v3.26.1
Leases
 12 Months Ended
Dec. 31, 2025
Disclosure Leases Abstract  
Leases

22. Leases

a) Right of use

           
  December 31, 2024 Additions and contract modifications Depreciation and impairments Transfer to held for sale (note 31a) Translation adjustment December 31, 2025
Ports 51 (8) (21) – 4 26
Vessels 353 44 (52) – – 345
Pelletizing plants 109 – (32) – 13 90
Properties 94 31 (17) (37) 12 83
Energy plants 28 – (7) – – 21
Others 25 29 (12) – – 42
Total 660 96 (141) (37) 29 607

 

b) Leases liabilities

             
  December 31, 2024 Additions and contract modifications Payments (i) Interest Transfer to held for sale (note 31a) Translation adjustment December 31, 2025
Ports 54 (8) (21) 2 – 4 31
Vessels 356 44 (65) 13 – 2 350
Pelletizing plants 126 – (51) 6 – 16 97
Properties 107 31 (20) 5 (37) 11 97
Energy plants 43 – (3) 3 –   43
Others 27 29 (14) 2 – 6 50
Total 713 96 (174) 31 (37) 39 668
Current liabilities 147           160
Non-current liabilities 566           508
Total 713           668

(i) The total amount of the variable lease payments not included in the measurement of lease liabilities was US$94 recorded in the income statement for the year ended December 31, 2025 (2024 and 2023: US$253 and US$112, respectively).

 

Annual minimum payments and remaining lease term

The following table presents the undiscounted lease obligation by maturity date. The lease liability recognized in the statement of financial position is measured at the present value of such obligations.

               
  2026 2027 2028 2029 2030 onwards Total Remaining term (years) Discount rate
Ports 14 1 1 1 16 33 1 to 17 4% to 5%
Vessels 71 70 59 50 138 388 1 to 7 3% to 4%
Pelletizing plants 37 26 23 6 21 113 1 to 7 2% to 5%
Properties 22 21 20 15 31 109 1 to 13 2% to 6%
Energy plants 6 5 5 5 29 50 1 to 4 5%
Others 19 14 10 6 3 52 1 to 4 3% to 6%
Total 169 137 118 83 238 745    

 

Accounting policy

 

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the lease term or the end of the useful life of the right-of-use asset.

 

The Company does not recognize right-of-use assets and liabilities for leases with less than 12 months of lease term and/or leases of low-value assets. The payments associated to these leases are recognized as an expense on a straight-line basis over the lease term.

 

The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise: (i) fixed payments, including in-substance fixed payments; (ii) variable lease payments that depend on an index or a rate; and (iii) the exercise price under a purchase option or renewal option that are under the Company’s control and is reasonably certain to be exercised.

 

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate. When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.