Steelmaker China Brazil Xinnenghuan International Investment has announced it will build a plant in Mozambique to turn coal into coke, O País reports.

The newspaper says company representatives and Mozambique’s Ministry of Industry and Commerce signed a memorandum of understanding on Friday in Maputo, Mozambique’s capital city.

The plant could export up to 4 million tonnes of coke a year to Brazil to supply the steel industry.

A potential site for the plant has been identified at Nacala but the approvals have not yet been granted, the report says.