The Libyan Iron and Steel Company (Lisco) has signed a partnership agreement with Italy's Danieli to construct a direct reduction plant aimed at producing two million tons of sponge iron and hot-moulded iron annually. This project, which will take place on Lisco's existing grounds, is expected to enhance local production capabilities while meeting both domestic and international market demands.
The joint venture will see Danieli holding a 51% stake and Lisco 49%. The plant will utilize Danieli's EnergIron technology, which is designed to operate efficiently without melting the metal, thus reducing iron oxides directly from iron ore. The project is anticipated to be economically viable, with a capital recovery period of approximately eight years after an estimated 3.5 years of implementation.
This initiative reflects ongoing efforts to bolster the Libyan economy by encouraging foreign investment in the region.
