Radio New Zealand International reports that a agreement was reached in 2004 to establish the factory in Black Sands village, however a land dispute and complaints about potential pollution halted the plans.
On Friday, the Vanuatu government paid customary land owners a lease of just over one million US dollars for 30 hectares of land in Forari.
Radio New Zealand International reports that the Minister of Lands, Steven Kalsakau says the land will accommodate an industrial zone, where manganese was once exploited before the independence of Vanuatu in 1980.
He says the project will see the construction of a large wharf and the relocation of a fuel depot from Port Vila.
Vanuatu to Set up Fish Processing Plant with China
VANUATU and CHINA - The governments of Vanuatu and China are set to build a fish processing plant in South East Efate.
by Lucy Towers
