The Minister-designate of Economy and Industry of the Government of National Accord (GNA) Ali al-Issawi, said on Wednesday that mining in Libya may become an economic activity more important than oil production as the country seeks to reduce its economic dependence on oil, S&P Global Platts has reported.
“Libya possesses gold, magnesium and iron ore, (mining) can eventually become more important than oil,” Al-Issawi said in an event at the Arab-British Chamber of Commerce in London.
The Minister-designate added that because of the focus on oil, Libya has lost many other opportunities.
“We are trying to attract investment in areas other than oil. Oil in Libya is currently cheaper than water, partly due to the country’s support to the oil industry, a policy that is expected to be reviewed. ” He said.
Al-Issawi pointed out that the expected changes will include plans to generate renewable energy, including solar energy, adding that the mining field in Libya is “largely backward”.
He also said that it is likely that the Russians and Italians are interested in this field, and that foreign investors may own up to 100% of mining projects.
Meanwhile, he indicated that the Libyan economy is recovering, although the country is “still in a transitional period after the overthrow of the regime in 2011,” noting that the support it needs is not money but foreign investment.
Al-Issawi said it is expected that the rate of economic growth in Libya this year will be very low because the country’s oil industry produces its “minimum capacity”, which strengthens the need to diversify away from oil.
