The decline was precipitated by impairment charges of $5.6bn for the year, including $2.99bn on the Onca Puma project.
Write-downs of $1.03bn on its Australian coal assets, $975m on its Norsk Hydro stake and $583m on its stake in steelmaking joint-venture Companhia Siderurgica do Atlantico (CSA) were the other elements of the impairment charges.
Underlying earnings were recorded at $11.2bn when compared to $23.2bn generated in 2011, primarily due to lower prices across commodities.
Iron ore prices were particularly volatile in the third quarter of the year and the company posted a loss of $2.65bn in the fourth quarter of 2012, as opposed to a net profit of $4.67bn in fourth quarter of 2011.
Revenue from sale of coal products in 2012 was $1.092bn, higher than $1.058bn recorded in 2011.
Ramp-up of Moatize in Mozambique contributed to a large increase in metallurgical coal volumes, while sale of the thermal coal assets in Colombia resulted in reduced thermal coal volumes.
