The authorities in the northeastern Mozambican province of Nampula and Dugongo Cimentos have agreed that the Chinese-owned company should build a cement works in the city of Nacala-Porto, O País reports.

The Mozambican newspaper quotes a senior official with responsibility for Nampula, Mety Gondola, as saying the works will be able to produce 2 million tonnes of cement a year.

The report quotes a Dugongo Cimentos executive, Wang Feng, as saying building work will begin once the company has all the necessary permission.

The report says Nampula has plenty of limestone for making clinker.

The agreement was signed last week, O País says.

Last year another Mozambican newspaper, Jornal Notícias, reported that state-owned China National Materials Group is a partner in the Sino-Mozambican joint venture that set up the Dugongo Cimentos cement and clinker works in Maputo.