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Public Agenda Study Evaluated 79 Mining Municipalities and Placed the Mining City at the Top in Socio-Environmental Capacities and in 2nd Place in Development Capacities.
São Gonçalo do Rio Abaixo, about 90 km from Belo Horizonte, has become a national reference among cities with a strong presence of mining. A survey by Public Agenda mapped 79 municipalities with high dependence on mineral revenues and showed that the mining municipality, with just over 12 thousand inhabitants, combines above-average social performance and an institutional environment favorable to growth.
The study created a Quality of Life Index (QLI) and two sub-indices: socio-environmental capacities and development capacities. The idea is to measure whether mineral activity income translates into stronger education, health, social protection, environment, infrastructure, management, and economy. The scores range from 0 to 1, with scales from “very low” to “very high” quality of life condition.
In the comparative analysis, São Gonçalo do Rio Abaixo appears in national leadership in the socio-environmental pillar and in 2nd place in development capacities, behind Treviso (SC). The city received 0.679 in the overall QLI, within the “average quality of life” range.
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What the Public Agenda Study Measured
The Public Agenda analyzed cities where CFEM or other revenues associated with mining accounted for at least 5% of the revenue in any year between 2018 and 2024. The analysis sought profiles with structural dependency on the sector.
Eight dimensions were integrated: education, health, social protection, environment, public finances, infrastructure, economic development, and management. The method uses official data and normalization to compare municipalities on a scale of 0 to 1.
In addition to the overall index, the sub-indices highlight social and environmental aspects on one side and fiscal, economic, and management capacity on the other. The combination helps identify best practices and risks of dependency.
São Gonçalo do Rio Abaixo: Score, Ranking, and Comparison
According to coverage by the newspaper O Tempo, based on the research, São Gonçalo do Rio Abaixo ranked 1st in the sub-index socio-environmental capacities and 2nd in development capacities, behind Treviso (SC). The municipality obtained 0.679 in the QLI, indicating average quality of life.
Other local outlets replicated the results, reinforcing the good performance of the city and the methodological approach of the study. The sample compares municipalities with similar mining dynamics, which avoids confrontation with cities without mining.
The work also places Nova Lima, Catas Altas, and Sarzedo among the mining highlights, due to infrastructure, public management, and economic dynamism, according to press materials and reports.
Mining, Public Budget, and Services
According to the city hall, Vale’s operation at the Brucutu Mine accounts for about 90% of the municipal budget. The mayor also mentioned an annual budget of R$ 460 million and the predominant contribution of mining. This is the city’s fiscal engine.
The research indicates that converting revenue into basic education, health, sanitation, mobility, and social protection is what differentiates municipalities that transform mineral booms into quality of life. São Gonçalo performs well in these indicators, which explains its top position in the socio-environmental pillar.
There are also investments in infrastructure. In June, R$ 50 million was announced to requalify the interchange of BR-381, an intervention seen as structural for urban and logistical flow. Public works are a frequent lever in mining cities to diversify opportunities.
Alert: Risks of Dependency and the Diversification Agenda
The executive director of Public Agenda, Sérgio Andrade, warns about the finite cycle of extraction and the need for economic diversification. The recommendation is to use the phase of high revenue collection to prepare for the post-mining phase with long-term policies. Planning matters.
In 2024, the city hall launched a diversification program to reduce dependency on mining, with actions to promote new sectors. The measure aligns with the consensus on public policies in the mineral sector regarding transition and fiscal resilience.
The TCE-MG provided a state counterpoint: among the largest collectors of CFEM, the environment received less than 3% of investments in 2024. The data suggests that, overall, there is room to increase environmental spending and consolidate local ESG standards.
How the City Became a Case Study Among Mining Municipalities
Local governance is cited as a critical factor. According to Andrade, the municipality established a council for economic development and approved promotional laws that provided predictability for investments and technical budget management. A strong institution supports the result.
The methodology of Public Agenda reinforces that fiscal management, infrastructure, and business environment comprise the block of development capacities. This set explains why small municipalities can outperform larger cities in delivering services.
The case of São Gonçalo do Rio Abaixo helps illuminate a national debate: what is the benchmark for success for mining cities? More than per capita GDP, the quality of spending, essential services, and planning for the transition matter.
What do you think, is São Gonçalo do Rio Abaixo an example of efficient management or a risk of dependency? Comment if the priority should be immediate diversification or increased social investments while mining sustains revenue.
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