Itabira is a regional economic center, and hosts a thriving iron ore extraction operation headed by Companhia Vale do Rio Doce since 1942, when the company was created by President Getúlio Vargas specifically for the mineral exploration of the Rio Doce valley. As of 2017, it is the second largest mining company in the world, and a considerable part of its iron ore output comes from the mines at Itabira. As a result of the decades-old extraction operations, the city faces air pollution problems.
