Work on a multi-million pound regeneration scheme which is set to transform a former North East Derbyshire mining town and create hundreds of new jobs has officially started.

A new Tesco superstore, retail units, bus station and link road are to be created in Clay Cross as part of the first phase of the £22 milliom New Bridge Street regeneration scheme.

Work to remove more than 100,000 cubic metres of spoil - which has stood in the town centre for many years - is now underway and is expected to take three to four months to complete, with the Tesco store due to open in February 2011.

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The project is being led by developers, GMI Property Company in partnership with North East Derbyshire District Council and Clay Cross Parish Council, and with £9.2m of funding coming from East Midlands Development Agency (emda) and the Homes and Communities Agency (HCA).

Cllr Peter Riggott, NEDDC's Member Champion for the regeneration of Clay Cross, said: "It's fantastic to see work starting on site - this is a hugely exciting time and the beginning of a new era for Clay Cross."

The second phase of the scheme, which will create a new health centre and retail units, is due to begin later this year.

(CD/GK)