BELLEDUNE -- In an area rocked by mill and plant closures, the provincial government is teaming with an iron production company to develop a facility that could be worth more than a billion dollars.

After Thursday's announcement, the future became a little clearer today for workers in northern New Brunswick.

“There's a younger crew that came into our shop, especially in the I.N.C. shop, it's great for them,” said ironworker Marc McGraw.

New Brunswick Premier Brian Gallant announced a partnership with Toronto-based Maritime Iron Inc. on a project that would bring significant investment to northern New Brunswick in an election year.

“This project would represent over $1 billion of investments and it would create 1,000 jobs during construction jobs plus 200 permanent positions once the production facility is up and running,” Gallant said.

The premier says the province is ready to make the necessary investments to move this project forward.

“We recognize there will most likely need to be investments in modernization and upgrades to the port of Belledune, which we are prepared to do and we would need a federal partner,” he said.

It’s welcome news in an area where jobs are in short supply, says Belledune Mayor Joe Noel.

“It's great for the community,” he said. “It's jobs that are badly needed here. It will certainly add to our tax base.”

Greg McKenzie is the executive chairman of Maritime Iron and says this would be the first significant merchant iron plant in North America.

He calls Belledune an ideal location for the plant.

“You're very close to the shipping lanes for all the iron or that gets shipped out of Sept Isle to international markets and then you're close to export markets in North America, Europe, and the Middle East,” he said.

There are environmental benefits to this partnership as well. Belledune will use the gas emissions from the production of iron to run the plant and decrease the facility's dependence on coal by 60 per cent.

“Commercial arrangements would be made to provide for the use of that gas and the production of electricity at the power plant,” McKenzie said.

First, however, consultations will take place with First Nations community leaders and an environmental impact assessment must be completed before the project can proceed.

Assuming all the approvals are granted, this project will move forward rather quickly. Construction will start next year and the new iron is expected to start producing in 2020.

With files from CTV Atlantic’s Jonathan MacInnis.