Sketch the fireplace and surrounding areas on a sketchpad. Plan a general design, along with materials you plan to use. Use oak shelving with oak cabinet doors over shelving in the bottom of each bookcase section to hide clutter. Plan to install heavy crown molding at the ceiling level to give the shelves a finished, professional look. Draw the design on graph paper, so you can see how to place the shelves in terms of distance between them.
Figure out the best design for a mantel. Build the mantel to blend seamlessly with the bookshelves on either side of the main fireplace structure, as one choice. Buy or construct a mantel that is approximately 12 to 15 inches in depth and no less than 2 inches thick. Cut the mantel wood to tie-in with shelving, so the mantel appears to be part of the bookshelf system. Design a shorter mantel, if you wish, to fit across a 6-foot width about 3 feet above the firebox, for example.
Nail half-inch plywood sections against the walls on either side of the fireplace. Attach the plywood to wall studs. Cover the entire area of plywood on both sides with smooth wood veneer sheeting. Install four or five shelves on each side of the fireplace and cover the bottom 30 inches with cabinet doors. Glue wood trim over the front edge of each shelf for a finished look. Install heavy crown molding at the ceiling level of each bookshelf area on both sides of the fireplace. Use crown molding to give the shelves a unified look, much like cabinet space, versus looking like single shelves simply attached to a wall.
Glue a strip of wood molding on the top surfaces of each shelf. Cut a section of wood trim the width of the shelf and glue it across the shelf about 1 inch from the outer edge. Install this molding as a small barrier to keep books or art objects from tumbling off the shelves.
Cover the fireplace opening with glass doors made especially for fireplaces. Close the doors if you will burn wood versus using gas logs. Use the doors to keep wood smoke and ashes away from the books or art objects as much as possible.