A 35-acre industrial estate at a former mining site in Cornwall that could support more than 600 jobs has secured a £2 million funding package.

The South West of England Regional Development Agency (RDA) is providing the gap funding to create the new £5.1 million industrial estate at Hallenbeagle. The site is near to Camborne, Pool and Redruth and will complement ongoing regeneration in this area.

The funding from the RDA was necessary due to the prohibitively high cost of bringing the ex-mining site back into use, and is designed to address the shortage of quality workspace in Cornwall.

The project, which is expected to be completed by December 2008, will include access roads and create 23 industrial plots able to accommodate units from 1,000 to 20,000 square feet.

The plots are aimed at local small and medium-sized businesses and a number of potential occupiers have already expressed an interest in locating to the site.

Conditional planning permission has been approved and RDA site partner Marlborough Property Ventures is coordinating the planning process to enable the first phase of the development by April 2007.

Stephen Bohane, head of operations for the South West RDA in Cornwall and the Isles of Scilly, said: "This project is an excellent example of how the RDA is working in partnership with the private sector to meet demand for flexible, high-quality workspace in Cornwall, especially in areas where the costs of development would prevent a commercial developer acting alone.

"Hallenbeagle is one of the largest industrial sites in Cornwall to gain planning permission and its proximity to Camborne, Pool and Redruth will be a huge boost to efforts to regenerate the area."

David Reed, director with Marlborough Property Ventures, said: "We know there is demand from small and medium-sized businesses for this type of accommodation. The units will be built to a very high standard to provide the right environment for tenants, their customers and staff."

The development has been welcomed by CPR Regeneration, the urban regeneration company for Camborne, Pool and Redruth, which was set up to revitalise the economy of West Cornwall.

Chief executive Nigel Tipple said: "This site borders our own area of regeneration activity and will complement the work we are doing to regenerate Camborne, Pool and Redruth by providing high-quality premises for local companies to relocate and expand."

Marlborough Property Ventures has already completed two Cornwall sites at Victoria Business Park in Roche where it has built 15 industrial units and a self storage centre, and it has started work on 14 units at Indian Queens, also with gap-funding support from the RDA.