Contaminated land has been found to affect 16 homes on the estate. Investigations earlier this year found high concentrations of potentially lethal arsenic and lead underneath the properties.
The Craig Y Don housing estate was built in the 1950s on the former Gwaith Hills copper smelter works, which operated between 1786 and 1897, before becoming a chemical works, producing fertilizers. The estate includes 112 residential properties, both private dwellings and homes owned and leased to tenants by Anglesey County Council.
The Welsh government has committed to fund 60% of the remediation costs, with Anglesey County Council covering the remainder.
Wales’ environment minister Hannah Blythyn said: “The remediation costs for contaminated land usually fall to the owner or occupier of the property, in cases where the original polluter no longer exists.
“However, given a number of distinguishing factors at Craig Y Don, we felt it appropriate for the Welsh government to step in to provide financial support for the remediation work.
“Contaminated land mostly affects former industrial, inner city and dockland areas. I’m pleased to announce this funding, which will help return the land to being a safe and clean place for residents, the community and for future generations.”
Councillor Llinos Medi, leader of the Isle of Anglesey County Council, said: “I’m grateful to colleagues in Welsh government for their financial support in ensuring these important works go ahead. This has been a challenging period for the residents of Craig y Don, but they have always been our first priority. Through working in partnership we now have the funding needed to help all of them, be they tenants or homeowners.”