The Impact of Investing in Mineral Resources on Economic Diversification and Achieving Sustainable Spatial Development: A Field Study in Central and Southeastern Libya

Abstract

Non-hydrocarbon mineral resources represent a promising pathway for economic diversification and a more balanced spatial distribution of productive activities in Libya; however, geological availability alone does not automatically generate sustainable development. This study addresses the gap between the considerable mineral potential of Central and Southeastern Libya and its limited transformation into productive investments and industries capable of supporting economic diversification and sustainable spatial development. It aims to assess the economic potential of mineral resources, examine their capacity to generate productive activities and employment, evaluate their potential contribution to spatial development, and identify major geographical, economic, institutional, and environmental constraints. A descriptive–analytical approach with a spatial dimension was adopted, drawing on geological studies, survey maps, satellite imagery, Geographic Information Systems (GIS), and spatial databases, alongside a field instrument targeting specialists in mining, spatial planning, investment, and local development. The study covers the Sirte, Jufra, Oases, and Kufra sub-regions. The findings reveal substantial spatial diversity in mineral resources and their industrial applications, including limestone, dolomite, basalt, silica sand, kaolin, granite, salts, and other industrial minerals. Nevertheless, mineral abundance should not be equated with economic feasibility or realized development. Sustainable benefits depend on linking extraction to local manufacturing, infrastructure, value chains, local content, and environmental governance. The study recommends completing reserve and feasibility assessments, developing a GIS-based mineral investment map, establishing mineral–industrial development corridors, promoting value-added processing and green investment, and adopting place-based investment policies tailored to each region’s comparative advantages.