Select 'Bareboard project' and then it is here:
http://mcuoneclipse.files.wordpress.com/2013/02/library-creation.png
Hello,
with MCU10.3 there is library option available in the wizard.
Otherwise: see
Creating and using Libraries with ARM gcc and Eclipse | MCU on Eclipse
I hope this helps.
Select 'Bareboard project' and then it is here:
http://mcuoneclipse.files.wordpress.com/2013/02/library-creation.png