Municipalities in Northwest Iceland have signed a declaration of intent and a cooperation agreement with Klappir Development ehf. on the construction and operation of a 120,000 ton aluminum smelter, Iceland Review reports.
The joint statement says that the agreement has been made to work together to push economic development in the Northwest, RÚV reports.
The plan is for the new factory to run on electricity from Blönduvirkjun dam and it will require 206 MW of power.
The statement adds that 240 jobs will be permanently created, and up to 800 temporary construction posts.