PHNOM PENH  - China's Guangxi Nonferrous Metal Group has planned to invest $500 million  in a steel plant and an industrial zone in Cambodia in the next three years, Yang Daoxi, vice chairman of Guangxi Zhuang Autonomous Region, said on Friday.

Yang made the announcement during a meeting with Cambodian Minister of Industry, Mine and Energy Suy Sem.

He said the Guangxi Nonferrous Metal Group had already invested $30 million in exploring iron ore in Roveang district of Preah Vihear province in northern Cambodia and the exploration had successfully completed.

"Now, it is the phase of iron ore exploitation and the firm is to build a steel plant and later an industrial park in Cambodia," he said. "My visit is to ask for full support from the ministry in order to find a proper location to build the plant."

"I hope that the project will be a good pattern of cooperation between Guangxi and Cambodia," he said.

Suy Sem said the ministry fully supported the project and he would advice a proper location for the firm to build the plant.

"The project will be a huge benefit to Cambodian economy. I will support and facilitate all requests from the firm in order to achieve this ambitious project."

The minister said that in order to meet the production capacity when the plant is built, the ministry has provided other four areas rich in iron ore to the company to exploit.

Yang, accompanied by a group of Guangxi investors, arrived here on Thursday for a five-day visit.