Work to kick-start regenerating part of Cornwall can now begin after the confirmation of a £16 million government grant.
The Camborne-Pool-Redruth Transport Package will bring major changes to the road network.
Final approval for government financial backing came on Thursday from Transport Minister Norman Baker.
Mr Baker said: "The £16.1 million we are putting into this scheme shows that the Coalition Government is serious about investing in the infrastructure the country needs to drive economic growth."
The scheme will see a new road built from Dolcoath to Dudnance Lane across the Red River valley and the old South Crofty mine site, including a new junction on Dudnance Lane.
A new road will also lead from Station Road to Wilson Way, removing traffic from Pool village centre.
Minor improvements to other roads in the area, including footways, cycleways and new lighting, will also be made.
The Camborne-Pool-Redruth package was one of the schemes given funding approval last year as part of the spending review process.
Work can now start on the construction, with the project scheduled to complete in November 2014.
