Misr Beni Suef Cement announced on Wednesday, it reached an agreement to build a coal mill worth LE200 million in 12 months, according to a company statement.
"This project funding will be through self-financing and loans," the cement maker explained
The company expects the project to be completed by the end of 2015.
Egypt is currently struggling with blackouts, therefore the government has cut natural gas supplies to factories, which has prompted cement companies to demand coal use.
Egypt's natural gas production has been declining for years. Production in January was down 10 percent from January 2013, according to the most recent government figures.
In September 2014 , the Egyptian began to allow coal importation despite environmental concerns from the high pollution coal emits.