v3.26.1
PROPERTY, PLANT AND EQUIPMENT
 12 Months Ended
Dec. 31, 2025
Notes and other explanatory information [abstract]  
PROPERTY, PLANT AND EQUIPMENT

 

11.PROPERTY, PLANT AND EQUIPMENT

 

Description of Consolidated fixed assets as of December 31, 2025 and 2024, respectively:

 

                                   
                                    Consolidated
    Ref.   Land   Buildings and Infrastructure   Machinery, equipment and facilities   Furniture and fixtures   Construction in progress (*)   Right of use   Other (**)   Total
Balance at December 31, 2023       525,307    4,532,319    17,419,522   45,917    4,425,130   674,786   304,477    27,927,458
Cost       525,307    9,110,694    39,597,174    297,916    4,425,130    1,126,977   860,818    55,944,016
Accumulated depreciation           (4,578,375)   (22,177,652)   (251,999)        (452,191)    (556,341)   (28,016,558)
Balance at December 31, 2023       525,307   4,532,319    17,419,522   45,917    4,425,130   674,786   304,477    27,927,458
Effect of foreign exchange differences        9,943    14,711    209,148   2,991    (93,527)   14,627   916    158,809
Acquisitions        1,105    19,464    147,439   9,562    5,313,404   14,117   32,533   5,537,624
Capitalized interest    30             206,764            206,764
Write-offs   29       (22,978)    (19)    (37,463)    (855)    (204)   (61,519)
Depreciation    28     (290,195)    (2,981,703)    (11,689)        (231,394)    (54,260)    (3,569,241)
Transfers to other asset categories        57,087    464,518   3,197,335   58,293   (3,839,459)       62,226  
Transfer between groups - intangible assets and investment property        (726)            (73,625)        (838)   (75,189)
Right of use - Remeasurement                     285,533        285,533
Others          31,695    303        (19,888)        3,674    15,784
Balance at December 31, 2024       592,716    4,772,512    17,969,066    105,055    5,881,336   756,814   348,524    30,426,023
Cost       592,716    9,664,220    43,110,825    372,094    5,881,336    1,269,089   922,119    61,812,399
Accumulated depreciation         (4,891,708)   (25,141,759)   (267,039)        (512,275)    (573,595)   (31,386,376)
Balance at December 31, 2024       592,716    4,772,512    17,969,066    105,055    5,881,336   756,814   348,524    30,426,023
Effect of foreign exchange differences        8,772   (1,184)   (5,886)    (2,682)   14,549    (4,027)    (3,788)    5,754
Acquisitions       11,171    36,813    379,302   11,464    5,296,362   72,305   197,808    6,005,225
Capitalized interest    30             403,302            403,302
Write-offs   29     (6,141)   (69,999)   (16)    (14,714)    (10,707)    (903)   (102,480)
Depreciation    28     (347,648)   (3,184,112)    (19,799)        (283,840)    (120,756)   (3,956,155)
Transfers to other asset categories        6,952    274,578    3,308,081    (4,646)   (3,589,738)       4,773  
Transfer between groups - intangible assets, investment property and inventory (1)           (34,100)        (45,190)        (34,122)   (113,412)
Right of use - Remeasurement                     244,543        244,543
Acquisition of stakes in subsidiaries   3    9,414    144,879    94,773   1,676   1,550   183,929   582,251    1,018,472
Others            (207)                (11,895)   (12,102)
Balance at December 31, 2025       629,025    4,873,809    18,456,918   91,052    7,947,457   959,016   961,892    33,919,169
Cost       629,025    10,287,766    43,130,128    385,341    7,947,457    1,711,164    1,923,505    66,014,386
Accumulated depreciation         (5,413,957)   (24,673,210)   (294,289)        (752,148)    (961,613)   (32,095,217)
Balance at December 31, 2025       629,025    4,873,809    18,456,918   91,052    7,947,457   959,016   961,892    33,919,169
(*) Highlights of project advancements include: (i) business expansion, mainly port expansion in Itaguaí and Casa de Pedra, Itabirito project and tailings recovery (ii) new integrated cement plant projects and (iii) comprehensive overhaul of blast furnace and coke batteries at Presidente Vargas Steel Mill.
(**) Refer substantially to assets classified as vehicles and hardware.

 

(1) Transfer to stock refers to the allocation of decommissioned or replaced vehicle assets. These assets are subsequently made available for sale by the companies Tora Seminovos Comércio de Veículos Ltda and Seminovos Lokamig Ltda, in line with the company's main commercial activities, which is the resale of used vehicles.

 

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

     
      Consolidated
  12/31/2025   12/31/2024
Buildings and Infrastructure 32   33
Machinery, equipment and facilities 17   17
Furniture and fixtures 10   10
Others 11   10

 

Property, plant and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or cash-generating unit may not be recoverable. For the year ended December 31, 2025, management assessed such indicators and concluded that no impairment loss was recognized.

 

(i)Right of Use

 

Below are the changes in the right of use:

 

                   
                    Consolidated
  Ref. Land   Buildings and Infrastructure   Machinery, equipment and facilities   Others   Total
Balance at December 31, 2023   512,923   86,057   54,149   21,657    674,786
Cost    629,004   143,926    254,640    99,407   1,126,977
Accumulated depreciation   (116,081)    (57,869)   (200,491)   (77,750)   (452,191)
Balance at December 31, 2023   512,923   86,057   54,149   21,657    674,786
Effect of foreign exchange differences       9,939   2,209   2,479   14,627
Addition   4,272       6,549   3,296   14,117
Remeasurement   58,103   3,627   202,990   20,813    285,533
Depreciation     (38,290)    (16,511)    (150,430)    (26,163)   (231,394)
Write-offs           (855)       (855)
Balance at December 31, 2024   537,008   83,112   114,612   22,082    756,814
Cost    655,481   150,311    360,925    102,372   1,269,089
Accumulated depreciation   (118,473)    (67,199)   (246,313)   (80,290)   (512,275)
Balance at December 31, 2024   537,008   83,112   114,612   22,082    756,814
Effect of foreign exchange differences        (4,622)    758   (163)    (4,027)
Acquisition of stakes in subsidiaries 3  183,929                183,929
Addition   5,906   1,826   61,968   2,605    72,305
Remeasurement   63,305   1,715    138,824    40,699    244,543
Depreciation     (63,113)    (17,914)   (175,799)   (27,014)   (283,840)
Write-offs   (680)        (10,028)       (10,708)
Balance at December 31, 2025   726,355   64,117   130,335   38,209    959,016
Cost    996,234   143,181    431,606    140,143   1,711,164
Accumulated depreciation   (269,879)    (79,064)   (301,271)   (101,934)   (752,148)
Balance at December 31, 2025   726,355   64,117   130,335   38,209    959,016

 

Accounting Policy

 

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

 

·Capitalized Interest

 

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

 

·Costs of Development of New Ore Deposits

 

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

 

·Expenses with Exploration

 

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

 

·Overburden Removal Expenses

 

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

 

·Overburden Costs

 

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