Libya Iron Ore Offers Economic Lifeline

11 January 2010 (Last Updated January 11th, 2010 18:30)

Libya will restart production of iron ore this year, a move expected to encourage development of other sectors once the country reaches political stability. Political instability in Libya in the 1980s caused many US companies to divest their operations in the country. Restarti

Libya will restart production of iron ore this year, a move expected to encourage development of other sectors once the country reaches political stability.

Political instability in Libya in the 1980s caused many US companies to divest their operations in the country.

Restarting iron ore production will help the country's economy, which depends mainly on iron projects, and represent a possible 7.5% economic growth, the International Monetary Fund said.

Two major Libyan mines are expected to contribute revenue worth $260m, which will represent 17% of the country's GDP.

Libya has a huge iron ore deposit at Wadi ash Shati near Sabha in Fezzan that is suitable for strip mining.

Libya also has small scattered deposits of limestone, gypsum, salt, rock, cement and building stone.