Ohorongo Cement, which this week received a mining licence from the Ministry of Mines and Energy, is to invest N$2.5bn in constructing a modern cement plant between Tsumeb and Otavi.
The infrastructural works, such as access roads and preparation of the building site, have already started with Namibian construction companies.
The installation of the machinery and equipment of the cement factory by Polysius, the main contractor, will start early next year.
The plant is expected to be fully operational by the end of 2010, producing 700 000 tons of cement a year.
The farm Sargberg near Otavi would give direct access to rail- and motorways and creates the opportunity for exporting cement to neighbouring countries, Ohorongoro Cement said in a statement.
According to Gerhard Hirth, Chairman of Ohorongo Cement and CEO of the Schwenk Group, the majority shareholder in Ohorongo, "the reserves at the site are of high quality and quantity, good for more than 300 years".
The Schwenk Group committed itself to transfer its technology know-how to use alternative fuels from local sources to replace expensive, imported fuels.
The Otavi region can also expect new developments like housing, infrastructure, schools, education, medical care and commercial facilities.