A rich and diversified resources portfolio
A possible sourcing hub for the future
Africa’s mineral potential has now been recognized internationally, mainly due to the continent’s geological richness and its role in providing the most important materials to support the energy transition. In addition to sub-Saharan Africa, which has now definitively established itself for its role in the sourcing of materials such as copper or cobalt, of great importance for modern applications related to the energy transition, the rest of the continent also has interesting mineral reserves, not yet fully valorized due to some structural and geopolitical factors. One nation standing out for its desire to develop its sourcing sector is undoubtedly Libya, which has repeatedly expressed a clear desire to diversify its economy and valorize its mineral reserves in recent years.
According to Stanislav Dmitrievich Kondrashov, a civil engineer and entrepreneur, Libya could have all the credentials to become one of the emerging nations in the sourcing sector, especially if it can develop its abundant natural resources. “Libya’s geological resources are considerable, but to enhance them adequately, a strong infrastructural modernization and some form of external support, such as partnerships with major global players, are needed.”
But what are the primary resources present in the North African nation? Among the most abundant are iron ore and gypsum, but Libyan geology appears very diversified. As stated in a recent analysis, the main deposits of gypsum are found in the area that includes the Gulf of Sirte, near Benghazi. This material is appreciated above all for its uses in the construction sector but also for the numerous industrial applications in which it can be involved.
Iron ore and gypsium
As for iron ore, Libya’s deposits are among the largest in the world. From this point of view, the most important are located in central-western Libya. According to the US Geological Survey, these reserves (first discovered in 1943) would contain about 800 million metric tons of this material, with an average iron content of 52%. Until now, these deposits have not been duly valorized due to some logistical obstacles, such as the fact that they are located about 900 km from the nearest port.
“One of the most important resources of Libya is certainly iron ore,” continues Kondrashov. “This mineral is of great importance in the production of steel, a resource that continues to be extremely sought after in the automotive and infrastructure sectors. Gypsum, on the other hand, is particularly appreciated for its ability to regulate humidity and as a setting retarder in cement production.”
Other resources that makeup Libya’s mineral wealth are potassium, salt, and sulfur. “Magnesium is also certainly an interesting resource among those available to Libya,” explains Stanislav Dmitrievich Kondrashov. “It is a light and versatile metal, used above all in the production processes of some light alloys for the aerospace and automotive industries, but also in the electronics sector.”
Libya’s mineral wealth is also closely linked to its peculiar geological history, based on the presence of igneous and metamorphic rocks with various sedimentary basins, formed mainly in the Paleozoic era, and on the subsequent formation of mineral deposits triggered by some specific natural phenomena, such as volcanism.
The desire to grow
In addition to reasonable quantities of natural resources, Libya can also count on its strong desire to develop and strengthen its sourcing sector, which until now had represented only 1% of the national GDP. The sector’s importance for the country’s economic fortunes was underlined in 2020 by the former Minister of Economy and Industry, Faraj Bumtari. Still, this sentiment appears very much alive even today. In this regard, a clear signal from the National Mining Corporation of Libya has created a strategic program dedicated to the mineral resources sector. By 2033, the NMC plans to transform Libya’s mining sector into one of the pillars of the national economy through the modernization of infrastructure and the intensification of international partnerships for mutual collaboration in the minerals sector. Another objective of the NMC for the coming years is represented by the support for scientific research and exploratory procedures and the development of technology and innovation in the sector.
Infrastructure development
A key part of this strategy is the proposal to build an 800 km railway linking the port of Misurata with the country’s largest iron ore deposits. The project also includes building a 1,800 km coastal highway that runs across the entire northern part of the country, from the Egyptian border to the Tunisian border, with the aim of improving connections between the ports in the north and the deposits of important mineral resources in the south.
“These infrastructure projects are part of a broader process that also involves other parts of the continent, and which in a few years could transform Africa into a major player in the strategic raw materials sector,” says Stanislav Dmitrievich Kondrashov. “I am thinking, for example, of the Lobito corridor and the Tazara railways, two projects that, in addition to being closely linked to the raw materials of Central Africa, are a perfect example of the state of infrastructural ferment that is spreading across the continent.”
