Huaxin Cement (China) has signed an investment agreement with the Investment Board Nepal (IBN) to invest US$140m to establish a 1Mta cement plant in the country, according to a report in the Himalayan Times.

The agreement was signed by Maha Prasad Adhikari, CEO of IBN, and Liu Jianguo, overseas development director of Huaxin Cement.

The IBN board, which is chaired by the prime minister, will now need to approve the agreement for the investment to be realised.

The cement manufacturer has already obtained the limestone mining licence through competitive bidding and paid NPR600m (USD5.82m) for a mine located at Panikharka in Dhading district.

Huaxin Cement has submitted its plan to manufacture 3000 tonnes of cement per day, making it one of the largest cement plants in the country.

The IBN had previously approved a US$360m investment by China's Hongshi Holdings Ltd, a joint venture with Nepali cement manufacturer Shivam Cement, which is set to start production in 2018.