The demolition of the former Wallerawang Power Station was given the green light at Lithgow City Council's meeting on September 23.
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Council voted in favour of a deferred consent, allowing site owner EnergyAustralia permission to proceed with further plans towards the demolition.
EnergyAustralia's proposal was to demolish "all buildings and structures above ground". The work will significantly alter Wallerawang's skyline, with the proposed removal of cooling towers, chimneys, coal handling plant, as well as other buildings, workshops and warehouses.
One of the plant's chimney stacks, which is listed on the State Heritage Inventory, will remain.
The company is still in exclusive negotiations with organic materials recycling business Bettergrow Pty Ltd about the future use of the site.
The plan proposed to create a "green spot eco-industrial park" on the site had the potential to deliver 203 jobs, Bettergrow managing director Neil Schembri said in a statement earlier this year.
If needed, some of the structures would remain on site for use by Bettergrow, EnergyAustralia has previously stated.
Deputy mayor Cr Steve Ring said he recognised the demolition was an emotive issue for the community.
"It's my understanding and my belief that EnergyAustralia will not demolish the entirety of the site. I believe that negotiations to repurpose the site will go ahead which will leave possibly 90 per cent of the structures standing," he said.
The council has previously spoken out against the demolition of the entire site, in the belief that it would reduce its attractiveness for a future business investor. Another employer for the area would be vital, Lithgow mayor Cr Ray Thompson has stated, in recouping some of the jobs that were lost when the plant shut down.
Cr Wayne McAndrew described the move to support the demolition as "a great leap of faith".
"In the minds of our community, particularly around Wallerawang, that it'd be stupid for anything else but to have that site repurposed," he said.
"If it is demolished, we don't end up with a greenfield site, we end up with nothing. It's never been owned by council, so as far as I'm concerned if this deal [with Bettergrow] doesn't go ahead then we will have a vacant, demolished site."
The full demolition would be carried out across nine different zones, with explosive charges to be used to take down the chimneys and concrete cooling tower.
In response to a concern that blasting works would damage the nearby heritage church, built more than 130 years ago, and its "unique huge stain glass windows", EnergyAustralia stated blasting works previously carried out on the site had not resulted in damage to the church.
You can watch footage of the 2017 demolition of the unit 7 cooling tower here.
A blast management plan would be prepared prior to blasting activities, Lithgow City Council's report by director of economic development and environment Andrew Muir stated.
"All receivers within two kilometres of the site shall be notified at least 48 hours prior to any blasting activities," the report stated.
The Wallerawang Power Station closure was announced in November 2014. A salvage operation was then carried out to retrieve and sell usable plant and equipment from the site.