Investor Presentaiton
Additionally, on December 13, 2021, the Board of Directors of subsidiary
VCSA approved the distribution of dividends in the amount of R$ 535, from
retained earnings reserves, which were paid to shareholders in February 2022.
(i) Acquisition of shares in Tinka Resources Limited (Tinka) -
Nexa
On March 17, 2021, the subsidiary Nexa acquired 29,895,754 common
shares of Tinka, a company involved in the acquisition and exploration of
minerals from properties located in Peru, in a private transaction at a price
of Canadian Dollars (CAD) 0.26 per share. As a result, Nexa owns 8.8% of
the issued and outstanding common shares of Tinka, which owns 100% of
the Ayawilca zinc-silver project in Peru.
On April 16, 2021, the subsidiary Nexa acquired another 654,758 common
shares of Tinka. As a result, after the operations carried out in March and
April 2021, the subsidiary Nexa holds a total of approximately 9% of the
issued and outstanding common shares of Tinka.
(j) Assets Retirement Obligation (ARO) remeasurement -
Companhia Brasileira de Alumínio (CBA)
In March 2021, the subsidiary CBA updated its environmental obligations
for the demobilization of assets, amounting to R$ 73 for the Niquelândia
unit, and concomitantly constituted impairment on this increase in fixed
assets.
(k) Temporary suspension of the Extreme North Mine of
Vazante - Nexa
In March 2021, during a regular inspection of the Extreme North mine in
Vazante, operated by the subsidiary Nexa, above-normal ground displace-
ments were identified in the area around the mine's main access and escape
route. The Extreme North mine requires aquifer dehydration for its opera-
tions, which leads to depressurization and can cause local disturbances in
the rock mass surrounding the mine. As a preventive measure, activities in
this area were temporarily suspended.
The subsidiary Nexa, supported by external experts, began a detailed analy-
sis of the geological and geotechnical conditions to ensure the safety of its
workers and the resumption of operating activities at the Extreme North mine.
In August 2021, the mine's main access and escape route and the deve-
lopment of new mine areas were re-established. Thus, production at the
Extreme North mine is expected to resume during the first quarter of 2022.
(I) GSF (Generation Scale Factor) - VCNNE, CBA, VGE and Nexa
As disclosed in the consolidated financial statements for the year ended
December 31, 2020 (Note 1.1 (t)), the Company follows the regulatory
process of Law No. 14.052, published on September 9, 2020, which es-
tablishes new conditions for the renegotiation of the hydrological risk of
electricity generation, providing for the compensation of generators by
extending the term of concession of their grants due to the occurrence of
non-hydrological risks that negatively influenced the GSF after 2012.
In the first quarter of 2021, the indirect subsidiary VCNNE recognized cre-
dit with a gross amount of R$ 58 and deferred taxes of R$ 20 related to the
renegotiation of the hydrological risk of electricity generation, by extending
the concession period for the use of the public asset of the Pedra do Cavalo
plant in 7 years.
The subsidiary CBA also recognized this credit, on March 31, 2021, with
a total amount of R$ 142 and deferred taxes of R$ 48, by extending the
concession period for the use of the public assets listed below:
Power Plant
UHE Sobragi
UHE Piraju
Dead line of extension
(in days)
Value
567
34
1,783
37
1,941
20
UHE Salto do Rio Verdinho
2,555
51
UHE Ourinhos
=
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