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Timóteo, in the Steel Valley, has all its population concentrated in the urban area. Almost half of the county territorial extension (144 km²) is occupied by the Rio Doce Forest Park. The remain is compressed by the large extensions of lands belonging to Acesita, the steel plant: 25 km², 30% of the available area for urbanization.
The development of Timóteo is directly related to Acesita. The company reorganization, after its privatization and sell to Arcelor, had a strong impact in the urban configuration of the city. The steel industry acquired, during its implantation, approximately 2/3 of the city, most of the lands dedicated to reforestation, to make wood coal for its blast furnaces. With new siderurgical technology, that uses mineral coal, Acesita don't need eucalyptus and lands for plantation anymore. The lands close to urban areas, highly compromised by intensive exploration, mostly turned into desert, had been placed for sale to urban uses.
Critical urban situations had been produced in this process: environmental degradation in lands before dedicated to eucalyptus plantation, intensive occupation of hillsides, deep of valleys and areas inside the forest reserves, disruption of the consolidated urban structure. After negotiations with the local government, this process is being controlled and integrated into an environmental preservation program.
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