Orica has unveiled plans to build a new ammonium facility at Denman, in the Hunter Valley.
Located on Rosemount Rd, the explosives manufacturer has lodged a development application with the Muswellbrook council for an ammonium nitrate storage and distribution facility, according to the ABC.
The facility would store ammonium nitrate produced at the Kooragang Island plant.
However while the company has not yet bought the site, which is located on the former grounds of the Rosemount winery, it has confirmed that there is an agreement.
The applications for the proposed facility is on public exhibition until 25 January.
Muswellbrook mayor Martin Rush said the council has already discussed the proposal, with Sue Bayliss from the Denman and District Development Association reporting in early December that the Orica development had already become an issue within the community.
"Council certainly had a long discussion, made it very clear to them that they’ll need to go through a very exhaustive community consultation process, partly because 12 months ago no one would have heard of Orica," he told the ABC.
"But because of some of the issues that have occurred in the Lower Hunter, they’ll need to remind people that this is a storage facility, it isn’t manufacturing ammonium nitrate."