91,912) The change in the present value of the defined benefit obligation is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Present value of obligations at the beginning of the year 3,581,460 3,087,433 3,077,849 Cost of service 968 1,093 1,169 Interest cost 236,551 283,487 304,132 Participant contributions made in the period 1,998 2,126 Benefits paid (278,960) (269,995) (280,493) Actuarial loss/(gain) 103,805 477,316 (15,224) Present value of obligations at the end of the year 3,645,822 3,581,460 3,087,433 The change in the fair value of the plan’s assets is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Fair value of plan assets at the beginning of the year (3,894,488) (3,403,906) (3,305,356) Interest income (257,946) (314,102) (327,830) Benefits Paid 278,960 269,995 280,493 Participant contributions made in the period (1,998) (2,127) - Return on plan assets (less interest income) 109,279 (444,348) (51,213) Fair value of plan assets at the end of the year (3,766,193) (3,894,488) (3,403,906) The composition of the amounts recognized in the income statement is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Cost of current service 968 1,093 1,169 Interest cost 236,551 283,487 304,132 Expected return on plan assets (257,946) (314,102) (327,830) Interest on the asset ceiling effect 21,737 21,502 16,340 Total costs / (income), net 1,310 (8,020) (6,189) The (cost) / revenue is recognized in the income statement under other operating expenses. The movement of actuarial gains and losses is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Actuarial losses and (gains) 103,805 477,316 (15,224) Return on plan assets (less interest income) 109,279 (444,348) (51,213) Change in the asset’s limit (excluding interest income) (154,741) 73,039 50,058 Total cost of actuarial losses and (gains) 58,343 106,007 (16,379) The breakdown of actuarial gains and losses is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Loss due to change in demographic assumptions 67,930 - (139,813) Loss due to change in financial assumptions (30,454) 472,715 46,917 Loss due to experience adjustments 66,329 4,601 77,672 Return on plan assets (less interest income) 109,279 (444,348) (51,213) Change in the asset’s limit (excluding interest income) (154,741) 73,039 50,058 Actuarial losses and (gains) 58,343 106,007 (16,379) The main actuarial assumptions used were as follows: 12/31/2020 12/31/2019 Actuarial financing method Projected unit credit Projected unit credit Functional currency Real (R$) Real (R$) Recognition of plan assets Fair value Fair value Nominal discount rate Millennium Plan: 6,95% Millennium Plan: 6,98% Inflation rate 3.32% 3.61% Nominal salary increase rate 4.35% 4.65% Nominal benefit increase rate 3.32% 3.61% Rate of return on investments Millennium Plan: 6,95% Millennium Plan: 6,98% General mortality table Millennium Plan: AT-2012 segregated by gender Millennium Plan: AT-2000 smoothed down by 10% segregated by gender Disability table 35% Plan Light Medium. 35% Plan and Supplementation: Light Medium. Millenium Plan: Disability mortality table Millenium Plan: AT-71 Winklevoss - 1% Turnover table Millenium plan 5% per annum, zero for plans 35% and Supplementation Millenium plan 5% per annum, zero for plans 35% and Supplementation Retirement age 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan Household of active participants 95% will be married at the time of retirement, with the wife being 4 years younger than the husband 95% will be married at the time of retirement, with the wife being 4 years younger than the husband The assumptions regarding the mortality table are based on published statistics and mortality tables. These tables translate into an average life expectancy in years for employees aged 65 and 40: Plan covering 35% of the average salary Average salary supplementation plan Mixed supplementary benefit plan (Milênio Plan) Longevity at age of 65 for current participants 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Male 18.38 18.38 18.75 18.75 21.47 20.45 Female 18.38 18.38 21.41 21.41 23.34 23.02 Longevity at age of 40 for current participants Male 40.15 40.15 40.60 40.60 44.07 42.70 Female 40.15 40.15 44.41 44.41 46.68 46.28 Allocation of plan assets: 12/31/2020 12/31/2019 12/31/2018 Variable income 54,285 1.44% 25,236 0.65% 141,705 4.16% Fixed income 3,438,735 91.31% 3,607,398 92.63% 3,050,099 89.61% Real estate 182,145 4.84% 183,098 4.70% 52,091 1.53% Others 91,028 2.42% 78,756 2.02% 160,011 4.70% Total 3,766,193 100.00% 3,894,488 100.00% 3,403,906 100.00% The assets invested in variable income are mainly invested in CSN shares. Fixed income assets are mainly composed of debentures, Interbank Deposit Certificates (“CDI”) and National Treasury Notes (“NTN-B”). Real estate refers to buildings valued by a specialized asset appraisal company. There are no assets in use by CSN and its subsidiaries. For the pension plan, the expense in 2020 was R$41,050 (R$40,644 on December 31, 2019). 30.d) Expected contributions There are no expected contributions that will be paid to the defined benefit plans 35% and Supplementation in 2021. For the mixed supplementary benefit plan, the expected contributions in the amount of R$21,563 will be paid in 2021 for the defined contribution portion and R$1,322 for the defined benefit portion (risk benefits). 30.e) Sensitivity analysis The quantitative sensitivity analysis in relation to significant assumptions, for pension plans on December 31, 2020 is shown below: 12/31/2020 Plan covering 35% of the average salary Average salary supplementation plan Mixed supplementary benefit plan (Milênio Plan) Assumption: Discount rate Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations (1,005) 1,084 (5,507) 5,954 (4,758) 5,309 Effect on present value of obligations 17,381 (16,114) 92,456 (85,515) 76,188 (68,287) Assumption: Salary growth Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 191 (181) Effect on present value of obligations 1,079 (1,030) Assumption: Mortality table Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 120 (120) 623 (623) 430 (430) Effect on present value of obligations 1,928 (1,928) 9,669 (9,669) 5,975 (5,975) Assumption: Benefit adjustment Sensitivity level +1 year - 1 year +1 year - 1 year +1 year - 1 year Effect on current service cost and on interest on actuarial obligations 850 (839) 4,382 (4,362) 1,562 (1,541) Effect on present value of obligations 13,626 (13,455) 68,039 (67,726) 22,603 (22,306) Following are the expected benefits for future years for defined benefit plans: Forecast payments Year 1 281,314 Year 2 272,801 Year 3 266,342 Year 4 259,595 Year 5 252,578 Next 5 years 1,137,146 Total forecast payments 2,469,776 30.f) Post-Employment Health Plan It refers to the health plan created on December 1, 1996 exclusively to cover former retired employees, pensioners, amnesties, ex-combatants, widows of labor accident victims and retirees until March 20, 1997 and their respective legal dependents. Since then, the health plan has not allowed the inclusion of new beneficiaries. The Plan is sponsored by CSN. The amounts recognized in the balance sheet were determined as follows: 12/31/2020 12/31/2019 Present value of obligations 678,880 892,396 Liabilities 678,880 892,396 The reconciliation of health benefit liabilities is presented below: 12/31/2020 12/31/2019 Actuarial liability at the beginning of the year 892,396 897,137 Expenses recognized in income for the year 57,731 69,907 Sponsor’s contributions transferred in prior year (81,340) (82,081) Recognition of actuarial loss/(gain) (189,907) 7,433 Actuarial liability at the end of the year 678,880 892,396 The actuarial gains and losses recognized in equity are shown below: 12/31/2020 12/31/2019 12/31/2018 Gain/(loss) recognized in shareholders' equity (189,907) 7,433 16,237 Below is the weighted average life expectancy based on the mortality table used to determine the actuarial obligations: 12/31/2020 12/31/2019 12/31/2018 Longevity at age of 65 for current participants Male 20.24 20.24 19.55 Female 20.24 20.24 22.17 Longevity at age of 40 for current participants Male 42.74 42.74 41.59 Female 42.74 42.74 45.30 The actuarial assumptions used to calculate post-employment health benefits were: 12/31/2020 12/31/2019 Biometric and Demographic General mortality table AT 2000 segregated by gender AT 2000 segregated by gender Financial Actuarial nominal discount rate 6.53% 6.78% Inflation 3.32% 3.61% Real increase in medical costs based on age (Aging Factor) 0,5% - 3,00% real per year 0,5% - 3,00% real per year Nominal increase medical costs growth rate 4.10% 6.98% Average medical cost (Claim cost) 913.00 1,319.36 30.g) Sensitivity analysis The quantitative sensitivity analysis for significant assumptions for the post-employment health benefit as of December 31, 2020 is shown below: 12/31/2020 Healthcare Plan Assumption: Discount rate Sensitivity level 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 1,216 (1,339) Effect on present value of obligations (30,300) 33,447 Assumption: Medical Inflation Sensitivity level 1.0% -1.0% Effect on current service cost and on interest on actuarial obligations 4,749 (3,978) Effect on present value of obligations 72,688 (60,887) Assumption: Benefit adjustment Sensitivity level +1 year - 1 year Effect on current service cost and on interest on actuarial obligations 3,123 (2,925) Effect on present value of obligations 47,797 (44,768) Following are the expected benefits for future exercises for post-employment health benefit plans: Forecast benefit payments Year 1 60,143 Year 2 58,312 Year 3 56,323 Year 4 54,177 Year 5 51,892 Next 5 years 221,734 Total forecast payments 502,581 Accounting Policy Employee benefits - long term A defined contribution plan is a post-employment benefit plan under which the Company pays contributions to CBS, obligations for contributions to defined contribution pension plans are recognized as employee benefit expenses in the income statement during the periods during which they are paid. services are provided by employees. In this modality, the Company will have no legal or constructive obligation to pay additional amounts, as the risks fall on employees. In the defined benefit plan, obligations are assessed annually by independent actuaries, the unit credit method is used in the calculation, the assumptions for the calculation include biometric, demographic, financial and economic assumptions. The discount rate is applied to define the present value of the defined benefit obligations, the fair value of the assets is also determined. The amount recognized in the Company’s balance sheet is the net of obligations after the discount rate less the fair value of the assets. When the calculation results in a benefit to the Company, the asset to be recognized is limited to the total of any past unrecognized service costs and the present value of the economic benefits available in the form of future plan reimbursements or reduction in future plan contributions . Actuarial gains and losses resulting from defined benefit plans immediately in other comprehensive income. In the event of extinction of the plan, the accumulated actuarial gains and losses are recorded in income. Short-term employee benefits Payments of benefits such as salary or vacation, as well as the respective labor charges on these benefits are recognized monthly in the income statement, respecting the accrual basis. Employees ‘profit sharing and executives’ variable remuneration are linked to the achievement of operational and financial goals. The Company recognizes a liability and an expense substantially when these goals are achieved by allocating them to the cost of production or operating expenses. |
31. COMMITMENTS
31. COMMITMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Commitments | |
COMMITMENTS | 31. COMMITMENTS 31.a) T ake-or-pay contracts As of December 31, 2020 and 2019, the Company was a party to take-or-pay contracts as shown in the following table Payments in the period Type of service 2019 2020 2021 2022 2023 After 2023 Total Transportation of iron ore, coal, coke, steel products, cement and mining products. 1,555,398 946,865 1,195,158 1,195,508 1,195,508 3,476,220 7,062,394 Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets. 959,362 1,044,380 674,378 28,530 24,779 191,284 918,971 Processing of slag generated during pig iron and steel production. 56,024 75,863 13,240 9,298 2,652 0 25,190 Manufacturing, repair, recovery and production of ingot casting machine units. 5,930 7,674 480 - - - 480 Oil Storage and Handling - 1,900 1,608 1,608 1,608 402 5,226 Labor and consultancy services 27,002 32,279 28,428 27,380 27,380 191,657 274,845 2,603,716 2,108,961 1,913,292 1,262,324 1,251,927 3,859,563 8,287,106 31.b) Projects and other commitments Transnordestina project The Transnordestina project corresponds to the rail network II of the Northeast Railway System, includes building 1,753 km of new, next-generation, wide-gauge tracks. The project posts an evolution of 54% progress which was expected to completion for 2017, completion period currently under discussion with the responsible agencies. The Company expects that the investments will allow Transnordestina Logística SA (“TLSA”), the concessionaire that owns the Transnordestina Project, to transport various products, such as iron ore, limestone, soybeans, cotton, sugar cane, fertilizers, oil and fuels. The concession period ends in 2057 and may be terminated before that period if the concessionaire reaches the minimum return agreed with the Government. TLSA has obtained the environmental authorizations required and implementation is advanced in certain regions. The sources of financing for the project are: (i) financing granted by Banco do Nordeste / FNE and BNDES, (ii) debentures issued by FDNE, (iii) Via Permanente use contracts and (iv) capital contribution by CSN and public shareholders. The approved investment for the work is R$7,542,000, and the balance of funds to be disbursed will be updated by the IPCA as of the April 2012 base date. If additional resources are needed, they will be made possible by CSN and / or third parties through the execution of Permanent Use of Contracts. The approved budget amount is composed as follows: Missão Velha - Salgueiro amounting to R$0.4 billion, Salgueiro - Trindade amounting to R$0.7 billion, Trindade - Eliseu Martins amounting to R$2.4 billion, Missão Velha - Port of Pecém amounting to R$3 billion, Salgueiro - Port of Suape amounting to R$4.7 billion, totaling R$11.2 billion. The project is currently in the process of budgetary adjustment whose proposed budget is in the order of R$13.2 billion. The Company guarantees 100% of the financing obtained by TLSA from Banco do Nordeste / FNE and BNDES, as well as 50.97% of the debentures issued by the FDNE (considers 48.47% of corporate guarantee, 1.25% of letter of guarantee) for BNB and 1.25% corporate guarantee for BNB). Under the terms of the FDNE regulation approved by Federal Decree No. 6,952 / 2009, as well as the Investment Agreement signed with public shareholders / financiers, up to 50% of the debentures may be converted into shares of TLSA. The Federal Audit Court - TCU, through a precautionary decision issued in May 2016, referring to the TC 012.179 / 2016 process, suspended new transfers of public funds to TLSA by Valec Engenharia, Construções e Ferrovias SA, Fundo de Investimento do Nordeste - FINOR, Constitutional Financing Fund for the Northeast - FNE, Development Fund for the Northeast - FDNE, National Bank for Economic and Social Development - BNDES and BNDES Participações SA - BNDESPar. After the appeal against the precautionary decision and the necessary explanations were provided, in June 2016, the preliminary decision issued by the TCU was revoked unanimously by the members of this court, and the continuity of the programmed contributions was restored. By means of a new precautionary decision issued in January 2017, referring to case TC 012.179 / 2016, the Federal Court of Accounts - TCU suspended new transfers of public funds to TLSA by Valec Engenharia, Construções e Ferrovias SA, Fundo de Investimento do Nordeste - FINOR, Constitutional Financing Fund for the Northeast - FNE, Development Fund for the Northeast - FDNE, National Bank for Economic and Social Development - BNDES and BNDES Participações SA - BNDESPar. The Company has been providing the necessary clarifications to TCU and acting firmly so that the decision will be revoked soon and the flow of programmed contributions will be reestablished. The Company concluded as of December 31, 2019, according to the scheduled schedule, the engineering deliveries referring to the review of the projects of the sections to be executed, as well as the survey of the services already performed in the sections in progress and concluded ( as built There is an administrative procedure before the National Transportation Agency (“ANTT”) that assesses the regular compliance with the Concession Agreement obligations by the Company. In this context, in 2020, ANTT proposed to the Federal Government the declaration of the expiry of the TLSA Concession Contract and the initiation of an administrative proceeding within the scope of the Superintendence of Infrastructure and Railway Cargo Transport Services - SUFER. ANTT’s recommendation, which was substantially contested by TLSA, does not bind the Granting Authority, nor does it end the discussion, as the evaluations of the Ministry of Infrastructure and the Presidency of the Republic are still pending. In addition, judicial review of the matter is also possible. The Company continues its activities to implement sections of the railway in the States of Piauí and Ceará and to preserve the sections already built, with a reasonable expectation that the continuity of its operations will be maintained. There is an administrative procedure before ANTT that assesses the regular fulfillment of the obligations of the Concession Contract corresponding to Mesh II by the TLSA Concessionaire. ANTT’s technical area, in a unilateral opinion, understood that there was a breach of contractual obligations by the Concessionaire. The opinion of the technical area is under evaluation and, if the irregularity is proven, ANTT may apply the applicable penalties or recommend the declaration of forfeiture to the Presidency of the Republic, the procedure being in the investigation phase, with no definitive decision to date the merit. On September 16, 2020, the request for reconsideration and suspension of Judgment No. 67/2017 was filed with TCU, which determined the suspension of transfers of public funds to the project until the assessment of engineering projects and the determination of the regulatory budget by National Land Transport Agency - ANTT. In this reconsideration request, management requests that, in view of the exhaustion of Transnordestina’s measures to approve the budget for the project’s works and the indispensability of the resources provided for in the agreements that structured the project for its completion, the understanding contained in Judgment 67 / 2017, with the consequent immediate release of public resources under the responsibility of public sources. In the alternative, he requested that, if the release of public contributions is not granted, we require the immediate release of FINOR funds, since, regardless of their nature, they have the character of reimbursement of the amounts evidently applied by Transnordestina in the works, and cannot be subject to the suspension stipulated in Judgment No. 67/2017 - TCU. FTL - Ferrovia Transnordestina Logística SA (Operational network) In relation to Malha I, operated by FTL - Ferrovia Transnordestina Logística SA (“FTL”), there is an administrative procedure before the National Transport Agency (“ANTT”) that assesses the regular compliance with the Concession Contract obligations by the FTL Concessionaire. Due to a unilateral assessment, ANTT reported that FTL would have failed to comply with the TAC signed in 2013 due to the failure to meet the 2013 production target. In this context, the agency proposed to the Union the declaration of the expiry of the FTL Concession Contract and the initiation of an administrative proceeding within the scope of the Superintendence of Infrastructure and Railway Cargo Transport Services - SUFER. The Company continues to rely on ANTT’s positioning. |
32. INSURANCE
32. INSURANCE | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of types of insurance contracts [abstract] | |
INSURANCE | 32. INSURANCE In order to adequately mitigate risks and in view of the nature of its operations, the Company and its Subsidiaries contract several different types of insurance policy. The policies are taken out in line with the Risk Management policy and are similar to the insurance taken out by other companies in the same industry in which CSN and its subsidiaries operate. The coverage of these policies includes: National Transport, International Transport, Life and Personal Accident Insurance, Health, Vehicle Fleet, D&O (Administrators Liability Insurance), General Liability, Engineering Risks, Named Risks, Export Credit, Insurance Warranty and Civil Liability Port Operator. In 2020, after negotiations with insurers and reinsurers in Brazil and abroad, an Operational Risk Insurance Policy for Property Damage and Business Interruption was issued, effective from June 30, 2020 to June 30, 2021. Under the policy, the Maximum Indemnity Limit is US$600 million, and the deductible is US$385 million for material damages and 45 days for loss of profits, covering the following units and subsidiaries of the Company: Usina Presidente Vargas, CSN Mineração SA and Sepetiba Tecon. The risk assumptions adopted, given their nature, are not part of the scope of an audit of the financial statements, and consequently were not examined by our independent auditors. |
33. ADDITIONAL INFORMATION TO C
33. ADDITIONAL INFORMATION TO CASH FLOWS | 12 Months Ended |
Dec. 31, 2020 | |
Additional Information To Cash Flows [Abstract] | |
ADDITIONAL INFORMATION TO CASH FLOWS | 33. ADDITIONAL INFORMATION TO CASH FLOWS The following table presents additional information on transactions related to the statement of cash flows: Consolidated 12/31/2020 12/31/2019 12/31/2018 Income tax and social contribution paid 542,877 1,167,419 336,962 Addition to PP&E with interest capitalization (notes 11 and 28) 92,506 117,189 71,611 Initial adoption IFRS16 – Right of use 640,989 Remeasurement and addition – Right of use (note 11 a) 109,993 (151,558) Addition to PP&E without adding cash 30,345 278,213 10,792 Capitalization in subsidiaries without cash 104,809 Addition to investment property without cash effect 61,597 942,127 2,052,252 419,365 |
34. SUBSEQUENT EVENTS
34. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | 34. SUBSEQUENT EVENTS Prospectus for the Offering of CSN Mineração SA shares On February 17, the Company released to the market the final prospectus of the public offering of primary and secondary distribution of common shares of its issuance, through B3 - Brasil, Bolsa, Balcão. The Offer will comprise (i) the primary distribution of 161,189,078 new Shares (“Primary Offer”); and (ii) the secondary distribution of, initially, 372,749,743 shares, with the possibility of adding up to 20% of additional shares held by all current shareholders and, also, up to 15% of additional shares held by the majority shareholder, CSN . In the final prospectus of the Offer, the price per Share (“Price per Share”) is R$8.50, totaling R$1,370 million in primary shares and R$2,785 million in secondary shares. The Price per Share was fixed after the completion of the procedure for collecting investment intentions from institutional investors carried out in Brazil and abroad. Upon the completion of the Offer, the Company’s shares were split in the proportion of 1:30, and consequently its share capital started to be represented by 5,430,057,060 (five billion, four hundred and thirty million, fifty-seven thousand and sixty) common shares, nominative and without value nominal, as approved by the Extraordinary General Meeting held on October 15, 2020. Debt reprofiling In January 2021, the Company reprofiled part of export prepayment contracts in the amount of US$265 million, whose maturities in 2022 in the amount of US$79 million were postponed to 2023. In addition, the Company amortized R$315 million in NCEs whose maturities would occur over 2021. Additionally, on February 12, 2021, the Company repurchased, for subsequent cancellation, 450,000 debentures from the 10th Issue in the amount of R$391 million. This repurchase corresponds to 23% of the debentures of that Issue. Asset drop down for CSN Cimentos S.A. On January 31, 2021, the Company concluded the drop down of the cement segment, with all assets and liabilities related to the cement business being transferred from CSN to its subsidiary recently incorporated CSN Cimentos S.A. Increase in share capital The Board of Directors, in a meeting held on February 22, 2021, approved the capitalization of part of the statutory reserve in the amount of R$1,500 million, without changing the number of shares, increasing the Company’s capital to R$6,040 million. |
2. SUMMARY OF SIGNIFICANT ACC_2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of changes in accounting estimates [abstract] | |
Declaration of conformity | 2.a) Declaration of conformity The consolidated financial statements have been prepared and are being presented in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (IASB) and includes all of the relevant information of the financial statements, and only this information, which correspond to those used by the Company’s management in its activities. |
Basis of presentation | 2.b) Basis of presentation The financial statements have been prepared using the historical cost as the basis of value, the net realizable value, the fair value or the recovery value, except when otherwise indicated. The preparation of these financial statements requires Management to use certain accounting estimates, judgments and assumptions that affect the application of Accounting Polices and the amounts reported on the balance sheet date of assets, liabilities, income and expenses may differ from actual future results. The assumptions used are based on history and other factors considered relevant and are reviewed by the Company’s management. The accounting policies and critical estimates, when applicable and relevant, are included in the respective explanatory notes and are consistent with the previous year presented, as shown below: Explanatory note 10 e - Recoverability test of investment on Transnordestina Logística SA (“TLSA”); Explanatory note 12 a - Goodwill impairment test; Explanatory note 14 - Derivative financial instruments and hedge accounting (“hedge accounting”); Explanatory note 18 d - Deferred income and social contribution taxes: availability of future taxable income against which deductible temporary differences and tax losses can be used; Explanatory note 20 - Provision for tax, social security, labor, civil, environmental risks and judicial deposits; Explanatory note 21 - Provisions for environmental liabilities and asset retirement obligations; Explanatory note 30 - Employee benefits. The consolidated financial statements were approved by Board of Directors on April 12, 2021. |
Functional currency and presentation currency | 2.c) Functional currency and presentation currency The accounting records included in the financial statements of each of the Company’s subsidiaries are measured using the currency of the principal of the economic environment in which each subsidiary operates (“the functional currency”). The consolidated financial statements are presented in R$ (reais), which is the Company’s functional and reporting currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the transaction or valuation dates, in which the items are remeasured. The balances of the asset and liability accounts are translated using the exchange rate on the balance sheet date. As of December 31, 2020, US$1,00 is equivalent to R$5.1967 (R$4.0307 on December 31, 2019) and €1,00 is equivalent to R$6.3779 (R$4.5305 on December 31, 2019), as stated on the website of the Brazilian Central Bank. |
Explanatory notes for basis of presentation | 2.d) Explanatory notes for basis of presentation In 2020, the Company improved the presentation of its financial statements to users. As a result, the relevant information for assessing the Company's financial position was changed and, accordingly, accounting practices related to assets, liabilities, revenues and expenses are now presented in the explanatory notes of each relevant item. Additionally, in order to improve the presentation with more qualitative aspects, the Company discloses long-term inventory in note 7 and the current and non-current recoverable taxes in note 8, which were previously presented as other current and non-current assets. |
Adoption of new and revised International Financial Reporting Standards (IFRS) | 2.e) Adoption of new and revised International Financial Reporting Standards (IFRS) During the year of 2020, the IASB issued the revision of the referred standards below, already in force in the year of 2020. Some accounting pronouncements that became effective as of January 1, 2020, having been adopted and without significant impacts on the Company’s results and financial position were as follows: Business definition (changes to IFRS 3) Definition of materiality (changes to IAS 1 and IAS 8) Reform of the benchmark interest rate (changes to IFRS 9, IAS 39 and IFRS 7) Changes to references to the basic conceptual framework (various standards) Concessions related to COVID-19 (amendments to IFRS 16) The changes were evaluated and adopted by the Company’s management, and there were no impacts on its financial statements regarding their application. New standards, changes and interpretations to existing standards that are not yet effective and have not been adopted in advance by the Company (for which no significant impact is expected in the initial adoption period and that, therefore, additional disclosures are not being made): IFRS 17 — Insurance Contracts Changes to IFRS 17 Insurance contracts (changes to IFRS 17 and IFRS 4) References to the Conceptual Framework Products before intended use (changes to IAS 16) Onerous contracts - cost of fulfilling a contract (changes to IAS 37) Annual cycle of improvements to IFRS 2018-2020 (changes to IFRS 1, IFRS 9, IFRS 16 and IAS 41) Classification of liabilities as current and non-current (changes to IAS 1) |
4. CASH AND CASH EQUIVALENTS (T
4. CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents | |
Schedule of cash and cash equivalents | Consolidated 12/31/2020 12/31/2019 Cash and banks In Brazil 245,185 42,736 Abroad 3,899,282 454,033 4,144,467 496,769 Investments In Brazil 5,800,119 531,924 Abroad 60,262 5,800,119 592,186 9,944,586 1,088,955 |
5. FINANCIAL INVESTMENTS (Table
5. FINANCIAL INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Investments | |
Schedule of financial investment | Consolidated Current Non Current 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Investments(1) 478,253 518,553 Usiminas shares(2) 3,305,109 2,114,620 Bonds (3) 123,409 95,719 3,783,362 2,633,173 123,409 95,719 (1) These are restricted financial investments and linked to a Bank Deposit Certificate (CDB) to guarantee a letter of guarantee from financial institutions and financial investments in Public Securities (LFT - Letras Financeiras do Tesouro) managed by their exclusive funds. (2) P art of the shares guarantees a portion of the Company's debt (3) B onds |
6. TRADE RECEIVABLES (Tables)
6. TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables [abstract] | |
Schedule of trade receivables | Consolidated 12/31/2020 12/31/2019 Trade receivables Third parties Domestic market 910,657 1,118,632 Foreign market 2,063,867 1,003,905 2,974,524 2,122,537 Allowance for doubtful debts (228,348) (245,194) 2,746,176 1,877,343 Related parties (note 22 b) 121,176 170,588 2,867,352 2,047,931 |
Schedule of gross trade receivables from third parties | The composition of the gross balance of accounts receivable from third party customers is shown as follows: Consolidated 12/31/2020 12/31/2019 Current 2,537,567 1,739,746 Past-due up to 30 days 222,972 132,845 Past-due up to 180 days 17,915 23,877 Past-due over 180 days 196,070 226,069 2,974,524 2,122,537 |
Schedule of allowance for doubtful debts | The changes in credit losses are as follows: Consolidated 12/31/2020 12/31/2019 Opening balance (245,194) (237,352) (Loss)/Reversal estimated 7,513 (43,313) Recovery and write-offs of receivables 9,333 35,471 Closing balance (228,348) (245,194) |
7. INVENTORIES (Tables)
7. INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Schedule of inventory | Consolidated 12/31/2020 12/31/2019 Finished goods 1,627,676 1,691,842 Work in progress (1) 1,358,905 1,438,868 Raw materials 1,289,653 1,493,129 Spare parts 928,158 902,135 Advances to suppliers 69,536 35,828 Provision for losses (109,038) (134,553) 5,164,890 5,427,249 Classified: Current 4,817,586 5,282,750 Non-current 347,304 144,499 5,164,890 5,427,249 1. Long-term iron ore inventories that will be used after the construction of the processing plant, which will produce pellet feed, In 2020, the Company defined the construction project for the new plant for processing Itabirito, which until then was considered as waste, and started to be incorporated into the long-term ore inventory. |
Schedule of provision for inventory losses | The changes in estimated losses on inventories are as follows: 12/31/2020 12/31/2019 Opening balance (134,553) (157,754) (Estimated losses) / Reversal of inventories with low turnover and obsolescence 25,515 23,201 Closing balance (109,038) (134,553) |
8. RECOVERABLE TAXES (Tables)
8. RECOVERABLE TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Recoverable Taxes | |
Schedule of recoverable taxes | Consolidated 12/31/2020 12/31/2019 State Value-Added Tax 1,002,926 1,109,887 Brazilian federal contributions (1) 1,417,081 2,230,793 Other taxes 123,939 61,675 2,543,946 3,402,355 Classified: Current 1,605,494 1,282,415 Non-current 938,452 2,119,940 2,543,946 3,402,355 1. Refers mainly to PIS / COFINS (VAT Federal) all to be recovered and income tax and social contribution to be offset. In respect to PIS and COFINS to be recoverable on September 20, 2018, the writ of mandamus and special appeal filed in 2006, in which CSN and the Federal Union are parties, related to the discussion about the non-inclusion of ICMS in the PIS and COFINS calculation basis, was judged in final court decision, confirmed the right of CSN to offset the amounts unduly paid as a result of the PIS and COFINS base being increased by the inclusion of ICMS in the period from 2001 to 2014. |
9. OTHER CURRENT AND NON-CURR_2
9. OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other current and non-current assets [Abstract] | |
Schedule of other current and non-current assets | Consolidated Current Non-current 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Judicial deposits (note 20) 325,117 328,371 Credits with the PGFN (1) 46,774 Prepaid expenses 136,527 107,428 115,636 126,213 Prepaid expenses with sea freight (2) 74,500 96,305 Actuarial asset (note 30) 13,819 13,714 Derivative financial instruments (note 14 I) 1,364 4,203 Securities held for trading (note 14 I) 5,065 4,034 Loans with related parties (nota 14 I and 22.b) 966,050 846,300 Other receivables from related parties (note 22 b) 6,242 1,830 664,020 428,672 Other receivables (note 14 I) 2,445 7,059 Eletrobrás compulsory loan (note 14 I) (3) 852,532 845,284 Dividends receivables (note 22 b) 38,088 44,554 Employee debts 28,054 33,045 Receivables by indemnity (4) 517,183 Others 79,338 102,021 146,245 146,525 367,814 390,581 3,603,047 2,793,115 1. In September 2020, the Company reclassified the amount to judicial deposits. 2. Refers a payment of freight expenses and maritime insurance over revenues didn’t recognized. 3. This is a certain and due amount, arising from the res judicata favorable decision to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in the conviction of Eletrobrás to the payment of the correct interest and monetary adjustment of the Compulsory Loan. The res judicata decision, as well as the certainty about the amounts involved in the liquidation of the sentence (judicial procedure to request the satisfaction of the right), allowed the conclusion that the entry of this value is certain. In addition to this amount already recorded, the Company continues to seek alternatives for the recovery of additional credits and the estimate can reach an amount greater than R$350 million. 4. This is a net, certain and enforceable amount, resulting from the final and unappealable decision of the Court in favor of the Company, due to losses and damages resulting from the sinking of the voltage in the supply of energy in the periods from January / 1991 to June / 2002. The receivable for indemnification in the amount of R$147,612 was recognized in the income statement for the year in other operating income and expenses and in the financial result, the amount of R$369,571. See notes 27 and 28, respectively. |
10. BASIS OF CONSOLIDATION AN_2
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Basis Of Consolidation And Investments In Subsidiaries And Affiliates | |
Schedule of direct and indirect subsidiaries, joint ventures and joint operations | The consolidated financial statements for the years ended December 31, 2020 and 2019 include the following direct and indirect subsidiaries, joint ventures and joint operations, as well as the exclusive funds, as follows: Number of shares held by CSN in units Equity interests (%) Companies 12/31/2020 12/31/2019 Core business Direct interest in subsidiaries: full consolidation CSN Islands VII Corp. 20,001,000 100.00 100.00 Financial transactions CSN Inova Ventures (1) 50,000 100.00 100.00 Financial transactions CSN Islands XII Corp. 1,540 100.00 100.00 Financial transactions CSN Steel S.L.U. 22,042,688 100.00 100.00 Equity interests and Financial transactions TdBB S.A (*) - 100.00 100.00 Equity interests Sepetiba Tecon S.A. 254,015,052 99.99 99.99 Port services Minérios NacionalS.A. 141,719,295 99.99 99.99 Mining and Equity interests Companhia Florestal do Brasil 66,354,391 99.99 99.99 Reforestation Estanho de Rondônia S.A. 195,454,162 99.99 99.99 Tin Mining Companhia Metalúrgica Prada 555,142,354 99.99 99.99 Manufacture of containers and distribution of steel products CSN Mineração S.A. 158,419,480 87.52 87.52 Mining CSN Energia S.A. 43,149 99.99 99.99 Sale of electric power FTL - Ferrovia Transnordestina Logística S.A. 486,592,830 92.38 92.38 Railroad logistics Nordeste Logística S.A. 99,999 99.99 99.99 Port services CSN Inova Ltd. - 100.00 100.00 Advisory and implementation of new development projec CSN Equipamentos S.A (2) - - 99.99 Rental of commercial and industrial machinery and equipment CBSI - Companhia Brasileira de Serviços de Infraestrutura 4,669,986 99.99 100.00 Equity interests and product sales and iron ore CSN Cimentos S.A .(3) 90 90.00 - Manufacturing and sale of cement Indirect interest in subsidiaries: full consolidation Lusosider Projectos Siderúrgicos S.A. 100.00 100.00 Equity interests and product sales Lusosider Aços Planos, S. A. 99.99 99.99 Steel and Equity interests CSN Resources S.A. 100.00 100.00 Financial transactions and Equity interests Companhia Brasileira de Latas 99.99 99.99 Sale of cans and containers in general and Equity interests Companhia de Embalagens Metálicas MMSA 99.67 99.67 Production and sale of cans and related activities Companhia de Embalagens Metálicas - MTM 99.67 99.67 Production and sale of cans and related activities CSN Steel Holdings 1, S.L.U. 100.00 100.00 Financial transactions, product sales and Equity interests CSN Productos Siderúrgicos S.L. 100.00 100.00 Financial transactions, product sales and Equity interests Stalhwerk Thüringen GmbH 100.00 100.00 Production and sale of long steel and related activities CSN Steel Sections UK Limited (4) 100.00 Sale of long steel CSN Steel Sections Polska Sp.Z.o.o 100.00 100.00 Financial transactions, product sales and Equity interests CSN Mining Holding, S.L 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining GmbH 87.52 87.52 Financial transactions, product sales and Equity interests CSN Mining Asia Limited 87.52 87.52 Commercial representation Lusosider Ibérica S.A. 100.00 100.00 Steel, commercial and industrial activities and equity interests CSN Mining Portugal, Unipessoal Lda. 87.52 87.52 Commercial and representation of products Companhia Siderúrgica Nacional, LLC 100.00 100.00 Import and distribution/resale of products CSN Cimentos S.A. (3) 10 10.00 Manufacturing and sale of cement Direct interest in joint operations: proportionate consolidation Itá Energética S.A. 253,606,846 48.75 48.75 Electric power generation Consórcio da Usina Hidrelétrica de Igarapava 17.92 17.92 Electric power consortium Direct interest in joint ventures: equity method MRS Logística S.A. (5) 63,377,198 18.64 18.64 Railroad transportation Aceros Del Orinoco S.A. 31.82 31.82 Dormant company Transnordestina Logística S.A. (6) 24,670,093 47.26 47.26 Railroad logistics Equimac S.A (2) 1,117 50.00 - Rental of commercial and industrial machinery and equipment Indirect interest in joint ventures: equity method MRS Logística S.A. (5) 16.30 16.30 Railroad transportation Direct interest in associates: equity method Arvedi Metalfer do Brasil S.A. 49,074,882 20.00 20.00 Metallurgy and Equity interests Exclusive funds: full consolidation Diplic II- Fundo de investimento multimercado crédito privado 100.00 100.00 Investment fund Caixa Vértice - Fundo de investimento multimercado crédito privado 100.00 100.00 Investment fund VR1 - Fundo de investimento multimercado crédito privado 100.00 100.00 Investment fund (*) Dormant companies. 1. On June 29, 2020, CSN Islands XI Corp. changed its corporate name to CSN Inova Ventures. 2. On June 26, 2020, CSN Equipamentos SA had its corporate name changed to Equimac SA and its capital increased by Unidas Guindastes Eireli. With this capital increase, CSN’s stake in Equimac’s share capital increased to 50% and was classified as joint venture. 3. Company acquired on October 2, 2020. 4. Company liquidated on March 11, 2020. 5. As of December 31, 2020, the Company directly held 63,377,198 shares, of which 26,611,282 were common and 36,765,916 were preferred, and indirectly 63,338,872 shares, of which 25,802,872 were common and 37,536,000 were preferred 6. As of December 31, 2020, the Company had 24,168,304 common shares and 501,789 Class B preferred shares. |
Schedule of direct equity interests in subsidiaries, joint ventures, joint operations, associates and other investments | The number of shares, the balances of assets and liabilities, shareholders’ equity and the profit / (loss) amounts for the period in those investees are as follows: 12/31/2020 12/31/2019 Companies Participation in Participation in Assets Liabilities Shareholders’ equity Profit /(Loss) for the period Assets Liabilities Shareholders’ equity Profit /(Loss) for the period Joint-venture and Joint-operation MRS Logística S.A. 4,175,249 2,567,882 1,607,367 160,371 4,145,205 2,616,218 1,528,987 187,597 Fair Value - MRS Logística S.A. 421,888 (11,747) 433,635 (11,747) CSBI - Companhia Brasileira de Serviços de Infraestrutura - - - 6,665 Transnordestina Logística S.A. (*) 4,657,691 3,497,587 1,160,104 (28,952) 4,398,434 3,209,378 1,189,056 (17,100) Fair Value (*) - Transnordestina - 271,116 - - 271,116 - Equimac S.A 7,536 301 7,235 (329) - - - - 8,840,476 6,065,770 3,467,710 119,343 8,543,639 5,825,596 3,422,794 165,415 Associates Arvedi Metalfer do Brasil S.A. 40,528 32,490 8,038 (6,765) 44,435 31,712 12,723 (1,682) 40,528 32,490 8,038 (6,765) 44,435 31,712 12,723 (1,682) Classified at fair value through profit or loss (note 12 I) Panatlântica 59,879 47,300 59,879 47,300 Eliminations (30,856) (38,219) Other investments Others 279 (9,967) 157 171 279 (9,967) 157 171 Total investments in affillated companies 3,535,906 3,484,974 Total Equity in results of affillated companies 71,755 125,715 Investments properties 159,874 101,195 Total investments 3,695,780 3,584,169 (*) As of December 31, 2020 and December 31, 2019, the net balance of R$271,116 refers to the Fair Value generated by the loss of control of Transnordestina Logística SA in the amount of R$659,105 and impairment of R$387,989 |
Schedule of changes of investments balances in subsidiaries, joint ventures, joint operations, associates and other investments | 10.b) Changes in investments in subsidiaries, jointly controlled companies, joint operations, associates and other investments Consolidated 12/31/2020 12/31/2019 Opening balance of investments 3,482,974 5,630,613 Capital increase/acquisition of shares 3,400 27,909 Dividends (1) (82,642) (94,603) Comprehensive income (2) 6,895 (2,592) Equity in results of affiliated companies(3) 124,324 175,524 Update of shares measured at fair value through profit or loss (Note 14 II) 12,579 (118,780) Reclassification of Usiminas’ shares (2,114,620) Consolidation of CBSI (8,775) Amortization of fair value - investment MRS (11,747) (11,747) Others 123 45 Closing balance of investments 3,535,906 3,482,974 1. In 2020, it mainly refers to dividends of the subsidiary CSN Mineração SA in the amount of R$2,437,482 (R$4,060,816 on December 31, 2019). 2. Refers to translation to the reporting currency of the foreign investments of which functional currency is not the Brazilian Reais, actuarial gain/loss and gain/loss on investment hedge from investments accounted for under the equity method. 3. The table below shows the reconciliation of the equity in results of affiliated companies classified as joint venture and associates and the amount disclosed in the income statement and it is due to the elimination of the results of the CSN´s transactions with these companies. |
Schedule of equity in results | Consolidated 12/31/2020 12/31/2019 Equity in results of affiliated companies MRS Logística S.A. 160,370 187,597 CBSI - Companhia Brasileira de Serviços de Infraestrutura (1) 6,695 Transnordestina Logística S.A. (28,952) (17,100) Arvedi Metalfer do Brasil S.A. (6,765) (1,682) Equimac S.A. (329) Others 14 124,324 175,524 Eliminations To cost of sales (46,751) (57,908) To taxes 15,895 19,689 Others Amortizated at fair value - Investment in MRS (11,747) (11,747) Others (9,966) 157 Equity in results 71,755 125,715 (1) Refers to equity income until November 30, 2019, as of this date, the joint venture started to be controlled and consolidated, according to note 10 c. |
Schedule of joint ventures and joint operations financial information | The balance sheet and income statement balances of the companies whose control is shared are shown below and refer to 100% of the companies’ results: 12/31/2020 12/31/2019 Joint-Venture Joint-Operation Joint-Venture Joint-Operation Equity interest (%) MRS Logística Transnordestina Logística Equimac S.A. Itá Energética MRS Logística Transnordestina Logística Itá Energética 34.94% 47.26% 50.00% 48.75% 34.94% 47.26% 48.75% Balance sheet Current Assets Cash and cash equivalents 1,206,484 1,390 1,351 48,919 670,296 17,166 65,793 Advances to suppliers 27,312 1,948 742 20,100 3,240 363 Other current assets 823,204 51,793 2,356 89,521 1,326,281 59,405 15,955 Total current assets 2,057,000 55,131 3,707 139,182 2,016,677 79,811 82,111 Noncurrent Assets Other non-current assets 608,878 225,492 - 20,807 789,562 258,391 24,361 Investments, PP&E and intangible assets 8,537,009 9,574,588 11,365 390,672 8,316,033 8,968,447 426,403 Total non-current assets 9,145,887 9,800,080 11,365 411,479 9,105,595 9,226,838 450,764 Total Assets 11,202,887 9,855,211 15,072 550,661 11,122,272 9,306,649 532,875 Current Liabilities Borrowings and financing 828,439 241,029 653,784 103,877 Lease liabilities 317,526 256,034 Other current liabilities 1,117,975 125,794 602 19,721 1,561,684 171,821 16,793 Total current liabilities 2,263,940 366,823 602 19,721 2,471,502 275,698 16,793 Noncurrent Liabilities Borrowings and financing 2,162,657 6,368,070 2,369,615 6,084,424 Lease liabilities 1,674,594 1,650,758 Other non-current liabilities 788,862 665,653 15,900 527,871 430,603 16,550 Total non-current liabilities 4,626,113 7,033,723 15,900 4,548,244 6,515,027 16,550 Shareholders’ equity 4,312,834 2,454,665 14,470 515,040 4,102,526 2,515,924 499,532 Total liabilities and shareholders’ 11,202,887 9,855,211 15,072 550,661 11,122,272 9,306,649 532,875 01/01/2020 to 12/31/2020 01/01/2019 to 11/30/2019 01/01/2019 to 12/31/2019 Joint-Venture Joint-Operation Joint-Venture Joint-Operation Equity interest (%) MRS Logística Transnordestina Logística Equimac S.A. Itá Energética CBSI MRS Logística Transnordestina Logística Itá Energética 34.94% 47.26% 50.00% 48.75% 50.00% 34.94% 46.30% 48.75% Statements of Income Net revenue 3,604,965 35 2,308 173,426 267,436 3,200,809 163,048 Cost of sales and services (2,521,991) (2,386) (74,048) (233,830) (2,382,828) (83,129) Gross profit 1,082,974 35 (78) 99,378 33,606 817,981 79,919 Operating (expenses) income (105,267) (42,108) (576) (67,885) (12,328) 207,840 (18,077) (62,660) Financial income (expenses), net (330,756) (19,186) (4) (764) (1,460) (268,089) (18,386) 1,183 Income before income tax and social 646,951 (61,259) (658) 30,729 19,818 757,732 (36,463) 18,442 Current and deferred income tax (216,649) - (10,391) (6,428) (254,378) (6,147) Profit / (loss) for the period 430,302 (61,259) (658) 20,338 13,390 503,354 (36,463) 12,295 |
Schedule of measurement of recoverable value | Measurement of recoverable value Cash Flow Projection By 2057 Gross margin Estimated based on market study to capture cargo and operating costs according to market trend studies Cost estimate Study-based costs and market trends Perpetuity growth rate Growth rate was not considered as a result of the projection model until the end of the concession. Discount rate Range from 5.83% to 7.41% in real terms |
Schedule of investment properties | The balance of investment properties as of December 31, 2020 is shown below: Consolidated Land Buildings Total Balance at December 31, 2019 68,877 32,318 101,195 Cost 68,877 53,816 122,693 Accumulated depreciation (21,498) (21,498) Balance at December 31, 2019 68,877 32,318 101,195 Acquisitions 28,733 32,864 61,597 Depreciation (2,786) (2,786) Write-off (132) (132) Balance at December 31, 2020 97,610 62,264 159,874 Cost 97,610 86,548 184,158 Accumulated depreciation (24,284) (24,284) Balance at December 31, 2020 97,610 62,264 159,874 |
Schedule of average estimated useful lives | The average estimated useful lives for the years are as follows (in years): Consolidated 12/31/2020 12/31/2019 Buildings 27 21 |
11. PROPERTY, PLANT AND EQUIP_2
11. PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Schedule of property, plant and equipment | Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Furniture and fixtures Construction in progress Right of use (i) Other (*) Total Balance at December 31, 2019 226,949 3,062,238 12,603,619 28,455 3,217,052 472,345 90,286 19,700,944 Cost 226,949 4,250,471 24,372,514 170,229 3,217,052 531,044 386,144 33,154,403 Accumulated depreciation (1,188,233) (11,768,895) (141,774) (58,699) (295,858) (13,453,459) Balance at December 31, 2019 226,949 3,062,238 12,603,619 28,455 3,217,052 472,345 90,286 19,700,944 Effect of foreign exchange differences 30,271 57,838 186,591 2,416 4,727 4,329 1,823 287,995 Acquisitions 654 865 122,744 874 1,583,054 49,934 4,156 1,762,281 Capitalized interest (1) (notes 28 and 33) 92,506 92,506 Write-offs (note 27) (188) (3,073) (33) (9) (7,318) (2,377) (12,998) Depreciation (note 26) (458) (780,395) (1,564,525) (6,747) (62,680) (24,517) (2,439,322) Transfers to other asset categories 458 67,574 1,112,024 1,338 (1,212,373) 30,979 Transfers to intangible assets (4,633) (4,633) Right of use - Remesurement 60,058 60,058 Update of the ARO (Asset retirement obligation) 269,445 269,445 Others 3 (6) (2) (48) (53) Balance at December 31, 2020 257,686 2,677,565 12,457,383 26,297 3,680,322 516,668 100,302 19,716,223 Cost 257,686 4,752,412 26,213,225 182,974 3,680,322 634,786 414,705 36,136,110 Accumulated depreciation (2,074,847) (13,755,842) (156,677) (118,118) (314,403) (16,419,887) Balance at December 31, 2020 257,686 2,677,565 12,457,383 26,297 3,680,322 516,668 100,302 19,716,223 Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Furniture and fixtures Construction in progress Right of use (i) Other (*) Total Balance at December 31, 2018 287,854 2,678,638 11,687,271 30,530 3,282,436 - 80,135 18,046,864 Cost 287,854 3,751,429 22,426,782 165,331 3,282,436 - 355,768 30,269,600 Accumulated depreciation (1,072,791) (10,739,511) (134,801) (275,633) (12,222,736) Balance at December 31, 2018 287,854 2,678,638 11,687,271 30,530 3,282,436 - 80,135 18,046,864 Effect of foreign exchange differences 1,499 2,978 8,033 106 2,464 56 15,136 Acquisitions 6,125 16,116 459,460 1,763 1,924,520 43,111 41,574 2,492,669 Capitalized interest (1) (notes 28 and 33) 13.0 117,176 - 117,189 Write-offs (note 27) (2,143) (130) (80,426) (1) (30,400) (1,354) (149) (114,603) Depreciation (note 26) (135,313) (1,241,026) (5,999) (58,843) (25,038) (1,466,219) Transfers to other asset categories 790 294,872 1,766,047 2,629 (2,053,290) - (11,048) - Transfers to intangible assets (31) - - (11,865) - - (11,896) Right of use - initial recognition - - - 640,989 - 640,989 Right of use - Remesurement - - - (151,558) - (151,558) Update of the ARO (Asset retirement obligation) 225,125 - - - - - 225,125 Transfers to investment property (67,176) (20,030) - - (13,989) - - (101,195) Consolidation CBSI 4,940 (573) - - 4,756 9,123 Others (680) - - - - (680) Balance at December 31, 2019 226,949 3,062,238 12,603,619 28,455 3,217,052 472,345 90,286 19,700,944 Cost 226,949 4,250,471 24,372,514 170,229 3,217,052 531,044 386,144 33,154,403 Accumulated depreciation (1,188,233) (11,768,895) (141,774) (58,699.0) (295,858) (13,453,459) Balance at December 31, 2019 226,949 3,062,238 12,603,619 28,455 3,217,052 472,345 90,286 19,700,944 (*) Refer substantially to: i) (1) The cost of capitalized interest is calculated, basically, for Mining projects that substantially refer to the expansion of Casa de Pedra (MG) and TECAR (RJ) - see notes 28 and 33. The average rate used for the capitalization of interest on non-specific projects in the period ended December 31 2020 was 5.62% per year (6.58% per year as of December 31, 2019). |
Schedule of rights of use | Below the movements of the right of use recognized on December 31, 2020 and 2019: Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Others Total Balance at December 31, 2019 380,566 64,154 24,144 3,481 472,345 Cost 401,746 73,344 39,455 16,499 531,044 Accumulated depreciation (21,180) (9,190) (15,311) (13,018) (58,699) Balance at December 31, 2019 380,566 64,154 24,144 3,481 472,345 Effect of foreign exchange differences 988 294 3,047 4,329 Addition 9,039 4,561 23,720 12,614 49,934 Remesurement 34,645 3,827 21,557 29 60,058 Depreciation (24,467) (983) (14,211) (23,019) (62,680) Write-offs (6,580) (399) (339) (7,318) Transfers to other asset categories (188) (6,062) (3,558) 9,808 Balance at December 31, 2020 393,015 66,086 51,946 5,621 516,668 Cost 434,689 75,882 81,598 42,617 634,786 Accumulated depreciation (41,674) (9,796) (29,652) (36,996) (118,118) Balance at December 31, 2020 393,015 66,086 51,946 5,621 516,668 Consolidated Land Buildings and Infrastructure Machinery, equipment and facilities Other Total Initial recognition – Rights of use 556,133 54,513 9,783 20,560 640,989 Addition 6,719 34,197 2,195 43,111 Remeasurement (152,915) 12,112 (4,525) (6,230) (151,558) Depreciation (21,314) (9,190) (15,311) (13,028) (58,843) Write-off (1,338) (16) (1,354) Balance at December 31, 2019 380,566 64,154 24,144 3,481 472,345 Cost 401,746 73,344 39,455 16,499 531,044 Accumulated depreciation (21,180) (9,190) (15,311) (13,018) (58,699) Balance at December 31, 2019 380,566 64,154 24,144 3,481 472,345 |
Schedule of estimated useful lives | The average estimated useful lives for the years are as follows (in years): Consolidated 12/31/2020 12/31/2019 Buildings and Infrastructure (1) 34 38 Machinery, equipment and facilities 20 21 Furniture and fixtures 12 12 Others 10 14 (1) The decrease was caused by the review of the useful lives of dams infrastructure as a result of technical and functional obsolescence recorded in 2020 as a result of the use of filter and stack dry tailings in our iron ore production. |
12. INTANGIBLE ASSETS (Tables)
12. INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of intangible assets | Consolidated Goodwill Customer relationships Software Trademarks Rights and licenses (*) Others Total Balance at December 31, 2019 3,606,156 246,139 53,859 153,103 3,170,960 1,564 7,231,781 Cost 3,846,563 585,407 171,152 153,103 3,189,789 1,564 7,947,578 Accumulated amortization (131,077) (339,268) (117,293) (18,829) (606,467) Adjustment for accumulated recoverable value (109,330) (109,330) Balance at December 31, 2019 3,606,156 246,139 53,859 153,103 3,170,960 1,564 7,231,781 Effect of foreign exchange differences 94,998 584 62,429 638 158,649 Acquisitions and expenditures 1,837 1,837 Transfer of property, plant and equipment 633 4,000 4,633 Amortization (note 26) (63,096) (11,248) (5,611) (79,955) Others (151) (151) Balance at December 31, 2020 3,606,156 278,041 45,665 215,532 3,169,349 2,051 7,316,794 Cost 3,846,563 823,540 182,059 215,532 3,193,787 2,051 8,263,532 Accumulated amortization (131,077) (545,499) (136,394) (24,438) (837,408) Adjustment for accumulated recoverable value (109,330) (109,330) Balance at December 31, 2020 3,606,156 278,041 45,665 215,532 3,169,349 2,051 7,316,794 Consolidated Goodwill Customer relationships Software Trademarks Rights and licenses (*) Others Total Balance at December 31, 2018 3,590,931 288,773 54,972 150,009 3,166,999 1,491 7,253,175 Cost 3,831,338 573,614 161,067 150,009 3,185,701 1,491 7,903,220 Accumulated amortization (131,077) (284,841) (106,095) - (18,702) - (540,715) Adjustment for accumulated recoverable value (109,330) - - - - - (109,330) Balance at December 31, 2018 3,590,931 288,773 54,972 150,009 3,166,999 1,491 7,253,175 Effect of foreign exchange differences - 4,711 3 3,092 - 33 7,839 Acquisitions and expenditures - $0.00 1,387 - - 40 1,427 Transfer of property, plant and equipment - $0.00 7,808 - 4,088 11,896 Amortization (note 26) - (47,345) (10,657) - (127) (58,129) Goodwill - acquisition 50% CBSI (note 8.d) 15,225 - - - - 15,225 Consolidated CBSI on November 30, 2019 - - 346 2 - 348 Balance at December 31, 2019 3,606,156 246,139 53,859 153,103 3,170,960 1,564 7,231,781 Cost 3,846,563 585,407 171,152 153,103 3,189,789 1,564 7,947,578 Accumulated amortization (131,077) (339,268) (117,293) - (18,829) - (606,467) Adjustment for accumulated recoverable value (109,330) - - - - - (109,330) Balance at December 31, 2019 3,606,156 246,139 53,859 153,103 3,170,960 1,564 7,231,781 (*) Composed mainly of mining rights. Amortization is based on production volume. |
Schedule of estimated useful lives | The average useful life by nature is as follows (in years): Consolidated 12/31/2020 12/31/2019 Software 9 9 Customer relationships 13 13 |
Schedule of cash generating units | The CGUs with intangible assets in this situation are shown below: Consolidated Goodwill Trademarks Total Cash generating of units Segment 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Packaging (1) Steel 158,748 158,748 158,748 158,748 Long steel (2) Steel 235,595 235,595 215,532 153,103 451,127 388,698 Mining (3) Mining 3,196,588 3,196,588 3,196,588 3,196,588 Other Steel (4) Steel 15,225 15,225 15,225 15,225 3,606,156 3,606,156 215,532 153,103 3,821,688 3,759,259 (1) The goodwill of the Packaging cash-generating unit is shown net of impairment loss in the amount of R$109,330, recognized in 2011 (2) The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows. (3) Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineração concluded in December 2015, which recoverability is tested annually. (4) On November 29, 2019, CSN acquired the stake held by CKTR Brasil Serviços Ltda., corresponding to 50% of CBSI's shares, and now holds 100% of CBSI's share capital. |
Schedule of assumptions for impairment test | The main assumptions used in the calculation of the value in use on December 31, 2020, are as follows: Packaging Mining Other Steelmaking Flat Steel Logistics Measurement of recoverable value DCF DCF DCF DCF DCF Cash Flow Projection Until 2030 + perpetuity Until 2064 Until 2030 + perpetuity Until 2030 + perpetuity by 2027 Gross margin Update of gross margin based on historical data, incorporation of the impacts of business restructuring and market trends. It reflects projection of costs due to the progress of the mining plan as well as startup and project ramp up. Prices and exchange rates projected according to sectoral reports. Update of gross margin based on historical data and market trends. Update gross margin based on historical data and market trends. Estimated based on market study to capture cargo and operating costs according to market trend studies Update costs Update of costs based on historical data for each product and incorporation of the impacts of business restructuring. Update of costs based on historical data, progress of the mining plan as well as startup and project ramp up Update of costs based on historical data and market trends. Update of costs based on historical data and market trends. Study-based costs and market trends Perpetuity growth rate No growth. Without perpetuity. No growth. Growth of 1.4% per year in real terms, updated by long-term inflation of 1.7% per year in the Eurozone. Without perpetuity. Discount Rate For packaging, cash flow was discounted using a discount rate of around 8% per year in real terms. For mining, flat steel and other steel (CBSI), cash flows were discounted using a discount rate between 7% to 9.5% pa in nominal terms. For logistics, cash flow was discounted using a discount rate between 5.87% to 6.40% pa in real terms. The discount rate was based on the weighted average cost of capital (“WACC”) which reflects the specific risk of each segment. (*) refer to the assets of the subsidiary Lusosider, located in Portugal. The discount rate was applied to the discounted cash flow prepared in Euros, the functional currency of this subsidiary. (**) refer to the assets of the subsidiary FTL - Ferrovia Transnordestina Logística SA |
13. BORROWINGS AND FINANCING (T
13. BORROWINGS AND FINANCING (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings And Financing | |
Schedule of financial assets borrowings, financing and debentures | The balances of loans, financing and debentures that are recorded at amortized cost are as follows: Consolidated Current Liabilities Noncurrent Liabilities 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Foreign Debt Floating Rates: Prepayment (1) 1,119,558 1,769,975 3,457,105 2,563,928 Fixed Rates: Bonds, Perpetual bonds and Advance on Foreign Exchange Contract (2) 426,676 2,047,032 19,898,213 10,177,517 Intercompany Fixed interest in EUR Intercompany Facility 326,970 223,204 143,503 147,241 1,873,204 4,040,211 23,498,821 12,888,686 Debt agreements in Brazil Floating Rate Securities in R$: BNDES/FINAME, Debentures, NCE and CCB (3) 2,282,279 1,086,985 7,716,307 10,049,783 Fixed Rate Securities in R$: Intercompany 25,038 2,282,279 1,112,023 7,716,307 10,049,783 Total Borrowings and Financing 4,155,483 5,152,234 31,215,128 22,938,469 Transaction Costs and Issue Premiums (29,030) (26,391) (70,928) (97,276) Total Borrowings and Financing + Transaction cost 4,126,453 5,125,843 31,144,200 22,841,193 (1) In 2020, the Company renegotiated part of the Prepayment debt in the total amount of U$311 million, postponing part of the maturities of 2020 and 2021 to 2022. (2) In 2020, the Company issued debt securities representing the foreign market (“Notes”), through its subsidiary CSN Inova Ventures, with maturity in 2028 and interest rate of 6.75% per year, totaling US$1, 3 billion, of which US$1 billion in January and US$300 million in November. Additionally, we used US$263 million in the repurchase offer (“Tender Offer”) of the Notes issued by CSN Resources SA in January 2020. All Notes mentioned above are unconditionally and irrevocably guaranteed by the Company. (3) In June 2020, the Company renegotiated a debt rollover in the amount of R$300 million, shifting the maturities of 2020 to the years 2021, 2022 and 2023. |
Schedule of financial assets average interest rate | The following table shows the average interest rate: Consolidated 12/31/2020 Average interest rate (i) Total debt US$ 6.63% 24,901,552 EUR 1.50% 470,473 R$ 2.82% 9,998,586 35,370,611 (i) To determine the average interest rate on debt contracts with floating rates, the Company used the rates applied on December 31, 2020. In The Company, it considers the interest rate of the contracts intercompany |
Schedule of financial assets maturities of borrowings, financing and debentures | 13.a) Maturities of loans, financing and debentures presented in current and non-current liabilities Consolidated 12/31/2020 Principal Borrowings and financing in foreign currency Borrowings and financing in national currency Total 2021 1,873,204 2,282,279 4,155,483 2022 2,683,224 2,859,423 5,542,647 2023 5,567,133 3,036,338 8,603,471 2024 178,033 1,238,275 1,416,308 2025 68,595 68,595 2026 3,118,021 68,587 3,186,608 After 2026 6,755,710 445,089 7,200,799 Perpetual bonds 5,196,700 5,196,700 25,372,025 9,998,586 35,370,611 |
Schedule of financial assets new funding transactions and amortization | The following table shows amortization and funding during the year: Consolidated 12/31/2020 12/31/2019 Opening balance 27,967,036 28,827,074 New debts 8,116,247 10,149,381 Repayment (6,448,658) (11,775,093) Payments of charges (1,922,130) (2,039,112) Accrued charges (Note 28) 2,002,052 1,996,305 Consolidation of CBSI 19,722 Others (1) 5,556,106 788,759 Closing balance 35,270,653 27,967,036 1. Including unrealized exchange and monetary variations and funding cost. |
Schedule of financial assets group captures and amortized loans | Funding and Amortization Consolidated 12/31/2020 Nature New debts Repayment Interest payment Prepayment 177,420 (1,028,606) (245,125) Bonds, Perpetual bonds, ACC, CCE and Facility 7,917,929 (4,458,888) (1,237,396) BNDES/FINAME, Debentures, NCE and CCB 20,898 (961,164) (439,609) 8,116,247 (6,448,658) (1,922,130) |
14. FINANCIAL INSTRUMENTS (Tabl
14. FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of financial instruments | Classification of financial instruments Consolidated Consolidated 12/31/2020 12/31/2019 Notes Fair value through profit or loss Measured at amortized cost Balances Fair value through profit or loss Measured at amortized cost Balances Assets Current Cash and cash equivalents 4 9,944,586 9,944,586 1,088,955 1,088,955 Short-term investments 5 3,305,109 478,253 3,783,362 2,114,620 518,553 2,633,173 Trade receivables 6 2,867,352 2,867,352 2,047,931 2,047,931 Dividends and interest on equity 9 38,088 38,088 44,554 44,554 Derivative financial instruments 9 1,364 1,364 Trading securities 9 5,065 5,065 4,034 4,034 Total 3,310,174 13,328,279 16,638,453 2,120,018 3,699,993 5,820,011 Non-current Investments 5 123,409 123,409 95,719 95,719 Other trade receivables 9 2,445 2,445 7,059 7,059 Eletrobrás compulsory loan 9 852,532 852,532 845,284 845,284 Receivables by indemnity 9 517,183 517,183 Loans - related parties 9 966,050 966,050 846,300 846,300 Investments 10 59,879 59,879 47,300 47,300 Derivative financial instruments 9 4,203 4,203 Total 59,879 2,461,619 2,521,498 51,503 1,794,362 1,845,865 Total Assets 3,370,053 15,789,898 19,159,951 2,171,521 5,494,355 7,665,876 Liabilities Current Borrowings and financing 13 4,155,483 4,155,483 5,152,234 5,152,234 Trade payables 17 4,819,539 4,819,539 3,012,654 3,012,654 Trade payables - drawee risk 15 623,861 623,861 1,121,312 1,121,312 Dividends and interest on capital 15 946,133 946,133 13,252 13,252 Leases 16 93,626 93,626 35,040 35,040 Derivative financial instruments 8,722 8,722 Total 8,722 10,638,642 10,647,364 9,334,492 9,334,492 Non-current Borrowings and financing 13 31,215,128 31,215,128 22,938,469 22,938,469 Trade payables 17 543,527 543,527 Derivative financial instruments 97,535 97,535 Leases 16 436,505 436,505 439,350 439,350 Total 97,535 32,195,160 32,292,695 23,377,819 23,377,819 Total Liabilities 106,257 42,833,802 42,940,059 32,712,311 32,712,311 |
Schedule of financial instruments at fair value through profit or loss | The table below shows the financial instruments recorded at fair value through profit or loss, classifying them according to the fair value hierarchy: Consolidated 12/31/2020 12/31/2019 Level 1 Level 2 Balances Level 1 Level 2 Balances Assets Current Financial assets at fair value through profit or loss Financial investments 3,305,109 3,305,109 2,114,620 2,114,620 Derivative financial instruments 1,364 1,364 Trading securities 5,065 5,065 4,034 4,034 Non-current Financial assets at fair value through profit or loss Investments 59,879 59,879 47,300 47,300 Derivative financial instruments 4,203 4,203 Total Assets 3,370,053 3,370,053 2,165,954 5,567 2,171,521 Liabilities Current Financial liabilities at fair value through profit or loss Derivative financial instruments 8,722 8,722 Non-current Financial liabilities at fair value through profit or loss Derivative financial instruments 97,535 97,535 Total Liabilities 106,257 106,257 |
Schedule of other Operating Income and Expenses | In accordance with the Company’s policy, the gains and losses arising from the variation in the share price are recorded directly in the income statement as financial result in the case of financial investments, or as other operating income and expenses in the case of long-term investments. Class of shares 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Quantity Equity interest (%) Share price Closing Balance Quantity Equity interest (%) Share price Closing Balance Fair value adjustment recognized in profit or loss (note 27 and 28) USIM3 107,156,651 15.19% 15.69 1,681,288 107,156,651 15.19% 9.87 1,057,636 623,652 (168,236) USIM5 111,144,456 20.29% 14.61 1,623,821 111,144,456 20.29% 9.51 1,056,984 566,837 32,232 3,305,109 2,114,620 1,190,489 (136,004) PATI3 2,065,529 11.31% 28.99 59,879 2,065,529 11.31% 22.90 47,300 12,579 17,224 3,364,988 2,161,920 1,203,068 (118,780) |
Schedule of foreign exchange exposure | The consolidated net exposure as of December 31, 2020 is shown below: 12/31/2020 Foreign Exchange Exposure (Amounts in US$’000) (Amounts in €’000) Cash and cash equivalents overseas 664,951 13,372 Trade receivables 387,039 2,560 Financial investments 23,748 Other assets 9,158 4,474 Total Assets 1,084,896 20,406 Borrowings and financing (4,812,268) Trade payables (139,672) (9,258) Iron ore derivative (172) Other liabilities (9,305) (1,010) Total Liabilities (4,961,417) (10,268) Foreign exchange exposure (3,876,521) 10,138 Cash flow hedge accounting 3,992,200 Exchange rate swap CDI x Dollar (67,000) Net foreign exchange exposure 48,679 10,138 |
Schedule of currencies used in sensitivity analysis | The currencies used in the sensitivity analysis and their respective scenarios are shown below: 12/31/2020 Currency Exchange rate Probable scenario Scenario 1 Scenario 2 USD 5.1967 5.2617 6.4959 7.7951 EUR 6.3779 6.3867 7.9724 9.5669 USD x EUR 1.2271 1.2124 1.5339 1.8407 |
Schedule of sensitivity analysis effects on exchange position | The effects on the result, considering scenarios 1 and 2 are shown below: 12/31/2020 Instruments Notional Risk Probable scenario (*) R$ Scenario 1 R$ Scenario 2 R$ Gross exchange position (3,876,521) Dollar (251,974) (5,036,279) (10,072,558) Cash flow hedge accounting 3,992,200 Dollar 259,493 5,186,566 10,373,133 Exchange rate swap CDI x Dollar (67,000) Dollar (4,355) (87,045) (174,089) Net exchange position 48,679 Dollar 3,164 63,242 126,486 Net exchange position 10,138 Euro 89 16,165 32,330 Exchange rate swap Dollar x Euro 40,697 Dollar 5,264 50,134 78,337 (*) The probable scenarios were calculated considering the following variations for risks: Real x Dollar - devaluation of the Real by 1.25% / Real x Euro - devaluation of the Real by 0.14% / Euro x Dollar - appreciation of Euro by 1.20%. Source: Central Bank of Brazil and European Central Bank quotations on 1/14/2021. |
Schedule of sensitivity analysis effects on class of shares | The effects on the result, considering the probable scenarios, 1 and 2 are shown below: 12/31/2020 Class of shares Probable scenario Scenario 1 Scenario 2 USIM3 (84,064) (420,322) (840,644) USIM5 (81,191) (405,955) (811,910) PATI3 (2,994) (14,970) (29,940) |
Schedule of sensitivity analysis of interest rate swaps | The interest rates used in the sensitivity analysis and their respective scenarios are shown below: 12/31/2020 Interest Interest Rate Scenario 1 Scenario 2 CDI 1.90% 2.38% 2.85% TJLP 4.55% 5.69% 6.38% LIBOR 0.26% 0.32% 0.39% The effects on the result, considering scenarios 1 and 2 are shown below: Consolidated Impact on profit or loss Changes in interest rates % p.a Assets Liabilities Probable scenario (*) Scenario 1 Scenario 2 CDI 1.90 5,779,452 (9,104,416) (10,673) (15,794) (31,588) TJLP 4.55 (817,374) (2,155) (9,298) (18,596) Libor 0.26 (4,533,341) (43,321) (2,920) (5,840) (*) The sensitivity analysis is based on the premise of maintaining the market values as of December 31, 2020 as a probable scenario recorded in the company’s assets and liabilities. |
Schedule of sensitivity analysis of price risks platts index | The effects on the result, considering scenarios 1 and 2 are shown below: 12/31/2020 Maturity Probable scenario (*) R$ Scenario 1 R$ Scenario 2 R$ 2/2/2021 (33,677) (120,262) (240,524) 3/2/2021 (43,144) (127,915) (255,830) (76,821) (248,177) (496,354) (*) The probable scenario was calculated considering the quotation of “ Platts |
Schedule of dollar x Euro swap | The Company has derivative transactions with Banco Bradesco to protect its debt in NCE raised in September 2019 with maturity in October 2023 in the amount of US$67 million (equivalent to R$278 million) at a cost compatible with that usually practiced by the Company. Consolidated 12/31/2020 Appreciation (R$) Fair value (market) Impact on financial income (expenses) in 2020 Counterparties Maturity Functional Currency Notional amount Asset position Liability position Amounts receivable / (payable) Exchange rate swap Dollar x Euro 04/26/2021 to 06/08/2021 Dollar 17,377 90,315 (93,823) (3,508) (4,749) Exchange rate swap Dollar x Euro 01/06/2021 a 06/11/2021 Dollar 23,320 121,207 (125,528) (4,321) (4,321) Total dollar-to-euro swap 40,697 211,522 (219,351) (7,829) (9,070) Exchange rate swap GBP x Euro Settled GBP 3,956 (602) Total Swap GBP x Euro 3,956 (602) Exchange rate swap CDI x Dollar 02/10/2023 Dollar (67,000) 289,544 (387,079) (97,535) (106,143) Total Swap CDI x dollar (67,000) 289,544 (387,079) (97,535) (106,143) 501,066 (606,430) (105,364) (115,815) |
Schedule of hedging instruments | The table below presents a summary of the relations of hedge 12/31/2020 Designation Date Hedging Instrument Hedged item Type of hedged risk Hedged period Exchange rate on designation Designated amounts (US$’000) Amortizated part (USD'000) Effect on Result (*) (R$'000) Impact on Shareholders' equity (R$'000) 12/18/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate May 2020 2.6805 30,000 (30,000) (82,374) - 12/18/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate May 2020 2.678 35,000 (35,000) (96,190) - 12/18/2014 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate May 2020 2.676 35,000 (35,000) (96,261) - 07/21/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2019 - March 2021 3.1813 60,000 (45,000) (58,475) (30,231) 07/23/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2019 - March 2021 3.285 100,000 (75,000) (92,026) (47,793) 07/23/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.285 30,000 (18,000) (14,185) (22,940) 07/24/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3254 100,000 (60,000) (46,474) (74,852) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3557 25,000 (15,000) (11,467) (18,410) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3557 70,000 (42,000) (32,108) (51,548) 07/27/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3557 30,000 (18,000) (13,760) (22,092) 07/28/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate August 2018 - October 2022 3.3815 30,000 (18,000) (13,605) (21,782) 3/8/2015 Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2018 - October 2022 3.394 355,000 (276,500) (338,777) (141,512) 2/4/2018 Bonds Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate July 2018 - February 2023 3.3104 1,170,045 (820,045) (306,189) (660,205) 07/31/2019 Bonds and Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate January 2020 - April 2026 3.7649 1,342,761 (247,061) (329,966) (1,568,823) 10/1/2020 Bonds without express maturity and Export prepayments in US$ to third parties Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate March 2020 - December 2050 4.0745 1,416,000 (102,000) (136,029) (1,474,571) 01/28/2020 Bonds Part of the highly probable future monthly iron ore exports Foreign exchange - R$ vs. US$ spot rate March 2017 - January 2028 4.2064 1,000,000 - - (990,299) Total 5,828,806 (1,836,606) (1,667,886) (5,125,058) (*) On December 31, 2020, the amount of (R$1,667,886) was recorded in Other Operating Expenses. As of December 31, 2019, (R$790,353). |
Schedule of changes in hedge accounting | The changes in the hedge accounting amounts recognized in shareholders’ equity as of December 31, 2020 are as follows : Consolidated 12/31/2019 Movement Realization 12/31/2020 Cash flow hedge accounting 1,255,770 5,537,174 (1,667,886) 5,125,058 |
Schedule of reclassified to other operating income and expenses | The table below shows the result of the derivative instrument on December 31, 2020 recognized in Other Comprehensive Income and, when carrying out shipments, the amount reclassified to Other Operating Income and Expenses: 12/31/2020 12/31/2020 Appreciation (R$) Fair value (market) Other income and expenses Other comprehensive income Exchange variation Maturity Notional Asset position Liability position Amounts receivable / (payable) 09/02/2020 (Settled) Platts (31,678) (136) 10/02/2020 (Settled) Platts (132,997) (9,051) 11/04/2020 (Settled) Platts (85,164) (7,301) 12/02/2020 (Settled) Platts (33,310) 52 2/2/2021 Platts 486,852 (493,925) (7,073) (6,888) (185) 2/3/2021 Platts 527,684 (521,504) 6,180 6,063 117 1,014,536 (1,015,429) (893) (283,149) (825) (16,504) |
Schedule of changes in hedge accounting platts | The change in the amounts related to cash flow hedge accounting - “Platts” index recorded in shareholders’ equity on December 31, 2020 is shown as follows: 12/31/2019 Movement Realization 12/31/2020 Cash flow hedge accounting – “Platts” 283,974 (283,149) 825 Income tax and social contribution on cash flow hedge accounting (96,551) 96,271 (280) Fair Value of cash flow accounting - Platts, net 187,423 (186,878) 545 |
Schedule of non-derivative financial liabilities | In order to eliminate this exposure and cover future fluctuations in the Euro on these loans, non-derivative financial liabilities were designated, represented by loan contracts with financial institutions in the amount of € 120 million which matured on January 31, 2020, when was settled financially. 12/31/2020 Designation Date Hedging Instrument Hedged item Type of hedged risk Exchange rate on designation Designated amounts (EUR'000) Impact on shareholders' equity 09/30/2015 Non-derivative financial liabilities in EUR – Debt contract Investments in subsidiaries which EUR is the functional currency Foreign exchange - R$ vs. EUR spot rate 4.0825 120,000 6,293 Total 120,000 6,293 |
Schedule of balance sheet and statement of income | Classification of derivatives in the balance sheet and income 12/31/2020 12/31/2019 Instruments Liabilities Other operating income expenses Other comprehensive income Financial income (expenses), net (note 28) Current Non-current Total Exchange rate swap Dollar x Euro (7,829) (7,829) (9,070) 783 Exchange rate swap GBP x Euro (602) Exchange rate swap CDI x Dollar (97,535) (97,535) (106,143) 4,203 Iron ore derivative (893) (893) (283,149) (825) (16,504) (8,722) (97,535) (106,257) (283,149) (825) (132,319) 4,986 |
Schedule of contractual maturities of financial liabilities | The following are the contractual maturities of financial liabilities including interest. Consolidated At December 31, 2020 Less than one year From one to two years From two to five years Over five years Total Borrowings, financing and debentures (note 13) 4,155,483 14,146,118 4,671,511 12,397,499 35,370,611 Lease Liabilities (note 16) 93,626 143,227 115,398 177,880 530,131 Derivative financial instruments (note 14 I) 8,722 97,535 106,257 Trade payables (note 17) 4,819,539 528,551 14,976 5,363,066 Trade payables – Drawee risk (note 14 I) 623,861 623,861 Dividends and interest on equity (note 15) 946,133 946,133 Total 10,647,364 14,817,896 4,899,420 12,575,379 42,940,059 |
Schedule of fair values of assets and liabilities | The estimated fair value for certain consolidated long-term borrowings and financing was calculated at current market rates, considering the nature, term and risks similar to those of the registered contracts, as follows: 12/31/2020 12/31/2019 Closing Balance Fair value Closing Balance Fair value Perpetual bonds 5,203,773 5,157,465 4,036,186 3,706,553 Fixed Rate Notes 15,067,341 15,744,067 8,090,297 8,345,471 |
Schedule of capital Management | The Company seeks to optimize its capital structure in order to reduce its financial costs and maximize the return to its shareholders. The table below shows the evolution of the Company’s consolidated capital structure, with financing by equity and third-party capital: Thousands of reais 12/31/2020 12/31/2019 Shareholder's equity (equity) 11,251,505 11,361,932 Borrowings and Financing (Third-party capital) 35,270,653 27,967,036 Gross Debit/Shareholder's equity 3.13 2.46 |
15. OTHER PAYABLES (Tables)
15. OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Payables [Abstract] | |
Schedule of other payables | The other obligations classified in current and non-current liabilities have the following composition: Consolidated Current Non-current 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Payables to related parties (note 22 b) 70,458 46,063 78,083 88,021 Derivative financial instruments (note 14 I) 8,722 97,535 Dividends and interest on capital (note 14 I) 946,133 13,252 Advances from customers (1) 1,100,772 787,604 1,725,838 1,845,248 Taxes in installments 45,331 19,498 160,247 67,727 Profit sharing - employees 150,341 162,866 Taxes payable 38,493 8,805 Provision for consumption and services 175,242 204,299 Third party materials in our possession 84,832 78,820 Trade payables - Drawee Risk (note 17) 623,861 1,121,312 Trade payables (note 17) 543,527 Lease Liabilities (note 16) 93,626 35,040 436,505 439,350 Other payables 58,321 57,690 65,108 44,551 3,357,639 2,526,444 3,145,336 2,493,702 1. Advances from customers: During 2019, the subsidiary CSN Mineração entered into an agreement with a major international player for the supply of approximately 22 million tons of iron ore and an additional supply of 11 million tons of iron ore. Accordingly, CSN Mineração S.A. received in advance the amounts of US$496 million (R$1,951,303) and US$250 million (R$956,440) on March 29, 2019 and August 5, 2019, respectively. The term for the execution of the contracted volumes is 5 years. Finally, on September 16, 2019, the parties again amended the contract to adjust the delivery conditions for iron ore. In July 2020, the subsidiary concluded the contract for the additional supply of approximately 4 million tons of iron ore, which was received in advance, on August 28, 2020, the amount of US$115 million (R$629 million). The term for the execution of the contract is 3 years. |
16. LEASES (Tables)
16. LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |
Schedule of lease liabilities | Lease liabilities are shown below: Consolidated 12/31/2020 12/31/2019 Leases 1,623,523 1,501,960 Present value adjustment - Leases (1,093,392) (1,027,570) 530,131 474,390 Classified: Current 93,626 35,040 Non-current 436,505 439,350 530,131 474,390 |
Schedule of movement of lease liabilities | The movement of lease liabilities is shown in the table below: Consolidated 12/31/2020 12/31/2019 Opening balance 474,390 640,989 New leases 52,835 106,584 Present Value Adjustments - New leases (6,511) (54,080) Contract review 63,250 (175,609) Write-off (7,757) (1,374) Payments (103,648) (94,727) Interest appropriated 54,236 52,607 Exchange variation 3,336 - Net balance 530,131 474,390 |
Schedule of estimated future minimum payments for the lease agreements | As of December 31, 2020 are the following: Consolidated Less than one year Between one and five years Over five years Total Leases 98,788 368,659 1,156,076 1,623,523 Present value adjustment - Leases (5,162) (110,034) (978,196) (1,093,392) 93,626 258,625 177,880 530,131 |
Schedule of recoverable PIS / COFINS | Lease liabilities were measured at the amount of consideration with suppliers, that is, without considering the tax credits incurred after payment. The potential right of PIS and COFINS embedded in the lease liability is shown below. Consolidated 12/31/2020 12/31/2019 Leases 1,603,100 1,489,789 Present value adjustment - Leases (1,091,275) (1,026,919) Potencial PIS and COFINS credit 148,287 137,805 Present value adjustment – Potential PIS and COFINS credit (100,943) (96,461) |
Schedule of measurement of the lease liability | The expenses related to payments not included in the measurement of the lease liability during the year are: Consolidated 12/31/2020 12/31/2020 Contract less than 12 months 549 10,819 Lower Assets value 9,563 3,853 Variable lease payments 270,449 177,460 280,561 192,132 |
Schedule of comparative balances of lease liabilities | Considering Circular Letter / CVM / SNC / SEP No. 02/2019, the Company discloses below the comparative balances of lease liabilities, right to use, financial expenses and depreciation expenses with the use of rates in real terms to discount a present value of flows also in real terms. Consolidated 12/31/2020 12/31/2019 Rate in nominal terms and actual flow Rate and actual flow in nominal terms Rate in nominal terms and actual flow Rate and actual flow in nominal terms Lease Liability 530,131 595,193 474,390 579,390 Right of net use 511,882 547,671 472,345 567,905 Financial expenses (50,513) (63,744) (49,118) (57,556) Depreciation (57,342) (59,560) (53,826) (57,356) |
17. TRADE PAYABLES (Tables)
17. TRADE PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade Payables | |
Schedule of trade payables | Consolidated Current Non-current 12/31/2020 12/31/2019 12/31/2020 Trade payables 4,893,589 3,012,654 594,051 (-) Adjustment present value (74,050) (50,524) 4,819,539 3,012,654 543,527 |
18.INCOME TAX AND SOCIAL CONTRI
18.INCOME TAX AND SOCIAL CONTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contributions | |
Schedule of income tax and social contribution income (expense) | The income tax and social contribution recognized in net income for the year are as follows: Consolidated 12/31/2020 12/31/2019 12/31/2018 Income tax and social contribution income (expense) Current (2,052,204) (1,564,622) (827,229) Deferred 1,426,696 2,398,400 576,895 (625,508) 833,778 (250,334) |
Schedule of reconciliation of income tax and social contribution income (expense) | The reconciliation of income and social contribution expenses and income of the consolidated and the product of the current tax rate on income before income tax and social contribution are shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Income before income tax and social contribution 4,918,126 1,410,733 5,450,917 Tax rate 34% 34% 34% Income tax and social contribution at combined statutory rate (1,672,163) (479,649) (1,853,312) Adjustment to reflect the effective rate: Equity in results of affiliated companies 28,391 46,737 50,134 Profit with differentiated rates or untaxed (519,840) (236,404) (46,006) Transfer price adjustment (15,645) (18,494) (74,836) Tax loss carryforwards without recognizing deferred taxes (27,758) (21,095) (27,683) Indebtdness limit (25,087) (20,393) (38,486) Unrecorded deferred taxes on temporary differences 5,142 (2,835) (11,964) Reversal for deferred income tax and social contribution credit 1,540,087 1,530,185 1,807,909 Income taxes and social contribution on foreign profit (13,011) (14,424) (30,219) Tax incentives 64,818 39,042 36,710 Deferred taxes on exchange variation in equity (43,667) Interest on equity 17,177 22,107 Other permanent deductions (additions) (7,619) (10,999) (18,914) Income tax and social contribution in net income for the year (625,508) 833,778 (250,334) Effective tax rate 13% -59% 79% |
Schedule of deferred income tax and social contribution | Deferred income tax and social contribution balances are as follows: Consolidated 12/31/2018 Movement 12/31/2019 Movement 12/31/2020 Shareholders' P&L Others Shareholders' P&L Others Deferred Income tax losses 959,240 651,561 1,610,801 238,198 1,848,999 Social contribution tax losses 367,358 242,688 610,046 78,162 688,208 Temporary differences (1,838,935) (2,357) 1,504,151 59 (337,082) (59,380) 1,110,336 5,029 718,903 - Provision for tax. social security, labor, civil and environmental risks 334,380 (70,367) 264,013 15,136 279,149 - Asset impairment losses 181,516 915 182,431 (26,444) 5,029 161,016 - (Gains)/losses on financial instruments 359,776 54,719 414,495 (409,468) 5,027 - Actuarial liability (pension and healthcare plan) 276,032 38,569 314,601 (44,732) (7,412) 262,457 - Accrued supplies and services 95,644 36,767 132,411 22,041 154,452 - Unrealized exchange variation (1) 1,010,532 170,969 1,181,501 (29,175) 1,152,326 - Gain upon loss of control in Transnordestina (92,180) (92,180) (92,180) - Cash flow hedge accounting 490,041 (63,080) 426,961 1,315,839 1,742,800 - Acquisition at fair value of SWT and CBL (172,114) (52,071) 39,672 (184,513) (57,651) 30,149 (212,015) - Deferred taxes not computed (252,940) (39,021) (291,961) (25,966) (317,927) - (Losses) estimated /reversals to deferred taxes credits (3,086,572) 25,159 1,435,415 (1,625,998) (1,270,110) 1,548,640 (1,347,468) - Business Combination (1,030,812) 7,471 (1,023,341) 8,292 (1,015,049) - Consolidation of CBSI (12) 62 50 50 - Others 47,762 49,066 (132,377) (3) (35,552) (2,726) (15,457) (53,735) Total (512,337) (2,357) 2,398,400 59 1,883,765 (59,380) 1,426,696 5,029 3,256,110 Total Deferred Assets 89,394 2,473,304 3,874,946 Total Deferred Liabilities (601,731) (589,539) (618,836) Total Deferred (512,337) 1,883,765 3,256,110 (1) The Company taxes exchange variations on a cash basis to calculate income tax and social contribution on net income. |
Schedule of estimated recovery of deferred tax assets | The estimated recovery of deferred tax assets of IRPJ and CSLL are netted when referring to a single jurisdiction as shown in the table below: In millions of reais Consolidated 2021 1,018 2022 1,315 2023 1,257 2024 495 2025 618 Deferred asset 4,703 Deferred liabilities - Parent Company (828) Net deferred asset 3,875 Deferred liabilities - subsidiaries (619) Net deferred asset 3,256 |
Schedule of income tax and social contribution recognized in shareholders' equity | Income tax and social contribution recognized directly in equity are shown below: Consolidated 12/31/2020 12/31/2019 Income tax and social contribution Actuarial gains on defined benefit pension plan 170,604 215,306 Estimated losses for deferred income and social contribution tax credits - actuarial gains (172,520) (217,969) Exchange differences on translating foreign operations (325,350) (325,350) Cash flow hedge accounting 1,742,765 426,961 Estimated losses for deferred income and social contribution tax credits - cash flow hedge (1,742,520) (426,961) (327,021) (328,013) |
Schedule of deferred tax assets on tax losses and temporary differences | Deferred income tax / social contribution on tax losses and temporary differences refers mainly to the following items: Nature Brief description Tax losses The Company incurs tax losses in the Parent Company as a result of financial expenses on its indebtedness, since it substantially holds all the loans and financing of the CSN Group. However, the Parent Company reported taxable income in two quarters of 2020. Exchange variation expenses Since 2012, the Company has opted for taxing exchange rate variations on a cash basis. As a result, taxes are due and expenses are deductible when the underlying asset or liability is settled. Differences Temporary Loss on investment in Usiminas shares Changes in investment in Usiminas shares are recognized on an accrual basis; however, the event that generates taxation or deductibility will only occur when the investment is sold. Other provisions Other provisions are recognized on an accrual basis and their taxation occurs only at the time of their realization, such as: provision for contingencies, loss for impairment |
19. TAXES IN INSTALLMENTS (Tabl
19. TAXES IN INSTALLMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxes in Installments [Abstract] | |
Schedule of taxes in installments | The position of Refis debts and other installments, recorded in installment taxes in current and non-current liabilities, as shown in note 15, are shown below: Consolidated Current Non-current 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Federal REFIS Law 11.941/09 (a) 12,214 12,172 15,529 17,436 Federal REFIS Law 12.865/13 (b) 6,633 6,481 42,883 48,306 Other taxes in installments 26,484 845 101,835 1,985 45,331 19,498 160,247 67,727 (a) The refinancing program of Law 11,941 / 09 has a balance arising from the adhesion to the REFIS of taxes on profit (IRPJ and CSLL) for the years 2006, 2007 and 2012 and taxes on billing (PIS and COFINS) for the years 2006 and 2007. The installment payment is paid in monthly installments, with interest at the SELIC rate, which is the rate of the Brazilian federal funds. (b) The refinancing program of Law 12.865 / 13 has a balance resulting from the adhesion to the REFIS of taxes on profit (IRPJ and CSLL) for the payment of the amounts related to taxes on the profit of the affiliates or subsidiaries abroad in 2009 to 2011. It is due in monthly installments, with interest at the SELIC rate, which is the rate of Brazilian federal funds. |
20. PROVISION FOR TAX, SOCIAL_2
20. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provision For Tax Social Security Labor Civil Environmental Risks And Judicial Deposits | |
Schedule of accrued amounts and judicial deposits | Claims of different nature are being challenged at the appropriate courts. Details of the accrued amounts and related judicial deposits are as follows: Consolidated Accrued liabilities Judicial deposits 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Tax 134,645 128,411 2,444 31,060 Social security 8,170 7,039 Labor 328,334 305,309 212,737 227,213 Civil 151,776 138,990 67,819 53,771 Environmental 12,463 43,498 17,683 3,731 Deposit of a guarantee 24,434 12,596 635,388 623,247 325,117 328,371 Classified: Current 81,073 96,479 Non-current 554,315 526,768 325,117 328,371 635,388 623,247 325,117 328,371 |
Schedule of changes in the provision for tax, social security, labor, civil and environmental risks | The changes in tax, social security, labor, civil and environmental provisions in the year ended December 31, 2020 can be summarized as follows: Consolidated Current + Non-current Nature 12/31/2019 Additions Accrued charges Net utilization of reversal 12/31/2020 Tax 128,411 8,626 4,267 (6,659) 134,645 Social security 7,039 5,892 192 (4,953) 8,170 Labor 305,309 44,693 39,507 (61,175) 328,334 Civil 138,990 46,577 15,579 (49,370) 151,776 Environmental 43,498 4,525 326 (35,886) 12,463 623,247 110,313 59,871 (158,043) 635,388 |
Schedule of legal matters with possible risk of loss | The following table shows a summary of the balance of the main matters classified as possible risk compared to the balance at December 31, 2020 and December 31, 2019. Consolidated 12/31/2020 12/31/2019 Assessment Notice and imposition of fine (AIIM) / Tax Enforcement - Income tax and social contribution - Capital gain on sale of NAMISA's shares 12,694,021 12,412,964 Assessment Notice and Imposition of fine (AIIM) - Income tax and Social contribution - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by NAMISA. 3,930,093 3,867,663 Assessment Notice and Imposition of fine (AIIM) / Tax Enforcement - Income tax and Social contribution - Disallowance of interest on prepayment arising from supply contracts of iron ore and port services 1,956,898 2,249,708 Assessment Notice and imposition of fine (AIIM) - Income tax and social contribution due to profits from foreign subsidiaries for years 2008, 2010, 2011, 2012 and 2014 3,461,574 2,946,288 Tax foreclosures - ICMS - Electricity credits 841,401 1,022,371 Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS and IPI 1,845,379 1,100,564 Disallowance of the ICMS credits - Transfer of iron ore 624,645 567,534 ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation 317,848 310,349 Disallowance of the tax loss and negative basis of social contribution arising from the adjustments in the SAPLI 583,478 538,268 Assessment Notice- IRRF- Capital Gain of CFM vendors located abroad 260,326 254,850 CFEM – difference of understanding between CSN and DNPM on the calculation basis 1,051,661 1,020,266 Assessment Notice- ICMS- questions about sales for incentive area 1,111,034 1,015,812 Other tax lawsuits (federal, state, and municipal) 3,886,976 4,478,014 Social security lawsuits 233,116 325,492 Action to discuss the balance of the construction contract – Tebas 487,124 468,776 Action related to power supply payment’s charge - Light 288,390 253,569 Indemnity action due to the supply contract termination - Indumill 237,795 215,281 Enforcement action applied by Brazilian antitrust authorities (CADE) 95,833 93,212 Civil Public Action - Districts / School / Nursery relocation-CdP Dam (1) 12,207 20,000 Other civil lawsuits 777,850 764,127 Labor and social security lawsuits 1,506,626 1,565,237 Tax foreclosures – Fine – Volta Redonda IV (2) 94,304 84,599 ACP landfill Márcia (3) 306,389 - Assessment Notice and imposition of fine (AIIM) - Charge of IRRF- RFB - Business combination (year 2015) between Namisa, Congonhas Minérios (current CSN Mineração) and consortium 862,324 - Assessment Notice and imposition of fine (AIIM) - SEFAZ/RJ - ICMS on purchases of intermediate products (4) 498,002 - Assessment Notice and imposition of fine (AIIM) - RFB - Disallowance of credits PIS/COFINS of inputs and freight 1,082,517 - Other environmental lawsuits 257,965 215,691 39,305,776 35,790,635 (1) In May 2019, the State Prosecutor’s Office of the State of Minas Gerais filed an ACP order to compel CSN Mineração SA to adopt mitigating measures regarding the psychological risks and losses allegedly generated by the Casa de Pedra Dam, reallocating residents, who so wish, with rents and social assistance, as well as relocating children who attended a new daycare and school that were closed, rebuilding new daycare and school in a safe place. In a preliminary injunction, the 1st Instance Magistrate ordered the blocking of three million reais for the construction of the day care center and school, a decision suspended by the 2nd Instance Court. The State Public Prosecutor of the State of Minas Gerais also pleaded for the payment of moral damages collective actions, as well as for the permanent reallocation of people, at the expense of CSN Mineração SA The lawsuit is in its initial phase and there is still no judicial sentence related to the case. (2) On April 8, 2013, INEA applied a fine of R$35 million to CSN in relation to aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the public civil action filed in July 2012. In relation to the application of this fine, an annulment action was filed, distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, aiming at the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action, with an adjusted amount of R$42 million, in order to enforce the amount of the fine imposed. The Tax Foreclosure action mentioned was distributed in May 2014 to the 4th Registry of Active Debt of Volta Redonda, in the State of Rio de Janeiro. Currently, these actions are suspended until the conclusion of the investigation to be carried out in the Environmental Public Civil Action of the Condominium Volta Grande IV, whose merit discusses possible contamination of the site. (3) This is an Environmental Public Civil Action, proposed by the MPF, with a claim for indemnity for collective moral damages and material damages, for allegedly irregular deposit of steel residues, in addition to being set aside for non-compliance with the injunction. (4) Infraction Notice (AIIM) drawn up by SEFAZ / RJ for ICMS and Fine requirement for the alleged improper use of ICMS credit for the period 2015 to 2020 resulting from the acquisition of intermediate products used in the UPV (refractories, belts, cylinders, chemical agents, etc.), which were classified by the Inspection as of use / consumption and without the right to credit. |
21. PROVISION FOR ENVIRONMENT_2
21. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provision For Environmental Liabilities And Asset Retirement Obligations | |
Schedule of provision for environmental liabilities and asset retirement obligation | The balance of provisions for environmental liabilities and deactivation of assets can be shown as follows: Consolidated 12/31/2020 12/31/2019 Environmental liabilities 192,830 192,270 Asset retirement obligations 611,005 331,731 803,835 524,001 |
22. RELATED-PARTY BALANCES AN_2
22. RELATED-PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by transaction - assets and liabilities | 22.b) Transactions with subsidiaries, joint ventures, associates, exclusive founds and other related parties Consolidated 12/31/2020 12/31/2019 Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total Assets Current Assets Investments (1) 3,763,603 3,763,603 2,116,560 2,116,560 Trade receivables (note 6) (2) 7,686 8 113,482 121,176 39,435 797 130,356 170,588 Dividends receivable (note 9) (3) 38,088 38,088 44,554 44,554 Other current assets (note 9) 4,413 1,829 6,242 1,830 1,830 7,686 42,509 3,878,914 3,929,109 39,435 45,351 2,248,746 2,333,532 Noncurrent Assets Investments (1) 123,409 123,409 95,719 95,719 Loans (note 9) (4) 3,375 962,675 966,050 1,874 844,426 846,300 Actuarial asset (note 30) 13,819 13,819 13,714 13,714 Other non-current assets (note 9) (5) 664,020 664,020 428,672 428,672 3,375 1,626,695 137,228 1,767,298 1,874 1,273,098 109,433 1,384,405 11,061 1,669,204 4,016,142 5,696,407 41,309 1,318,449 2,358,179 3,717,937 Liabilities Current Liabilities Intercompany Loans (note 13) 25,038 25,038 Trade payables 106,946 9,455 116,401 98,496 142,488 240,984 Accounts payable (note 15) 23,555 2,437 25,992 23,566 23,566 Provision for consumption (note 15) 44,466 44,466 22,497 22,497 174,967 11,892 186,859 144,559 167,526 312,085 Noncurrent Liabilities Accounts payable (note 15) 78,083 78,083 88,021 88,021 Actuarial liability (note 30) 79,546 79,546 19,788 19,788 78,083 79,546 157,629 88,021 19,788 107,809 253,050 91,438 344,488 232,580 187,314 419,894 |
Schedule of transactions with subsidiaries, joint ventures, associates, exclusive funds and other related parties, by transaction - statement of income | 12/31/2020 12/31/2019 12/31/2018 Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total Subsidiaries and associates Joint-ventures e Joint Operation Other related parties Total P&L Sales 104,400 843 1,568,992 1,674,235 75,630 1,047,204 1,122,834 100,608 414 1,177,730 1,278,751 Cost and expenses (1,036,420) (104,212) (1,140,632) (231,140) (1,133,142) (594,676) (1,958,958) (1,307,695) (110,587) (1,418,282) Financial income (expenses) Interest (note 28) 19,095 18,421 37,516 43,790 20,499 64,289 234 33,911 14,651 48,796 Exchange rate variations and monetary, net 3,586 3,586 13,611 13,611 Financial investments (note 28) 1,190,489 1,190,489 Other operating income and expenses (14,939) (136,004) (150,943) - 104,400 (1,016,482) 2,673,690 1,761,608 (155,510) (1,104,291) 340,609 (919,192) 100,842 (1,273,369) 1,095,404 (77,123) |
Schedule of key management personnel compensation | The following is information on the compensation of such personnel and the related balances as of P&L 12/31/2020 12/31/2019 12/31/2018 Short-term benefits for employees and officers 40,522 37,452 32,848 Post-employment benefits 111 109 105 40,633 37,561 32,953 |
Schedule of guarantees | The Company is liable for guarantees of its subsidiaries and joint ventures as follows: Currency Maturities Borrowings Tax foreclosure Others Total 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Transnordestina Logísitca R$ Up to 09/19/2056 and Indefinite 2,478,105 2,428,194 35,496 37,406 3,298 8,702 2,516,899 2,474,302 FTL - Ferrovia Transnordestina R$ Up to 04/01/2021 43,118 43,118 Cia Metalurgica Prada R$ Indefinite 196 457 244 235 440 692 CSN Energia R$ Up to 11/26/2023 and indefinite 3,141 1,920 1,920 1,920 5,061 CSN Mineração R$ Up to 12/21/2024 846,749 1,184,048 846,749 1,184,048 Estanho de Rondônia R$ 7/15/2022 1,154 1,902 1,154 1,902 Minérios Nacional S.A. R$ Up to 09/10/2021 1,946 4,544 1,946 4,544 Total in R$ 3,327,954 3,661,806 35,692 41,004 5,462 10,857 3,369,108 3,713,667 CSN Inova Ventures US$ 01/28/2028 1,300,000 1,300,000 CSN Islands XII US$ Perpetual 1,000,000 1,000,000 1,000,000 1,000,000 CSN Resources US$ Up to 04/17/2026 1,525,000 1,958,603 1,525,000 1,958,603 Total in US$ 3,825,000 2,958,603 3,825,000 2,958,603 CSN Steel S.L. EUR 24,000 24,000 Total in EUR 24,000 24,000 Total in R$ 19,877,378 12,033,973 19,877,378 12,033,973 23,205,332 15,695,779 35,692 41,004 5,462 10,857 23,246,486 15,747,640 |
23. SHAREHOLDERS' EQUITY (Table
23. SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Schedule of ownership structure | As of December 31, 2020, the Company’s ownership structure was as follows : 12/31/2020 12/31/2019 Number of common shares % of total shares % of voting capital Number of common shares % of total shares % of voting capital Vicunha Aços S.A. (*) 679,522,254 48.97% 49.24% 679,522,254 48.97% 49.24% Rio Iaco Participações S.A. (*) 58,193,503 4.19% 4.22% 58,193,503 4.19% 4.22% NYSE (ADRs) 248,763,533 17.93% 18.02% 262,206,103 18.90% 19.00% Other shareholders 393,635,257 28.37% 28.52% 380,192,687 27.40% 27.55% Outstanding shares 1,380,114,547 99.47% 100.00% 1,380,114,547 99.47% 100.00% Treasury shares 7,409,500 0.53% 7,409,500 0.53% Total shares 1,387,524,047 100.00% 1,387,524,047 100.00% (*) Controlling group companies. |
Schedule of share buyback programs | As of December 31, 2020, the position of treasury shares was as follows: Program Board’s Authorization Authorized quantity Program period Average buyback price Minimum and maximum buyback price Sale of shares Balance in treasury 04/20/2018 30,391,000 From 4/20/2018 to 4/30/2018 Not applicable Not applicable 22,981,500 7,409,500 |
Schedule of position of treasury shares | As of December 31, 2020, the position of treasury shares was as follows: Quantity purchased (in units) Amount paid for the shares Share price Share market price as of 12/31/2020 (*) Minimum Maximum Average 7,409,500 R$ 58,264 R$ 4.48 R$ 10.07 R$ 7.86 R$ 235,993 (*) The average share price on December 31, 2020 was used in the amount of R$31.85 per share. |
Schedule of basic earnings (loss) per share | The earnings per share are shown below: 12/31/2020 12/31/2019 12/31/2018 Common Shares Profit for the year 3,794,295 1,789,067 5,074,136 Weighted average number of shares 1,380,114,547 1,380,114,547 1,373,250,595 Basic and diluted earnings (loss) per share 2.74926 1.29632 3.69498 |
24. Shareholders' Compensation
24. Shareholders' Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders Compensation | |
Schedule of deliberate and paid dividends | Dividends are calculated in accordance with the bylaws and the Joint Stock Company Act. The profit destination for 2020 is shown below: Allocation of profit 12/31/2020 Profit for the year Capital reserve (189,715) Profit for allocation 3,604,580 Proposed destination: Mandatory minimum dividends (901,145) Statutory reserve (2,703,435) (3,604,580) Weighted average number of shares 1,380,114,547 Dividends for share 0.652949 In current liabilities Balance of dividends payable as December 31, 2019 13,252 Dividends paid in year (12,414) Proposed dividends in 2020 exercise 901,145 Balance of dividends payable as December 31, 2020 901,983 |
25. NET REVENUE FROM SALES (Tab
25. NET REVENUE FROM SALES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Revenue From Sales | |
Schedule of net sales revenue | Net sales revenue is as follows: Consolidated 12/31/2020 12/31/2019 12/31/2018 Gross revenue Domestic market 16,652,801 14,220,420 14,752,901 Foreign market 17,396,259 14,663,297 11,817,559 34,049,060 28,883,717 26,570,460 Deductions Sales returns, discounts and rebates (248,821) (325,794) (234,851) Taxes on sales (3,736,219) (3,121,506) (3,366,724) (3,985,040) (3,447,300) (3,601,575) Net revenue 30,064,020 25,436,417 22,968,885 |
26. EXPENSES BY NATURE (Tables)
26. EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Expenses by nature [abstract] | |
Schedule of expenses by nature | Consolidated 12/31/2020 12/31/2019 12/31/2018 Raw materials and inputs (6,928,517) (7,287,933) (6,759,275) Labor cost (3,187,428) (2,807,280) (2,743,460) Supplies (2,150,452) (1,981,547) (1,782,576) Maintenance cost (services and materials) (1,340,255) (1,340,135) (1,326,894) Outsourcing services (2,217,657) (2,392,626) (2,368,387) Freight (216,506) (334,509) (109,756) Distribution freight (1,421,079) (1,787,979) (1,692,785) Depreciation, amortization and depletion (2,421,458) (1,421,704) (1,175,107) Others (1,750,424) (763,421) (905,128) (21,633,776) (20,117,134) (18,863,368) Classified as: Cost of sales (19,124,901) (17,263,264) (16,105,657) Selling expenses (2,004,417) (2,342,805) (2,263,688) General and administrative expenses (504,458) (511,065) (494,023) (21,633,776) (20,117,134) (18,863,368) |
Schedule of depreciation, amortization and depletion | The depreciation, amortization and depletion additions for the period were distributed as follows. Consolidated 12/31/2020 12/31/2019 12/31/2018 Production costs (1) (2,374,046) (1,385,306) 1,145,793 Selling expenses (13,978) (11,539) 5,850 General and administrative expenses (33,434) (24,859) 23,464 (2,421,458) (1,421,704) 1,175,107 Other operational (2) (95,270) (97,627) 97,914 (2,516,728) (1,519,331) 1,273,021 (1) The Company’s iron ore extraction in 2020 started using dry waste filtering and stacking in 100% of its production process. As a normal consequence of the operation, the use of dams has become obsolete, and consequently, the assets of dams reached the end of their useful lives on December 31, 2020. As a result of the technical and functional obsolescence of the dams, the book balance of these assets in their entirety, (R$515,491), was fully depreciated in 2020 and appropriated to the cost of production. The cost of production includes PIS and COFINS credits on lease agreements on December 31, 2020, in the amount of R$5,335. (2) They mainly refer to the depreciation of investment properties, paralyzed equipment and amortization of the SWT Client Portfolio, see note 27. |
27. OTHER OPERATING INCOME AN_2
27. OTHER OPERATING INCOME AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Operating Income And Expenses | |
Schedule of other operating income (expenses) | Consolidated 12/31/2020 12/31/2019 12/31/2018 Other operating income Receivables by indemnity (1) 245,945 56,180 46,256 Rentals and leases 9,096 9,462 5,430 Dividends received 1,197 32,747 9,188 PIS, COFINS and INSS to compensate (2) 120,452 123,677 1,102,365 Contractual fines 4,783 4,486 3,965 Actuarial pension plan 55,695 47,151 20,983 Updated shares – Fair Value through profit or loss (VJR) (Note 14II) 12,579 1,655,813 Contractual agreement (5) 131,817 Other revenues 32,747 98,250 27,749 482,494 503,770 4,036,043 - - - Other operating expenses Taxes and fees (46,338) (95,873) (26,197) Expenses with environmental liabilities, net 16,151 (82,669) (60,311) Write-off/(Provision) of judicial lawsuits (130,869) (19,685) (113,549) Contractual fines (106,926) (104,086) Depreciation of equipment paralyzed and amortization of intangible assets (note 26) (95,270) (97,627) (97,914) Write- off of PP&E and intangible assets (note 10, 11 and 12) (13,130) (114,603) (27,260) Estimated (Loss)/reversal in inventories (179,012) (136,827) (149,704) Idleness in stocks and paralyzed equipment (3) (303,975) (546,968) Studies and project engineering expenses (27,137) (26,171) (33,738) Research and development expenses (620) (1,741) (2,688) Healthcare plan expenses (117,193) (119,560) (108,369) Cash flow hedge realized (Note 14 b) (4) (1,951,035) (790,353) (370,191) Updated shares – Fair value through profit or loss (Note 14II) (118,780) Other expenses (421,628) (149,068) (218,701) (3,270,056) (2,406,851) (1,330,706) Other operating income (expenses), net (2,787,562) (1,903,081) 2,705,337 1. In June 2020, the Company received R$84,435 of indemnity after a court decision, of which R$58,785 for rent arrears arising from one of its investment properties and R$25,650 relating to an action for the collection of insurance for material damage caused by contractor in the construction of the long steel plant. Additionally, in June, the principal amount was recognized in the amount of R$147,612 of receivables for indemnity (see note 9). 2. In 2020, consist of the recovery of INSS credit on benefits granted to employees that should not be considered in the contribution calculation basis. In 2019, this is the exclusion of ICMS from the PIS and COFINS calculation basis. 3. Refers to the idle capacity arisen from production volumes lower than normal it was generated from the refurbishment of the blast furnace No.3 and in the iron ore mining operation due to delays in the release of environmental licenses, which postponed the start of new ore mining fronts, as well as new dry tailing processes still in ramp-up stage. 4. As of December 31, 2020, foreign exchange cash flow hedge was realized and reclassified from Other Comprehensive Income to Other Operating Expenses (R$1,667,886), as well as cash flow hedge of PLATTS index (R$283,149), totaling R$1,951,035 of hedge realization in the year. See note 14. 5. Referring to the contractual agreement signed for the supply of new equipment. |
28. FINANCIAL INCOME (EXPENSE_2
28. FINANCIAL INCOME (EXPENSES) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Income | |
Schedule of financial income (expenses) | Consolidated 12/31/2020 12/31/2019 12/31/2018 Financial income Related parties (note 22 b) 51,124 79,228 64,888 Income from financial investments 58,061 93,471 111,235 Updated shares – Fair value through profit or loss (Note 14 II) (1) 1,190,489 - - Other income (2) 503,054 206,343 1,134,391 1,802,728 379,042 1,310,514 Financial expenses Borrowings and financing - foreign currency (note 13 b) (1,600,973) (1,128,520) (988,821) Borrowings and financing - local currency (note 13 b) (401,079) (867,785) (1,020,867) Related parties (13,608) (14,939) (16,092) Lease liabilities (50,804) (49,118) - Capitalised interest (notes 11 and 33) 92,506 117,189 71,611 Interest and fines (290,673) (158,794) (71,100) (-) Adjustment present value of trade payables (139,566) - - Commission, bank fees, Guarantee and bank fees (162,085) (217,784) (182,179) PIS/COFINS over financial income (39,149) (25,176) (84,404) Other financial expenses (270,764) (217,864) 19,614 (2,876,195) (2,562,791) (2,272,238) Others financial items, net Foreign exchange and monetary variation, net 392,971 47,579 (533,918) Gains and (losses) on exchange derivatives (*) (115,815) 4,986 (1) 277,156 52,565 (533,919) (2,599,039) (2,510,226) Financial income (expenses), net (796,311) (2,131,184) (1,495,643) (*) Statement of gains and (losses) on derivative transactions (note 14) Exchange rate swap Dollar x Euro (9,070) 783 (1) Exchange rate swap GBP x Euro (602) Exchange rate swap CDI x Dollar (106,143) 4,203 (115,815) 4,986 (1) (1) It refers to the appreciation of Usiminas’ shares in the amount of R$1,190,489 as of December31, 2020. As of December 31, 2019, Usiminas’ shares were reclassified to financial investments and their pricing fluctuation started to be recognized in the financial result. (2) It mainly refers to the recognition of the exclusion of ICMS in the PIS and COFINS calculation base in the amount of R$81,758 on December 31, 2020 (R$160,609 on December 31, 2019) in the Consolidated, and updating in the amount of R$369,571 of receivables for indemnity (see note 9). |
29. SEGMENT INFORMATION (Tables
29. SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Schedule of consolidated results | For purposes of reconciliation of the consolidated result, the amounts recorded by these companies are not included in the "Corporate expenses/elimination" column. 12/31/2020 P&L Steel Mining Logistics Energy Cement Corporate expenses/ elimination Consolidated Port Railroads Net revenue (note 25) 16,602,895 12,683,231 256,371 1,489,647 172,859 858,192 (1,999,175) 30,064,020 Cost of sales and services (note 26) (14,170,692) (5,531,763) (187,860) (1,094,130) (128,227) (647,132) 2,634,903 (19,124,901) Gross profit 2,432,203 7,151,468 68,511 395,517 44,632 211,060 635,728 10,939,119 General and administrative expenses (note 26) (922,862) (179,806) (21,949) (114,970) (30,243) (88,232) (1,150,813) (2,508,875) Other operating (income) expenses, net (note 27) (392,061) (665,881) (5,420) 52,569 (2,967) (44,893) (1,728,909) (2,787,562) Equity in results of affiliated companies (note 10) - - - - - - 71,755 71,755 Operating result before Financial Income and Taxes 1,117,280 6,305,781 41,142 333,116 11,422 77,935 (2,172,239) 5,714,437 Sales by geographic area Asia 7,461,791 1,144,614 8,606,405 North America 922,299 922,299 Latin America 327,900 995 328,895 Europe 3,627,011 3,688,851 7,315,862 Others 4,346 4,346 Foreign market 4,881,556 11,150,642 995 1,144,614 17,177,807 Domestic market 11,721,339 1,532,589 256,371 1,489,647 172,859 857,197 (3,143,789) 12,886,213 Total 16,602,895 12,683,231 256,371 1,489,647 172,859 858,192 (1,999,175) 30,064,020 12/31/2019 P&L Steel Mining Logistics Energy Cement Corporate expenses/ elimination Consolidated Port Railroads Net revenue (note 25) 13,949,032 10,027,649 240,451 1,321,355 325,343 570,805 (998,218) 25,436,417 Cost of sales and services (note 26) (12,962,861) (4,396,247) (173,344) (1,030,210) (266,754) (607,719) 2,173,871 (17,263,264) Gross profit 986,171 5,631,402 67,107 291,145 58,589 (36,914) 1,175,653 8,173,153 General and administrative expenses (note 26) (834,977) (186,189) (34,560) (109,770) (29,034) (91,466) (1,567,874) (2,853,870) Other operating (income) expenses, net (note 27) (1,055,190) (218,009) (3,860) 147,155 (1,486) (40,630) (731,061) (1,903,081) Equity in results of affiliated companies (note 10) 125,715 125,715 Operating result before Financial Income and Taxes (903,996) 5,227,204 28,687 328,530 28,069 (169,010) (997,567) 3,541,917 Sales by geographic area Asia 2,980 6,742,946 1,463,870 8,209,796 North America 767,977 767,977 Latin America 169,036 169,036 Europe 2,978,994 2,357,867 5,336,861 Others 2,046 2,046 Foreign market 3,921,033 9,100,813 1,463,870 14,485,716 Domestic market 10,027,999 926,836 240,451 1,321,355 325,343 570,805 (2,462,088) 10,950,701 Total 13,949,032 10,027,649 240,451 1,321,355 325,343 570,805 (998,218) 25,436,417 12/31/2018 P&L Steel Mining Logistics Energy Cement Corporate expenses/ elimination Consolidated Port Railroads Net revenue (note 25) 15,634,143 5,984,781 266,378 1,506,114 410,606 588,230 (1,421,366) 22,968,887 Cost of sales and services (note 26) (12,613,216) (3,585,691) (189,999) (1,049,071) (286,734) (544,266) 2,163,321 (16,105,656) Gross profit 3,020,927 2,399,091 76,378 457,043 123,872 43,965 741,956 6,863,231 General and administrative expenses (note 26) (984,980) (144,754) (35,423) (106,412) (27,948) (95,893) (1,362,302) (2,757,711) Other operating (income) expenses, net (note 27) 1,993,790 (222,957) (2,469) (34,911) (387) 299 971,970 2,705,335 Equity in results of affiliated companies (note 10) 135,706 135,706 Operating result before Financial Income and Taxes 4,029,736 2,031,379 38,486 315,721 95,537 (51,628) 487,330 6,946,561 Sales by geographic area Asia 40,681 4,422,377 1,297,258 5,760,316 North America 1,506,041 1,506,041 Latin America 369,830 369,830 Europe 3,330,991 590,043 3,921,034 Others 58,229 58,229 Foreign market 5,305,771 5,012,420 1,297,258 11,615,450 Domestic market 10,328,372 972,360 266,378 1,506,114 410,606 588,230 (2,718,623) 11,353,437 Total 15,634,143 5,984,781 266,378 1,506,114 410,606 588,230 (1,421,366) 22,968,887 |
30. EMPLOYEE BENEFITS (Tables)
30. EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | |
Schedule of actuarial employee benefit assets and liabilities | The actuarial calculations are updated, at the end of each year, by external actuaries and presented in the financial statements in accordance with IAS 19 - Employee Benefits Consolidated 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Actuarial asset Actuarial liabilities Benefits of pension plans (13,819) (13,714) 79,546 19,788 Post-employment healthcare benefits - - 678,880 892,396 (13,819) (13,714) 758,426 912,184 |
Schedule of reconciliation of employee benefits' assets and liabilities | The reconciliation of assets and liabilities of employee benefits is presented below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Present value of defined benefit obligation 3,645,822 3,581,460 3,087,433 Fair value of plan assets (3,766,194) (3,894,488) (3,403,906) Deficit(Surplus) (120,372) (313,028) (316,473) Restriction to actuarial assets due to recovery limitation 186,099 319,102 224,561 Liabilities (Assets), net 65,727 6,074 (91,912) Liabilities 79,546 19,788 7,982 Assets (13,819) (13,714) (99,894) Net (assets) recognized in the balance sheet 65,727 6,074 (91,912) |
Schedule of defined benefit obligation | The change in the present value of the defined benefit obligation is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Present value of obligations at the beginning of the year 3,581,460 3,087,433 3,077,849 Cost of service 968 1,093 1,169 Interest cost 236,551 283,487 304,132 Participant contributions made in the period 1,998 2,126 Benefits paid (278,960) (269,995) (280,493) Actuarial loss/(gain) 103,805 477,316 (15,224) Present value of obligations at the end of the year 3,645,822 3,581,460 3,087,433 |
Schedule of changes in fair value of the plan assets | The change in the fair value of the plan’s assets is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Fair value of plan assets at the beginning of the year (3,894,488) (3,403,906) (3,305,356) Interest income (257,946) (314,102) (327,830) Benefits Paid 278,960 269,995 280,493 Participant contributions made in the period (1,998) (2,127) - Return on plan assets (less interest income) 109,279 (444,348) (51,213) Fair value of plan assets at the end of the year (3,766,193) (3,894,488) (3,403,906) |
Schedule of employee benefits recognized in the income statement | The composition of the amounts recognized in the income statement is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Cost of current service 968 1,093 1,169 Interest cost 236,551 283,487 304,132 Expected return on plan assets (257,946) (314,102) (327,830) Interest on the asset ceiling effect 21,737 21,502 16,340 Total costs / (income), net 1,310 (8,020) (6,189) |
Schedule of actuarial gains and losses | The movement of actuarial gains and losses is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Actuarial losses and (gains) 103,805 477,316 (15,224) Return on plan assets (less interest income) 109,279 (444,348) (51,213) Change in the asset’s limit (excluding interest income) (154,741) 73,039 50,058 Total cost of actuarial losses and (gains) 58,343 106,007 (16,379) |
Schedule of breakdown of actuarial gains or losses | The breakdown of actuarial gains and losses is shown below: Consolidated 12/31/2020 12/31/2019 12/31/2018 Loss due to change in demographic assumptions 67,930 - (139,813) Loss due to change in financial assumptions (30,454) 472,715 46,917 Loss due to experience adjustments 66,329 4,601 77,672 Return on plan assets (less interest income) 109,279 (444,348) (51,213) Change in the asset’s limit (excluding interest income) (154,741) 73,039 50,058 Actuarial losses and (gains) 58,343 106,007 (16,379) |
Schedule of actuarial assumptions used | The main actuarial assumptions used were as follows: 12/31/2020 12/31/2019 Actuarial financing method Projected unit credit Projected unit credit Functional currency Real (R$) Real (R$) Recognition of plan assets Fair value Fair value Nominal discount rate Millennium Plan: 6,95% Millennium Plan: 6,98% Inflation rate 3.32% 3.61% Nominal salary increase rate 4.35% 4.65% Nominal benefit increase rate 3.32% 3.61% Rate of return on investments Millennium Plan: 6,95% Millennium Plan: 6,98% General mortality table Millennium Plan: AT-2012 segregated by gender Millennium Plan: AT-2000 smoothed down by 10% segregated by gender Disability table 35% Plan Light Medium. 35% Plan and Supplementation: Light Medium. Millenium Plan: Disability mortality table Millenium Plan: AT-71 Winklevoss - 1% Turnover table Millenium plan 5% per annum, zero for plans 35% and Supplementation Millenium plan 5% per annum, zero for plans 35% and Supplementation Retirement age 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan Household of active participants 95% will be married at the time of retirement, with the wife being 4 years younger than the husband 95% will be married at the time of retirement, with the wife being 4 years younger than the husband |
Schedule of average life expectancy | These tables translate into an average life expectancy in years for employees aged 65 and 40: Plan covering 35% of the average salary Average salary supplementation plan Mixed supplementary benefit plan (Milênio Plan) Longevity at age of 65 for current participants 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Male 18.38 18.38 18.75 18.75 21.47 20.45 Female 18.38 18.38 21.41 21.41 23.34 23.02 Longevity at age of 40 for current participants Male 40.15 40.15 40.60 40.60 44.07 42.70 Female 40.15 40.15 44.41 44.41 46.68 46.28 |
Schedule of allocation of plan assets | Allocation of plan assets: 12/31/2020 12/31/2019 12/31/2018 Variable income 54,285 1.44% 25,236 0.65% 141,705 4.16% Fixed income 3,438,735 91.31% 3,607,398 92.63% 3,050,099 89.61% Real estate 182,145 4.84% 183,098 4.70% 52,091 1.53% Others 91,028 2.42% 78,756 2.02% 160,011 4.70% Total 3,766,193 100.00% 3,894,488 100.00% 3,403,906 100.00% |
Schedule of quantitative sensitivity analysis regarding the significant assumptions for the pension plans | The quantitative sensitivity analysis in relation to significant assumptions, for pension plans on December 31, 2020 is shown below: 12/31/2020 Plan covering 35% of the average salary Average salary supplementation plan Mixed supplementary benefit plan (Milênio Plan) Assumption: Discount rate Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations (1,005) 1,084 (5,507) 5,954 (4,758) 5,309 Effect on present value of obligations 17,381 (16,114) 92,456 (85,515) 76,188 (68,287) Assumption: Salary growth Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 191 (181) Effect on present value of obligations 1,079 (1,030) Assumption: Mortality table Sensitivity level 0.5% -0.5% 0.5% -0.5% 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 120 (120) 623 (623) 430 (430) Effect on present value of obligations 1,928 (1,928) 9,669 (9,669) 5,975 (5,975) Assumption: Benefit adjustment Sensitivity level +1 year - 1 year +1 year - 1 year +1 year - 1 year Effect on current service cost and on interest on actuarial obligations 850 (839) 4,382 (4,362) 1,562 (1,541) Effect on present value of obligations 13,626 (13,455) 68,039 (67,726) 22,603 (22,306) |
Schedule of forecast benefit payments of the defined benefit plans | Following are the expected benefits for future years for defined benefit plans: Forecast payments Year 1 281,314 Year 2 272,801 Year 3 266,342 Year 4 259,595 Year 5 252,578 Next 5 years 1,137,146 Total forecast payments 2,469,776 |
Schedule of post-employment health care plan amounts | The amounts recognized in the balance sheet were determined as follows: 12/31/2020 12/31/2019 Present value of obligations 678,880 892,396 Liabilities 678,880 892,396 |
Schedule of reconciliation of the healthcare liabilities | The reconciliation of health benefit liabilities is presented below: 12/31/2020 12/31/2019 Actuarial liability at the beginning of the year 892,396 897,137 Expenses recognized in income for the year 57,731 69,907 Sponsor’s contributions transferred in prior year (81,340) (82,081) Recognition of actuarial loss/(gain) (189,907) 7,433 Actuarial liability at the end of the year 678,880 892,396 |
Schedule of actuarial gains and losses recognized in shareholders' equity | The actuarial gains and losses recognized in equity are shown below: 12/31/2020 12/31/2019 12/31/2018 Gain/(loss) recognized in shareholders' equity (189,907) 7,433 16,237 |
Schedule of weighted average life expectancy | Below is the weighted average life expectancy based on the mortality table used to determine the actuarial obligations: 12/31/2020 12/31/2019 12/31/2018 Longevity at age of 65 for current participants Male 20.24 20.24 19.55 Female 20.24 20.24 22.17 Longevity at age of 40 for current participants Male 42.74 42.74 41.59 Female 42.74 42.74 45.30 |
Schedule of actuarial assumptions used for calculating postemployment healthcare benefits | The actuarial assumptions used to calculate post-employment health benefits were: 12/31/2020 12/31/2019 Biometric and Demographic General mortality table AT 2000 segregated by gender AT 2000 segregated by gender Financial Actuarial nominal discount rate 6.53% 6.78% Inflation 3.32% 3.61% Real increase in medical costs based on age (Aging Factor) 0,5% - 3,00% real per year 0,5% - 3,00% real per year Nominal increase medical costs growth rate 4.10% 6.98% Average medical cost (Claim cost) 913.00 1,319.36 |
Schedule of quantitative sensitivity analysis regarding the significant assumptions for the postemployment healthcare plans | The quantitative sensitivity analysis for significant assumptions for the post-employment health benefit as of December 31, 2020 is shown below: 12/31/2020 Healthcare Plan Assumption: Discount rate Sensitivity level 0.5% -0.5% Effect on current service cost and on interest on actuarial obligations 1,216 (1,339) Effect on present value of obligations (30,300) 33,447 Assumption: Medical Inflation Sensitivity level 1.0% -1.0% Effect on current service cost and on interest on actuarial obligations 4,749 (3,978) Effect on present value of obligations 72,688 (60,887) Assumption: Benefit adjustment Sensitivity level +1 year - 1 year Effect on current service cost and on interest on actuarial obligations 3,123 (2,925) Effect on present value of obligations 47,797 (44,768) |
Schedule of forecast benefit payments of the postemployment healthcare plans | Following are the expected benefits for future exercises for post-employment health benefit plans: Forecast benefit payments Year 1 60,143 Year 2 58,312 Year 3 56,323 Year 4 54,177 Year 5 51,892 Next 5 years 221,734 Total forecast payments 502,581 |
31. COMMITMENTS (Tables)
31. COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments | |
Schedule of take-or-pay contracts | As of December 31, 2020 and 2019, the Company was a party to take-or-pay contracts as shown in the following table Payments in the period Type of service 2019 2020 2021 2022 2023 After 2023 Total Transportation of iron ore, coal, coke, steel products, cement and mining products. 1,555,398 946,865 1,195,158 1,195,508 1,195,508 3,476,220 7,062,394 Supply of power, natural gas, oxygen, nitrogen, argon and iron ore pellets. 959,362 1,044,380 674,378 28,530 24,779 191,284 918,971 Processing of slag generated during pig iron and steel production. 56,024 75,863 13,240 9,298 2,652 0 25,190 Manufacturing, repair, recovery and production of ingot casting machine units. 5,930 7,674 480 - - - 480 Oil Storage and Handling - 1,900 1,608 1,608 1,608 402 5,226 Labor and consultancy services 27,002 32,279 28,428 27,380 27,380 191,657 274,845 2,603,716 2,108,961 1,913,292 1,262,324 1,251,927 3,859,563 8,287,106 |
33. ADDITIONAL INFORMATION TO_2
33. ADDITIONAL INFORMATION TO CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Additional Information To Cash Flows [Abstract] | |
Schedule of additional information related to statement of cash flows | The following table presents additional information on transactions related to the statement of cash flows: Consolidated 12/31/2020 12/31/2019 12/31/2018 Income tax and social contribution paid 542,877 1,167,419 336,962 Addition to PP&E with interest capitalization (notes 11 and 28) 92,506 117,189 71,611 Initial adoption IFRS16 – Right of use 640,989 Remeasurement and addition – Right of use (note 11 a) 109,993 (151,558) Addition to PP&E without adding cash 30,345 278,213 10,792 Capitalization in subsidiaries without cash 104,809 Addition to investment property without cash effect 61,597 942,127 2,052,252 419,365 |
1. DESCRIPTION OF BUSINESS (Det
1. DESCRIPTION OF BUSINESS (Details Narrative) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020BRL (R$)Numnber | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |
DescriptionOfBusinessLineItems [Line Items] | |||
Number of operating activities | Numnber | 5 | ||
Investments on mining | R$ 3535906 | R$ 3482974 | R$ 5630613 |
Self-sufficient installed capacity | Numnber | 9,000 | ||
Repayments of borrowings | R$ 6448658 | R$ 11775093 | R$ 5019978 |
Description of production process | As a pioneer in the use of technologies that result in the possibility of stacking the tailings generated in the iron ore production process, the Company has had its iron ore production since January 2020, 100% independent of tailings dams. After significant investments in recent years to raise the level of reliability, mischaracterization and dry stacking, the Company has moved on to a scenario in which 100% of its waste goes through a dry filtration process and is disposed of in geotechnically controlled batteries, areas exclusively destined for stacking. Approximately R$250 million was invested in the two tailings filtration plants that have a combined total filtration capacity of 9 million tons per year. | ||
Borrowings, maturity | within a period of 12 months | ||
Liquidity | R$ 4155000 | ||
Events After Reporting Period [member] | |||
DescriptionOfBusinessLineItems [Line Items] | |||
Amortization of loans and financing | 4,200,000 | ||
Repayments of borrowings | 8,400,000 | ||
Mining Property [member] | |||
DescriptionOfBusinessLineItems [Line Items] | |||
Investments on mining | R$ 250000 | ||
Cement [member] | |||
DescriptionOfBusinessLineItems [Line Items] | |||
Self-sufficient installed capacity | Numnber | 4,700 |
2. SUMMARY OF SIGNIFICANT ACC_3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - ExchangeRate | Dec. 31, 2020 | Dec. 31, 2019 |
UNITED STATES [member] | ||
Disclosure of changes in accounting estimates [line items] | ||
Equivalent | 1 | |
Brazilian reais [member] | ||
Disclosure of changes in accounting estimates [line items] | ||
Equivalent | 5.1967 | 4.0307 |
Brazilian reais [member] | Brazilian central bank [member] | ||
Disclosure of changes in accounting estimates [line items] | ||
Equivalent | 6.3779 | 4.5305 |
Euro [member] | ||
Disclosure of changes in accounting estimates [line items] | ||
Equivalent | 1 |
3. IMPACTS OF COVID-19 (Details
3. IMPACTS OF COVID-19 (Details Narrative) - BRL (R$) R$ in Thousands | 1 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2020 | |
Impacts Of Covid-19 | ||
Percentage of corporate staff | 50.00% | |
Accumulated gain (losses) | R$ 962000 | R$ 1190000 |
4. CASH AND CASH EQUIVALENTS (D
4. CASH AND CASH EQUIVALENTS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current cash and cash equivalents | ||||
Cash and banks | R$ 4144467 | R$ 496769 | ||
Total short-term investments | 5,800,119 | 592,186 | ||
Cash and cash equivalents | 9,944,586 | 1,088,955 | R$ 2248004 | R$ 3411572 |
BRAZIL | ||||
Current cash and cash equivalents | ||||
Cash and banks | 245,185 | 42,736 | ||
Total short-term investments | 5,800,119 | 531,924 | ||
Abroad [member] | ||||
Current cash and cash equivalents | ||||
Cash and banks | R$ 3899282 | 454,033 | ||
Total short-term investments | R$ 60262 |
5. FINANCIAL INVESTMENTS (Detai
5. FINANCIAL INVESTMENTS (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Current | R$ 3783362 | R$ 2633173 | |
NonCurrent | 123,409 | 95,719 | |
Investments [member] | |||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Current | [1] | 478,253 | 518,553 |
Usiminas shares [member] | |||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Current | [2] | 3,305,109 | 2,114,620 |
Bonds [member] | |||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Current | [3] | ||
NonCurrent | [3] | R$ 123409 | R$ 95719 |
[1] | These are restricted financial investments and linked to a Bank Deposit Certificate (CDB) to guarantee a letter of guarantee from financial institutions and financial investments in Public Securities (LFT - Letras Financeiras do Tesouro) managed by their exclusive funds. | ||
[2] | Part of the shares guarantees a portion of the Company's debt. | ||
[3] | Bonds with Fibra bank due in February 2028 (see note 22). |
6. TRADE RECEIVABLES (Details)
6. TRADE RECEIVABLES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
TradeAndOtherReceivablesLineItems [Line Items] | |||
Allowance for doubtful debts | R$ 228348 | R$ 245194 | R$ 237352 |
Trade receivable, after allowance for doubtful debts | 2,746,176 | 1,877,343 | |
Trade receivables | 2,867,352 | 2,047,931 | |
Third parties [member] | |||
TradeAndOtherReceivablesLineItems [Line Items] | |||
Trade receivable, before allowance for doubtful debts | 2,974,524 | 2,122,537 | |
Third parties [member] | Domestic Market [member] | |||
TradeAndOtherReceivablesLineItems [Line Items] | |||
Trade receivable, before allowance for doubtful debts | 910,657 | 1,118,632 | |
Third parties [member] | Foreign Market [member] | |||
TradeAndOtherReceivablesLineItems [Line Items] | |||
Trade receivable, before allowance for doubtful debts | 2,063,867 | 1,003,905 | |
Related Parties [member] | |||
TradeAndOtherReceivablesLineItems [Line Items] | |||
Trade receivables | R$ 121176 | R$ 170588 |
6. TRADE RECEIVABLES (Details 1
6. TRADE RECEIVABLES (Details 1) - Third parties [member] - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
TradeAndOtherReceivablesLineItems [Line Items] | ||
Trade receivable, before allowance for doubtful debts | R$ 2974524 | R$ 2122537 |
Current [member] | ||
TradeAndOtherReceivablesLineItems [Line Items] | ||
Trade receivable, before allowance for doubtful debts | 2,537,567 | 1,739,746 |
Past-due up to 30 days [member] | ||
TradeAndOtherReceivablesLineItems [Line Items] | ||
Trade receivable, before allowance for doubtful debts | 222,972 | 132,845 |
Past-due up to 180 days [member] | ||
TradeAndOtherReceivablesLineItems [Line Items] | ||
Trade receivable, before allowance for doubtful debts | 17,915 | 23,877 |
Past-due over 180 days [member] | ||
TradeAndOtherReceivablesLineItems [Line Items] | ||
Trade receivable, before allowance for doubtful debts | R$ 196070 | R$ 226069 |
6. TRADE RECEIVABLES (Details 2
6. TRADE RECEIVABLES (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Trade and other receivables [abstract] | ||
Opening balance | R$ 245194 | R$ 237352 |
(Loss)/Reversal estimated | 7,513 | (43,313) |
Recovery and write-offs of receivables | 9,333 | 35,471 |
Closing balance | R$ 228348 | R$ 245194 |
7. INVENTORIES (Details)
7. INVENTORIES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
InventoriesLineItems [Line Items] | |||
(-) Provision for losses | R$ 109038 | R$ 134553 | |
Inventoy, net | 5,164,890 | 5,427,249 | |
Current | 4,817,586 | 5,282,750 | |
Non-current | 347,304 | 144,499 | |
Work in progress [member] | |||
InventoriesLineItems [Line Items] | |||
Inventory gross | [1] | 1,358,905 | 1,438,868 |
Finished goods [member] | |||
InventoriesLineItems [Line Items] | |||
Inventory gross | 1,627,676 | 1,691,842 | |
Raw materials [member] | |||
InventoriesLineItems [Line Items] | |||
Inventory gross | 1,289,653 | 1,493,129 | |
Spare parts [member] | |||
InventoriesLineItems [Line Items] | |||
Inventory gross | 928,158 | 902,135 | |
Advances to suppliers [member] | |||
InventoriesLineItems [Line Items] | |||
Inventory gross | R$ 69536 | R$ 35828 | |
[1] | Long-term iron ore inventories that will be used after the construction of the processing plant, which will produce pellet feed, In 2020, the Company defined the construction project for the new plant for processing Itabirito, which until then was considered as waste, and started to be incorporated into the long-term ore inventory. |
7. INVENTORIES (Details 1)
7. INVENTORIES (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventories [Abstract] | ||
Opening balance | R$ 134553 | R$ 157754 |
(Estimated losses) / Reversal of inventories with low turnover and obsolescence | 25,515 | 23,201 |
Closing balance | R$ 109038 | R$ 134553 |
8. RECOVERABLE TAXES (Details)
8. RECOVERABLE TAXES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
RecoverableTaxesLineItems [Line Items] | |||
Total recoverable taxes | R$ 2543946 | R$ 3402355 | |
Current | 1,605,494 | 1,282,415 | |
Non-current | 938,452 | 2,119,940 | |
State value added tax [member] | |||
RecoverableTaxesLineItems [Line Items] | |||
Total recoverable taxes | 1,002,926 | 1,109,887 | |
Brazilian federal contributions [member] | |||
RecoverableTaxesLineItems [Line Items] | |||
Total recoverable taxes | [1] | 1,417,081 | 2,230,793 |
Other taxes [member] | |||
RecoverableTaxesLineItems [Line Items] | |||
Total recoverable taxes | R$ 123939 | R$ 61675 | |
[1] | Refers mainly to PIS / COFINS (VAT Federal) all to be recovered and income tax and social contribution to be offset. In respect to PIS and COFINS to be recoverable on September 20, 2018, the writ of mandamus and special appeal filed in 2006, in which CSN and the Federal Union are parties, related to the discussion about the non-inclusion of ICMS in the PIS and COFINS calculation basis, was judged in final court decision, confirmed the right of CSN to offset the amounts unduly paid as a result of the PIS and COFINS base being increased by the inclusion of ICMS in the period from 2001 to 2014. |
9. OTHER CURRENT AND NON-CURR_3
9. OTHER CURRENT AND NON-CURRENT ASSETS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | R$ 367814 | R$ 390581 | |
Other non-current assets | 3,603,047 | 2,793,115 | |
Judicial deposits [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other non-current assets | 325,117 | 328,371 | |
Credits with the PGFN [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other non-current assets | [1] | 46,774 | |
Prepaid expenses [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | 136,527 | 107,428 | |
Other non-current assets | 115,636 | 126,213 | |
Prepaid expenses with sea freight [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | [2] | 74,500 | 96,305 |
Actuarial asset [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other non-current assets | 13,819 | 13,714 | |
Derivative financial instruments [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | 1,364 | ||
Other non-current assets | 4,203 | ||
Securities held for trading [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | 5,065 | 4,034 | |
Loans with related parties [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other non-current assets | 966,050 | 846,300 | |
Other receivables from related parties [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | 6,242 | 1,830 | |
Other non-current assets | 664,020 | 428,672 | |
Other receivables [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other non-current assets | 2,445 | 7,059 | |
Eletrobras's compulsory loan [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other non-current assets | [3] | 852,532 | 845,284 |
Dividends receivables [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | 38,088 | 44,554 | |
Employee debts [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | 28,054 | 33,045 | |
Receivables by indemnity [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other non-current assets | [4] | 517,183 | |
Other [member] | |||
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |||
Other current assets | 79,338 | 102,021 | |
Other non-current assets | R$ 146245 | R$ 146525 | |
[1] | In September 2020, the Company reclassified the amount to judicial deposits. | ||
[2] | Refers a payment of freight expenses and maritime insurance over revenues didn't recognized. | ||
[3] | This is a certain and due amount, arising from the res judicata favorable decision to the Company, which is irreversible and irrevocable, in order to apply the STJ's consolidated position on the subject, which culminated in the conviction of Eletrobras to the payment of the correct interest and monetary adjustment of the Compulsory Loan. The res judicata decision, as well as the certainty about the amounts involved in the liquidation of the sentence (judicial procedure to request the satisfaction of the right), allowed the conclusion that the entry of this value is certain. In addition to this amount already recorded, the Company continues to seek alternatives for the recovery of additional credits and the estimate can reach an amount greater than R$350 million. | ||
[4] | This is a net, certain and enforceable amount, resulting from the final and unappealable decision of the Court in favor of the Company, due to losses and damages resulting from the sinking of the voltage in the supply of energy in the periods from January / 1991 to June / 2002. The receivable for indemnification in the amount of R$147,612 was recognized in the income statement for the year in other operating income and expenses and in the financial result, the amount of R$369,571. See notes 27 and 28, respectively. |
9. OTHER CURRENT AND NON-CURR_4
9. OTHER CURRENT AND NON-CURRENT ASSETS (Details Narrative) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |
Receivable for indemnification | R$ 147612 |
financial result | 369,571 |
Eletrobras's compulsory loan [member] | |
OtherCurrentAndNonCurrentAssetsLineItems [Line Items] | |
Recovery of additional credits | R$ 350000 |
10. BASIS OF CONSOLIDATION AN_3
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 1,387,524,047 | 1,387,524,047 | |
Diplic II- Fundo de investimento multimercado credito privado [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interest (%), exclusive funds | 100.00% | 100.00% | |
Core business | Investment fund | ||
Caixa Vertice - Fundo de investimento multimercado credito privado [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interest (%), exclusive funds | 100.00% | 100.00% | |
Core business | Investment fund | ||
VR1 - Fundo de investimento multimercado credito privado [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interest (%), exclusive funds | 100.00% | 100.00% | |
Core business | Investment fund | ||
Arvedi Metalfer do Brasil S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 49,074,882 | ||
Equity interest (%), associate | 20.00% | 20.00% | |
Core business | Metallurgy and Equity interests | ||
Ita Energetica S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 253,606,846 | ||
Equity interests (%), operation | 48.75% | 48.75% | |
Core business | Electric power generation | ||
CONSORCIO DA USINA HIDRELETRICA DE IGARAPAVA [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), operation | 17.92% | 17.92% | |
Core business | Electric power consortium | ||
MRS Logistica S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | [1] | 63,377,198 | |
Equity interest (%), joint venture | [1] | 18.64% | 18.64% |
Core business | [1] | Railroad transportation | |
Aceros Del Orinoco S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interest (%), joint venture | 31.82% | 31.82% | |
Core business | Dormant company | ||
Transnordestina logistica s.a [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | [2] | 24,670,093 | |
Equity interest (%), joint venture | [2] | 47.26% | 47.26% |
Core business | [2] | Railroad logistics | |
Equimac S.A [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | [3] | 1,117 | |
Equity interest (%), joint venture | [3] | 50.00% | |
Core business | [3] | Rental of commercial and industrial machinery and equipment | |
MRS Logistica S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interest (%), joint venture | [1] | 16.30% | 16.30% |
Core business | [1] | Railroad transportation | |
CSN Islands VII Corp. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 20,001,000 | ||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Financial transactions | ||
CSN inova ventures [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | [4] | 50,000 | |
Equity interests (%), subsidiary | [4] | 100.00% | 100.00% |
Core business | [4] | Financial transactions | |
CSN Islands XII Corp. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 1,540 | ||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Financial transactions | ||
CSN Steel S.L.U. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 22,042,688 | ||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Equity interests and Financial transactions | ||
TdBB S.A [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | [5] | ||
Equity interests (%), subsidiary | [5] | 100.00% | 100.00% |
Core business | [5] | Equity interests | |
Sepetiba Tecon S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 254,015,052 | ||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Port services | ||
Minerios nacional s.a. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 141,719,295 | ||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Mining and Equity interests | ||
Companhia Florestal do Brasil [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 66,354,391 | ||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Reforestation | ||
Estanho de Rondonia S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 195,454,162 | ||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Tin Mining | ||
Companhia Metalurgica Prada [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 555,142,354 | ||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Manufacture of containers and distribution of steel products | ||
CSN Mineracao SA [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 158,419,480 | ||
Equity interests (%), subsidiary | 87.52% | 87.52% | |
Core business | Mining | ||
CSN Energia S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 43,149 | ||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Sale of electric power | ||
FTL - FERROVIA TRANSNORDESTINA LOGISTICA SA ("FTL") [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 486,592,830 | ||
Equity interests (%), subsidiary | 92.38% | 92.38% | |
Core business | Railroad logistics | ||
Nordeste Logistica S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 99,999 | ||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Port services | ||
CSN Inova Ltd. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Advisory and implementation of new development projec | ||
CSN Equipamentos S.A [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | [3] | ||
Equity interests (%), subsidiary | [3] | 99.99% | |
Core business | [3] | Rental of commercial and industrial machinery and equipment | |
CBSI - Companhia Brasileira de Servicos de Infraestrutura [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | 4,669,986 | ||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Equity interests and product sales and iron ore | ||
CSN Cimentos S.A [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | [6] | 90 | |
Equity interests (%), subsidiary | [6] | 90.00% | |
Core business | [6] | Manufacturing and sale of cement | |
Lusosider Projectos Siderurgicos S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Equity interests and product sales | ||
Lusosider Acos Planos, S. A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Steel and Equity interests | ||
CSN Resources S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Financial transactions and Equity interests | ||
Companhia Brasileira de Latas [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 99.99% | 99.99% | |
Core business | Sale of cans and containers in general and Equity interests | ||
Companhia de Embalagens Metalicas MMSA [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 99.67% | 99.67% | |
Core business | Production and sale of cans and related activities | ||
Companhia de Embalagens Metalicas - MTM [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 99.67% | 99.67% | |
Core business | Production and sale of cans and related activities | ||
CSN Steel Holdings 1, S.L.U. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Financial transactions, product sales and Equity interests | ||
CSN Productos Siderurgicos S.L. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Financial transactions, product sales and Equity interests | ||
Stalhwerk Thuringen GmbH [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Production and sale of long steel and related activities | ||
CSN Steel Sections UK Limited [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | [7] | 100.00% | |
Core business | [7] | Sale of long steel | |
CSN Steel Sections Polska Sp.Z.o.o [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Financial transactions, product sales and Equity interests | ||
CSN Mining Holding, S.L [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 87.52% | 87.52% | |
Core business | Financial transactions, product sales and Equity interests | ||
CSN Mining GmbH [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 87.52% | 87.52% | |
Core business | Financial transactions, product sales and Equity interests | ||
CSN Mining Asia Limited [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 87.52% | 87.52% | |
Core business | Commercial representation | ||
Lusosider Iberica S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Steel, commercial and industrial activities and equity interests | ||
CSN Mining Portugal, Unipessoal Lda. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 87.52% | 87.52% | |
Core business | Commercial and representation of products | ||
Companhia Siderurgica Nacional, LLC [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Equity interests (%), subsidiary | 100.00% | 100.00% | |
Core business | Import and distribution/resale of products | ||
CSN Cimentos S.A. [member] | |||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||
Number of shares held by CSN (in units) | [6] | 10 | |
Equity interests (%), subsidiary | [6] | 10.00% | |
Core business | [6] | Manufacturing and sale of cement | |
[1] | As of December 31, 2020, the Company directly held 63,377,198 shares, of which 26,611,282 were common and 36,765,916 were preferred, and indirectly 63,338,872 shares, of which 25,802,872 were common and 37,536,000 were preferred | ||
[2] | As of December 31, 2020, the Company had 24,168,304 common shares and 501,789 Class B preferred shares. | ||
[3] | On June 26, 2020, CSN Equipamentos SA had its corporate name changed to Equimac SA and its capital increased by Unidas Guindastes Eireli. With this capital increase, CSN's stake in Equimac's share capital increased to 50% and was classified as joint venture. | ||
[4] | On June 29, 2020, CSN Islands XI Corp. changed its corporate name to CSN Inova Ventures. | ||
[5] | Dormant companies. | ||
[6] | Company acquired on October 2, 2020. | ||
[7] | Company liquidated on March 11, 2020. |
10. BASIS OF CONSOLIDATION AN_4
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | R$ 63002149 | R$ 50869276 | ||
Liabilities | 344,488 | 419,894 | ||
Shareholders' equity | 11,251,505 | 11,361,932 | R$ 10013440 | R$ 8288229 |
Profit /(Loss) for the period | 4,292,618 | 2,244,511 | R$ 5200583 | |
Panatlantica [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Shareholders' equity | 59,879 | 47,300 | ||
Classified at fair value through profit or loss [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Shareholders' equity | 59,879 | 47,300 | ||
Eliminations [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Profit /(Loss) for the period | (30,856) | (38,219) | ||
Other [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Shareholders' equity | 279 | 157 | ||
Profit /(Loss) for the period | (9,967) | 171 | ||
Total Other Investment [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Shareholders' equity | 279 | 157 | ||
Profit /(Loss) for the period | (9,967) | 171 | ||
Total investments in affillated companies [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Shareholders' equity | 3,535,906 | 3,484,974 | ||
Total Equity in results of affillated companies [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Profit /(Loss) for the period | 71,755 | 125,715 | ||
Investments properties [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Shareholders' equity | 159,874 | 101,195 | ||
Total investments [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Shareholders' equity | 3,695,780 | 3,584,169 | ||
Arvedi Metalfer do Brasil S.A. [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | 40,528 | 44,435 | ||
Liabilities | 32,490 | 31,712 | ||
Shareholders' equity | 8,038 | 12,723 | ||
Profit /(Loss) for the period | (6,765) | (1,682) | ||
Associates [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | 40,528 | 44,435 | ||
Liabilities | 32,490 | 31,712 | ||
Shareholders' equity | 8,038 | 12,723 | ||
Profit /(Loss) for the period | (6,765) | (1,682) | ||
Equimac S.A [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Profit /(Loss) for the period | (329) | |||
MRS Logistica S.A. [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | 4,175,249 | 4,145,205 | ||
Liabilities | 2,567,882 | 2,616,218 | ||
Shareholders' equity | 1,607,367 | 1,528,987 | ||
Profit /(Loss) for the period | 160,371 | 187,597 | ||
Fair Value - MRS Logistica S.A. [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Shareholders' equity | 421,888 | 433,635 | ||
Profit /(Loss) for the period | (11,747) | (11,747) | ||
CSBI - Companhia Brasileira de Servicos de Infraestrutura [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | ||||
Liabilities | ||||
Profit /(Loss) for the period | 6,665 | |||
Transnordestina logistica s.a [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | 4,657,691 | 4,398,434 | ||
Liabilities | 3,497,587 | 3,209,378 | ||
Shareholders' equity | 1,160,104 | 1,189,056 | ||
Profit /(Loss) for the period | (28,952) | (17,100) | ||
Fair Value - Transnordestina [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | ||||
Liabilities | ||||
Shareholders' equity | 271,116 | 271,116 | ||
Profit /(Loss) for the period | ||||
Equimac S.A [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | 7,536 | |||
Liabilities | 301 | |||
Shareholders' equity | 7,235 | |||
Joint-venture and Joint-operation [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | 8,840,476 | 8,543,639 | ||
Liabilities | 6,065,770 | 5,825,596 | ||
Shareholders' equity | 3,467,710 | 3,422,794 | ||
Profit /(Loss) for the period | 119,343 | 165,415 | ||
Equimac S.A [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Assets | 15,072 | |||
Liabilities | ||||
Shareholders' equity | R$ 14470 | |||
Profit /(Loss) for the period |
10. BASIS OF CONSOLIDATION AN_5
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Basis Of Consolidation And Investments In Subsidiaries And Affiliates | ||||||
Opening balance of investments | R$ 3482974 | R$ 5630613 | ||||
Capital increase/acquisition of shares | 3,400 | 27,909 | ||||
Dividends | [1] | (82,642) | (94,603) | |||
Comprehensive income | [2] | 6,895 | (2,592) | |||
Equity in results of affiliated companies | 124,324 | [3] | 175,524 | [3] | R$ 135706 | |
Update of shares measured at fair value through profit or loss (Note 14 II) | 12,579 | (118,780) | ||||
Reclassification of Usiminas' shares | (2,114,620) | |||||
Consolidation of CBSI | (8,775) | |||||
Amortization of fair value - investment MRS | (11,747) | (11,747) | ||||
Others | 123 | 45 | ||||
Closing balance of investments | R$ 3535906 | R$ 3482974 | R$ 5630613 | |||
[1] | In 2020, it mainly refers to dividends of the subsidiary CSN Mineracao SA in the amount of R$2,437,482 (R$4,060,816 on December 31, 2019). | |||||
[2] | Refers to translation to the reporting currency of the foreign investments of which functional currency is not the Brazilian Reais, actuarial gain/loss and gain/loss on investment hedge from investments accounted for under the equity method. | |||||
[3] | The table below shows the reconciliation of the equity in results of affiliated companies classified as joint venture and associates and the amount disclosed in the income statement and it is due to the elimination of the results of the CSN's transactions with these companies. |
10. BASIS OF CONSOLIDATION AN_6
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||||
Equity in results of affiliated companies | R$ 124324 | [1] | R$ 175524 | [1] | R$ 135706 | |
Eliminations | ||||||
To cost of sales | (46,751) | (57,908) | ||||
To taxes | 15,895 | 19,689 | ||||
Others | ||||||
Amortizated at fair value - Investment in MRS | (11,747) | (11,747) | ||||
Others | (9,966) | 157 | ||||
Equity in results | 71,755 | 125,715 | ||||
MRS Logistica S.A. [member] | ||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||||
Equity in results of affiliated companies | 160,370 | 187,597 | ||||
CSBI - Companhia Brasileira de Servicos de Infraestrutura [member] | ||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||||
Equity in results of affiliated companies | [2] | 6,695 | ||||
Transnordestina logistica s.a [member] | ||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||||
Equity in results of affiliated companies | (28,952) | (17,100) | ||||
Arvedi Metalfer do Brasil S.A. [member] | ||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||||
Equity in results of affiliated companies | (6,765) | (1,682) | ||||
Equimac S.A [member] | ||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||||
Equity in results of affiliated companies | R$ 329 | |||||
Other [member] | ||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||||
Equity in results of affiliated companies | R$ 14 | |||||
[1] | The table below shows the reconciliation of the equity in results of affiliated companies classified as joint venture and associates and the amount disclosed in the income statement and it is due to the elimination of the results of the CSN's transactions with these companies. | |||||
[2] | Refers to equity income until November 30, 2019, as of this date, the joint venture started to be controlled and consolidated, according to note 10 c. |
10. BASIS OF CONSOLIDATION AN_7
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Assets | ||||
Cash and cash equivalents | R$ 9944586 | R$ 1088955 | R$ 2248004 | R$ 3411572 |
Other current assets | 367,814 | 390,581 | ||
Total current assets | 23,386,194 | 12,725,805 | ||
Noncurrent Assets | ||||
Other non-current assets | 3,603,047 | 2,793,115 | ||
Total non-current assets | 39,615,955 | 38,143,471 | ||
Total Assets | 63,002,149 | 50,869,276 | ||
Current Liabilities | ||||
Borrowings and financing | 4,126,453 | 5,125,843 | ||
Lease liabilities | 93,626 | 35,040 | ||
Total current liabilities | 14,725,696 | 11,619,957 | ||
Noncurrent Liabilities | ||||
Borrowings and financing | 31,144,200 | 22,841,193 | ||
Lease liabilities | 436,505 | 439,350 | ||
Total non-current liabilities | 37,024,948 | 27,887,387 | ||
Total equity | 11,251,505 | 11,361,932 | 10,013,440 | R$ 8288229 |
Total liabilities and shareholders' equity | 63,002,149 | 50,869,276 | ||
Net revenue | 30,064,020 | 25,436,417 | 22,968,885 | |
Cost of sales and services | 19,124,901 | 17,263,264 | 16,105,657 | |
Gross profit | 10,939,119 | 8,173,153 | 6,863,228 | |
Financial income (expenses), net | (796,311) | (2,131,184) | (1,495,643) | |
Income before income tax and social contribution | R$ 4918126 | 1,410,733 | R$ 5450917 | |
MRS Logistica S.A. [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Equity interest (%) | 34.94% | |||
Current Assets | ||||
Cash and cash equivalents | R$ 1206484 | 670,296 | ||
Advances to suppliers | 27,312 | 20,100 | ||
Other current assets | 823,204 | 1,326,281 | ||
Total current assets | 2,057,000 | 2,016,677 | ||
Noncurrent Assets | ||||
Other non-current assets | 608,878 | 789,562 | ||
Investments, PP&E and intangible assets | 8,537,009 | 8,316,033 | ||
Total non-current assets | 9,145,887 | 9,105,595 | ||
Total Assets | 11,202,887 | 11,122,272 | ||
Current Liabilities | ||||
Borrowings and financing | 828,439 | 653,784 | ||
Lease liabilities | 317,526 | 256,034 | ||
Other current liabilities | 1,117,975 | 1,561,684 | ||
Total current liabilities | 2,263,940 | 2,471,502 | ||
Noncurrent Liabilities | ||||
Borrowings and financing | 2,162,657 | 2,369,615 | ||
Lease liabilities | 1,674,594 | 1,650,758 | ||
Other non-current liabilities | 788,862 | 527,871 | ||
Total non-current liabilities | 4,626,113 | 4,548,244 | ||
Total equity | 4,312,834 | 4,102,526 | ||
Total liabilities and shareholders' equity | 11,202,887 | 11,122,272 | ||
Net revenue | 3,604,965 | 3,200,809 | ||
Cost of sales and services | (2,521,991) | (2,382,828) | ||
Gross profit | 1,082,974 | 817,981 | ||
Operating (expenses) income | (105,267) | 207,840 | ||
Financial income (expenses), net | (330,756) | (268,089) | ||
Income before income tax and social contribution | 646,951 | 757,732 | ||
Current and deferred income tax and social contribution | (216,649) | (254,378) | ||
Profit / (loss) for the period | R$ 430302 | 503,354 | ||
Transnordestina logistica s.a [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Equity interest (%) | 47.26% | |||
Current Assets | ||||
Cash and cash equivalents | R$ 1390 | 17,166 | ||
Advances to suppliers | 1,948 | 3,240 | ||
Other current assets | 51,793 | 59,405 | ||
Total current assets | 55,131 | 79,811 | ||
Noncurrent Assets | ||||
Other non-current assets | 225,492 | 258,391 | ||
Investments, PP&E and intangible assets | 9,574,588 | 8,968,447 | ||
Total non-current assets | 9,800,080 | 9,226,838 | ||
Total Assets | 9,855,211 | 9,306,649 | ||
Current Liabilities | ||||
Borrowings and financing | 241,029 | 103,877 | ||
Other current liabilities | 125,794 | 171,821 | ||
Total current liabilities | 366,823 | 275,698 | ||
Noncurrent Liabilities | ||||
Borrowings and financing | 6,368,070 | 6,084,424 | ||
Other non-current liabilities | 665,653 | 430,603 | ||
Total non-current liabilities | 7,033,723 | 6,515,027 | ||
Total equity | 2,454,665 | 2,515,924 | ||
Total liabilities and shareholders' equity | 9,855,211 | 9,306,649 | ||
Net revenue | 35 | |||
Gross profit | 35 | |||
Operating (expenses) income | (42,108) | (18,077) | ||
Financial income (expenses), net | (19,186) | (18,386) | ||
Income before income tax and social contribution | (61,259) | (36,463) | ||
Profit / (loss) for the period | R$ 61259 | (36,463) | ||
Equimac S.A [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Equity interest (%) | 50.00% | |||
Current Assets | ||||
Cash and cash equivalents | R$ 1351 | |||
Other current assets | 2,356 | |||
Total current assets | 3,707 | |||
Noncurrent Assets | ||||
Other non-current assets | ||||
Investments, PP&E and intangible assets | 11,365 | |||
Total non-current assets | 11,365 | |||
Total Assets | 15,072 | |||
Current Liabilities | ||||
Other current liabilities | 602 | |||
Total current liabilities | 602 | |||
Noncurrent Liabilities | ||||
Total equity | 14,470 | |||
Total liabilities and shareholders' equity | 15,072 | |||
Net revenue | 2,308 | |||
Cost of sales and services | (2,386) | |||
Gross profit | (78) | |||
Operating (expenses) income | (576) | |||
Financial income (expenses), net | (4) | |||
Income before income tax and social contribution | (658) | |||
Profit / (loss) for the period | R$ 658 | |||
Ita Energetica [member] | ||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||||
Equity interest (%) | 48.75% | |||
Current Assets | ||||
Cash and cash equivalents | R$ 48919 | 65,793 | ||
Advances to suppliers | 742 | 363 | ||
Other current assets | 89,521 | 15,955 | ||
Total current assets | 139,182 | 82,111 | ||
Noncurrent Assets | ||||
Other non-current assets | 20,807 | 24,361 | ||
Investments, PP&E and intangible assets | 390,672 | 426,403 | ||
Total non-current assets | 411,479 | 450,764 | ||
Total Assets | 550,661 | 532,875 | ||
Current Liabilities | ||||
Other current liabilities | 19,721 | 16,793 | ||
Total current liabilities | 19,721 | 16,793 | ||
Noncurrent Liabilities | ||||
Other non-current liabilities | 15,900 | 16,550 | ||
Total non-current liabilities | 15,900 | 16,550 | ||
Total equity | 515,040 | 499,532 | ||
Total liabilities and shareholders' equity | 550,661 | 532,875 | ||
Net revenue | 173,426 | 163,048 | ||
Cost of sales and services | (74,048) | (83,129) | ||
Gross profit | 99,378 | 79,919 | ||
Operating (expenses) income | (67,885) | (62,660) | ||
Financial income (expenses), net | (764) | 1,183 | ||
Income before income tax and social contribution | 30,729 | 18,442 | ||
Current and deferred income tax and social contribution | (10,391) | (6,147) | ||
Profit / (loss) for the period | R$ 20338 | 12,295 | ||
CBSI [member] | ||||
Noncurrent Liabilities | ||||
Net revenue | 267,436 | |||
Cost of sales and services | (233,830) | |||
Gross profit | 33,606 | |||
Operating (expenses) income | (12,328) | |||
Financial income (expenses), net | (1,460) | |||
Income before income tax and social contribution | 19,818 | |||
Current and deferred income tax and social contribution | (6,428) | |||
Profit / (loss) for the period | R$ 13390 |
10. BASIS OF CONSOLIDATION AN_8
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details 5) | 12 Months Ended |
Dec. 31, 2020 | |
Cash Flow Projection One [member] | |
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |
Cash Flow Projection | Gross margin |
By 2057 | Estimated based on market study to capture cargo and operating costs according to market trend studies |
Cash Flow Projection Two [member] | |
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |
Cash Flow Projection | Cost estimate |
By 2057 | Study-based costs and market trends |
Cash Flow Projection Three [member] | |
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |
Cash Flow Projection | Perpetuity growth rate |
By 2057 | Growth rate was not considered as a result of the projection model until the end of the concession. |
Cash Flow Projection Four [member] | |
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |
Cash Flow Projection | Discount rate |
By 2057 | Range from 5.83% to 7.41% in real terms |
10. BASIS OF CONSOLIDATION AN_9
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details 6) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||
Balance at beginning | R$ 159874 | R$ 101195 |
Cost | 184,158 | 122,693 |
Accumulated depreciation | (24,284) | (21,498) |
Acquisitions | 61,597 | |
Depreciation | (2,786) | |
Write-off | (132) | |
Balance at beginning | 159,874 | 159,874 |
Land [member] | ||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||
Balance at beginning | 97,610 | 68,877 |
Cost | 97,610 | 68,877 |
Acquisitions | 28,733 | |
Balance at beginning | 97,610 | 97,610 |
Buildings and infrastructure [member] | ||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||
Balance at beginning | 62,264 | 32,318 |
Cost | 86,548 | 53,816 |
Accumulated depreciation | (24,284) | (21,498) |
Acquisitions | 32,864 | |
Depreciation | (2,786) | |
Write-off | (132) | |
Balance at beginning | R$ 62264 | R$ 62264 |
10. BASIS OF CONSOLIDATION A_10
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details 7) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Buildings and infrastructure [member] | ||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | ||
Useful lives | 27 years | 21 years |
10. BASIS OF CONSOLIDATION A_11
10. BASIS OF CONSOLIDATION AND INVESTMENTS IN SUBSIDIARIES AND AFFILIATES (Details Narrative) - BRL (R$) R$ in Thousands | Nov. 29, 2019 | Nov. 13, 2019 | Nov. 30, 2015 | May 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Net loss | R$ 4292618 | R$ 2244511 | R$ 5200583 | ||||
Property, plant and equipment, net of depreciation | 19,716,223 | 19,700,944 | R$ 18046864 | ||||
Fair value of investment properties | R$ 1863563 | 1,781,019 | |||||
Class B preferred shares [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Total number of shares transfer | 1,677,816 | ||||||
Number of shares transfer to CSN | 501,789 | ||||||
Common shares [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of stake | 15.19% | ||||||
Preferred shares [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of stake | 20.29% | ||||||
COMPANHIA BRASILEIRA DE INFRASTRUCTURE SERVICES [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of interest | 50.00% | ||||||
Acquisition shares amount | R$ 24000 | ||||||
Goodwill | R$ 15225 | ||||||
Transnordestina logistica s.a [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of interest | 47.26% | ||||||
Percentage of voting capital | 92.60% | ||||||
Equimac S.A [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of stake | 50.00% | ||||||
PANATLANTICA SA [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of interest | 11.31% | ||||||
Arvedi Metalfer do Brasil S.A. [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of stake | 20.00% | ||||||
FTL - FERROVIA TRANSNORDESTINA LOGISTICA SA ("FTL") [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Subscribed shares amount | R$ 27670 | ||||||
Net loss | R$ 293 | ||||||
FTL - FERROVIA TRANSNORDESTINA LOGISTICA SA ("FTL") [member] | Bottom of range [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of interest | 91.69% | ||||||
FTL - FERROVIA TRANSNORDESTINA LOGISTICA SA ("FTL") [member] | Top of range [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of interest | 92.38% | ||||||
MRS. [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of stake | 18.63% | ||||||
CSN Mineracao SA [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of interest | 87.52% | ||||||
CKTR Brasil Servicos Ltda [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of stake | 50.00% | ||||||
ENGIE Brasil Energia S.A [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of interest | 48.75% | ||||||
MRS Logistica S.A. [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Concession term | 30 years | ||||||
Description of holding in other entity | The Company directly holds an 18.64% interest in the capital of MRS and indirectly, through its subsidiary CSN Mineracao SA, a 16.30% interest in the capital of MRS, totaling a 34.94% interest. | ||||||
CONSORCIO DA USINA HIDRELETRICA DE IGARAPAVA [member] | |||||||
BasisOfConsolidationAndInvestmentsInSubsidiariesAndAffiliatesLineItems [Line Items] | |||||||
Percentage of interest | 17.92% | ||||||
Property, plant and equipment, net of depreciation | R$ 21287 | 22,441 | |||||
Expense | R$ 6611 | R$ 6497 |
11. PROPERTY, PLANT AND EQUIP_3
11. PROPERTY, PLANT AND EQUIPMENT (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | R$ 19700944 | R$ 18046864 | ||
Effect of foreign exchange differences | 287,995 | 15,136 | ||
Acquisitions | 1,762,281 | 2,492,669 | ||
Capitalized interest (notes 28 and 33) | [1] | 92,506 | 117,189 | |
Write-offs (note 27) | (12,998) | (114,603) | ||
Depreciation (note 26) | (2,439,322) | (1,466,219) | ||
Transfers to other asset categories | ||||
Transfer to intangible assets | (4,633) | (11,896) | ||
Right of use- Initial recognition | 640,989 | |||
Right of use - Remesurement | 60,058 | (151,558) | ||
Update of the ARO (Asset retirement obligation) | 269,445 | 225,125 | ||
Transfers to investment property | (101,195) | |||
Consolidation CBSI | 9,123 | |||
Others | (53) | (680) | ||
Balance at end | 19,716,223 | 19,700,944 | ||
Right-of-use assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | [1] | 472,345 | ||
Effect of foreign exchange differences | [1] | 4,329 | ||
Acquisitions | 49,934 | [1] | 43,111 | |
Write-offs (note 27) | (7,318) | [1] | (1,354) | |
Depreciation (note 26) | (62,680) | [1] | (58,843) | |
Right of use- Initial recognition | 640,989 | |||
Right of use - Remesurement | 60,058 | [1] | (151,558) | |
Balance at end | [1] | 516,668 | 472,345 | |
Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 33,154,403 | 30,269,600 | ||
Effect of foreign exchange differences | ||||
Balance at end | 36,136,110 | 33,154,403 | ||
Cost [member] | Right-of-use assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | [1] | 531,044 | ||
Effect of foreign exchange differences | ||||
Balance at end | [1] | 634,786 | 531,044 | |
Accumulated depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | (13,453,459) | (12,222,736) | ||
Effect of foreign exchange differences | ||||
Balance at end | (16,419,887) | (13,453,459) | ||
Accumulated depreciation [member] | Right-of-use assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | [1] | (58,699) | ||
Effect of foreign exchange differences | ||||
Balance at end | [1] | (118,118) | (58,699) | |
Land [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 226,949 | 287,854 | ||
Effect of foreign exchange differences | 30,271 | 1,499 | ||
Acquisitions | 654 | 6,125 | ||
Write-offs (note 27) | (188) | (2,143) | ||
Depreciation (note 26) | (458) | |||
Transfers to other asset categories | 458 | 790 | ||
Transfers to investment property | (67,176) | |||
Balance at end | 257,686 | 226,949 | ||
Land [member] | Right-of-use assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Right of use- Initial recognition | 556,133 | |||
Land [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 226,949 | 287,854 | ||
Effect of foreign exchange differences | ||||
Balance at end | 257,686 | 226,949 | ||
Buildings and infrastructure [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 3,062,238 | 2,678,638 | ||
Effect of foreign exchange differences | 57,838 | 2,978 | ||
Acquisitions | 865 | 16,116 | ||
Capitalized interest (notes 28 and 33) | [1] | 13 | ||
Write-offs (note 27) | (130) | |||
Depreciation (note 26) | (780,395) | (135,313) | ||
Transfers to other asset categories | 67,574 | 294,872 | ||
Transfer to intangible assets | (31) | |||
Update of the ARO (Asset retirement obligation) | 269,445 | 225,125 | ||
Transfers to investment property | (20,030) | |||
Balance at end | 2,677,565 | 3,062,238 | ||
Buildings and infrastructure [member] | Right-of-use assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Right of use- Initial recognition | 54,513 | |||
Buildings and infrastructure [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 4,250,471 | 3,751,429 | ||
Effect of foreign exchange differences | ||||
Balance at end | 4,752,412 | 4,250,471 | ||
Buildings and infrastructure [member] | Accumulated depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | (1,188,233) | (1,072,791) | ||
Effect of foreign exchange differences | ||||
Balance at end | (2,074,847) | (1,188,233) | ||
Machinery, equipment and facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 12,603,619 | 11,687,271 | ||
Effect of foreign exchange differences | 186,591 | 8,033 | ||
Acquisitions | 122,744 | 459,460 | ||
Write-offs (note 27) | (3,073) | (80,426) | ||
Depreciation (note 26) | (1,564,525) | (1,241,026) | ||
Transfers to other asset categories | 1,112,024 | 1,766,047 | ||
Transfer to intangible assets | ||||
Right of use- Initial recognition | ||||
Right of use - Remesurement | ||||
Update of the ARO (Asset retirement obligation) | ||||
Transfers to investment property | ||||
Consolidation CBSI | 4,940 | |||
Others | 3 | (680) | ||
Balance at end | 12,457,383 | 12,603,619 | ||
Machinery, equipment and facilities [member] | Right-of-use assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Right of use- Initial recognition | 9,783 | |||
Machinery, equipment and facilities [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 24,372,514 | 22,426,782 | ||
Effect of foreign exchange differences | ||||
Balance at end | 26,213,225 | 24,372,514 | ||
Machinery, equipment and facilities [member] | Accumulated depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | (11,768,895) | (10,739,511) | ||
Effect of foreign exchange differences | ||||
Balance at end | (13,755,842) | (11,768,895) | ||
Fixtures and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 28,455 | 30,530 | ||
Effect of foreign exchange differences | 2,416 | 106 | ||
Acquisitions | 874 | 1,763 | ||
Write-offs (note 27) | (33) | (1) | ||
Depreciation (note 26) | (6,747) | (5,999) | ||
Transfers to other asset categories | 1,338 | 2,629 | ||
Transfer to intangible assets | ||||
Right of use- Initial recognition | ||||
Right of use - Remesurement | ||||
Update of the ARO (Asset retirement obligation) | ||||
Transfers to investment property | ||||
Consolidation CBSI | (573) | |||
Others | (6) | |||
Balance at end | 26,297 | 28,455 | ||
Fixtures and fixtures [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 170,229 | 165,331 | ||
Effect of foreign exchange differences | ||||
Balance at end | 182,974 | 170,229 | ||
Fixtures and fixtures [member] | Accumulated depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | (141,774) | (134,801) | ||
Effect of foreign exchange differences | ||||
Balance at end | (156,677) | (141,774) | ||
Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 3,217,052 | 3,282,436 | ||
Effect of foreign exchange differences | 4,727 | 2,464 | ||
Acquisitions | 1,583,054 | 1,924,520 | ||
Capitalized interest (notes 28 and 33) | [1] | 92,506 | 117,176 | |
Write-offs (note 27) | (9) | (30,400) | ||
Transfers to other asset categories | (1,212,373) | (2,053,290) | ||
Transfer to intangible assets | (4,633) | (11,865) | ||
Right of use- Initial recognition | ||||
Right of use - Remesurement | ||||
Update of the ARO (Asset retirement obligation) | ||||
Transfers to investment property | (13,989) | |||
Consolidation CBSI | ||||
Others | (2) | |||
Balance at end | 3,680,322 | 3,217,052 | ||
Construction in progress [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | 3,217,052 | 3,282,436 | ||
Effect of foreign exchange differences | ||||
Balance at end | 3,680,322 | 3,217,052 | ||
Other [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | [2] | 90,286 | 80,135 | |
Effect of foreign exchange differences | [2] | 1,823 | 56 | |
Acquisitions | [2] | 4,156 | 41,574 | |
Write-offs (note 27) | [2] | (2,377) | (149) | |
Depreciation (note 26) | [2] | (24,517) | (25,038) | |
Transfers to other asset categories | [2] | 30,979 | (11,048) | |
Transfer to intangible assets | [2] | |||
Right of use- Initial recognition | [2] | |||
Right of use - Remesurement | [2] | |||
Update of the ARO (Asset retirement obligation) | [2] | |||
Transfers to investment property | [2] | |||
Consolidation CBSI | [2] | 4,756 | ||
Others | [2] | (48) | ||
Balance at end | [2] | 100,302 | 90,286 | |
Other [member] | Right-of-use assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Right of use- Initial recognition | 20,560 | |||
Other [member] | Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | [2] | 386,144 | 355,768 | |
Effect of foreign exchange differences | ||||
Balance at end | [2] | 414,705 | 386,144 | |
Other [member] | Accumulated depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Balance at beginning | [2] | (295,858) | (275,633) | |
Effect of foreign exchange differences | ||||
Balance at end | [2] | R$ 314403 | R$ 295858 | |
[1] | The cost of capitalized interest is calculated, basically, for Mining projects that substantially refer to the expansion of Casa de Pedra (MG) and TECAR (RJ) - see notes 28 and 33. The average rate used for the capitalization of interest on non-specific projects in the period ended December 31 2020 was 5.62% per year (6.58% per year as of December 31, 2019). | |||
[2] | Refer substantially to: i) in the consolidated picture: assets for railway use, such as yards, rails, mines and dormant; |
11. PROPERTY, PLANT AND EQUIP_4
11. PROPERTY, PLANT AND EQUIPMENT (Details 1) - Right-of-use assets [member] - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | R$ 472345 | R$ 640989 |
Effect of foreign exchange differences | 4,329 | |
Addition | 49,934 | 43,111 |
Remesurement | 60,058 | (151,558) |
Depreciation | (62,680) | (58,843) |
Write-offs | (7,318) | (1,354) |
Balance at end | 516,668 | 472,345 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 531,044 | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | 634,786 | 531,044 |
Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | (58,699) | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | (118,118) | (58,699) |
Land [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 380,566 | 556,133 |
Addition | 9,039 | |
Remesurement | 34,645 | (152,915) |
Depreciation | (24,467) | (21,314) |
Write-offs | (6,580) | (1,338) |
Transfers to other asset categories | (188) | |
Balance at end | 393,015 | 380,566 |
Land [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 401,746 | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | 434,689 | 401,746 |
Land [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | (21,180) | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | (41,674) | (21,180) |
Buildings and infrastructure [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 64,154 | 54,513 |
Effect of foreign exchange differences | 988 | |
Addition | 4,561 | 6,719 |
Remesurement | 3,827 | 12,112 |
Depreciation | (983) | (9,190) |
Write-offs | (399) | |
Transfers to other asset categories | (6,062) | |
Balance at end | 66,086 | 64,154 |
Buildings and infrastructure [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 73,344 | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | 75,882 | 73,344 |
Buildings and infrastructure [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | (9,190) | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | (9,796) | (9,190) |
Machinery, equipment and facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 24,144 | 9,783 |
Effect of foreign exchange differences | 294 | |
Addition | 23,720 | 34,197 |
Remesurement | 21,557 | (4,525) |
Depreciation | (14,211) | (15,311) |
Transfers to other asset categories | (3,558) | |
Balance at end | 51,946 | 24,144 |
Machinery, equipment and facilities [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 39,455 | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | 81,598 | 39,455 |
Machinery, equipment and facilities [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | (15,311) | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | (29,652) | (15,311) |
Other [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 3,481 | 20,560 |
Effect of foreign exchange differences | 3,047 | |
Addition | 12,614 | 2,195 |
Remesurement | 29 | (6,230) |
Depreciation | (23,019) | (13,028) |
Write-offs | (339) | (16) |
Transfers to other asset categories | 9,808 | |
Balance at end | 5,621 | 3,481 |
Other [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | 16,499 | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | 42,617 | 16,499 |
Other [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning | (13,018) | |
Effect of foreign exchange differences | ||
Write-offs | ||
Balance at end | R$ 36996 | R$ 13018 |
11. PROPERTY, PLANT AND EQUIP_5
11. PROPERTY, PLANT AND EQUIPMENT (Details 2) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Buildings and infrastructure [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average estimated useful lives | [1] | 34 years | 38 years |
Machinery, equipment and facilities [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average estimated useful lives | 20 years | 21 years | |
Fixtures and fixtures [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average estimated useful lives | 12 years | 12 years | |
Other [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Average estimated useful lives | 10 years | 14 years | |
[1] | The decrease was caused by the review of the useful lives of dams infrastructure as a result of technical and functional obsolescence recorded in 2020 as a result of the use of filter and stack dry tailings in our iron ore production. |
11. PROPERTY, PLANT AND EQUIP_6
11. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment [abstract] | ||
Average rate used for capitalization of interest on non-specific projects | 5.62% | 6.58% |
12. INTANGIBLE ASSETS (Details)
12. INTANGIBLE ASSETS (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | R$ 7231781 | R$ 7253175 | |
Effect of foreign exchange differences | 158,649 | 7,839 | |
Acquisitions and expeditures | 1,837 | 1,427 | |
Transfer to property, plant and equipment | 4,633 | 11,896 | |
Amortization (note 26) | (79,955) | (58,129) | |
Goodwill - Acquisition 50% CBSI | 15,225 | ||
Consolidation CBSI on November 30, 2019. | 348 | ||
Others | (151) | ||
Balance at end | 7,316,794 | 7,231,781 | |
Cost [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 7,947,578 | 7,903,220 | |
Effect of foreign exchange differences | |||
Balance at end | 8,263,532 | 7,947,578 | |
Accumulated depreciation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | (606,467) | (540,715) | |
Effect of foreign exchange differences | |||
Balance at end | (837,408) | (606,467) | |
Adjustment for accumulated recoverable value [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | (109,330) | (109,330) | |
Effect of foreign exchange differences | |||
Balance at end | (109,330) | (109,330) | |
Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 3,606,156 | 3,590,931 | |
Effect of foreign exchange differences | |||
Acquisitions and expeditures | |||
Transfer to property, plant and equipment | |||
Amortization (note 26) | |||
Goodwill - Acquisition 50% CBSI | 15,225 | ||
Consolidation CBSI on November 30, 2019. | |||
Balance at end | 3,606,156 | 3,606,156 | |
Goodwill [member] | Cost [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 3,846,563 | 3,831,338 | |
Effect of foreign exchange differences | |||
Balance at end | 3,846,563 | 3,846,563 | |
Goodwill [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | (131,077) | (131,077) | |
Effect of foreign exchange differences | |||
Balance at end | (131,077) | (131,077) | |
Goodwill [member] | Adjustment for accumulated recoverable value [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | (109,330) | (109,330) | |
Effect of foreign exchange differences | |||
Balance at end | (109,330) | (109,330) | |
Customer related intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 246,139 | 288,773 | |
Effect of foreign exchange differences | 94,998 | 4,711 | |
Acquisitions and expeditures | 0 | ||
Transfer to property, plant and equipment | 0 | ||
Amortization (note 26) | (63,096) | (47,345) | |
Goodwill - Acquisition 50% CBSI | |||
Consolidation CBSI on November 30, 2019. | |||
Balance at end | 278,041 | 246,139 | |
Customer related intangible assets [member] | Cost [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 585,407 | 573,614 | |
Effect of foreign exchange differences | |||
Balance at end | 823,540 | 585,407 | |
Customer related intangible assets [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | (339,268) | (284,841) | |
Effect of foreign exchange differences | |||
Balance at end | (545,499) | (339,268) | |
Software [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 53,859 | 54,972 | |
Effect of foreign exchange differences | 584 | 3 | |
Acquisitions and expeditures | 1,837 | 1,387 | |
Transfer to property, plant and equipment | 633 | 7,808 | |
Amortization (note 26) | (11,248) | (10,657) | |
Goodwill - Acquisition 50% CBSI | |||
Consolidation CBSI on November 30, 2019. | 346 | ||
Balance at end | 45,665 | 53,859 | |
Software [member] | Cost [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 171,152 | 161,067 | |
Effect of foreign exchange differences | |||
Balance at end | 182,059 | 171,152 | |
Software [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | (117,293) | (106,095) | |
Effect of foreign exchange differences | |||
Balance at end | (136,394) | (117,293) | |
Trademarks and patents [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 153,103 | 150,009 | |
Effect of foreign exchange differences | 62,429 | 3,092 | |
Acquisitions and expeditures | |||
Transfer to property, plant and equipment | |||
Amortization (note 26) | |||
Goodwill - Acquisition 50% CBSI | |||
Consolidation CBSI on November 30, 2019. | 2 | ||
Balance at end | 215,532 | 153,103 | |
Trademarks and patents [member] | Cost [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 153,103 | 150,009 | |
Effect of foreign exchange differences | |||
Balance at end | 215,532 | 153,103 | |
Trademarks and patents [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | |||
Effect of foreign exchange differences | |||
Balance at end | |||
Rights and Licenses [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | [1] | 3,170,960 | 3,166,999 |
Effect of foreign exchange differences | [1] | ||
Acquisitions and expeditures | [1] | ||
Transfer to property, plant and equipment | [1] | 4,000 | 4,088 |
Amortization (note 26) | [1] | (5,611) | (127) |
Goodwill - Acquisition 50% CBSI | [1] | ||
Consolidation CBSI on November 30, 2019. | [1] | ||
Balance at end | [1] | 3,169,349 | 3,170,960 |
Rights and Licenses [member] | Cost [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | [1] | 3,189,789 | 3,185,701 |
Effect of foreign exchange differences | |||
Balance at end | [1] | 3,193,787 | 3,189,789 |
Rights and Licenses [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | [1] | (18,829) | (18,702) |
Effect of foreign exchange differences | |||
Balance at end | [1] | (24,438) | (18,829) |
Other [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 1,564 | 1,491 | |
Effect of foreign exchange differences | 638 | 33 | |
Acquisitions and expeditures | 40 | ||
Others | (151) | ||
Balance at end | 2,051 | 1,564 | |
Other [member] | Cost [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 1,564 | 1,491 | |
Effect of foreign exchange differences | |||
Balance at end | 2,051 | 1,564 | |
Other [member] | Accumulated depreciation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | |||
Effect of foreign exchange differences | |||
Balance at end | |||
[1] | Composed mainly of mining rights. Amortization is based on production volume. |
12. INTANGIBLE ASSETS (Details
12. INTANGIBLE ASSETS (Details 1) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Average useful lives | 9 years | 9 years |
Customer related intangible assets [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Average useful lives | 13 years | 13 years |
12. INTANGIBLE ASSETS (Detail_2
12. INTANGIBLE ASSETS (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | R$ 3821688 | R$ 3759259 | |
Packaging [member] | Steel [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [1] | 158,748 | 158,748 |
Long steel [member] | Steel [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [2] | 451,127 | 388,698 |
Mining [member] | Minning [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [3] | 3,196,588 | 3,196,588 |
Other Steel [member] | Steel [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [4] | 15,225 | 15,225 |
Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | 3,606,156 | 3,606,156 | |
Goodwill [member] | Packaging [member] | Steel [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [1] | 158,748 | 158,748 |
Goodwill [member] | Long steel [member] | Steel [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [2] | 235,595 | 235,595 |
Goodwill [member] | Mining [member] | Minning [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [3] | 3,196,588 | 3,196,588 |
Goodwill [member] | Other Steel [member] | Steel [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [4] | 15,225 | 15,225 |
Trademarks and patents [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | 215,532 | 153,103 | |
Trademarks and patents [member] | Long steel [member] | Steel [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash generating unity | [2] | R$ 215532 | R$ 153103 |
[1] | The goodwill of the Packaging cash-generating unit is shown net of impairment loss in the amount of R$109,330, recognized in 2011. | ||
[2] | The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows. | ||
[3] | Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineracao concluded in December 2015, which recoverability is tested annually. | ||
[4] | On November 29, 2019, CSN acquired the stake held by CKTR Brasil Servicos Ltda., corresponding to 50% of CBSI's shares, and now holds 100% of CBSI's share capital. |
12. INTANGIBLE ASSETS (Detail_3
12. INTANGIBLE ASSETS (Details 3) | 12 Months Ended | |
Dec. 31, 2020 | ||
Packaging [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Measurement of recoverable value | DCF | |
Cash flow projection | Until 2030 + perpetuity | |
Gross Margin | Update of gross margin based on historical data, incorporation of the impacts of business restructuring and market trends. | |
Cost atualization | Update of costs based on historical data for each product and incorporation of the impacts of business restructuring. | |
Perpetual growth rate | No growth. | |
Discount rate | 8.00% | |
Mining [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Measurement of recoverable value | DCF | |
Cash flow projection | Until 2064 | |
Gross Margin | It reflects projection of costs due to the progress of the mining plan as well as startup and project ramp up. Prices and exchange rates projected according to sectoral reports. | |
Cost atualization | Update of costs based on historical data, progress of the mining plan as well as startup and project ramp up | |
Perpetual growth rate | Without perpetuity. | |
Mining [member] | Bottom of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate | 7.00% | |
Mining [member] | Top of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate | 9.50% | |
Other Steel [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Measurement of recoverable value | DCF | |
Cash flow projection | Until 2030 + perpetuity | |
Gross Margin | Update of gross margin based on historical data and market trends. | |
Cost atualization | Update of costs based on historical data and market trends. | |
Perpetual growth rate | No growth. | |
Other Steel [member] | Bottom of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate | 7.00% | |
Other Steel [member] | Top of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate | 9.50% | |
Flat Steel [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Measurement of recoverable value | DCF | |
Cash flow projection | Until 2030 + perpetuity | |
Gross Margin | Update gross margin based on historical data and market trends. | |
Cost atualization | Update of costs based on historical data and market trends. | |
Perpetual growth rate | Growth of 1.4% per year in real terms, updated by long-term inflation of 1.7% per year in the Eurozone. | |
Flat Steel [member] | Bottom of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate | 7.00% | |
Flat Steel [member] | Top of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate | 9.50% | |
Logistic [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Measurement of recoverable value | DCF | |
Cash flow projection | by 2027 | |
Gross Margin | Estimated based on market study to capture cargo and operating costs according to market trend studies | |
Cost atualization | Study-based costs and market trends | |
Perpetual growth rate | Without perpetuity. | |
Logistic [member] | Bottom of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate | 5.87% | [1] |
Logistic [member] | Top of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate | 6.40% | |
[1] | Refer to assets of subsidiary FTL Ferrovia Transnordestina Logistica S.A. |
12. INTANGIBLE ASSETS (Detail_4
12. INTANGIBLE ASSETS (Details Narrative) - BRL (R$) R$ in Thousands | Nov. 29, 2019 | Dec. 31, 2011 |
Disclosure of detailed information about intangible assets [line items] | ||
Impairment loss | R$ 109330 | |
Owership interest | 100.00% | |
CKTR Brasil Servicos Ltda [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Ownership interest in subsidiary | 50.00% |
13. BORROWINGS AND FINANCING (D
13. BORROWINGS AND FINANCING (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
BorrowingsAndFinancingLineItems [Line Items] | |||
Borrowings and financing, current | R$ 4155483 | R$ 5152234 | |
Borrowings and financing, noncurrent | 31,215,128 | 22,938,469 | |
Transaction costs and issue premiums, current | (29,030) | (26,391) | |
Transaction costs and issue premiums, noncurrent | (70,928) | (97,276) | |
Borrowings and financing and transaction costs, current | 4,126,453 | 5,125,843 | |
Borrowings and financing and transaction costs, noncurrent | 31,144,200 | 22,841,193 | |
Foreign currency [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
Borrowings and financing, current | 1,873,204 | 4,040,211 | |
Borrowings and financing, noncurrent | 23,498,821 | 12,888,686 | |
Local currency [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
Borrowings and financing, current | 2,282,279 | 1,112,023 | |
Borrowings and financing, noncurrent | 7,716,307 | 10,049,783 | |
Variable interest [member] | Prepayment [member] | Foreign currency [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
Borrowings and financing, current | [1] | 1,119,558 | 1,769,975 |
Borrowings and financing, noncurrent | [1] | 3,457,105 | 2,563,928 |
Variable interest [member] | BNDES/FINAME, Debentures, NCE and CCB [member] | Local currency [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
Borrowings and financing, current | [2] | 2,282,279 | 1,086,985 |
Borrowings and financing, noncurrent | [2] | 7,716,307 | 10,049,783 |
Fixed interest [member] | Bonds, Perpetual Bonds and ACC [member] | Foreign currency [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
Borrowings and financing, current | [3] | 426,676 | 2,047,032 |
Borrowings and financing, noncurrent | [3] | 19,898,213 | 10,177,517 |
Fixed interest [member] | Facility [member] | Foreign currency [member] | Euro [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
Borrowings and financing, current | 326,970 | 223,204 | |
Borrowings and financing, noncurrent | R$ 143503 | 147,241 | |
Fixed interest [member] | Intercompany [member] | Local currency [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
Borrowings and financing, current | R$ 25038 | ||
[1] | In 2020, the Company renegotiated part of the Prepayment debt in the total amount of U$311 million, postponing part of the maturities of 2020 and 2021 to 2022. | ||
[2] | In June 2020, the Company renegotiated a debt rollover in the amount of R$300 million, shifting the maturities of 2020 to the years 2021, 2022 and 2023. | ||
[3] | In 2020, the Company issued debt securities representing the foreign market ("Notes"), through its subsidiary CSN Inova Ventures, with maturity in 2028 and interest rate of 6.75% per year, totaling US$1, 3 billion, of which US$1 billion in January and US$300 million in November. Additionally, we used US$263 million in the repurchase offer ("Tender Offer") of the Notes issued by CSN Resources SA in January 2020. All Notes mentioned above are unconditionally and irrevocably guaranteed by the Company. |
13. BORROWINGS AND FINANCING _2
13. BORROWINGS AND FINANCING (Details 1) € in Thousands, R$ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020BRL (R$) | Dec. 31, 2020EUR (€) | |||
BorrowingsAndFinancingLineItems [Line Items] | ||||||
Total debt | R$ 35370611 | |||||
Local currency [member] | ||||||
BorrowingsAndFinancingLineItems [Line Items] | ||||||
Average interest rate | 2.82% | [1] | 2.82% | [1] | 2.82% | [1] |
Total debt | R$ 9998586 | |||||
USD | ||||||
BorrowingsAndFinancingLineItems [Line Items] | ||||||
Average interest rate | 6.63% | [1] | 6.63% | [1] | 6.63% | [1] |
Total debt | $ | $ 24,901,552 | |||||
Euro [member] | ||||||
BorrowingsAndFinancingLineItems [Line Items] | ||||||
Average interest rate | 1.50% | [1] | 1.50% | [1] | 1.50% | [1] |
Total debt | € | € 470,473 | |||||
[1] | To determine the average interest rate on debt contracts with floating rates, the Company used the rates applied on December 31, 2020. In The Company, it considers the interest rate of the contracts intercompany. |
13. BORROWINGS AND FINANCING _3
13. BORROWINGS AND FINANCING (Details 2) R$ in Thousands | Dec. 31, 2020BRL (R$) |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | R$ 35370611 |
Foreign currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 25,372,025 |
National currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 9,998,586 |
2022 [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 4,155,483 |
2022 [member] | Foreign currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 1,873,204 |
2022 [member] | National currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 2,282,279 |
2023 [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 5,542,647 |
2023 [member] | Foreign currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 2,683,224 |
2023 [member] | National currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 2,859,423 |
2023 [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 8,603,471 |
2023 [member] | Foreign currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 5,567,133 |
2023 [member] | National currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 3,036,338 |
2024 [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 1,416,308 |
2024 [member] | Foreign currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 178,033 |
2024 [member] | National currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 1,238,275 |
2025 [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 68,595 |
2025 [member] | National currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 68,595 |
2026 [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 3,186,608 |
2026 [member] | Foreign currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 3,118,021 |
2026 [member] | National currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 68,587 |
After 2026 [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 7,200,799 |
After 2026 [member] | Foreign currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 6,755,710 |
After 2026 [member] | National currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 445,089 |
Perpetual Bonds [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | 5,196,700 |
Perpetual Bonds [member] | Foreign currency [member] | |
BorrowingsAndFinancingLineItems [Line Items] | |
Maturities of loans, financing and debentures | R$ 5196700 |
13. BORROWINGS AND FINANCING _4
13. BORROWINGS AND FINANCING (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Borrowings And Financing | ||||
Opening balance | R$ 27967036 | R$ 28827074 | ||
New debts | 8,116,247 | 10,149,381 | ||
Repayment | (6,448,658) | (11,775,093) | R$ 5019978 | |
Payments of charges | (1,922,130) | (2,039,112) | ||
Accrued charges (Note 28) | 2,002,052 | 1,996,305 | ||
Consolidation of CBSI | 19,722 | |||
Others | [1] | 5,556,106 | 788,759 | |
Closing balance | R$ 35270653 | R$ 27967036 | R$ 28827074 | |
[1] | Including unrealized exchange and monetary variations and funding cost. |
13. BORROWINGS AND FINANCING _5
13. BORROWINGS AND FINANCING (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
BorrowingsAndFinancingLineItems [Line Items] | |||
New debts | R$ 8116247 | R$ 10149381 | |
Repayment | (6,448,658) | (11,775,093) | R$ 5019978 |
Interest payment | (1,922,130) | R$ 2039112 | |
Prepayment [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
New debts | 177,420 | ||
Repayment | (1,028,606) | ||
Interest payment | (245,125) | ||
Bonds, Perpetual Bonds, ACC and Facility [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
New debts | 7,917,929 | ||
Repayment | (4,458,888) | ||
Interest payment | (1,237,396) | ||
BNDES/FINAME, Debentures, NCE and CCB [member] | |||
BorrowingsAndFinancingLineItems [Line Items] | |||
New debts | 20,898 | ||
Repayment | (961,164) | ||
Interest payment | R$ 439609 |
13. BORROWINGS AND FINANCING _6
13. BORROWINGS AND FINANCING (Details Narrative) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Borrowings And Financing | |
Accrued commision on risk assumption | R$ 10531 |
14. FINANCIAL INSTRUMENTS (Deta
14. FINANCIAL INSTRUMENTS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial assets at fair value through profit or loss | R$ 3310174 | R$ 2120018 |
Total current financial assets at amortised cost | 13,328,279 | 3,699,993 |
Total current financial assets | 16,638,453 | 5,820,011 |
Total non-current financial assets at fair value through profit or loss | 59,879 | 51,503 |
Total non-current financial assets at amortised cost | 2,461,619 | 1,794,362 |
Total non-current financial assets | 2,521,498 | 1,845,865 |
Total financial assets at fair value through profit or loss | 3,370,053 | 2,171,521 |
Total financial assets at amortised cost | 15,789,898 | 5,494,355 |
Total financial assets | 19,159,951 | 7,665,876 |
Total current financial liabilities at fair value through profit or loss | 8,722 | |
Total current financial liabilities at amortised cost | 10,638,642 | 9,334,492 |
Total current financial liabilities | 10,647,364 | 9,334,492 |
Total non-current financial liabilities at fair value through profit or loss | 97,535 | |
Total non-current financial liabilities at amortised cost | 32,195,160 | 23,377,819 |
Total non-current financial liabilities | 32,292,695 | 23,377,819 |
Total financial liabilites at fair value through profit or loss | 106,257 | |
Total financial liabilities at amortised cost | 42,833,802 | 32,712,311 |
Total financial liabilities | 42,940,059 | 32,712,311 |
Leases [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial liabilities at fair value through profit or loss | ||
Total current financial liabilities at amortised cost | 93,626 | 35,040 |
Total current financial liabilities | 93,626 | 35,040 |
Total non-current financial liabilities at fair value through profit or loss | ||
Total non-current financial liabilities at amortised cost | 436,505 | 439,350 |
Total non-current financial liabilities | 436,505 | 439,350 |
Trade payables - drawee risk [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial liabilities at fair value through profit or loss | ||
Total current financial liabilities at amortised cost | 623,861 | 1,121,312 |
Total current financial liabilities | 623,861 | 1,121,312 |
Trade payables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial liabilities at fair value through profit or loss | ||
Total current financial liabilities at amortised cost | 4,819,539 | 3,012,654 |
Total current financial liabilities | 4,819,539 | 3,012,654 |
Total non-current financial liabilities at fair value through profit or loss | ||
Total non-current financial liabilities at amortised cost | 543,527 | |
Total non-current financial liabilities | 543,527 | |
Borrowings and financing [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial liabilities at fair value through profit or loss | ||
Total current financial liabilities at amortised cost | 4,155,483 | 5,152,234 |
Total current financial liabilities | 4,155,483 | 5,152,234 |
Total non-current financial liabilities at fair value through profit or loss | ||
Total non-current financial liabilities at amortised cost | 31,215,128 | 22,938,469 |
Total non-current financial liabilities | 31,215,128 | 22,938,469 |
Dividends and interest on equity/ capital [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial assets at fair value through profit or loss | ||
Total current financial assets at amortised cost | 38,088 | 44,554 |
Total current financial assets | 38,088 | 44,554 |
Total current financial liabilities at fair value through profit or loss | ||
Total current financial liabilities at amortised cost | 946,133 | 13,252 |
Total current financial liabilities | 946,133 | 13,252 |
Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial assets at fair value through profit or loss | 1,364 | |
Total current financial assets at amortised cost | ||
Total current financial assets | 1,364 | |
Total non-current financial assets at fair value through profit or loss | 4,203 | |
Total non-current financial assets at amortised cost | ||
Total non-current financial assets | 4,203 | |
Total current financial liabilities at fair value through profit or loss | 8,722 | |
Total current financial liabilities at amortised cost | ||
Total current financial liabilities | 8,722 | |
Total non-current financial liabilities at fair value through profit or loss | 97,535 | |
Total non-current financial liabilities at amortised cost | ||
Total non-current financial liabilities | 97,535 | |
Cash and cash equivalants [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial assets at fair value through profit or loss | ||
Total current financial assets at amortised cost | 9,944,586 | 1,088,955 |
Total current financial assets | 9,944,586 | 1,088,955 |
Short-term investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial assets at fair value through profit or loss | 3,305,109 | 2,114,620 |
Total current financial assets at amortised cost | 478,253 | 518,553 |
Total current financial assets | 3,783,362 | 2,633,173 |
Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial assets at fair value through profit or loss | ||
Total current financial assets at amortised cost | 2,867,352 | 2,047,931 |
Total current financial assets | 2,867,352 | 2,047,931 |
Trading securities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current financial assets at fair value through profit or loss | 5,065 | 4,034 |
Total current financial assets at amortised cost | ||
Total current financial assets | 5,065 | 4,034 |
Investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current financial assets at fair value through profit or loss | ||
Total non-current financial assets at amortised cost | 123,409 | 95,719 |
Total non-current financial assets | 123,409 | 95,719 |
Other trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current financial assets at fair value through profit or loss | ||
Total non-current financial assets at amortised cost | 2,445 | 7,059 |
Total non-current financial assets | 2,445 | 7,059 |
Eletrobras compulsory loan [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current financial assets at fair value through profit or loss | ||
Total non-current financial assets at amortised cost | 852,532 | 845,284 |
Total non-current financial assets | 852,532 | 845,284 |
Receivables by indemnity [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current financial assets at fair value through profit or loss | ||
Total non-current financial assets at amortised cost | 517,183 | |
Total non-current financial assets | 517,183 | |
Loans - related parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current financial assets at fair value through profit or loss | ||
Total non-current financial assets at amortised cost | 966,050 | 846,300 |
Total non-current financial assets | 966,050 | 846,300 |
Investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current financial assets at fair value through profit or loss | 59,879 | 47,300 |
Total non-current financial assets at amortised cost | ||
Total non-current financial assets | R$ 59879 | R$ 47300 |
14. FINANCIAL INSTRUMENTS (De_2
14. FINANCIAL INSTRUMENTS (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | R$ 3310174 | R$ 2120018 |
Non-current financial assets at fair value through profit or loss | 59,879 | 51,503 |
Total Financial assets at fair value through profit or loss | 3,370,053 | 2,171,521 |
Current financial liabilities at fair value through profit or loss | 8,722 | |
Non-current financial liabilities at fair value through profit or loss | 97,535 | |
Total financial liabilites at fair value through profit or loss | 106,257 | |
Level 1 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | 3,370,053 | 2,165,954 |
Total Financial assets at fair value through profit or loss | 3,370,053 | 2,171,521 |
Level 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current financial liabilities at fair value through profit or loss | 106,257 | |
Total financial liabilites at fair value through profit or loss | 106,257 | |
Financial investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | 3,305,109 | 2,114,620 |
Financial investments [member] | Level 1 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | 3,305,109 | 2,114,620 |
Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | 1,364 | |
Non-current financial assets at fair value through profit or loss | 4,203 | |
Current financial liabilities at fair value through profit or loss | 8,722 | |
Non-current financial liabilities at fair value through profit or loss | 97,535 | |
Derivative financial instruments [member] | Level 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | 1,364 | |
Non-current financial assets at fair value through profit or loss | 4,203 | |
Current financial liabilities at fair value through profit or loss | 8,722 | |
Non-current financial liabilities at fair value through profit or loss | 97,535 | |
Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | 1,364 | |
Non-current financial assets at fair value through profit or loss | 4,203 | |
Current financial liabilities at fair value through profit or loss | 8,722 | |
Non-current financial liabilities at fair value through profit or loss | 97,535 | |
Trading securities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | 5,065 | 4,034 |
Trading securities [member] | Level 1 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets at fair value through profit or loss | 5,065 | 4,034 |
Investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current financial assets at fair value through profit or loss | ||
Investments [member] | Level 1 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current financial assets at fair value through profit or loss | 59,879 | 47,300 |
Investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current financial assets at fair value through profit or loss | R$ 59879 | R$ 47300 |
14. FINANCIAL INSTRUMENTS (De_3
14. FINANCIAL INSTRUMENTS (Details 2) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020BRL (R$)Numnbershares | Dec. 31, 2019BRL (R$)Numnbershares | |
Disclosure of detailed information about financial instruments [line items] | ||
Closing Balance | R$ 3305109 | R$ 2114620 |
Fair value adjustment recognized in profit or loss | R$ 1190489 | R$ 136004 |
USIM3 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Quantity (in shares) | shares | 107,156,651 | 107,156,651 |
Equity interest (%) | 15.19 | 15.19 |
Share price | Numnber | 15.69 | 9.87 |
Closing Balance | R$ 1681288 | R$ 1057636 |
Fair value adjustment recognized in profit or loss | R$ 623652 | R$ 168236 |
USIM5 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Quantity (in shares) | shares | 111,144,456 | 111,144,456 |
Equity interest (%) | 20.29 | 20.29 |
Share price | Numnber | 14.61 | 9.51 |
Closing Balance | R$ 1623821 | R$ 1056984 |
Fair value adjustment recognized in profit or loss | R$ 566837 | R$ 32232 |
PATI3 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Quantity (in shares) | shares | 2,065,529 | 2,065,529 |
Equity interest (%) | 11.31 | 11.31 |
Share price | Numnber | 28.99 | 22.90 |
Closing Balance | R$ 59879 | R$ 47300 |
Fair value adjustment recognized in profit or loss | 12,579 | 17,224 |
Total shares [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Closing Balance | 3,364,988 | 2,161,920 |
Fair value adjustment recognized in profit or loss | R$ 1203068 | R$ 118780 |
14. FINANCIAL INSTRUMENTS (De_4
14. FINANCIAL INSTRUMENTS (Details 3) - Dec. 31, 2020 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange exposure | $ | $ 48,679 | |
Euro [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange exposure | € | € 10,138 | |
Foreign exchange risk [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange exposure | $ | (3,876,521) | |
Foreign exchange risk [member] | UNITED STATES [member] | Cash flow hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | 3,992,200 | |
Foreign exchange risk [member] | UNITED STATES [member] | Exchange rate swap CDI x dollar [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | (67,000) | |
Foreign exchange risk [member] | UNITED STATES [member] | Borrowings and financing [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | (4,812,268) | |
Foreign exchange risk [member] | UNITED STATES [member] | Trade payables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | (139,672) | |
Foreign exchange risk [member] | UNITED STATES [member] | Other liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | (9,305) | |
Foreign exchange risk [member] | UNITED STATES [member] | Total liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | (4,961,417) | |
Foreign exchange risk [member] | UNITED STATES [member] | Iron ore derivative [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | (172) | |
Foreign exchange risk [member] | UNITED STATES [member] | Cash and cash equivalents overseas [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | 664,951 | |
Foreign exchange risk [member] | UNITED STATES [member] | Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | 387,039 | |
Foreign exchange risk [member] | UNITED STATES [member] | Other assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | 9,158 | |
Foreign exchange risk [member] | UNITED STATES [member] | Total assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | 1,084,896 | |
Foreign exchange risk [member] | UNITED STATES [member] | Financial investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | $ | $ 23,748 | |
Foreign exchange risk [member] | Euro [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange exposure | € | 10,138 | |
Foreign exchange risk [member] | Euro [member] | Cash flow hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | ||
Foreign exchange risk [member] | Euro [member] | Exchange rate swap CDI x dollar [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | ||
Foreign exchange risk [member] | Euro [member] | Borrowings and financing [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | ||
Foreign exchange risk [member] | Euro [member] | Trade payables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | (9,258) | |
Foreign exchange risk [member] | Euro [member] | Other liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | (1,010) | |
Foreign exchange risk [member] | Euro [member] | Total liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | (10,268) | |
Foreign exchange risk [member] | Euro [member] | Iron ore derivative [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | ||
Foreign exchange risk [member] | Euro [member] | Cash and cash equivalents overseas [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | 13,372 | |
Foreign exchange risk [member] | Euro [member] | Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | 2,560 | |
Foreign exchange risk [member] | Euro [member] | Other assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | 4,474 | |
Foreign exchange risk [member] | Euro [member] | Total assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € | 20,406 | |
Foreign exchange risk [member] | Euro [member] | Financial investments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net foreign exchange exposure | € |
14. FINANCIAL INSTRUMENTS (De_5
14. FINANCIAL INSTRUMENTS (Details 4) - Foreign exchange risk [member] | Dec. 31, 2020Numnber |
UNITED STATES [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 5.1967 |
UNITED STATES [member] | Probable scenario [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 5.2617 |
UNITED STATES [member] | Scenario 1 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 6.4959 |
UNITED STATES [member] | Scenario 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 7.7951 |
Euro [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 6.3779 |
Euro [member] | Probable scenario [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 6.3867 |
Euro [member] | Scenario 1 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 7.9724 |
Euro [member] | Scenario 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 9.5669 |
USD x EUR [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 1.2271 |
USD x EUR [member] | Probable scenario [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 1.2124 |
USD x EUR [member] | Scenario 1 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 1.5339 |
USD x EUR [member] | Scenario 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Exchange rate | 1.8407 |
14. FINANCIAL INSTRUMENTS (De_6
14. FINANCIAL INSTRUMENTS (Details 5) - Foreign exchange risk [member] R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020BRL (R$) | ||
UNITED STATES [member] | Net exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | R$ 48679 | |
Risk | Dollar | |
UNITED STATES [member] | Gross exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | R$ 3876521 | |
Risk | Dollar | |
UNITED STATES [member] | Cash flow hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | R$ 3992200 | |
Risk | Dollar | |
Euro [member] | Net exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | R$ 10138 | |
Risk | Euro | |
Probable scenario [member] | UNITED STATES [member] | Net exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | R$ 3164 | [1] |
Probable scenario [member] | UNITED STATES [member] | Gross exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | (251,974) | [1] |
Probable scenario [member] | UNITED STATES [member] | Cash flow hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 259,493 | |
Probable scenario [member] | Euro [member] | Net exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 89 | [1] |
Scenario 1 [member] | UNITED STATES [member] | Net exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 63,242 | |
Scenario 1 [member] | UNITED STATES [member] | Gross exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | (5,036,279) | |
Scenario 1 [member] | UNITED STATES [member] | Cash flow hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 5,186,566 | |
Scenario 1 [member] | Euro [member] | Net exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 16,165 | |
Scenario 2 [member] | UNITED STATES [member] | Net exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 126,486 | |
Scenario 2 [member] | UNITED STATES [member] | Gross exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | (10,072,558) | |
Scenario 2 [member] | UNITED STATES [member] | Cash flow hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 10,373,133 | |
Scenario 2 [member] | Euro [member] | Net exchange position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 32,330 | |
Exchange rate swap dollar x euro [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | R$ 40697 | |
Risk | Dollar | |
Exchange rate swap dollar x euro [member] | Probable scenario [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | R$ 5264 | [1] |
Exchange rate swap dollar x euro [member] | Scenario 1 [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 50,134 | |
Exchange rate swap dollar x euro [member] | Scenario 2 [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | 78,337 | |
Exchange rate swap CDI x dollar [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | R$ 67000 | |
Risk | Dollar | |
Exchange rate swap CDI x dollar [member] | Probable scenario [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | R$ 4355 | [1] |
Exchange rate swap CDI x dollar [member] | Scenario 1 [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | (87,045) | |
Exchange rate swap CDI x dollar [member] | Scenario 2 [member] | UNITED STATES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Impact on profit or loss | R$ 174089 | |
[1] | The probable scenarios were calculated considering the following variations for risks: Real x Dollar - devaluation of the Real by 1.25% / Real x Euro - devaluation of the Real by 0.14% / Euro x Dollar - appreciation of Euro by 1.20%, Source: Central Bank of Brazil and European Central Bank quotations on 1/14/2021. |
14. FINANCIAL INSTRUMENTS (De_7
14. FINANCIAL INSTRUMENTS (Details 6) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Probable scenario [member] | USIM3 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | R$ 84064 |
Probable scenario [member] | USIM5 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | (81,191) |
Probable scenario [member] | PATI3 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | (2,994) |
Scenario 1 [member] | USIM3 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | (420,322) |
Scenario 1 [member] | USIM5 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | (405,955) |
Scenario 1 [member] | PATI3 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | (14,970) |
Scenario 2 [member] | USIM3 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | (840,644) |
Scenario 2 [member] | USIM5 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | (811,910) |
Scenario 2 [member] | PATI3 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Sensitivity analysis for stock price risks | R$ 29940 |
14. FINANCIAL INSTRUMENTS (De_8
14. FINANCIAL INSTRUMENTS (Details 7) - Interest rate risk [member] | Dec. 31, 2020 |
CDI [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 1.90% |
CDI [member] | Scenario 1 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 2.38% |
CDI [member] | Scenario 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 2.85% |
TJLP [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 4.55% |
TJLP [member] | Scenario 1 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 5.69% |
TJLP [member] | Scenario 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 6.38% |
Libor [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 0.26% |
Libor [member] | Scenario 1 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 0.32% |
Libor [member] | Scenario 2 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Interest rate (in percent) | 0.39% |
14. FINANCIAL INSTRUMENTS (De_9
14. FINANCIAL INSTRUMENTS (Details 8) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | |||
Assets | R$ 19159951 | R$ 7665876 | |
Liabilities | R$ 42940059 | R$ 32712311 | |
Interest rate risk [member] | TJLP [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest | 4.55% | ||
Liabilities | R$ 817374 | ||
Interest rate risk [member] | TJLP [member] | Probable scenario [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | [1] | (2,155) | |
Interest rate risk [member] | TJLP [member] | Scenario 1 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | (9,298) | ||
Interest rate risk [member] | TJLP [member] | Scenario 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | R$ 18596 | ||
Interest rate risk [member] | LIBOR [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest | 0.26% | ||
Liabilities | R$ 4533341 | ||
Interest rate risk [member] | LIBOR [member] | Probable scenario [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | [1] | (43,321) | |
Interest rate risk [member] | LIBOR [member] | Scenario 1 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | (2,920) | ||
Interest rate risk [member] | LIBOR [member] | Scenario 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | R$ 5840 | ||
Interest rate risk [member] | CDI [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest | 1.90% | ||
Assets | R$ 5779452 | ||
Liabilities | (9,104,416) | ||
Interest rate risk [member] | CDI [member] | Probable scenario [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | [1] | (10,673) | |
Interest rate risk [member] | CDI [member] | Scenario 1 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | (15,794) | ||
Interest rate risk [member] | CDI [member] | Scenario 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities | R$ 31588 | ||
[1] | The sensitivity analysis is based on the premise of maintaining the market values as of December 31, 2020 as a probable scenario recorded in the company's assets and liabilities, |
14. FINANCIAL INSTRUMENTS (D_10
14. FINANCIAL INSTRUMENTS (Details 9) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020BRL (R$) | ||
Probable scenario [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | R$ 76821 | [1] |
Probable scenario [member] | 2/2/2021 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | (33,677) | [1] |
Probable scenario [member] | 3/2/2021 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | (43,144) | [1] |
Scenario 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | (496,354) | |
Scenario 2 [member] | 2/2/2021 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | (240,524) | |
Scenario 2 [member] | 3/2/2021 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | (255,830) | |
Scenario 1 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | (248,177) | |
Scenario 1 [member] | 2/2/2021 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | (120,262) | |
Scenario 1 [member] | 3/2/2021 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sensitivity analysis for price risks | R$ 127915 | |
[1] | The probable scenario was calculated considering the quotation of "Platts" on 1/14/2021 for the maturities of 2/2/2021 and 3/2/2021. Source Bloomberg. |
14. FINANCIAL INSTRUMENTS (D_11
14. FINANCIAL INSTRUMENTS (Details 10) - Foreign exchange risk [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | |
Appreciation asset position | R$ 501066 |
Appreciation liability position | (606,430) |
Fair value market amoount receivable / payable | (105,364) |
Impact on financial income (expenses) | R$ 115815 |
Exchange rate swap dollar x euro [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Maturity | 04/26/2021 to 06/08/2021 |
Functional Currency | Dollar |
Notional amount | R$ 17377 |
Appreciation asset position | 90,315 |
Appreciation liability position | (93,823) |
Fair value market amoount receivable / payable | (3,508) |
Impact on financial income (expenses) | R$ 4749 |
Exchange rate swap Dollar x Euro [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Maturity | 01/06/2021 a 06/11/2021 |
Functional Currency | Dollar |
Notional amount | R$ 23320 |
Appreciation asset position | 121,207 |
Appreciation liability position | (125,528) |
Fair value market amoount receivable / payable | (4,321) |
Impact on financial income (expenses) | (4,321) |
Total dollar-to-euro swap [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Notional amount | 40,697 |
Appreciation asset position | 211,522 |
Appreciation liability position | (219,351) |
Fair value market amoount receivable / payable | (7,829) |
Impact on financial income (expenses) | R$ 9070 |
Exchange rate swap GBP x euro [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Maturity | Settled |
Functional Currency | GBP |
Notional amount | R$ 3956 |
Impact on financial income (expenses) | (602) |
Total Swap GBP x Euro [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Notional amount | 3,956 |
Impact on financial income (expenses) | R$ 602 |
Exchange rate swap CDI x dollar [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Maturity | 2/10/2023 |
Functional Currency | Dollar |
Notional amount | R$ 67000 |
Appreciation asset position | 289,544 |
Appreciation liability position | (387,079) |
Fair value market amoount receivable / payable | (97,535) |
Impact on financial income (expenses) | (106,143) |
Total Swap CDI x dollar [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Notional amount | (67,000) |
Appreciation asset position | 289,544 |
Appreciation liability position | (387,079) |
Fair value market amoount receivable / payable | (97,535) |
Impact on financial income (expenses) | R$ 106143 |
14. FINANCIAL INSTRUMENTS (D_12
14. FINANCIAL INSTRUMENTS (Details 11) - Foreign exchange risk [member] R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020BRL (R$)Numnber | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designated amounts | R$ 120000 | |
Cash flow hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designated amounts | 5,828,806 | |
Amortized part | (1,836,606) | |
Effect on Result | (1,667,886) | [1] |
Impact on Shareholders' equity | R$ 5125058 | |
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 12/18/2014 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | May 2020 | |
Exchange rate on designation | Numnber | 2.6805 | |
Designated amounts | R$ 30000 | |
Amortized part | (30,000) | |
Effect on Result | (82,374) | [1] |
Impact on Shareholders' equity | ||
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 12/18/2014 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | May 2020 | |
Exchange rate on designation | Numnber | 2.678 | |
Designated amounts | R$ 35000 | |
Amortized part | (35,000) | |
Effect on Result | (96,190) | [1] |
Impact on Shareholders' equity | ||
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 12/18/2014 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | May 2020 | |
Exchange rate on designation | Numnber | 2.676 | |
Designated amounts | R$ 35000 | |
Amortized part | (35,000) | |
Effect on Result | (96,261) | [1] |
Impact on Shareholders' equity | ||
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/21/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | July 2019 - March 2021 | |
Exchange rate on designation | Numnber | 3.1813 | |
Designated amounts | R$ 60000 | |
Amortized part | (45,000) | |
Effect on Result | (58,475) | [1] |
Impact on Shareholders' equity | R$ 30231 | |
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/23/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | July 2019 - March 2021 | |
Exchange rate on designation | Numnber | 3.285 | |
Designated amounts | R$ 100000 | |
Amortized part | (75,000) | |
Effect on Result | (92,026) | [1] |
Impact on Shareholders' equity | R$ 47793 | |
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/23/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | August 2018 - October 2022 | |
Exchange rate on designation | Numnber | 3.285 | |
Designated amounts | R$ 30000 | |
Amortized part | (18,000) | |
Effect on Result | (14,185) | [1] |
Impact on Shareholders' equity | R$ 22940 | |
Cash flow hedges [member] | Export pepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/24/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | August 2018 - October 2022 | |
Exchange rate on designation | Numnber | 3.3254 | |
Designated amounts | R$ 100000 | |
Amortized part | (60,000) | |
Effect on Result | (46,474) | [1] |
Impact on Shareholders' equity | R$ 74852 | |
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/27/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | August 2018 - October 2022 | |
Exchange rate on designation | Numnber | 3.3557 | |
Designated amounts | R$ 25000 | |
Amortized part | (15,000) | |
Effect on Result | (11,467) | [1] |
Impact on Shareholders' equity | R$ 18410 | |
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/27/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | August 2018 - October 2022 | |
Exchange rate on designation | Numnber | 3.3557 | |
Designated amounts | R$ 70000 | |
Amortized part | (42,000) | |
Effect on Result | (32,108) | [1] |
Impact on Shareholders' equity | R$ 51548 | |
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/27/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | August 2018 - October 2022 | |
Exchange rate on designation | Numnber | 3.3557 | |
Designated amounts | R$ 30000 | |
Amortized part | (18,000) | |
Effect on Result | (13,760) | [1] |
Impact on Shareholders' equity | R$ 22092 | |
Cash flow hedges [member] | Export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/28/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | August 2018 - October 2022 | |
Exchange rate on designation | Numnber | 3.3815 | |
Designated amounts | R$ 30000 | |
Amortized part | (18,000) | |
Effect on Result | (13,605) | [1] |
Impact on Shareholders' equity | R$ 21782 | |
Cash flow hedges [member] | Export Prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 3/8/2015 | |
Hedging instrument | Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | July 2018 - October 2022 | |
Exchange rate on designation | Numnber | 3.394 | |
Designated amounts | R$ 355000 | |
Amortized part | (276,500) | |
Effect on Result | (338,777) | [1] |
Impact on Shareholders' equity | R$ 141512 | |
Cash flow hedges [member] | Bonds [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 2/4/2018 | |
Hedging instrument | Bonds | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | July 2018 - February 2023 | |
Exchange rate on designation | Numnber | 3.3104 | |
Designated amounts | R$ 1170045 | |
Amortized part | (820,045) | |
Effect on Result | (306,189) | [1] |
Impact on Shareholders' equity | R$ 660205 | |
Cash flow hedges [member] | Bonds and export prepayments in us$ [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 7/31/2019 | |
Hedging instrument | Bonds and Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | January 2020 - April 2026 | |
Exchange rate on designation | Numnber | 3.7649 | |
Designated amounts | R$ 1342761 | |
Amortized part | (247,061) | |
Effect on Result | (329,966) | [1] |
Impact on Shareholders' equity | R$ 1568823 | |
Cash flow hedges [member] | Bonds without express maturity and export prepayments in us$ to third parties [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 10/1/2020 | |
Hedging instrument | Bonds without express maturity and Export prepayments in US$ to third parties | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | March 2020 - December 2050 | |
Exchange rate on designation | Numnber | 4.0745 | |
Designated amounts | R$ 1416000 | |
Amortized part | (102,000) | |
Effect on Result | (136,029) | [1] |
Impact on Shareholders' equity | R$ 1474571 | |
Cash flow hedges [member] | Bond [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Designation date | 1/28/2020 | |
Hedging instrument | Bonds | |
Hedged item | Part of the highly probable future monthly iron ore exports | |
Type of hedged risk | Foreign exchange - R$ vs. US$ spot rate | |
Hedged period | March 2017 - January 2028 | |
Exchange rate on designation | Numnber | 4.2064 | |
Designated amounts | R$ 1000000 | |
Amortized part | ||
Effect on Result | [1] | |
Impact on Shareholders' equity | R$ 990299 | |
[1] | On December 31, 2020, the amount of (R$1,667,886) was recorded in Other Operating Expenses. As of December 31, 2019, (R$790,353). |
14. FINANCIAL INSTRUMENTS (D_13
14. FINANCIAL INSTRUMENTS (Details 12) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Movement | R$ 5537174 | R$ 604828 | R$ 1415962 |
Realization | (1,667,886) | (790,353) | R$ 370191 |
Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Fair value, net of taxes, beginning | 1,255,770 | ||
Movement | (5,537,174) | ||
Realization | (1,667,886) | ||
Fair value, net of taxes, ending | R$ 5125058 | R$ 1255770 |
14. FINANCIAL INSTRUMENTS (D_14
14. FINANCIAL INSTRUMENTS (Details 13) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Other income and expenses | R$ 5224682 | R$ 4631236 | R$ 83332 |
Other comprehensive income | (3,154,442) | 105,537 | R$ 2713844 |
Exchange variation | 3,336 | ||
Foreign exchange risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Appreciation asset position | 501,066 | ||
Appreciation liability position | (606,430) | ||
Fair value market amoount receivable / payable | (105,364) | ||
Other income and expenses | (283,149) | ||
Other comprehensive income | (825) | ||
Exchange variation | R$ 16504 | ||
Foreign exchange risk [member] | 09/02/2020 (settled) [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional | Platts | ||
Other income and expenses | R$ 31678 | ||
Exchange variation | R$ 136 | ||
Foreign exchange risk [member] | 10/02/2020 (settled) [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional | Platts | ||
Other income and expenses | R$ 132997 | ||
Exchange variation | R$ 9051 | ||
Foreign exchange risk [member] | 11/04/2020 (settled) [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional | Platts | ||
Other income and expenses | R$ 85164 | ||
Exchange variation | R$ 7301 | ||
Foreign exchange risk [member] | 12/02/2020 (settled) [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional | Platts | ||
Other income and expenses | R$ 33310 | ||
Exchange variation | R$ 52 | ||
Foreign exchange risk [member] | 2/2/2021 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional | Platts | ||
Appreciation asset position | R$ 486852 | ||
Appreciation liability position | (493,925) | ||
Fair value market amoount receivable / payable | (7,073) | ||
Other comprehensive income | (6,888) | ||
Exchange variation | R$ 185 | ||
Foreign exchange risk [member] | Between one and five years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Notional | Platts | ||
Appreciation asset position | R$ 527684 | ||
Appreciation liability position | (521,504) | ||
Fair value market amoount receivable / payable | 6,180 | ||
Other comprehensive income | 6,063 | ||
Exchange variation | R$ 117 |
14. FINANCIAL INSTRUMENTS (D_15
14. FINANCIAL INSTRUMENTS (Details 14) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Movement | R$ 5537174 | R$ 604828 | R$ 1415962 |
Realization | (1,667,886) | (790,353) | R$ 370191 |
Foreign exchange risk [member] | Cash flow hedge accounting platts [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the amounts related to cash flow hedge | |||
Movement | (283,974) | ||
Realization | (283,149) | ||
Change in the amounts related to cash flow hedge | 825 | ||
Foreign exchange risk [member] | Income tax and social contribution on cash flow hedge accounting [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the amounts related to cash flow hedge | |||
Movement | 96,551 | ||
Realization | 96,271 | ||
Change in the amounts related to cash flow hedge | (280) | ||
Foreign exchange risk [member] | Fair value of cash flow accounting platts net [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Change in the amounts related to cash flow hedge | |||
Movement | (187,423) | ||
Realization | (186,878) | ||
Change in the amounts related to cash flow hedge | R$ 545 |
14. FINANCIAL INSTRUMENTS (D_16
14. FINANCIAL INSTRUMENTS (Details 15) - Foreign exchange risk [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$)Numnber | |
Disclosure of detailed information about financial instruments [line items] | |
Designated amounts | R$ 120000 |
Impact on Shareholders' equity | R$ 6293 |
Hedges of net investment in foreign operations [member] | Non-derivative financial liabilities in EUR - debt contract [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Designation date | 09/30/2015 |
Hedging instrument | Non-derivative financial liabilities in EUR – Debt contract |
Hedged item | Investments in subsidiaries which EUR is the functional currency |
Type of hedged risk | Foreign exchange - R$ vs. EUR spot rate |
Exchange rate on designation | Numnber | 4.0825 |
Designated amounts | R$ 120000 |
Impact on Shareholders' equity | R$ 6293 |
14. FINANCIAL INSTRUMENTS (D_17
14. FINANCIAL INSTRUMENTS (Details 16) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Other operating income and expenses | R$ 5224682 | R$ 4631236 | R$ 83332 |
Other comprehensive income | (3,154,442) | 105,537 | R$ 2713844 |
Foreign exchange risk [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities current | (8,722) | ||
Liabilities non-current | (97,535) | ||
Total | (106,257) | ||
Other operating income and expenses | (283,149) | ||
Other comprehensive income | (825) | ||
Financial income (expenses), net | (132,319) | 4,986 | |
Foreign exchange risk [member] | Exchange rate swap dollar x euro [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities current | (7,829) | ||
Total | (7,829) | ||
Financial income (expenses), net | (9,070) | 783 | |
Foreign exchange risk [member] | Exchange rate swap GBP x euro [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial income (expenses), net | (602) | ||
Foreign exchange risk [member] | Exchange rate swap CDI x dollar [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities non-current | (97,535) | ||
Total | (97,535) | ||
Financial income (expenses), net | (106,143) | 4,203 | |
Foreign exchange risk [member] | Iron ore derivative [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Liabilities current | (893) | ||
Total | (893) | ||
Other operating income and expenses | (283,149) | ||
Other comprehensive income | (825) | ||
Financial income (expenses), net | R$ 16504 |
14. FINANCIAL INSTRUMENTS (D_18
14. FINANCIAL INSTRUMENTS (Details 17) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | R$ 42940059 |
2021 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 10,647,364 |
2022 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 14,817,896 |
From two to five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 4,899,420 |
Over five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 12,575,379 |
Borrowings and financing [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 35,370,611 |
Borrowings and financing [member] | 2021 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 4,155,483 |
Borrowings and financing [member] | 2022 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 14,146,118 |
Borrowings and financing [member] | From two to five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 4,671,511 |
Borrowings and financing [member] | Over five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 12,397,499 |
Leases [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 530,131 |
Leases [member] | 2021 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 93,626 |
Leases [member] | 2022 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 143,227 |
Leases [member] | From two to five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 115,398 |
Leases [member] | Over five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 177,880 |
Trade payables [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 5,363,066 |
Trade payables [member] | 2021 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 4,819,539 |
Trade payables [member] | 2022 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 528,551 |
Trade payables [member] | From two to five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 14,976 |
Trade payables [member] | Over five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | |
Trade payables - drawee risk [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 623,861 |
Trade payables - drawee risk [member] | 2021 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 623,861 |
Trade payables - drawee risk [member] | 2022 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | |
Trade payables - drawee risk [member] | From two to five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | |
Trade payables - drawee risk [member] | Over five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | |
Dividends and interest on equity/ capital [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 946,133 |
Dividends and interest on equity/ capital [member] | 2021 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 946,133 |
Derivative financial instruments [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 106,257 |
Derivative financial instruments [member] | 2021 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 8,722 |
Derivative financial instruments [member] | 2022 [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | |
Derivative financial instruments [member] | From two to five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities | 97,535 |
Derivative financial instruments [member] | Over five years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Contractual maturities |
14. FINANCIAL INSTRUMENTS (D_19
14. FINANCIAL INSTRUMENTS (Details 18) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Closing Balance | R$ 42940059 | R$ 32712311 |
Perpetual Bonds [member] | Liquidity risk [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Closing Balance | 5,203,773 | 4,036,186 |
Fair value | 5,157,465 | 3,706,553 |
Fixed rate notes [member] | Liquidity risk [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Closing Balance | 15,067,341 | 8,090,297 |
Fair value | R$ 15744067 | R$ 8345471 |
14. FINANCIAL INSTRUMENTS (D_20
14. FINANCIAL INSTRUMENTS (Details 19) - BRL (R$) R$ / shares in Units, R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||||
Shareholder's equity (equity) | R$ 11251505 | R$ 11361932 | R$ 10013440 | R$ 8288229 |
Capital Management [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Shareholder's equity (equity) | 11,251,505 | 11,361,932 | ||
Borrowings and Financing (Third-party capital) | R$ 35270653 | R$ 27967036 | ||
Gross Debit/Shareholder's equity | R$ 3.13 | R$ 2.46 |
14. FINANCIAL INSTRUMENTS (D_21
14. FINANCIAL INSTRUMENTS (Details Narrative) € in Thousands, R$ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2019BRL (R$) | Dec. 31, 2020BRL (R$) | Dec. 31, 2020EUR (€) | Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | ||||
Other operating expenses | R$ 1667886 | R$ 790353 | ||
Non-derivative financial liabilities [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loan contracts with financial institutions | € | € 120,000 | |||
Foreign exchange risk [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Variations of risk for probable scenarios | Real x Dollar - devaluation of the Real by 1.25% / Real x Euro - devaluation of the Real by 0.14% / Euro x Dollar - appreciation of Euro by 1.20%. Source: Central Bank of Brazil and European Central Bank quotations on 1/14/2021. | Real x Dollar - devaluation of the Real by 1.25% / Real x Euro - devaluation of the Real by 0.14% / Euro x Dollar - appreciation of Euro by 1.20%. Source: Central Bank of Brazil and European Central Bank quotations on 1/14/2021. | ||
Foreign exchange risk [member] | Scenario 1 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Percentage of scenarios | 25 | 25 | ||
Foreign exchange risk [member] | Scenario 2 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Percentage of scenarios | 50 | 50 | ||
Foreign exchange risk [member] | Cash flow hedges [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Effect on result recognized in other operational hedging instrument | R$ 790353 | |||
Foreign exchange risk [member] | Exchange rate swap CDI x dollar [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative exchange rate swap | R$ 278000 | |||
Foreign exchange risk [member] | Exchange rate swap CDI x dollar [member] | UNITED STATES [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Derivative exchange rate swap | R$ 67000 |
15. OTHER PAYABLES (Details)
15. OTHER PAYABLES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
OtherPayablesLineItems [Line Items] | |||
Other payables, current | R$ 1310734 | R$ 1725588 | |
Other payables, noncurrent | 3,145,336 | 2,493,702 | |
Payables To Related Parties [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 70,458 | 46,063 | |
Other payables, noncurrent | 78,083 | 88,021 | |
Dividends And Interest On Capital [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 946,133 | 13,252 | |
Advances From Customers [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | [1] | 1,100,772 | 787,604 |
Other payables, noncurrent | [1] | 1,725,838 | 1,845,248 |
Taxes In Installments [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 45,331 | 19,498 | |
Other payables, noncurrent | 160,247 | 67,727 | |
Profit Sharing - Employees [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 150,341 | 162,866 | |
Taxes Payable [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, noncurrent | 38,493 | 8,805 | |
Provision From Consumption And Services [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 175,242 | 204,299 | |
Third Party Materials In Our Possession [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 84,832 | 78,820 | |
Trade payables - drawee risk [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 623,861 | 1,121,312 | |
Other payables, noncurrent | 543,527 | ||
Lease Liabilities [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 93,626 | 35,040 | |
Other payables, noncurrent | 436,505 | 439,350 | |
Other Payables [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 58,321 | 57,690 | |
Other payables, noncurrent | 65,108 | R$ 44551 | |
Derivative Financial Instruments [member] | |||
OtherPayablesLineItems [Line Items] | |||
Other payables, current | 8,722 | ||
Other payables, noncurrent | R$ 97535 | ||
[1] | Advances from customers: During 2019, the subsidiary CSN Mineracao entered into an agreement with a major international player for the supply of approximately 22 million tons of iron ore and an additional supply of 11 million tons of iron ore. Accordingly, CSN Mineracao S.A. received in advance the amounts of US$496 million (R$1,951,303) and US$250 million (R$956,440) on March 29, 2019 and August 5, 2019, respectively. The term for the execution of the contracted volumes is 5 years. Finally, on September 16, 2019, the parties again amended the contract to adjust the delivery conditions for iron ore. In July 2020, the subsidiary concluded the contract for the additional supply of approximately 4 million tons of iron ore, which was received in advance, on August 28, 2020, the amount of US$115 million (R$629 million). The term for the execution of the contract is 3 years. |
15. OTHER PAYABLES (Details Nar
15. OTHER PAYABLES (Details Narrative) - CSN mineracao [member] R$ in Thousands, $ in Thousands | Aug. 28, 2020USD ($) | Jul. 31, 2020T | Dec. 31, 2020 | Dec. 31, 2019T | Aug. 28, 2020BRL (R$) | Aug. 05, 2019USD ($) | Aug. 05, 2019BRL (R$) | Mar. 29, 2019USD ($) | Mar. 29, 2019BRL (R$) |
OtherPayablesLineItems [Line Items] | |||||||||
Supply of iron ore | 22,000,000 | ||||||||
Additional supply of iron ore | 4,000,000 | 11,000,000 | |||||||
Advances from customer | R$ | R$ 629000 | R$ 956440 | R$ 1951303 | ||||||
Contractual term | 3 years | 5 years | |||||||
USD | |||||||||
OtherPayablesLineItems [Line Items] | |||||||||
Advances from customer | $ | $ 115,000 | $ 250,000 | $ 496,000 |
16. LEASES (Details)
16. LEASES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Presentation of leases for lessee [abstract] | |||
Leases | R$ 1623523 | R$ 1501960 | |
Present value adjustment - Leases | (1,093,392) | (1,027,570) | |
Total lease liabilities | 530,131 | 474,390 | R$ 640989 |
Classified: | |||
Current | 93,626 | 35,040 | |
Non-current | 436,505 | 439,350 | |
Total lease liabilities | R$ 530131 | R$ 474390 | R$ 640989 |
16. LEASES (Details 1)
16. LEASES (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Presentation of leases for lessee [abstract] | ||
Opening balance | R$ 474390 | R$ 640989 |
New leases | 52,835 | 106,584 |
Present Value Adjustments - New leases | (6,511) | (54,080) |
Contract review | 63,250 | (175,609) |
Write off | (7,757) | (1,374) |
Payments | (103,648) | (94,727) |
Interest appropriated | 54,236 | 52,607 |
Exchange variation | 3,336 | |
Net balance | R$ 530131 | R$ 474390 |
16. LEASES (Details 2)
16. LEASES (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
PresentationOfLeasesForLesseeLineItems [Line Items] | |||
Leases | R$ 1623523 | R$ 1501960 | |
Present value adjustment - Leases | (1,093,392) | (1,027,570) | |
Total lease liabilities | 530,131 | R$ 474390 | R$ 640989 |
Less Than One Year [member] | |||
PresentationOfLeasesForLesseeLineItems [Line Items] | |||
Leases | 98,788 | ||
Present value adjustment - Leases | (5,162) | ||
Total lease liabilities | 93,626 | ||
Between one and five years [member] | |||
PresentationOfLeasesForLesseeLineItems [Line Items] | |||
Leases | 368,659 | ||
Present value adjustment - Leases | (110,034) | ||
Total lease liabilities | 258,625 | ||
Over five years [member] | |||
PresentationOfLeasesForLesseeLineItems [Line Items] | |||
Leases | 1,156,076 | ||
Present value adjustment - Leases | (978,196) | ||
Total lease liabilities | R$ 177880 |
16. LEASES (Details 3)
16. LEASES (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Presentation of leases for lessee [abstract] | ||
Leases | R$ 1603100 | R$ 1489789 |
Present value adjustment - Leases | (1,091,275) | (1,026,919) |
Potencial PIS and COFINS credit | 148,287 | 137,805 |
Present value adjustment - Potential PIS and COFINS credit | R$ 100943 | R$ 96461 |
16. LEASES (Details 4)
16. LEASES (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Presentation of leases for lessee [abstract] | ||
Contract less than 12 months | R$ 549 | R$ 10819 |
Lower Assets value | 9,563 | 3,853 |
Variable lease payments | 270,449 | 177,460 |
Disclosure - 16. LEASES (Details 4) | R$ 280561 | R$ 192132 |
16. LEASES (Details 5)
16. LEASES (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |||
Lease Liability | R$ 530131 | R$ 474390 | R$ 640989 |
Right of net use | 511,882 | 472,345 | |
Financial expenses | (50,513) | (49,118) | |
Depreciation | (57,342) | (53,826) | |
Rate in nominal terms and actual flow [member] | |||
PresentationOfLeasesForLesseeLineItems [Line Items] | |||
Lease Liability | 595,193 | 579,390 | |
Right of net use | 547,671 | 567,905 | |
Financial expenses | (63,744) | (57,556) | |
Depreciation | R$ 59560 | R$ 57356 |
16. LEASES (Details Narrative)
16. LEASES (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Railway Operation [member] | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |
Lease agreement remaining term | 7 years |
Operational Facilities [member] | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |
Lease agreement remaining term | 2 years |
Administrative [member] | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |
Lease agreement remaining term | 5 years |
Sales Offices [member] | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |
Lease agreement remaining term | 16 years |
Bottom of range [member] | Cargo Terminal - TECON [member] | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |
Lease agreement remaining term | 27 years |
Bottom of range [member] | Cargo Terminal - TECAR [member] | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |
Lease agreement remaining term | 31 years |
Bottom of range [member] | Operating Equipment [member] | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |
Lease agreement remaining term | 2 years |
Top of range [member] | Operating Equipment [member] | |
PresentationOfLeasesForLesseeLineItems [Line Items] | |
Lease agreement remaining term | 5 years |
17. TRADE PAYABLES (Details)
17. TRADE PAYABLES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current trade payables [member] | ||
TradePayablesLineItems [Line Items] | ||
Trade payables | R$ 4893589 | R$ 3012654 |
(-) Adjustment present value | (74,050) | |
Trade payable, net | 4,819,539 | R$ 3012654 |
Non current trade payables [member] | ||
TradePayablesLineItems [Line Items] | ||
Trade payables | 594,051 | |
(-) Adjustment present value | (50,524) | |
Trade payable, net | R$ 543527 |
18. INCOME TAX AND SOCIAL CON_2
18. INCOME TAX AND SOCIAL CONTRIBUTION (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax And Social Contributions | |||
Income tax and social contribution income (expense), current | R$ 2052204 | R$ 1564622 | R$ 827229 |
Income tax and social contribution income (expense), deferred | 1,426,696 | 2,398,400 | 576,895 |
Income tax and social contribution income (expense) | R$ 625508 | R$ 833778 | R$ 250334 |
18. INCOME TAX AND SOCIAL CON_3
18. INCOME TAX AND SOCIAL CONTRIBUTION (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Profit/(Loss) before income tax and social contribution | R$ 4918126 | R$ 1410733 | R$ 5450917 |
Tax rate (in percent) | 34.00% | 34.00% | 34.00% |
Income tax and social contribution at combined statutory rate | R$ 1672163 | R$ 479649 | R$ 1853312 |
Income tax and social contribution | R$ 625508 | R$ 833778 | R$ 250334 |
Effective tax rate (in percent) | 13.00% | (59.00%) | 5.00% |
Equity in results of affiliated companies [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | R$ 28391 | R$ 46737 | R$ 50134 |
Profit with differentiated rates or untaxed [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | (519,840) | (236,404) | (46,006) |
Transfer pricing adjustment [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | (15,645) | (18,494) | (74,836) |
Tax loss carryforwards without recognizing deferred taxes [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | (27,758) | (21,095) | (27,683) |
Indebtdness limit [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | (25,087) | (20,393) | (38,486) |
Unrecorded deferred taxes on temporary differences [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | 5,142 | (2,835) | (11,964) |
(Losses)/Reversal for deferred income and social contribution tax credits [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | 1,540,087 | 1,530,185 | 1,807,909 |
Income taxes and social contribution on foreign profit [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | (13,011) | (14,424) | (30,219) |
Tax incentives [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | 64,818 | 39,042 | 36,710 |
Deferred taxes on exchange variation in equity [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | (43,667) | ||
Interest on equity [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | 17,177 | 22,107 | |
Other permanent deductions (additions) [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Adjustment to reflect the effective rate | R$ 7619 | R$ 10999 | R$ 18914 |
18. INCOME TAX AND SOCIAL CON_4
18. INCOME TAX AND SOCIAL CONTRIBUTION (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | R$ 1883765 | R$ 512337 | ||||
Movement in profit or loss | 170,604 | 215,306 | ||||
Deferred tax asset/liability, ending | 3,256,110 | 1,883,765 | ||||
Total deferred assets | R$ 3874946 | R$ 2473304 | R$ 89394 | |||
Total deferred liabilities | (618,836) | (589,539) | (601,731) | |||
Total deferred | 1,883,765 | (512,337) | 3,256,110 | 1,883,765 | (512,337) | |
Deferred Income Tax Losses [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 1,610,801 | 959,240 | ||||
Movement in profit or loss | 238,198 | 651,561 | ||||
Deferred tax asset/liability, ending | 1,848,999 | 1,610,801 | ||||
Total deferred | 1,848,999 | 959,240 | 1,848,999 | 1,610,801 | 959,240 | |
Deferred social contribution tax losses [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 610,046 | 367,358 | ||||
Movement in profit or loss | 78,162 | 242,688 | ||||
Deferred tax asset/liability, ending | 688,208 | 610,046 | ||||
Total deferred | 688,208 | 367,358 | 688,208 | 610,046 | 367,358 | |
Temporary Differences [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | (337,082) | (1,838,935) | ||||
Movement in shareholders' equity | (59,380) | (2,357) | ||||
Movement in profit or loss | 1,110,336 | 1,504,151 | ||||
Other movement | 5,029 | 59 | ||||
Deferred tax asset/liability, ending | 718,903 | (337,082) | ||||
Total deferred | 718,903 | (1,838,935) | 718,903 | (337,082) | (1,838,935) | |
Provision For Tax Social Security, Labor, Civil And Environmental Risks [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 264,013 | 334,380 | ||||
Movement in profit or loss | 15,136 | (70,367) | ||||
Deferred tax asset/liability, ending | 279,149 | 264,013 | ||||
Total deferred | 279,149 | 334,380 | 279,149 | 264,013 | 334,380 | |
Assets impairment losses [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 182,431 | 181,516 | ||||
Movement in profit or loss | (26,444) | 915 | ||||
Other movement | 5,029 | |||||
Deferred tax asset/liability, ending | 161,016 | 182,431 | ||||
Total deferred | 161,016 | 181,516 | 161,016 | 182,431 | 181,516 | |
(Gains )/ losses On financial instruments [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 414,495 | 359,776 | ||||
Movement in profit or loss | (409,468) | 54,719 | ||||
Deferred tax asset/liability, ending | 5,027 | 414,495 | ||||
Total deferred | 5,027 | 414,495 | 5,027 | 414,495 | 359,776 | |
Actuarial liability (pension and healthcare plan) [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 314,601 | 276,032 | ||||
Movement in shareholders' equity | (44,732) | 38,569 | ||||
Movement in profit or loss | (7,412) | |||||
Deferred tax asset/liability, ending | 262,457 | 314,601 | ||||
Total deferred | 262,457 | 276,032 | 262,457 | 314,601 | 276,032 | |
Accrued supplies and services [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 132,411 | 95,644 | ||||
Movement in profit or loss | 22,041 | 36,767 | ||||
Deferred tax asset/liability, ending | 154,452 | 132,411 | ||||
Total deferred | 154,452 | 95,644 | 154,452 | 132,411 | 95,644 | |
Unrealized exchange differences [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | [1] | 1,181,501 | 1,010,532 | |||
Movement in profit or loss | [1] | (29,172) | 170,969 | |||
Deferred tax asset/liability, ending | [1] | 1,152,326 | 1,181,501 | |||
Total deferred | [1] | 1,152,326 | 1,010,532 | 1,152,326 | 1,181,501 | 1,010,532 |
Gain upon loss of control in Transnordestina [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | (92,180) | (92,180) | ||||
Deferred tax asset/liability, ending | (92,180) | (92,180) | ||||
Total deferred | (92,180) | (92,180) | (92,180) | (92,180) | (92,180) | |
Cash flow hedge accounting [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 426,961 | 490,041 | ||||
Movement in shareholders' equity | 1,315,839 | (63,080) | ||||
Deferred tax asset/liability, ending | 1,742,800 | 426,961 | ||||
Total deferred | 1,742,800 | 490,041 | 1,742,800 | 426,961 | 490,041 | |
Aquisition Fair Value SWT/CBL [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | (184,513) | (172,114) | ||||
Movement in shareholders' equity | (57,651) | (52,071) | ||||
Movement in profit or loss | 30,149 | 39,672 | ||||
Deferred tax asset/liability, ending | (212,015) | (184,513) | ||||
Total deferred | (212,015) | (172,114) | (212,015) | (184,513) | (172,114) | |
Deferred taxes non computed [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | (291,961) | (252,940) | ||||
Movement in profit or loss | (25,966) | (39,021) | ||||
Deferred tax asset/liability, ending | (317,927) | (291,961) | ||||
Total deferred | (317,927) | (252,940) | (317,927) | (291,961) | (252,940) | |
Estimated (Losses)/reversals to deferred taxes credits [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | (1,625,998) | (3,086,572) | ||||
Movement in shareholders' equity | (1,270,110) | 25,159 | ||||
Movement in profit or loss | 1,548,640 | 1,435,415 | ||||
Deferred tax asset/liability, ending | (1,347,468) | (1,625,998) | ||||
Total deferred | (1,347,468) | (3,086,572) | (1,347,468) | (1,625,998) | (3,086,572) | |
Business Combination [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | (1,023,341) | (1,030,812) | ||||
Movement in profit or loss | 8,292 | 7,471 | ||||
Deferred tax asset/liability, ending | (1,015,049) | (1,023,341) | ||||
Total deferred | (1,015,049) | (1,030,812) | (1,015,049) | (1,023,341) | (1,030,812) | |
Consolidation CBSI [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | 50 | |||||
Movement in profit or loss | (12) | |||||
Other movement | 62 | |||||
Deferred tax asset/liability, ending | 50 | 50 | ||||
Total deferred | 50 | 50 | 50 | 50 | ||
Others [member] | ||||||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||||||
Deferred tax asset/liability, beginning | (35,552) | 47,762 | ||||
Movement in shareholders' equity | (2,726) | 49,066 | ||||
Movement in profit or loss | (15,457) | (132,377) | ||||
Other movement | (3) | |||||
Deferred tax asset/liability, ending | (53,735) | (35,552) | ||||
Total deferred | R$ 53735 | R$ 47762 | R$ 53735 | R$ 35552 | R$ 47762 | |
[1] | The Company taxes exchange differences on a cash basis to calculate income tax and social contribution on net income. |
18. INCOME TAX AND SOCIAL CON_5
18. INCOME TAX AND SOCIAL CONTRIBUTION (Details 3) R$ in Thousands | Dec. 31, 2020BRL (R$) |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Deferred Asset | R$ 4703 |
Deferred liabilities - Parent Company | (828) |
Net Deferred Asset | 3,875 |
Deferred liabilities - Subsidiaries | 619 |
Net Deferred Asset | 3,256 |
3/2/2021 [member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Deferred Asset | 1,018 |
2022[member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Deferred Asset | 1,315 |
2023[member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Deferred Asset | 1,257 |
2024[member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Deferred Asset | 495 |
2025[member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Deferred Asset | R$ 618 |
18. INCOME TAX AND SOCIAL CON_6
18. INCOME TAX AND SOCIAL CONTRIBUTION (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax And Social Contributions | ||
Actuarial gains on defined benefit pension plan | R$ 170604 | R$ 215306 |
Estimated losses for deferred income and social contribution tax credits - actuarial gains | (172,520) | (217,969) |
Exchange differences on translating foreign operations | (325,350) | (325,350) |
Cash flow hedge accounting | 1,742,765 | 426,961 |
Estimated losses for deferred income and social contribution tax credits - cash flow hedge | (1,742,520) | (426,961) |
Total | R$ 327021 | R$ 328013 |
18. INCOME TAX AND SOCIAL CON_7
18. INCOME TAX AND SOCIAL CONTRIBUTION (Details 5) | 12 Months Ended |
Dec. 31, 2020 | |
Tax losses [member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Description | The Company incurs tax losses in the Parent Company as a result of financial expenses on its indebtedness, since it substantially holds all the loans and financing of the CSN Group. However, the Parent Company reported taxable income in two quarters of 2020. |
Foreign exchange differences [member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Description | Since 2012, the Company has opted for taxing exchange rate variations on a cash basis. As a result, taxes are due and expenses are deductible when the underlying asset or liability is settled. |
Losses on Usiminas shares [member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Description | Changes in investment in Usiminas shares are recognized on an accrual basis; however, the event that generates taxation or deductibility will only occur when the investment is sold. |
Other provisions [member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Description | Other provisions are recognized on an accrual basis and their taxation occurs only at the time of their realization, such as: provision for contingencies, loss for impairment, provision for environmental liabilities, etc. |
18. INCOME TAX AND SOCIAL CON_8
18. INCOME TAX AND SOCIAL CONTRIBUTION (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
IncomeTaxAndSocialContributionLineItems [Line Items] | ||
Profit generated by foreign subsidiaries | R$ 1284483 | |
Income tax and social contribution | 412,420 | |
Tax losses carryforward | 1,681,000 | R$ 1466000 |
Negative base of social contribution | 627,000 | R$ 550000 |
Reversed of estimated losses | 1,369,000 | |
Deferred tax asset | R$ 4628000 | |
Top of range [member] | ||
IncomeTaxAndSocialContributionLineItems [Line Items] | ||
Tax credits maturity terms | 10 years |
19. TAXES IN INSTALLMENTS (Deta
19. TAXES IN INSTALLMENTS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
TaxesInInstallmentsLineItems [Line Items] | |||
Federal REFIS debts and other tax installment payment plans, current | R$ 45331 | R$ 19498 | |
Federal REFIS debts and other tax installment payment plans, noncurrent | 160,247 | 67,727 | |
Federal REFIS law 11.941/09 [member] | |||
TaxesInInstallmentsLineItems [Line Items] | |||
Federal REFIS debts and other tax installment payment plans, current | [1] | 12,214 | 12,172 |
Federal REFIS debts and other tax installment payment plans, noncurrent | [1] | 15,529 | 17,436 |
Federal REFIS law 12.865/13 [member] | |||
TaxesInInstallmentsLineItems [Line Items] | |||
Federal REFIS debts and other tax installment payment plans, current | [2] | 6,633 | 6,481 |
Federal REFIS debts and other tax installment payment plans, noncurrent | [2] | 42,883 | 48,306 |
Other taxes in installments [member] | |||
TaxesInInstallmentsLineItems [Line Items] | |||
Federal REFIS debts and other tax installment payment plans, current | 26,484 | 845 | |
Federal REFIS debts and other tax installment payment plans, noncurrent | R$ 101835 | R$ 1985 | |
[1] | The refinancing program of Law 11,941 / 09 has a balance arising from the adhesion to the REFIS of taxes on profit (IRPJ and CSLL) for the years 2006, 2007 and 2012 and taxes on billing (PIS and COFINS) for the years 2006 and 2007. The installment payment is paid in monthly installments, with interest at the SELIC rate, which is the rate of the Brazilian federal funds | ||
[2] | The refinancing program of Law 12.865 / 13 has a balance resulting from the adhesion to the REFIS of taxes on profit (IRPJ and CSLL) for the payment of the amounts related to taxes on the profit of the affiliates or subsidiaries abroad in 2009 to 2011. It is due in monthly installments, with interest at the SELIC rate, which is the rate of Brazilian federal funds. |
20. PROVISION FOR TAX, SOCIAL_3
20. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||
Accrued liabilities | R$ 635388 | R$ 623247 |
Judicial deposits | 325,117 | 328,371 |
Accrued liabilities current | 81,073 | 96,479 |
Accrued liabilities non current | 554,315 | 526,768 |
Judicial deposits current | ||
Judicial deposits non current | 325,117 | 328,371 |
Tax [member] | ||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||
Accrued liabilities | 134,645 | 128,411 |
Judicial deposits | 2,444 | 31,060 |
Social security [member] | ||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||
Accrued liabilities | 8,170 | 7,039 |
Judicial deposits | ||
Labor [member] | ||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||
Accrued liabilities | 328,334 | 305,309 |
Judicial deposits | 212,737 | 227,213 |
Civil [member] | ||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||
Accrued liabilities | 151,776 | 138,990 |
Judicial deposits | 67,819 | 53,771 |
Environmental [member] | ||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||
Accrued liabilities | 12,463 | 43,498 |
Judicial deposits | 17,683 | 3,731 |
Deposit of a guarantee [member] | ||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||
Accrued liabilities | ||
Judicial deposits | R$ 24434 | R$ 12596 |
20. PROVISION FOR TAX, SOCIAL_4
20. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |
Accrued liabilities, beginning | R$ 623247 |
Additions | 110,313 |
Accrued charges | 59,871 |
Net utilization of reversal | (158,043) |
Accrued liabilities, ending | 635,388 |
Tax [member] | |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |
Accrued liabilities, beginning | 128,411 |
Additions | 8,626 |
Accrued charges | 4,267 |
Net utilization of reversal | (6,659) |
Accrued liabilities, ending | 134,645 |
Social security [member] | |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |
Accrued liabilities, beginning | 7,039 |
Additions | 5,892 |
Accrued charges | 192 |
Net utilization of reversal | (4,953) |
Accrued liabilities, ending | 8,170 |
Labor [member] | |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |
Accrued liabilities, beginning | 305,309 |
Additions | 44,693 |
Accrued charges | 39,507 |
Net utilization of reversal | (61,175) |
Accrued liabilities, ending | 328,334 |
Civil [member] | |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |
Accrued liabilities, beginning | 138,990 |
Additions | 46,577 |
Accrued charges | 15,579 |
Net utilization of reversal | (49,370) |
Accrued liabilities, ending | 151,776 |
Environmental [member] | |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |
Accrued liabilities, beginning | 43,498 |
Additions | 4,525 |
Accrued charges | 326 |
Net utilization of reversal | (35,886) |
Accrued liabilities, ending | R$ 12463 |
20. PROVISION FOR TAX, SOCIAL_5
20. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | R$ 39305776 | R$ 35790635 | |
Assessment notice and imposition of fine (AIIM) / tax enforcement - income tax and social contribution - capital gain on sale of NAMISA's shares [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 12,694,021 | 12,412,964 | |
Assessment notice and imposition of fine (AIIM) - income tax and social contribution - disallowance of deductions of goodwill generated in the reverse incorporation of big jump by NAMISA [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 3,930,093 | 3,867,663 | |
Assessment notice and imposition of fine (AIIM) / tax enforcement - income tax and social contribution - disallowance of interest on prepayment arising from supply contracts of iron ore and port services [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 1,956,898 | 2,249,708 | |
Assessment notice and imposition of fine (AIIM) - income tax and social contribution due to profits from foreign subsidiaries for years 2008, 2010, 2011, 2012 and 2014 [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 3,461,574 | 2,946,288 | |
Tax foreclosures - ICMS - electricity credits [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 841,401 | 1,022,371 | |
Offset of taxes that were not approved by the federal revenue service - IRPJ/CSLL, PIS/COFINS and IPI [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 1,845,379 | 1,100,564 | |
Disallowance of the ICMS credits - transfer of iron ore [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 624,645 | 567,534 | |
ICMS - refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 317,848 | 310,349 | |
Disallowance of the tax loss and negative basis of social contribution arising from the adjustments in the SAPLI [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 583,478 | 538,268 | |
Assessment notice- IRRF- capital gain of CFM vendors located abroad [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 260,326 | 254,850 | |
CFEM - difference of understanding between CSN and DNPM on the calculation basis [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 1,051,661 | 1,020,266 | |
Assessment notice- ICMS- questions about sales for incentive area [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 1,111,034 | 1,015,812 | |
Other tax lawsuits (federal, state, and municipal) [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 3,886,976 | 4,478,014 | |
Social security lawsuits [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 233,116 | 325,492 | |
Action to discuss the balance of the construction contract - tebas [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 487,124 | 468,776 | |
Action related to power supply payment's charge - light [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 288,390 | 253,569 | |
Indemnity action due to the supply contract termination - Indumill [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 237,795 | 215,281 | |
Enforcement action applied by brazilian antitrust authorities (CADE) [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 95,833 | 93,212 | |
Other civil lawsuits [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 777,850 | 764,127 | |
Labor and social security lawsuits [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 1,506,626 | 1,565,237 | |
Assessment notice and imposition of fine (AIIM) - charge of IRRF-RFB - business combination (year 2015) between namisa, congonhas minerios (current CSN mineracao) and consortium [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 862,324 | ||
Assessment notice and imposition of fine (AIIM) - RFB - disallowance of credits PIS/COFINS of inputs and freight [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 1,082,517 | ||
Other environmental lawsuits [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | 257,965 | 215,691 | |
Civil public action - districts / school / nursery relocation-CdP dam [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | [1] | 12,207 | 20,000 |
Tax foreclosures - fine - volta redonda iv [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | [2] | 94,304 | 84,599 |
ACP landfill marcia [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | [3] | 306,389 | |
Assessment notice and imposition of fine (AIIM) - SEFAZ/RJ - ICMS on purchases of intermediate products [member] | |||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | |||
Legal matters with possible risk of loss | [4] | R$ 498002 | |
[1] | In May 2019, the State Prosecutor's Office of the State of Minas Gerais filed an ACP order to compel CSN Mineracao SA to adopt mitigating measures regarding the psychological risks and losses allegedly generated by the Casa de Pedra Dam, reallocating residents, who so wish, with rents and social assistance, as well as relocating children who attended a new daycare and school that were closed, rebuilding new daycare and school in a safe place. In a preliminary injunction, the 1st Instance Magistrate ordered the blocking of three million reais for the construction of the day care center and school, a decision suspended by the 2nd Instance Court. The State Public Prosecutor of the State of Minas Gerais also pleaded for the payment of moral damages collective actions, as well as for the permanent reallocation of people, at the expense of CSN Mineracao SA The lawsuit is in its initial phase and there is still no judicial sentence related to the case. | ||
[2] | On April 8, 2013, INEA applied a fine of R$35 million to CSN in relation to aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the public civil action filed in July 2012. In relation to the application of this fine, an annulment action was filed, distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, aiming at the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action, with an adjusted amount of R$42 million, in order to enforce the amount of the fine imposed. The Tax Foreclosure action mentioned was distributed in May 2014 to the 4th Registry of Active Debt of Volta Redonda, in the State of Rio de Janeiro. Currently, these actions are suspended until the conclusion of the investigation to be carried out in the Environmental Public Civil Action of the Condominium Volta Grande IV, whose merit discusses possible contamination of the site. | ||
[3] | This is an Environmental Public Civil Action, proposed by the MPF, with a claim for indemnity for collective moral damages and material damages, for allegedly irregular deposit of steel residues, in addition to being set aside for non-compliance with the injunction. | ||
[4] | Infraction Notice (AIIM) drawn up by SEFAZ / RJ for ICMS and Fine requirement for the alleged improper use of ICMS credit for the period 2015 to 2020 resulting from the acquisition of intermediate products used in the UPV (refractories, belts, cylinders, chemical agents, etc.), which were classified by the Inspection as of use / consumption and without the right to credit. |
20. PROVISION FOR TAX, SOCIAL_6
20. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 27, 2018 | Aug. 27, 2017 | Apr. 08, 2013 | May 31, 2014 | Jan. 31, 2014 | Dec. 31, 2020 |
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||||||
Penalty fee | R$ 25000 | |||||
Updated amount | R$ 4542786 | |||||
Municipality of volta redonda [member] | ||||||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||||||
Penalty fee | R$ 35000 | |||||
MVR [member] | New agreement [member] | ||||||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||||||
Additional investment | R$ 21000 | |||||
Percentage of allocated to services of environmental interest | 30.00% | |||||
Actual disbursement | R$ 25000 | |||||
INEA [member] | ||||||
ProvisionForTaxSocialSecurityLaborCivilEnvironmentalRisksAndJudicialDepositsLineItems [Line Items] | ||||||
Penalty fee | R$ 42000 | R$ 35000 |
21. PROVISION FOR ENVIRONMENT_3
21. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMMENT OBLIGATIONS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ProvisionForEnvironmentalLiabitiesAndAssetRetiremmentObligationsLineItems [Line Items] | ||
Provision for environmental liabilities and decommissioning of assets | R$ 803835 | R$ 524001 |
Environmental liabilities [member] | ||
ProvisionForEnvironmentalLiabitiesAndAssetRetiremmentObligationsLineItems [Line Items] | ||
Provision for environmental liabilities and decommissioning of assets | 192,830 | 192,270 |
Asset retirement obligations [member] | ||
ProvisionForEnvironmentalLiabitiesAndAssetRetiremmentObligationsLineItems [Line Items] | ||
Provision for environmental liabilities and decommissioning of assets | R$ 611005 | R$ 331731 |
21. PROVISION FOR ENVIRONMENT_4
21. PROVISION FOR ENVIRONMENTAL LIABILITIES AND ASSET RETIREMMENT OBLIGATIONS (Details Narrative) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Mining [member] | |
ProvisionForEnvironmentalLiabitiesAndAssetRetiremmentObligationsLineItems [Line Items] | |
Provision for deactivating assets | R$ 279000 |
22. RELATED-PARTY BALANCES AN_3
22. RELATED-PARTY BALANCES AND TRANSACTIONS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Current | R$ 23386194 | R$ 12725805 | |
Non-current | 39,615,955 | 38,143,471 | |
TOTAL ASSETS | 63,002,149 | 50,869,276 | |
Liabilities | |||
Current | 14,725,696 | 11,619,957 | |
Non-current | 37,024,948 | 27,887,387 | |
Total | 344,488 | 419,894 | |
Trade payables [member] | |||
Liabilities | |||
Current | 116,401 | 240,984 | |
Accounts payable [member] | |||
Liabilities | |||
Current | 25,992 | 23,566 | |
Non-current | 78,083 | 88,021 | |
Other Provision for Consumption and Services [member] | |||
Liabilities | |||
Current | 44,466 | 22,497 | |
Actuarial liability [member] | |||
Liabilities | |||
Non-current | 79,546 | 19,788 | |
Joint-ventures e joint operation [member] | |||
Assets | |||
Current | 42,509 | 45,351 | |
Non-current | 1,626,695 | 1,273,098 | |
TOTAL ASSETS | 1,669,204 | 1,318,449 | |
Liabilities | |||
Current | 174,967 | 144,559 | |
Non-current | 78,083 | 88,021 | |
Total | 253,050 | 232,580 | |
Joint-ventures e joint operation [member] | Trade payables [member] | |||
Liabilities | |||
Current | 106,946 | 98,496 | |
Joint-ventures e joint operation [member] | Accounts payable [member] | |||
Liabilities | |||
Current | 23,555 | 23,566 | |
Non-current | 78,083 | 88,021 | |
Joint-ventures e joint operation [member] | Other Provision for Consumption and Services [member] | |||
Liabilities | |||
Current | 44,466 | 22,497 | |
Subsidiaries and associates [member] | |||
Assets | |||
Current | 7,686 | 39,435 | |
Non-current | [1] | 3,375 | 1,874 |
TOTAL ASSETS | 11,061 | 41,309 | |
Other related parties [member] | |||
Assets | |||
Current | 3,878,914 | 2,248,746 | |
Non-current | 137,228 | 109,433 | |
TOTAL ASSETS | 4,016,142 | 2,358,179 | |
Liabilities | |||
Current | 11,892 | 167,526 | |
Non-current | 79,546 | 19,788 | |
Total | 91,438 | 187,314 | |
Other related parties [member] | Trade payables [member] | |||
Liabilities | |||
Current | 9,455 | 142,488 | |
Other related parties [member] | Accounts payable [member] | |||
Liabilities | |||
Current | 2,437 | ||
Other related parties [member] | Actuarial liability [member] | |||
Liabilities | |||
Non-current | 79,546 | 19,788 | |
Other non-current assets [member] | |||
Assets | |||
Non-current | [2] | 664,020 | 428,672 |
Other non-current assets [member] | Joint-ventures e joint operation [member] | |||
Assets | |||
Non-current | [2] | 664,020 | 428,672 |
Loans [member] | |||
Assets | |||
Non-current | [1] | 966,050 | 846,300 |
Loans [member] | Joint-ventures e joint operation [member] | |||
Assets | |||
Non-current | [1] | 962,675 | 844,426 |
Loans [member] | Subsidiaries and associates [member] | |||
Assets | |||
Non-current | 3,375 | 1,874 | |
Financial investments [member] | |||
Assets | |||
Current | [3] | 3,763,603 | 2,116,560 |
Non-current | [3] | 123,409 | 95,719 |
Financial investments [member] | Other related parties [member] | |||
Assets | |||
Current | [3] | 3,763,603 | 2,116,560 |
Non-current | [3] | 123,409 | 95,719 |
Dividends receivables [member] | |||
Assets | |||
Current | [4] | 38,088 | 44,554 |
Dividends receivables [member] | Joint-ventures e joint operation [member] | |||
Assets | |||
Current | [4] | 38,088 | 44,554 |
Trade receivables [member] | |||
Assets | |||
Current | [5] | 121,176 | 170,588 |
Trade receivables [member] | Joint-ventures e joint operation [member] | |||
Assets | |||
Current | [5] | 8 | 797 |
Trade receivables [member] | Subsidiaries and associates [member] | |||
Assets | |||
Current | [5] | 7,686 | 39,435 |
Trade receivables [member] | Other related parties [member] | |||
Assets | |||
Current | [5] | 113,482 | 130,356 |
Other current assets [member] | |||
Assets | |||
Current | 6,242 | 1,830 | |
Other current assets [member] | Joint-ventures e joint operation [member] | |||
Assets | |||
Current | 4,413 | ||
Other current assets [member] | Other related parties [member] | |||
Assets | |||
Current | 1,829 | 1,830 | |
Actuarial asset [member] | |||
Assets | |||
Non-current | 13,819 | 13,714 | |
Actuarial asset [member] | Other related parties [member] | |||
Assets | |||
Non-current | R$ 13819 | 13,714 | |
Intercompany loans [member] | |||
Liabilities | |||
Current | 25,038 | ||
Intercompany loans [member] | Other related parties [member] | |||
Liabilities | |||
Current | R$ 25038 | ||
[1] | Loans (Assets): refers mainly to loan agreements with an average rate of 125.0% to 130.0% of the CDI with Transnordestina Logistica SA of R$962,675 (R$844,426 as of December 31, 2019). | ||
[2] | Others (Assets): Advance for future capital increase with subsidiaries of R$664,020 with Transnordestina Logistica SA (R$428,672 on December 31, 2019). | ||
[3] | Financial investments: Investments in Usiminas shares are R$3,305,109 (R$2,114,620 in December 2019) and cash and cash equivalents with Banco Fibra totaling R$458,494 in December 2020 (R$1,940 in December 2019) and no current amount R$123,409 (R$95,719 in December 2019) from Bonds with an average rate of 98% to 115% of the CDI in the consolidated and holds in the parent company through exclusive funds' investments in government bonds and CDBs in the amount of R$38,517 on December 31, 2020 (R$8,301 on December 31, 2019). | ||
[4] | Dividends receivable from MRS Logistica of R$38,088 (R$44,554 as of December 31, 2019). | ||
[5] | Trades receivable mainly refers to operations of sales of steel products of the Parent Company to affiliates and companies joint venture and joint-operation. |
22. RELATED-PARTY BALANCES AN_4
22. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
P&L | |||
Sales | R$ 1674235 | R$ 1122834 | R$ 1278751 |
Purchases | (1,140,632) | (1,958,958) | (1,418,282) |
Financial income (expenses) | |||
Interest | 37,516 | 64,289 | 48,796 |
Exchange rate variations, net | 3,586 | 13,611 | |
Financial investments | 1,190,489 | ||
Other operating income and expenses | (5,224,682) | (4,631,236) | 83,332 |
Net income for the year | 4,292,618 | 2,244,511 | 5,200,583 |
Joint-ventures e joint operation [member] | |||
P&L | |||
Sales | 843 | 414 | |
Purchases | (1,036,420) | (1,133,142) | (1,307,695) |
Financial income (expenses) | |||
Interest | 19,095 | 43,790 | 33,911 |
Other operating income and expenses | (14,939) | ||
Net income for the year | (1,016,482) | (1,104,291) | (1,273,369) |
Subsidiaries and associates [member] | |||
P&L | |||
Sales | 104,400 | 75,630 | 100,608 |
Purchases | (231,140) | ||
Financial income (expenses) | |||
Interest | 234 | ||
Net income for the year | 104,400 | (155,510) | 100,842 |
Other related parties [member] | |||
P&L | |||
Sales | 1,568,992 | 1,047,204 | 1,177,730 |
Purchases | (104,212) | (594,676) | (110,587) |
Financial income (expenses) | |||
Interest | 18,421 | 20,499 | 14,651 |
Exchange rate variations, net | 3,586 | 13,611 | |
Financial investments | 1,190,489 | ||
Other operating income and expenses | (136,004) | ||
Net income for the year | R$ 2673690 | R$ 340609 | R$ 1095404 |
22. RELATED-PARTY BALANCES AN_5
22. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term benefits for employees and officers | R$ 40522 | R$ 37452 | R$ 32848 |
Post-employment benefits | 111 | 109 | 105 |
Key management personnel compensation | R$ 40633 | R$ 37561 | R$ 32953 |
22. RELATED-PARTY BALANCES AN_6
22. RELATED-PARTY BALANCES AND TRANSACTIONS (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | ||
Borrowings | R$ 23205332 | R$ 15695779 |
Tax foreclosure | 35,692 | 41,004 |
Others | 5,462 | 10,857 |
Total | 23,246,486 | 15,747,640 |
Local currency [member] | ||
Disclosure of transactions between related parties [line items] | ||
Borrowings | 19,877,378 | 12,033,973 |
Tax foreclosure | ||
Others | ||
Total | 19,877,378 | 12,033,973 |
Guarantees [member] | Foreign currency [member] | Euro [member] | ||
Disclosure of transactions between related parties [line items] | ||
Borrowings | 24,000 | |
Total | 24,000 | |
Guarantees [member] | Foreign currency [member] | Euro [member] | CSN steel s.l. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Borrowings | 24,000 | |
Total | 24,000 | |
Guarantees [member] | Foreign currency [member] | USD | ||
Disclosure of transactions between related parties [line items] | ||
Borrowings | 3,825,000 | 2,958,603 |
Tax foreclosure | ||
Others | ||
Total | R$ 3825000 | 2,958,603 |
Guarantees [member] | Foreign currency [member] | USD | CSN islands XII [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | Perpetual | |
Borrowings | R$ 1000000 | 1,000,000 |
Tax foreclosure | ||
Others | ||
Total | R$ 1000000 | 1,000,000 |
Guarantees [member] | Foreign currency [member] | USD | CSN resources [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | Up to 04/17/2026 | |
Borrowings | R$ 1525000 | 1,958,603 |
Tax foreclosure | ||
Others | ||
Total | R$ 1525000 | 1,958,603 |
Guarantees [member] | Foreign currency [member] | USD | CSN inova ventures [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | 1/28/2028 | |
Borrowings | R$ 1300000 | |
Total | 1,300,000 | |
Guarantees [member] | Local currency [member] | ||
Disclosure of transactions between related parties [line items] | ||
Borrowings | 3,327,954 | 3,661,806 |
Tax foreclosure | 35,692 | 41,004 |
Others | 5,462 | 10,857 |
Total | R$ 3369108 | 3,713,667 |
Guarantees [member] | Local currency [member] | Transnordestina logistica s.a [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | Up to 09/19/2056 and Indefinite | |
Borrowings | R$ 2478105 | 2,428,194 |
Tax foreclosure | 35,496 | 37,406 |
Others | 3,298 | 8,702 |
Total | R$ 2516899 | 2,474,302 |
Guarantees [member] | Local currency [member] | FTL - ferrovia transnordestina [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | Up to 04/01/2021 | |
Borrowings | 43,118 | |
Tax foreclosure | ||
Others | ||
Total | 43,118 | |
Guarantees [member] | Local currency [member] | Cia metalurgica prada [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | Indefinite | |
Tax foreclosure | R$ 196 | 457 |
Others | 244 | 235 |
Total | R$ 440 | 692 |
Guarantees [member] | Local currency [member] | CSN energia [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | Up to 11/26/2023 and indefinite | |
Tax foreclosure | 3,141 | |
Others | 1,920 | 1,920 |
Total | R$ 1920 | 5,061 |
Guarantees [member] | Local currency [member] | CSN mineracao [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | Up to 12/21/2024 | |
Borrowings | R$ 846749 | 1,184,048 |
Tax foreclosure | ||
Others | ||
Total | R$ 846749 | 1,184,048 |
Guarantees [member] | Local currency [member] | Estanho de rondonia [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | 7/15/2022 | |
Borrowings | R$ 1154 | 1,902 |
Total | R$ 1154 | 1,902 |
Guarantees [member] | Local currency [member] | Minerios nacional s.a. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Maturities | Up to 09/10/2021 | |
Borrowings | R$ 1946 | 4,544 |
Tax foreclosure | ||
Others | ||
Total | R$ 1946 | R$ 4544 |
22. RELATED-PARTY BALANCES AN_7
22. RELATED-PARTY BALANCES AND TRANSACTIONS (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | ||
Description of financial investment | Investments in Usiminas shares are R$3,305,109 (R$2,114,620 in December 2019) and cash and cash equivalents with Banco Fibra totaling R$458,494 in December 2020 (R$1,940 in December 2019) and no current amount R$123,409 (R$95,719 in December 2019) from Bonds with an average rate of 98% to 115% of the CDI in the consolidated and holds in the parent company through exclusive funds’ investments in government bonds and CDBs in the amount of R$38,517 on December 31, 2020 (R$8,301 on December 31, 2019). | |
Vicunha siderurgia s.a. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Voting rights | 49.24% | |
Rio laco participacoes s.a [member] | ||
Disclosure of transactions between related parties [line items] | ||
Voting rights | 4.22% | |
Distribution of mandatory minimum dividend | R$ 37997 | |
Transnordestina logistica s.a [member] | ||
Disclosure of transactions between related parties [line items] | ||
Loan amount | 962,675 | R$ 844426 |
Advance for future capital increase | R$ 664020 | 428,672 |
Transnordestina logistica s.a [member] | Bottom of range [member] | ||
Disclosure of transactions between related parties [line items] | ||
Loan interest rate | 125.00% | |
Transnordestina logistica s.a [member] | Top of range [member] | ||
Disclosure of transactions between related parties [line items] | ||
Loan interest rate | 130.00% | |
MRS logistica [member] | ||
Disclosure of transactions between related parties [line items] | ||
Dividend | R$ 38088 | R$ 44554 |
Vicunha acos s.a [member] | ||
Disclosure of transactions between related parties [line items] | ||
Distribution of mandatory minimum dividend | 443,694 | |
Vicunha acos s.a [member] | Bottom of range [member] | ||
Disclosure of transactions between related parties [line items] | ||
Dividend | R$ 204574 | |
Vicunha acos s.a [member] | Vicunha steel s.a. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Voting rights | 67.93% | |
Vicunha acos s.a [member] | CFL participacoes s.a [member] | ||
Disclosure of transactions between related parties [line items] | ||
Voting rights | 12.82% | |
Vicunha acos s.a [member] | Vicunha steel s.a. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Voting rights | 40.00% | |
Rio purus participacoes s.a. [member] | CFL participacoes s.a [member] | ||
Disclosure of transactions between related parties [line items] | ||
Voting rights | 19.25% | |
Rio purus participacoes s.a. [member] | Vicunha steel s.a. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Voting rights | 60.00% |
23. SHAREHOLDERS' EQUITY (Detai
23. SHAREHOLDERS' EQUITY (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of classes of share capital [line items] | |||
Number of common shares outstanding | 1,387,524,047 | 1,387,524,047 | |
Percent of total shares | 100.00% | 100.00% | |
Outstanding shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of common shares outstanding | 1,380,114,547 | 1,380,114,547 | |
Percent of total shares | 99.47% | 99.47% | |
Percent of voting capital | 100.00% | 100.00% | |
Treasury shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of common shares outstanding | 7,409,500 | 7,409,500 | |
Percent of total shares | 0.53% | 0.53% | |
Vicunha acos s.a [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of common shares outstanding | [1] | 679,522,254 | 679,522,254 |
Percent of total shares | [1] | 48.97% | 48.97% |
Percent of voting capital | [1] | 49.24% | 49.24% |
Rio laco participacoes s.a. [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of common shares outstanding | [1] | 58,193,503 | 58,193,503 |
Percent of total shares | [1] | 4.19% | 4.19% |
Percent of voting capital | [1] | 4.22% | 4.22% |
NYSE (ADRs) [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of common shares outstanding | 248,763,533 | 262,206,103 | |
Percent of total shares | 17.93% | 18.90% | |
Percent of voting capital | 18.02% | 19.00% | |
Other shareholders [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of common shares outstanding | 393,635,257 | 380,192,687 | |
Percent of total shares | 28.37% | 27.40% | |
Percent of voting capital | 28.52% | 27.55% | |
[1] | Controlling group companies. |
23. SHAREHOLDERS' EQUITY (Det_2
23. SHAREHOLDERS' EQUITY (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$)R$ / sharesshares | |
Disclosure of classes of share capital [line items] | |
Authorized quantity | 2,400,000,000 |
Buyback program [member] | |
Disclosure of classes of share capital [line items] | |
Board's Authorization | 04/20/2018 |
Authorized quantity | 30,391,000 |
Program Period | From 4/20/2018 to 4/30/2018 |
Average buyback price | R$ / shares | |
Minimum and maximum buyback price | R$ | |
Sale of shares | R$ | R$ 22981500 |
Balance in treasury | 7,409,500 |
23. SHAREHOLDERS' EQUITY (Det_3
23. SHAREHOLDERS' EQUITY (Details 2) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of classes of share capital [line items] | |||
Quantity purchased (in units) | 7,409,500 | ||
Amount paid for the shares | R$ 58264 | R$ 58264 | |
Treasury share market price | [1] | R$ 235993 | |
Bottom of range [member] | |||
Disclosure of classes of share capital [line items] | |||
Share price | R$ 4.48 | ||
Top of range [member] | |||
Disclosure of classes of share capital [line items] | |||
Share price | 10.07 | ||
Average [member] | |||
Disclosure of classes of share capital [line items] | |||
Share price | R$ 7.86 | ||
[1] | The average share price on December 31, 2020 was used in the amount of R$31.85 per share. |
23. SHAREHOLDERS' EQUITY (Det_4
23. SHAREHOLDERS' EQUITY (Details 3) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [abstract] | |||
Profit for the year | R$ 3794295 | R$ 1789067 | R$ 5074136 |
Weighted average number of shares | 1,380,114,547 | 1,380,114,547 | 1,373,250,595 |
Basic and diluted earnings (loss) per share | R$ 2.74926 | R$ 1.29632 | R$ 3.69498 |
23. SHAREHOLDERS' EQUITY (Det_5
23. SHAREHOLDERS' EQUITY (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Thousands | Feb. 22, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | |||
Issued capital | R$ 6040000 | R$ 4540000 | |
Capital increase | 1,500,000 | 1,387,524,047 | |
Number of share authorized to sale | 2,400,000,000 | ||
Number of share issued, value | R$ 6040000 | ||
Treasury shares [member] | Average [member] | |||
Disclosure of classes of share capital [line items] | |||
Share price | R$ 31.85 |
24. Shareholders' Compensatio_2
24. Shareholders' Compensation (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shareholders Compensation | |||
Profit for the year | R$ 3794295 | R$ 1789067 | R$ 5074136 |
Capital reserve | (189,715) | ||
Profit for allocation | 3,604,580 | ||
Proposed destination: | |||
Mandatory minimum dividends: | (901,145) | ||
Statutory reserve | (2,703,435) | ||
Allocation of profit | R$ 3604580 | ||
Weighted average number of shares | 1,380,114,547 | 1,380,114,547 | 1,373,250,595 |
Dividends per share | R$ 0.652949 | ||
In current liabilities | |||
Dividends, beginning balance | R$ 13252 | ||
Dividends paid in year | (12,414) | ||
Proposed dividends in 2020 exercise | 901,145 | ||
Dividends, ending balance | R$ 901983 | R$ 13252 |
24. Shareholders' Compensatio_3
24. Shareholders' Compensation (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders Compensation | |
Percentage of distribution of minimum dividends | 25.00% |
25. NET REVENUE FROM SALES (Det
25. NET REVENUE FROM SALES (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
NetRevenueFromSalesLineItems [Line Items] | |||
Gross revenue | R$ 34049060 | R$ 28883717 | R$ 26570460 |
Deductions | |||
Canceled sales, discounts and rebates | (248,821) | (325,794) | (234,851) |
Taxes on sales | (3,736,219) | (3,121,506) | (3,366,724) |
Deductions | (3,985,040) | (3,447,300) | (3,601,575) |
Net revenues | 30,064,020 | 25,436,417 | 22,968,885 |
Domestic market [member] | |||
NetRevenueFromSalesLineItems [Line Items] | |||
Gross revenue | 16,652,801 | 14,220,420 | 14,752,901 |
Foreign market [member] | |||
NetRevenueFromSalesLineItems [Line Items] | |||
Gross revenue | R$ 17396259 | R$ 14663297 | R$ 11817559 |
25. NET REVENUE FROM SALES (D_2
25. NET REVENUE FROM SALES (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Net Revenue From Sales | |
Description of nature of goods and services | (i) the production and sale of steel, cement and iron ore, (ii) the provision of maritime freight services, in the case of iron ore export sales, and rail and port logistics services and (iii) sales of energy. |
Description of timing of revenue recognition | 1. Identification of the contract for sale of goods or provision of services; 2. Identification of the performance obligations; 3. Determination of the contract value; 4. Determination of the value allocated to each performance obligation included in the contract; and 5. Revenue recognition over time or at the time the performance obligations are completed. |
Description of payment terms | All sales of goods and provisions of services are payable within 30 days of the invoice date. |
26. EXPENSES BY NATURE (Details
26. EXPENSES BY NATURE (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | R$ 21633776 | R$ 20117134 | R$ 18863368 |
Classified as: | |||
Cost of sales | 19,124,901 | 17,263,264 | 16,105,657 |
Selling expenses | (2,004,417) | (2,342,805) | (2,263,688) |
General and administrative expenses | (504,458) | (511,065) | (494,023) |
Total | (21,633,776) | (20,117,134) | (18,863,368) |
Raw materials and inputs [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | (6,928,517) | (7,287,933) | (6,759,275) |
Labor cost [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | (3,187,428) | (2,807,280) | (2,743,460) |
Supplies [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | (2,150,452) | (1,981,547) | (1,782,576) |
Maintenance cost Services and materials [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | (1,340,255) | (1,340,135) | (1,326,894) |
Outsourcing services [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | (2,217,657) | (2,392,626) | (2,368,387) |
Freights [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | (216,506) | (334,509) | (109,756) |
Distribution freights [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | (1,421,079) | (1,787,979) | (1,692,785) |
Depreciation amortization and depletion [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | (2,421,458) | (1,421,704) | (1,175,107) |
Others [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Expense, net | R$ 1750424 | R$ 763421 | R$ 905128 |
26. EXPENSES BY NATURE (Detai_2
26. EXPENSES BY NATURE (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
ExpenseByNatureLineItems [Line Items] | ||||
Production costs | R$ 19124901 | R$ 17263264 | R$ 16105657 | |
Sales expenses | 2,004,417 | 2,342,805 | 2,263,688 | |
General and Administrative Expenses | 504,458 | 511,065 | 494,023 | |
Other income and expenses | (5,224,682) | (4,631,236) | 83,332 | |
Net | 3,270,056 | 2,406,851 | 1,330,706 | |
Depreciation amortization and depletion [member] | ||||
ExpenseByNatureLineItems [Line Items] | ||||
Production costs | [1] | (2,374,046) | (1,385,306) | 1,145,793 |
Sales expenses | (13,978) | (11,539) | 5,850 | |
General and Administrative Expenses | (33,434) | (24,859) | 23,464 | |
Total | (2,421,458) | (1,421,704) | 1,175,107 | |
Other income and expenses | [2] | 95,270 | 97,627 | (97,914) |
Net | R$ 2516728 | R$ 1519331 | R$ 1273021 | |
[1] | The Company's iron ore extraction in 2020 started using dry waste filtering and stacking in 100% of its production process. As a normal consequence of the operation, the use of dams has become obsolete, and consequently, the assets of dams reached the end of their useful lives on December 31, 2020. As a result of the technical and functional obsolescence of the dams, the book balance of these assets in their entirety, (R$515,491), was fully depreciated in 2020 and appropriated to the cost of production. The cost of production includes PIS and COFINS credits on lease agreements on December 31, 2020, in the amount of R$5,335. | |||
[2] | They mainly refer to the depreciation of investment properties, paralyzed equipment and amortization of the SWT Client Portfolio, see note 27. |
26. EXPENSES BY NATURE (Detai_3
26. EXPENSES BY NATURE (Details Narrative) - Iron ore [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
ExpenseByNatureLineItems [Line Items] | |
Percentage of production process | 100.00% |
Book balance of assets | R$ 515491 |
Lease agreements [member] | |
ExpenseByNatureLineItems [Line Items] | |
Cost of production | R$ 5335 |
27. OTHER OPERATING INCOME AN_3
27. OTHER OPERATING INCOME AND EXPENSES (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other operating income | ||||
Receivables by indemnity | [1] | R$ 245945 | R$ 56180 | R$ 46256 |
Rentals and leases | 9,096 | 9,462 | 5,430 | |
Dividends received | 1,197 | 32,747 | 9,188 | |
PIS, COFINS and INSS to compensate | [2] | 120,452 | 123,677 | 1,102,365 |
Contractual fines | 4,783 | 4,486 | 3,965 | |
Actuarial pension plan | 55,695 | 47,151 | 20,983 | |
Updated shares - Fair Value through profit or loss (VJR) (Note 14II) | 12,579 | 1,655,813 | ||
Contractual agreement | [3] | 131,817 | ||
Other revenues | 32,747 | 98,250 | 27,749 | |
Total income | 482,494 | 503,770 | 4,036,043 | |
Other operating expenses | ||||
Taxes and fees | (46,338) | (95,873) | (26,197) | |
Expenses with environmental liabilities, net | 16,151 | (82,669) | (60,311) | |
Write-off/(Provision) of judicial lawsuits | (130,869) | (19,685) | (113,549) | |
Contractual fines | (106,926) | (104,086) | ||
Depreciation of equipment paralyzed and amortization of intangible assets (note 26) | (95,270) | (97,627) | (97,914) | |
Write- off of PP&E and intangible assets (note 10, 11 and 12) | (13,130) | (114,603) | (27,260) | |
Estimated (Loss)/reversal in inventories | (179,012) | (136,827) | (149,704) | |
Idleness in stocks and paralyzed equipment | [4] | (303,975) | (546,968) | |
Studies and project engineering expenses | (27,137) | (26,171) | (33,738) | |
Research and development expenses | (620) | (1,741) | (2,688) | |
Healthcare plan expenses | (117,193) | (119,560) | (108,369) | |
Cash flow hedge realized (Note 14 b) | [5] | (1,951,035) | (790,353) | (370,191) |
Updated shares - Fair value through profit or loss (Note 14II) | (118,780) | |||
Other expenses | (421,628) | (149,068) | (218,701) | |
Expenses | (3,270,056) | (2,406,851) | (1,330,706) | |
Other operating income (expenses), net | R$ 2787562 | R$ 1903081 | R$ 2705337 | |
[1] | In June 2020, the Company received R$84,435 of indemnity after a court decision, of which R$58,785 for rent arrears arising from one of its investment properties and R$25,650 relating to an action for the collection of insurance for material damage caused by contractor in the construction of the long steel plant. Additionally, in June, the principal amount was recognized in the amount of R$147,612 of receivables for indemnity (see note 9). | |||
[2] | In 2020, consist of the recovery of INSS credit on benefits granted to employees that should not be considered in the contribution calculation basis. In 2019, this is the exclusion of ICMS from the PIS and COFINS calculation basis. | |||
[3] | Referring to the contractual agreement signed for the supply of new equipment. | |||
[4] | Refers to the idle capacity arisen from production volumes lower than normal it was generated from the refurbishment of the blast furnace No.3 and in the iron ore mining operation due to delays in the release of environmental licenses, which postponed the start of new ore mining fronts, as well as new dry tailing processes still in ramp-up stage. | |||
[5] | As of December 31, 2020, foreign exchange cash flow hedge was realized and reclassified from Other Comprehensive Income to Other Operating Expenses (R$1,667,886), as well as cash flow hedge of PLATTS index (R$283,149), totaling R$1,951,035 of hedge realization in the year. See note 14. |
27. OTHER OPERATING INCOME AN_4
27. OTHER OPERATING INCOME AND EXPENSES (Details Narrative) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Other Operating Income And Expenses | ||||
Receivables by indemnity | R$ 84435 | R$ 517183 | ||
Rent arrears | 58,785 | |||
Collection of insurance for material damage | 25,650 | |||
Principal amount receivables for indemnity | R$ 147612 | |||
Other operating expenses | 1,667,886 | R$ 790353 | ||
Cash flow hedge of PLATTS index | 283,149 | |||
Cash flow hedge realized | R$ 1951035 |
28. FINANCIAL INCOME (EXPENSE_3
28. FINANCIAL INCOME (EXPENSES) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Financial income | ||||
Related parties (note 22 b) | R$ 51124 | R$ 79228 | R$ 64888 | |
Income from financial investments | 58,061 | 93,471 | 111,235 | |
Updated shares - Fair value through profit or loss (Note 14 II) | [1] | 1,190,489 | ||
Other income | [2] | 503,054 | 206,343 | 1,134,391 |
Financial income | 1,802,728 | 379,042 | 1,310,514 | |
Financial expenses | ||||
Borrowings and financing - foreign currency (note 13 b) | (1,600,973) | (1,128,520) | (988,821) | |
Borrowings and financing - local currency (note 13 b) | (401,079) | (867,785) | (1,020,867) | |
Related parties | (13,608) | (14,939) | (16,092) | |
Lease liabilities | (50,804) | (49,118) | ||
Capitalised interest (notes 11 and 33) | 92,506 | 117,189 | 71,611 | |
Interest and fines | (290,673) | (158,794) | (71,100) | |
(-) Adjustment present value of trade payables | (139,566) | |||
Commission, bank fees, Guarantee and bank fees | (162,085) | (217,784) | (182,179) | |
PIS/COFINS over financial income | (39,149) | (25,176) | (84,404) | |
Other financial expenses | (270,764) | (217,864) | 19,614 | |
Financial expenses | (2,876,195) | (2,562,791) | (2,272,238) | |
Others financial items, net | ||||
Foreign exchange and monetary variation, net | 392,971 | 47,579 | (533,918) | |
Gains and (losses) on exchange derivatives | (115,815) | 4,986 | (1) | |
Others financial | 277,156 | 52,565 | (533,919) | |
Financial income (expenses) | (2,599,039) | (2,510,226) | ||
Financial income (expenses), net | (796,311) | (2,131,184) | (1,495,643) | |
Statement of gains and (losses) on derivative transactions (note 14) | ||||
Exchange rate swap Dollar x Euro | (9,070) | 783 | (1) | |
Exchange rate swap GBP x Euro | (602) | |||
Exchange rate swap CDI x Dollar | (106,143) | 4,203 | ||
Total Future DI | R$ 115815 | R$ 4986 | R$ 1 | |
[1] | It refers to the appreciation of Usiminas' shares in the amount of R$1,190,489 as of December31, 2020. As of December 31, 2019, Usiminas' shares were reclassified to financial investments and their pricing fluctuation started to be recognized in the financial result. | |||
[2] | It mainly refers to the recognition of the exclusion of ICMS in the PIS and COFINS calculation base in the amount of R$81,758 on December 31, 2020 (R$160,609 on December 31, 2019) in the Consolidated, and updating in the amount of R$369,571 of receivables for indemnity (see note 9). |
28. FINANCIAL INCOME (EXPENSE_4
28. FINANCIAL INCOME (EXPENSES) (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Financial Income | ||||
Updated shares - Fair value through profit or loss (Note 14 II) | [1] | R$ 1190489 | ||
Recognition of the exclusion of ICMS in the PIS and COFINS | 81,758 | R$ 160609 | ||
Receivables for indemnity | R$ 369571 | |||
[1] | It refers to the appreciation of Usiminas' shares in the amount of R$1,190,489 as of December31, 2020. As of December 31, 2019, Usiminas' shares were reclassified to financial investments and their pricing fluctuation started to be recognized in the financial result. |
29. SEGMENT INFORMATION (Detail
29. SEGMENT INFORMATION (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of operating segments [line items] | |||||
Net revenues | R$ 30064020 | R$ 25436417 | R$ 22968885 | ||
Cost of sales and services | 19,124,901 | 17,263,264 | 16,105,657 | ||
Gross profit | 10,939,119 | 8,173,153 | 6,863,228 | ||
General and administrative expenses | (2,508,875) | (2,853,870) | (2,757,711) | ||
Other operating (income) expenses, net | (2,787,562) | (1,903,081) | 2,705,335 | ||
Equity in results of affiliated companies | 124,324 | [1] | 175,524 | [1] | 135,706 |
Operating result before Financial Income and Taxes | 5,714,437 | 3,541,917 | 6,946,560 | ||
Domestic market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 12,886,213 | 10,950,701 | 11,353,437 | ||
Foreign market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 17,177,807 | 14,485,716 | 11,615,450 | ||
Asia [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 8,606,405 | 8,209,796 | 5,760,316 | ||
North America [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 922,299 | 767,977 | 1,506,041 | ||
Latin America [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 327,900 | 169,036 | 369,830 | ||
Euro [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 7,315,862 | 5,336,861 | 3,921,034 | ||
Others [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 4,346 | 2,046 | 58,229 | ||
Steel [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 16,602,895 | 13,949,032 | 15,634,143 | ||
Cost of sales and services | 14,170,692 | 12,962,861 | 12,613,216 | ||
Gross profit | 2,432,203 | 986,171 | 3,020,927 | ||
General and administrative expenses | (922,862) | (834,977) | (984,980) | ||
Other operating (income) expenses, net | (392,061) | (1,055,190) | 1,993,790 | ||
Equity in results of affiliated companies | |||||
Operating result before Financial Income and Taxes | 1,117,280 | (903,996) | 4,029,736 | ||
Steel [member] | Domestic market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 11,721,339 | 10,027,999 | 10,328,372 | ||
Steel [member] | Foreign market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 4,881,556 | 3,921,033 | 5,305,771 | ||
Steel [member] | Asia [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 2,980 | 40,681 | |||
Steel [member] | North America [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 922,299 | 767,977 | 1,506,041 | ||
Steel [member] | Latin America [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 327,900 | 169,036 | 369,830 | ||
Steel [member] | Euro [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 3,627,011 | 2,978,994 | 3,330,991 | ||
Steel [member] | Others [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 4,346 | 2,046 | 58,229 | ||
Mining [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 12,683,231 | 10,027,649 | 5,984,781 | ||
Cost of sales and services | 5,531,763 | 4,396,247 | 3,585,691 | ||
Gross profit | 7,151,468 | 5,631,402 | 2,399,091 | ||
General and administrative expenses | (179,806) | (186,189) | (144,754) | ||
Other operating (income) expenses, net | (665,881) | (218,009) | (222,957) | ||
Equity in results of affiliated companies | |||||
Operating result before Financial Income and Taxes | 6,305,781 | 5,227,204 | 2,031,379 | ||
Mining [member] | Domestic market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 1,532,589 | 926,836 | 972,360 | ||
Mining [member] | Foreign market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 11,150,642 | 9,100,813 | 5,012,420 | ||
Mining [member] | Asia [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 7,461,791 | 6,742,946 | 4,422,377 | ||
Mining [member] | Euro [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 3,688,851 | 2,357,867 | 590,043 | ||
Logistics [member] | Port [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 256,371 | 240,451 | 266,378 | ||
Cost of sales and services | 187,860 | 173,344 | 189,999 | ||
Gross profit | 68,511 | 67,107 | 76,378 | ||
General and administrative expenses | (21,949) | (34,560) | (35,423) | ||
Other operating (income) expenses, net | (5,420) | (3,860) | (2,469) | ||
Equity in results of affiliated companies | |||||
Operating result before Financial Income and Taxes | 41,142 | 28,687 | 38,486 | ||
Logistics [member] | Port [member] | Domestic market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 256,371 | 240,451 | 266,378 | ||
Logistics [member] | Railroads [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 1,489,647 | 1,321,355 | 1,506,114 | ||
Cost of sales and services | 1,094,130 | 1,030,210 | 1,049,071 | ||
Gross profit | 395,517 | 291,145 | 457,043 | ||
General and administrative expenses | (114,970) | (109,770) | (106,412) | ||
Other operating (income) expenses, net | 52,569 | 147,155 | (34,911) | ||
Equity in results of affiliated companies | |||||
Operating result before Financial Income and Taxes | 333,116 | 328,530 | 315,721 | ||
Logistics [member] | Railroads [member] | Domestic market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 1,489,647 | 1,321,355 | 1,506,114 | ||
Energy [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 172,859 | 325,343 | 410,606 | ||
Cost of sales and services | 128,227 | 266,754 | 286,734 | ||
Gross profit | 44,632 | 58,589 | 123,872 | ||
General and administrative expenses | (30,243) | (29,034) | (27,948) | ||
Other operating (income) expenses, net | (2,967) | (1,486) | (387) | ||
Equity in results of affiliated companies | |||||
Operating result before Financial Income and Taxes | 11,422 | 28,069 | 95,537 | ||
Energy [member] | Domestic market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 172,859 | 325,343 | 410,606 | ||
Cement [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 858,192 | 570,805 | 588,230 | ||
Cost of sales and services | 647,132 | 607,719 | 544,266 | ||
Gross profit | 211,060 | (36,914) | 43,965 | ||
General and administrative expenses | (88,232) | (91,466) | (95,893) | ||
Other operating (income) expenses, net | (44,893) | (40,630) | 299 | ||
Equity in results of affiliated companies | |||||
Operating result before Financial Income and Taxes | 77,935 | (169,010) | (51,628) | ||
Cement [member] | Domestic market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 857,197 | 570,805 | 588,230 | ||
Cement [member] | Foreign market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 995 | ||||
Cement [member] | Latin America [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 995 | ||||
Corporate expenses/elimination [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | (1,999,175) | (998,218) | (1,421,366) | ||
Cost of sales and services | (2,634,903) | (2,173,871) | (2,163,321) | ||
Gross profit | 635,728 | 1,175,653 | 741,956 | ||
General and administrative expenses | (1,150,813) | (1,567,874) | (1,362,302) | ||
Other operating (income) expenses, net | (1,728,909) | (731,061) | 971,970 | ||
Equity in results of affiliated companies | 71,755 | 125,715 | 135,706 | ||
Operating result before Financial Income and Taxes | (2,172,239) | (997,567) | 487,330 | ||
Corporate expenses/elimination [member] | Domestic market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | (3,143,789) | (2,462,088) | (2,718,623) | ||
Corporate expenses/elimination [member] | Foreign market [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | 1,144,614 | 1,463,870 | 1,297,258 | ||
Corporate expenses/elimination [member] | Asia [member] | |||||
Disclosure of operating segments [line items] | |||||
Net revenues | R$ 1144614 | R$ 1463870 | R$ 1297258 | ||
[1] | The table below shows the reconciliation of the equity in results of affiliated companies classified as joint venture and associates and the amount disclosed in the income statement and it is due to the elimination of the results of the CSN's transactions with these companies. |
29. SEGMENT INFORMATION (Deta_2
29. SEGMENT INFORMATION (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Energy [member] | |
Disclosure of operating segments [line items] | |
Description of assets | Itá Hydroelectric Plant, located in the State of Santa Catarina, with a capacity of 1,450 MW, in which CSN participates with 29.5%; Igarapava Hydroelectric Plant, located in Minas Gerais, with a capacity of 210 MW, in which CSN holds 17.9% of the capital; and 238 MW thermoelectric cogeneration plant, in operation at the Presidente Vargas Steelworks since 1999, which uses waste gas from the steel production itself as fuel. |
Minerios Nacional [member] | |
Disclosure of operating segments [line items] | |
Percentage of ownership | 100.00% |
30. EMPLOYEE BENEFITS (Details)
30. EMPLOYEE BENEFITS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | |||
Actuarial assets | R$ 13819 | R$ 13714 | |
Actuarial liabilities | 758,426 | 912,184 | |
Benefits of Pension Plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial assets | 13,819 | 13,714 | R$ 99894 |
Actuarial liabilities | 79,546 | 19,788 | 7,982 |
Post-employment Healthcare Benefits [member] | |||
Disclosure of defined benefit plans [line items] | |||
Actuarial liabilities | R$ 678880 | R$ 892396 | R$ 897137 |
30. EMPLOYEE BENEFITS (Details
30. EMPLOYEE BENEFITS (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of defined benefit plans [line items] | ||||
Liabilities | R$ 758426 | R$ 912184 | ||
Assets | 13,819 | 13,714 | ||
Benefits of Pension Plans [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of defined benefit obligation | 3,645,822 | 3,581,460 | R$ 3087433 | R$ 3077849 |
Fair value of plan assets | (3,766,194) | (3,894,488) | (3,403,906) | |
Deficit(Surplus) | (120,372) | (313,028) | (316,473) | |
Restriction to actuarial assets due to recovery limitation | 186,099 | 319,102 | 224,561 | |
Liabilities (Assets), net | 65,727 | 6,074 | (91,912) | |
Liabilities | 79,546 | 19,788 | 7,982 | |
Assets | (13,819) | (13,714) | (99,894) | |
Net (assets) recognized in the balance sheet | R$ 65727 | R$ 6074 | R$ 91912 |
30. EMPLOYEE BENEFITS (Detail_2
30. EMPLOYEE BENEFITS (Details 2) - Benefits of Pension Plans [member] - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Rollforward of present value of obligation | |||
Present value of obligations at the beginning of the year | R$ 3581460 | R$ 3087433 | R$ 3077849 |
Cost of service | 968 | 1,093 | 1,169 |
Interest cost | 236,551 | 283,487 | 304,132 |
Participant contributions made in the period | 1,998 | 2,126 | |
Benefits paid | (278,960) | (269,995) | (280,493) |
Actuarial loss/(gain) | 103,805 | 477,316 | (15,224) |
Present value of obligations at the end of the year | R$ 3645822 | R$ 3581460 | R$ 3087433 |
30. EMPLOYEE BENEFITS (Detail_3
30. EMPLOYEE BENEFITS (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Fair value of plan assets at the beginning of the year | R$ 3894488 | R$ 3403906 | |
Fair value of plan assets at the end of the year | 3,766,193 | 3,894,488 | R$ 3403906 |
Benefits of Pension Plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Fair value of plan assets at the beginning of the year | (3,894,488) | (3,403,906) | (3,305,356) |
Interest income | (257,946) | (314,102) | (327,830) |
Benefits paid | 278,960 | 269,995 | 280,493 |
Participant contributions made in the period | (1,998) | (2,127) | |
Return on plan assets (less interest income) | 109,279 | (444,348) | (51,213) |
Fair value of plan assets at the end of the year | R$ 3766193 | R$ 3894488 | R$ 3403906 |
30. EMPLOYEE BENEFITS (Detail_4
30. EMPLOYEE BENEFITS (Details 4) - Benefits of Pension Plans [member] - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Cost of current service | R$ 968 | R$ 1093 | R$ 1169 |
Interest cost | 236,551 | 283,487 | 304,132 |
Expected return on plan assets | (257,946) | (314,102) | (327,830) |
Interest on the asset ceiling effect | 21,737 | 21,502 | 16,340 |
Total costs / (income), net | R$ 1310 | R$ 8020 | R$ 6189 |
30. EMPLOYEE BENEFITS (Detail_5
30. EMPLOYEE BENEFITS (Details 5) - Benefits of Pension Plans [member] - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Actuarial losses and (gains) | R$ 103805 | R$ 477316 | R$ 15224 |
Return on plan assets (less interest income) | 109,279 | (444,348) | (51,213) |
Change in the asset's limit (excluding interest income) | (154,741) | 73,039 | 50,058 |
Total cost of actuarial losses and (gains) | R$ 58343 | R$ 106007 | R$ 16379 |
30. EMPLOYEE BENEFITS (Detail_6
30. EMPLOYEE BENEFITS (Details 6) - Benefits of Pension Plans [member] - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Loss due to change in demographic assumptions | R$ 67930 | R$ 139813 | |
Loss due to change in financial assumptions | (30,454) | R$ 472715 | 46,917 |
Loss due to experience adjustments | 66,329 | 4,601 | 77,672 |
Return on plan assets (less interest income) | 109,279 | (444,348) | (51,213) |
Change in the asset's limit (excluding interest income) | (154,741) | 73,039 | 50,058 |
Actuarial losses and (gains) | R$ 58343 | R$ 106007 | R$ 16379 |
30. EMPLOYEE BENEFITS (Detail_7
30. EMPLOYEE BENEFITS (Details 7) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [abstract] | ||
Actuarial financing method | Projected unit credit | Projected unit credit |
Functional currency | Real (R$) | Real (R$) |
Recognition of plan assets | Fair value | Fair value |
Nominal discount rate | Millennium Plan: 6,95% Plan 35%: 6,24% Supplementation : 6,44% | Millennium Plan: 6,98% Plan 35%: 6,75% Supplementation: 6,81% |
Inflation rate | 3.32% | 3.61% |
Nominal salary increase rate | 4.35% | 4.65% |
Nominal benefit increase rate | 3.32% | 3.61% |
Rate of return on investments | Millennium Plan: 6,95% Plan 35%: 6,24% Supplementation : 6,44% | Millennium Plan: 6,98% Plan 35%: 6,75% Supplementation: 6,81% |
General mortality table | Millennium Plan: AT-2012 segregated by gender Plan 35%: AT-2000 Male aggravated by 15% Supplementation: AT-2000 aggravated by 10% segregated by gender | Millennium Plan: AT-2000 smoothed down by 10% segregated by gender Plan 35%: AT-2000 Male aggravated by 15% Supplementation: AT-2000 aggravated by 10% segregated by gender |
Disability table | 35% Plan Light Medium. Millenium Plan: Prudential (-10%) Supplementation: not applicable | 35% Plan and Supplementation: Light Medium. Millenium Plan: Prudential (Ferr. Retirement) |
Disability mortality table | Millenium Plan: AT-71 35% Plan : MI-2006 -10% M&F Supplementation: Winklevoss -10% | Winklevoss - 1% |
Turnover table | Millenium plan 5% per annum, zero for plans 35% and Supplementation | Millenium plan 5% per annum, zero for plans 35% and Supplementation |
Retirement age | 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan | 100% on the first date he/she becomes eligible for programmed retirement benefit under the plan |
Household of active participants | 95% will be married at the time of retirement, with the wife being 4 years younger than the husband | 95% will be married at the time of retirement, with the wife being 4 years younger than the husband |
30. EMPLOYEE BENEFITS (Detail_8
30. EMPLOYEE BENEFITS (Details 8) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Plan covering 35% Of The Average Salary [member] | Male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 18.38 | 18.38 |
Average life expectancy in years of employees who are 40 (in years) | 40.15 | 40.15 |
Plan covering 35% Of The Average Salary [member] | Female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 18.38 | 18.38 |
Average life expectancy in years of employees who are 40 (in years) | 40.15 | 40.15 |
Average Salary Supplementation Plan [member] | Male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 18.75 | 18.75 |
Average life expectancy in years of employees who are 40 (in years) | 40.60 | 40.60 |
Average Salary Supplementation Plan [member] | Female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 21.41 | 21.41 |
Average life expectancy in years of employees who are 40 (in years) | 44.41 | 44.41 |
Mixed Supplementary Benefit Plan [member] | Male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 21.47 | 20.45 |
Average life expectancy in years of employees who are 40 (in years) | 44.07 | 42.70 |
Mixed Supplementary Benefit Plan [member] | Female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Average life expectancy of employees (in years) | 23.34 | 23.02 |
Average life expectancy in years of employees who are 40 (in years) | 46.68 | 46.28 |
30. EMPLOYEE BENEFITS (Detail_9
30. EMPLOYEE BENEFITS (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 3766193 | R$ 3894488 | R$ 3403906 |
Allocation of plan assets percent | 100.00% | 100.00% | 100.00% |
Variable Income [member] | |||
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 54285 | R$ 25236 | R$ 141705 |
Allocation of plan assets percent | 1.44% | 0.65% | 4.16% |
Fixed income [member] | |||
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 3438735 | R$ 3607398 | R$ 3050099 |
Allocation of plan assets percent | 91.31% | 92.63% | 89.61% |
Real estate [member] | |||
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 182145 | R$ 183098 | R$ 52091 |
Allocation of plan assets percent | 4.84% | 4.70% | 1.53% |
Others [member] | |||
Disclosure of defined benefit plans [line items] | |||
Allocation of plan assets | R$ 91028 | R$ 78756 | R$ 160011 |
Allocation of plan assets percent | 2.42% | 2.02% | 4.70% |
30. EMPLOYEE BENEFITS (Detai_10
30. EMPLOYEE BENEFITS (Details 10) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$)shares | |
Plan covering 35% Of The Average Salary [member] | Possible Increase [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 1005 |
Effect on present value of obligations | shares | 17,381 |
Plan covering 35% Of The Average Salary [member] | Possible Increase [member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Plan covering 35% Of The Average Salary [member] | Possible Increase [member] | Actuarial assumption of mortality rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 120 |
Effect on present value of obligations | shares | 1,928 |
Plan covering 35% Of The Average Salary [member] | Possible Increase [member] | Actuarial assumption of expected rates of pension increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level, year | +1 year |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 850 |
Effect on present value of obligations | shares | 13,626 |
Plan covering 35% Of The Average Salary [member] | Possible Decrease [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 1084 |
Effect on present value of obligations | shares | (16,114) |
Plan covering 35% Of The Average Salary [member] | Possible Decrease [member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Plan covering 35% Of The Average Salary [member] | Possible Decrease [member] | Actuarial assumption of mortality rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 120 |
Effect on present value of obligations | shares | (1,928) |
Plan covering 35% Of The Average Salary [member] | Possible Decrease [member] | Actuarial assumption of expected rates of pension increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level, year | - 1 year |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 839 |
Effect on present value of obligations | shares | (13,455) |
Average Salary Supplementation Plan [member] | Possible Increase [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 5507 |
Effect on present value of obligations | shares | 92,456 |
Average Salary Supplementation Plan [member] | Possible Increase [member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Average Salary Supplementation Plan [member] | Possible Increase [member] | Actuarial assumption of mortality rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 623 |
Effect on present value of obligations | shares | 9,669 |
Average Salary Supplementation Plan [member] | Possible Increase [member] | Actuarial assumption of expected rates of pension increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level, year | +1 year |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 4382 |
Effect on present value of obligations | shares | 68,039 |
Average Salary Supplementation Plan [member] | Possible Decrease [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 5954 |
Effect on present value of obligations | shares | (85,515) |
Average Salary Supplementation Plan [member] | Possible Decrease [member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Average Salary Supplementation Plan [member] | Possible Decrease [member] | Actuarial assumption of mortality rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 623 |
Effect on present value of obligations | shares | (9,669) |
Average Salary Supplementation Plan [member] | Possible Decrease [member] | Actuarial assumption of expected rates of pension increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level, year | - 1 year |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 4362 |
Effect on present value of obligations | shares | (67,726) |
Mixed Supplementary Benefit Plan [member] | Possible Increase [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 4758 |
Effect on present value of obligations | shares | 76,188 |
Mixed Supplementary Benefit Plan [member] | Possible Increase [member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 191 |
Effect on present value of obligations | shares | 1,079 |
Mixed Supplementary Benefit Plan [member] | Possible Increase [member] | Actuarial assumption of mortality rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 430 |
Effect on present value of obligations | shares | 5,975 |
Mixed Supplementary Benefit Plan [member] | Possible Increase [member] | Actuarial assumption of expected rates of pension increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level, year | +1 year |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 1562 |
Effect on present value of obligations | shares | 22,603 |
Mixed Supplementary Benefit Plan [member] | Possible Decrease [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 5309 |
Effect on present value of obligations | shares | (68,287) |
Mixed Supplementary Benefit Plan [member] | Possible Decrease [member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 181 |
Effect on present value of obligations | shares | (1,030) |
Mixed Supplementary Benefit Plan [member] | Possible Decrease [member] | Actuarial assumption of mortality rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 430 |
Effect on present value of obligations | shares | (5,975) |
Mixed Supplementary Benefit Plan [member] | Possible Decrease [member] | Actuarial assumption of expected rates of pension increases [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level, year | - 1 year |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 1541 |
Effect on present value of obligations | shares | (22,306) |
30. EMPLOYEE BENEFITS (Detai_11
30. EMPLOYEE BENEFITS (Details 11) - Benefits of Pension Plans [member] R$ in Thousands | Dec. 31, 2020BRL (R$) |
Disclosure of defined benefit plans [line items] | |
Year 1 | R$ 281314 |
Year 2 | 272,801 |
Year 3 | 266,342 |
Year 4 | 259,595 |
Year 5 | 252,578 |
Next 5 years | 1,137,146 |
Total forecast payments | R$ 2469776 |
30. EMPLOYEE BENEFITS (Detai_12
30. EMPLOYEE BENEFITS (Details 12) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | |||
Actuarial liabilities | R$ 758426 | R$ 912184 | |
Post-employment Healthcare Benefits [member] | |||
Disclosure of defined benefit plans [line items] | |||
Present value of obligations | 678,880 | 892,396 | |
Actuarial liabilities | R$ 678880 | R$ 892396 | R$ 897137 |
30. EMPLOYEE BENEFITS (Detai_13
30. EMPLOYEE BENEFITS (Details 13) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Actuarial liability at the beginning of the year | R$ 912184 | |
Actuarial liability at the end of the year | 758,426 | R$ 912184 |
Post-employment Healthcare Benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
Actuarial liability at the beginning of the year | 892,396 | 897,137 |
Expenses recognized in income for the year | 57,731 | 69,907 |
Sponsor's contributions transferred in prior year | (81,340) | (82,081) |
Recognition of actuarial loss/(gain) | (189,907) | 7,433 |
Actuarial liability at the end of the year | R$ 678880 | R$ 892396 |
30. EMPLOYEE BENEFITS (Detai_14
30. EMPLOYEE BENEFITS (Details 14) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Post-employment Healthcare Benefits [member] | |||
Disclosure of defined benefit plans [line items] | |||
Gain/(loss) recognized in shareholders' equity | R$ 189907 | R$ 7433 | R$ 16237 |
30. EMPLOYEE BENEFITS (Detai_15
30. EMPLOYEE BENEFITS (Details 15) - Post-employment Healthcare Benefits [member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Male [member] | |||
Disclosure of defined benefit plans [line items] | |||
Average life expectancy of employees (in years) | 20.24 | 20.24 | 19.55 |
Average life expectancy in years of employees who are 40 (in years) | 42.74 | 42.74 | 41.59 |
Female [member] | |||
Disclosure of defined benefit plans [line items] | |||
Average life expectancy of employees (in years) | 20.24 | 20.24 | 22.17 |
Average life expectancy in years of employees who are 40 (in years) | 42.74 | 42.74 | 45.30 |
30. EMPLOYEE BENEFITS (Detai_16
30. EMPLOYEE BENEFITS (Details 16) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
General mortality table | Millennium Plan: AT-2012 segregated by gender Plan 35%: AT-2000 Male aggravated by 15% Supplementation: AT-2000 aggravated by 10% segregated by gender | Millennium Plan: AT-2000 smoothed down by 10% segregated by gender Plan 35%: AT-2000 Male aggravated by 15% Supplementation: AT-2000 aggravated by 10% segregated by gender |
Inflation rate | 3.32% | 3.61% |
Post-employment Healthcare Benefits [member] | ||
Disclosure of defined benefit plans [line items] | ||
General mortality table | AT 2000 segregated by gender | AT 2000 segregated by gender |
Actuarial nominal discount rate | 6.53% | 6.78% |
Inflation rate | 3.32% | 3.61% |
Real increase in medical costs based on age (Aging Factor) | 0,5% - 3,00% real per year | 0,5% - 3,00% real per year |
Nominal increase medical costs growth rate | 4.10% | 6.98% |
30. EMPLOYEE BENEFITS (Detai_17
30. EMPLOYEE BENEFITS (Details 17) - Healthcare plan [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$)shares | |
Possible Increase [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 0.50% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 1216 |
Effect on present value of obligations | shares | (30,300) |
Possible Increase [member] | Actuarial assumption of medical inflation [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | 1.00% |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 4749 |
Effect on present value of obligations | shares | 72,688 |
Possible Increase [member] | Actuarial assumption of mortality table [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level, year | +1 year |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 3123 |
Effect on present value of obligations | shares | 47,797 |
Possible Decrease [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (0.50%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 1339 |
Effect on present value of obligations | shares | 33,447 |
Actuarial assumption of medical inflation [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level | (1.00%) |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 3978 |
Effect on present value of obligations | shares | (60,887) |
Actuarial assumption of mortality table [member] | Actuarial assumption of mortality rates [member] | |
Disclosure of defined benefit plans [line items] | |
Sensitivity level, year | - 1 year |
Effect on current service cost and on interest on actuarial obligations | R$ | R$ 2925 |
Effect on present value of obligations | shares | (44,768) |
30. EMPLOYEE BENEFITS (Detai_18
30. EMPLOYEE BENEFITS (Details 18) - Post-employment Healthcare Benefits [member] R$ in Thousands | Dec. 31, 2020BRL (R$) |
Disclosure of defined benefit plans [line items] | |
Year 1 | R$ 60143 |
Year 2 | 58,312 |
Year 3 | 56,323 |
Year 4 | 54,177 |
Year 5 | 51,892 |
Next 5 years | 221,734 |
Total forecast payments | R$ 502581 |
30. EMPLOYEE BENEFITS (Detai_19
30. EMPLOYEE BENEFITS (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Number of common shares held | 4,450,652 | 1,870,652 |
Total guarantee resources | R$ 5700000 | R$ 5500000 |
Percentage of average salary | 4.35% | 4.65% |
Pension plan expense | R$ 41050 | R$ 40644 |
Description of investment policy | The investment plan is reviewed annually and approved by the Deliberative Council, considering a 5-year horizon, as established by CGPC resolution no. 7, of December 4, 2003. The investment limits and criteria established in the policy are based on Resolution 4,661 / 18, published by the National Monetary Council (“CMN”). | |
Defined benefit plan [member] | ||
Disclosure of defined benefit plans [line items] | ||
Description of pension fund market | In compliance with current legislation, specific to the pension fund market, for the last 4 years ended (2017, 2018, 2019 and 2020), there was no need to pay installments by CSN, since the benefit plans defined actuarial gains in the year. | |
Plan covering 35% Of The Average Salary [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of average salary | 35.00% | |
Participant's salary term | 12 months | |
Average Salary Supplementation Plan [member] | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of average salary | 35.00% | |
Participant's salary term | 12 months | |
Mixed Supplementary Benefit Plan [member] | 2021 [member] | ||
Disclosure of defined benefit plans [line items] | ||
Contributions forecast to be paid 2020 | R$ 21563 | |
Contributions amount | R$ 1322 |
31. COMMITMENTS (Details)
31. COMMITMENTS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | R$ 2108961 | R$ 2603716 |
Minimum future payments of take-or-pay contracts | 8,287,106 | |
2021 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 1,913,292 | |
2022 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 1,262,324 | |
2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 1,251,927 | |
After 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 3,859,563 | |
Transportation of Iron Ore, Coal, Coke, Steel Products, Cement and Mining Products [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 946,865 | 1,555,398 |
Minimum future payments of take-or-pay contracts | 7,062,394 | |
Transportation of Iron Ore, Coal, Coke, Steel Products, Cement and Mining Products [member] | 2021 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 1,195,158 | |
Transportation of Iron Ore, Coal, Coke, Steel Products, Cement and Mining Products [member] | 2022 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 1,195,508 | |
Transportation of Iron Ore, Coal, Coke, Steel Products, Cement and Mining Products [member] | 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 1,195,508 | |
Transportation of Iron Ore, Coal, Coke, Steel Products, Cement and Mining Products [member] | After 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 3,476,220 | |
Supply of Power, Natural Gas, Oxygen, Nitrogen, Argon and Iron Ore Pellets [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 1,044,380 | 959,362 |
Minimum future payments of take-or-pay contracts | 918,971 | |
Supply of Power, Natural Gas, Oxygen, Nitrogen, Argon and Iron Ore Pellets [member] | 2021 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 674,378 | |
Supply of Power, Natural Gas, Oxygen, Nitrogen, Argon and Iron Ore Pellets [member] | 2022 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 28,530 | |
Supply of Power, Natural Gas, Oxygen, Nitrogen, Argon and Iron Ore Pellets [member] | 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 24,779 | |
Supply of Power, Natural Gas, Oxygen, Nitrogen, Argon and Iron Ore Pellets [member] | After 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 191,284 | |
Processing of slag generated during pig iron and steel production [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 75,863 | 56,024 |
Minimum future payments of take-or-pay contracts | 25,190 | |
Processing of slag generated during pig iron and steel production [member] | 2021 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 13,240 | |
Processing of slag generated during pig iron and steel production [member] | 2022 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 9,298 | |
Processing of slag generated during pig iron and steel production [member] | 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 2,652 | |
Processing of slag generated during pig iron and steel production [member] | After 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 0 | |
Manufacturing, Repair, Recovery and Production of Ingot Casting Machine Units [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 7,674 | 5,930 |
Minimum future payments of take-or-pay contracts | 480 | |
Manufacturing, Repair, Recovery and Production of Ingot Casting Machine Units [member] | 2021 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 480 | |
Oil Storage and Handling [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 1,900 | |
Minimum future payments of take-or-pay contracts | 5,226 | |
Oil Storage and Handling [member] | 2021 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 1,608 | |
Oil Storage and Handling [member] | 2022 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 1,608 | |
Oil Storage and Handling [member] | 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 1,608 | |
Oil Storage and Handling [member] | After 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 402 | |
Labor and Consultancy Services [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Take-or-pay contracts | 32,279 | R$ 27002 |
Minimum future payments of take-or-pay contracts | 274,845 | |
Labor and Consultancy Services [member] | 2021 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 28,428 | |
Labor and Consultancy Services [member] | 2022 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 27,380 | |
Labor and Consultancy Services [member] | 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | 27,380 | |
Labor and Consultancy Services [member] | After 2023 [member] | ||
DisclosureOfCommitmentsLineItems [Line Items] | ||
Minimum future payments of take-or-pay contracts | R$ 191657 |
31. COMMITMENTS (Details Narrat
31. COMMITMENTS (Details Narrative) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
DisclosureOfCommitmentsLineItems [Line Items] | |
Percentage of progress project posts | 54.00% |
Transnordestina logistica s.a [member] | |
DisclosureOfCommitmentsLineItems [Line Items] | |
Consession expire year | 2057 |
Approved construction investment | R$ 7542 |
Description of currently approved budget | Missão Velha - Salgueiro amounting to R$0.4 billion, Salgueiro - Trindade amounting to R$0.7 billion, Trindade - Eliseu Martins amounting to R$2.4 billion, Missão Velha - Port of Pecém amounting to R$3 billion, Salgueiro - Port of Suape amounting to R$4.7 billion, totaling R$11.2 billion. |
Proposed amount | R$ 13200000 |
Description of guarantees of financing granted | The Company guarantees 100% of the financing obtained by TLSA from Banco do Nordeste / FNE and BNDES, as well as 50.97% of the debentures issued by the FDNE (considers 48.47% of corporate guarantee, 1.25% of letter of guarantee) for BNB and 1.25% corporate guarantee for BNB). |
Percentage of debentures converted | 50.00% |
32. INSURANCE (Details Narrativ
32. INSURANCE (Details Narrative) - Operational risk insurance policy [member] - USD $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disclosure of types of insurance contracts [line items] | |
Deductible material damages | $ 385,000 |
Days for loss of profits | 45 |
Top of range [member] | |
Disclosure of types of insurance contracts [line items] | |
Indemnity Limit | $ 600,000 |
33. ADDITIONAL INFORMATION TO_3
33. ADDITIONAL INFORMATION TO CASH FLOWS (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional Information To Cash Flows [Abstract] | |||
Income tax and social contribution paid | R$ 542877 | R$ 1167419 | R$ 336962 |
Addition to PP&E with interest capitalization (notes 11 and 28) | 92,506 | 117,189 | 71,611 |
Initial adoption IFRS16 - Right of use | 640,989 | ||
Remeasurement and addition - Right of use (note 11 a) | 109,993 | (151,558) | |
Addition to PP&E without adding cash | 30,345 | 278,213 | 10,792 |
Capitalization in subsidiaries without cash | 104,809 | ||
Addition to investment property without cash effect | 61,597 | ||
Net additional cash | R$ 942127 | R$ 2052252 | R$ 419365 |
34. SUBSEQUENT EVENTS (Details
34. SUBSEQUENT EVENTS (Details Narrative) R$ / shares in Units, R$ in Thousands, $ in Thousands | Feb. 22, 2021BRL (R$) | Feb. 17, 2021BRL (R$)R$ / sharesshares | Jan. 31, 2021USD ($)shares | Jan. 31, 2021BRL (R$)shares | Dec. 31, 2020USD ($) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) |
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Statutory reserve | R$ 32720 | R$ 32720 | |||||
Debt | R$ 35370611 | ||||||
USD | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Debt | $ | $ 24,901,552 | ||||||
Event after reporting period [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Statutory reserve | R$ 1500000 | ||||||
Increase in the capital | R$ 6040000 | ||||||
Event after reporting period [member] | CSN Mineracao SA [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Share capital | R$ 5430057060 | ||||||
Ratio of share split | 01:30 | ||||||
Event after reporting period [member] | CSN Mineracao SA [member] | Primary Distribution [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Number of share issued | shares | 161,189,078 | ||||||
Number of share issued, value | R$ 1370000 | ||||||
Share price (in R$ per share) | R$ / shares | R$ 8.50 | ||||||
Event after reporting period [member] | CSN Mineracao SA [member] | Secondary Distribution [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Number of share issued | shares | 372,749,743 | ||||||
Number of share issued, value | R$ 2785000 | ||||||
Share price (in R$ per share) | R$ / shares | R$ 8.50 | ||||||
Event after reporting period [member] | CSN Mineracao SA [member] | Top of range [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Percentage of additional shares held by the current shareholders | 20.00% | ||||||
Percentage of additional shares held by the majority shareholder | 15.00% | ||||||
Event after reporting period [member] | NCEs [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Debt amortized | R$ 315000 | ||||||
Event after reporting period [member] | Export prepayment contracts [member] | USD | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Debt | $ | $ 265,000 | ||||||
Debt maturity year | 2022 | 2022 | |||||
Debt reprofiling | $ | $ 79,000 | ||||||
Debt maturity year postponed | 2023 | 2023 | |||||
Event after reporting period [member] | Debentures [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Buy back of debentures, shares | shares | 450,000 | 450,000 | |||||
Buy back of debentures, value | R$ 391000 | ||||||
Percentage of buy back of debentures | 23.00% | 23.00% |