Paracatu ignores crisis and becomes a new Eldorado in Minas Gerais.
The economy of the city of 85 inhabitants, located in the Northwest region of the state, is growing well above the national average and, sustained mainly by mining, is attracting new investors.
Minas 247 - Little by little, Minas Gerais is becoming more like Gerais. The northernmost regions, characterized by the vegetation of the Cerrado and a dry climate – and also by being poorer – are beginning to attract more investors and show economic growth rates far exceeding the national average. In addition to Northern Minas Gerais, the city of Paracatu, in the Northwest of the state, is proving to be a new Eldorado for productive investments. With approximately 85 inhabitants, the new money is stimulating practically all economic sectors of the city.
Read below an excerpt from the excellent report by the journalist. Paulo Henrique Lobato, from the newspaper State of Minas:
189 years ago, the patriarch of Independence, José Bonifácio de Andrada e Silva (1763–1838), sent the document Memória to the Constituent Assembly, suggesting that the seat of the then Empire be transferred to the district of Paracatu do Príncipe and that it be named Brasília or Petrópolis. The idea of moving the country's capital to Minas Gerais did not succeed, but almost two centuries later, the historic municipality, whose name was shortened to Paracatu, has transformed into an Eldorado in the Northwest of the state, attracting workers from all corners of the country. In some sectors, the percentage of jobs created in April – the last month in which the federal government released the balance of formal jobs generated in Brazil – exceeds the national and state averages.
In the manufacturing sector, for example, while Paracatu registered a 10,35% increase, the national average was 0,37% and that of Minas Gerais was 0,45%. The construction sector in the city also performed excellently (12,43%), compared to the national average (1,36%) and the state average (1,55%). “The economy in the municipality is booming. And it's not just in industry. Commerce is thriving. Consider this: in 2011, while the average number of inquiries to the Credit Protection Service (SPC) in the country fell by 2%, ours rose by 13%. This is an indicator that sales are growing,” celebrated Manoel Paulo Maia, president of the Commercial and Industrial Association of Paracatu (Acipa).
Job creation in the area has resulted in above-average population growth in the last decade. In Paracatu, the number of inhabitants rose 9,5% during this period, with the total jumping from 75.216 people in 2000 to 82.362. The statewide percentage, in the same interval, grew 7%, from 17.891.494 men and women to 19.159.260. The largest employer in the land dreamed of by the Patriarch of Independence is the Canadian company Kinross Gold Corporation, which operates the largest open-pit gold mine in Latin America a few kilometers from the historic center of Paracatu.
In 2011, the company extracted 453 ounces, equivalent to 14 tons, from the Morro do Ouro mine. Despite gold mining being a controversial topic, the company employs 1,3 direct employees and another 3,4 indirect employees. Hundreds of them came from other cities. From Patos de Minas came refrigeration technician Eduardo César da Rocha, 42, who provides services to the foreign enterprise. "Those who want to work don't stay unemployed in this land," assures Eduardo, adding that many of his friends live in hotels in the city.
This explains part of the expansion of formal jobs in the construction industry. "Business owners in the (hotel) sector have been investing in the city, as this was a deficiency the city had," said the president of Acipa. One of the ventures in this sector, inaugurated a few months ago, is the Hotel Eldorado, from where you can see the Morro do Ouro mine. The project, with 104 rooms, cost approximately R$ 10 million. The hotel manager, Elaine Reis Batista, 27, who was hired six months ago, points out that most of the guests are employees of large companies in the region.
Enthusiastic about the municipality's economic climate, she says that the job market is improving the lives of many people: "I, for example, worked at another company and came here to receive a salary 30% higher." A large portion of the guests at the establishment that the young woman manages works at the Votorantim plant, which employs, directly and indirectly, more than 2 people. In 2011, the company extracted 62 tons of zinc sulfide concentrate. For this year, the forecast is for a 10,5% increase.
But Paracatu also faces challenges from the imperial era. Roads that cross the region lack investment. The main one is the BR-040, which connects the municipality to Brasília and Belo Horizonte. Most of the highway is not a dual carriageway, and horizontal and vertical signage is deficient, and there is no shoulder.