Italcementi said the total value of investment in a project in Libya, a joint venture between the Italian company and Libya to build a new cement plant, is between $550 million and $750 million.

The plant, in eastern Libya, will have a capacity of 4 million tons per year of Portland cement, Italcementi said in a statement announcing the joint venture with the Libyan Economic and Social Development Fund.

"The plant will answer to the growing needs of the Libyan market, sustaining the significant infrastructure and housing development plans of the country," Italcementi said, adding exports would focus on the Mediterranean basin.

A white cement line with a capacity of 500,000 tons per year is also being considered it said, adding the joint venture had finalised a mining concession agreement with Libya's National Mining Company, which regulates the use of mineral resources in the country.

Italcementi will control 50 percent of the capital of the joint venture.

Italcementi shares, which had been boosted by a report on the project as well as Italcementi's plans for plants in Morocco and Syria, were indicated opening up 10 percent at 1411 GMT after being suspended for excessive gains. Reuters