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Economic Diversification Plan in Itatiaiuçu Drives Local Development and Reduces Mining Dependency.
The city of Itatiaiuçu, in the Greater Belo Horizonte region, has intensified a strategy of economic diversification to reduce its mining dependency, which still accounts for about 85% of municipal revenue.
The movement is led by the city hall through a package of tax incentives, professional training, and the attraction of new productive sectors.
The initiative gained momentum between 2022 and 2025, a period in which the number of active companies grew by 52%, while new public and private investments were directed towards local development.
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According to the Secretary of Economic Development, Rosiane Cunha, the municipality seeks to expand its productive base without giving up the revenue generated by mining.
“Today we are still a bit hostage to mining. It is the main source of income for the municipality,” she asserts. Nonetheless, the municipal administration argues that resources from the mineral sector can finance long-term structural policies.
Economic Diversification Advances with New Investments
The arrival of a large supermarket in the city symbolizes the effort for economic diversification outside the mining sector.
The project involves an investment of R$ 10 million and the creation of approximately 100 direct jobs.
Additionally, companies from the chemical, food, and auto parts sectors are in negotiation with the municipality.
Thus, between 2022 and 2025, the total number of active companies jumped from 981 to 1,496.
Tax Incentives and Credit Boost Small Businesses
The main axis of economic policy is the Itatiaiuçu Connect program, which combines subsidized credit, infrastructure, and training.
One of the highlights is Zero Interest, which fully pays the interest on loans taken out by micro, small, and medium-sized entrepreneurs.
In practice, the entrepreneur only repays the principal amount of the loan.
The financing can be divided into up to 60 installments, with a six-month grace period, which reduces the impact of the high Selic rate on new investments.
Another instrument is the Land Bank, which brings together 27 public and private lots suitable for company installation.
Thus, a total of 2.1 million square meters are available, previously evaluated by environmental and urban criteria.
Mining Still Supports Revenue and Finances Transition
Despite the focus on economic diversification, three large mining companies based in the municipality — ArcelorMittal, Minerita, and Usiminas — total estimated investments of R$ 14.5 billion in productive expansion.
According to the secretary, these investments increase revenue and enable public policies aimed at local development.
“With this expansion, we will have more resources to invest in new programs and attract other sectors. We don’t want just any company. We assess job creation, environmental impact, social return, and integration with the local production chain. The goal is to build a city policy, not a government one,” she states.
Professional Qualification and Employment as Strategies for Local Development
The city hall also bets on technical training as a driver of economic diversification.
Thus, about R$ 1.6 million has been invested in courses and in partnership with Cefet-MG for the construction of a technical education unit.
Another initiative is the Job Voucher.
The program is valid for up to half of the workforce and includes actions aimed at inserting women over 40 into the formal market.
Industrial District and New Business Condominium
Itatiaiuçu already has an industrial district, but plans to implement a new business condominium in a strategic area.
Thus, the governance of initiatives passes through the Municipal Economic Development Council, formed by representatives of the public power and civil society.
Therefore, the goal is to ensure the continuity of economic diversification policies, regardless of management changes.
Strategic Location and Stimulation of Commerce
The city is about 80 kilometers from Belo Horizonte and along BR-381, a logistics corridor with a daily estimated flow of 250,000 vehicles.
Thus, the geographical position is considered a competitive differential in attracting companies.
Municipal public transport with a zero fare and the food allowance of R$ 800 paid to civil servants — to be mandatorily spent in local commerce — also strengthen local development.
Thus, according to the city hall, over R$ 500,000 circulates monthly in the city’s economy through this mechanism.
Gradual Reduction of Mining Dependency
Although mining dependency is still high, the municipal strategy combines revenue growth in the short term with productive diversification in the medium and long term.
Thus, the goal is to build a more resilient economy, generating jobs in different sectors.
“We want companies that connect with the city and contribute to social, environmental, and economic development.
Thus, the goal is to build a city policy, not a government one,” concludes Rosiane Cunha.
With structured incentives, professional training, and urban planning, Itatiaiuçu seeks to transform mineral wealth into a foundation for a more diversified and sustainable economy.
See more at: Itatiaiuçu Invests in Economic Diversification
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