Work on grouting under the former Spotlight store in Hunter Street west will recommence on Tuesday after issues relating to dust pollution were resolved.
SafeWork NSW inspectors were called to the site last Thursday after the Construction, Forestry, Mining and Energy Union (CFMEU) raised health concerns about the impact of grouting dust that had spilled onto the road.
A CFMEU social media post said a worker who was not using protective equipment had reported coughing up blood as a result of being exposed to the material.
Grouting contractor John Howard disputed the claim.
The material is produced when fly ash, a byproduct of coal-fired power generation, and concrete are mixed together into a slurry.
SafeWork issued improvement and prohibition notices for the rectification of a number of issues at the site.
Mr Howard told the Newcastle Herald on Monday that the issues had been resolved and grouting work would recommence on Tuesday.
A SafeWork NSW spokesman said it was continuing to monitor the company's progress in taking the required compliance actions.
Between 3000 and 5000 cubic metres of grout needs to be pumped into old mine workings under the building in preparation for the site's redevelopment.
Mr Howard said he expected the project would take about a month to complete.
Millions of tonnes of fly ash are stored in ash dams near the Hunter's coal fired power stations at Eraring, Vales Point, Liddell and Bayswater.
Efforts are being made to use the material in the construction industry to reduce the volume stored in ash dams.
Mr Howard said his company had invested $1 million into a specialised machine that produced a high-quality grout mix, which had been used to fill in mining voids across Newcastle.
Grout produced from fly ash and concrete has recently been used at the former NBN building site in Mosbri Crescent and the East End development.
After grouting work is complete, the Spotlight building will be demolished in coming months to make way for a 31-storey, mixed-use development.
City of Newcastle approved the demolition plans in December.
The structures will make way for a twin-tower development housing 191 apartments and office space that will be leased by Newcastle Greater Mutual (NGM) Group.
The residential tower will reach 31 storeys, while the office tower will be 15 storeys.
The project's environmental impact statement said the site had excellent access to essential services, education, jobs, open space and community facilities and "will provide public benefit by delivering diverse housing and retail opportunities, activating the site and contributing to the amenity of the public domain".
The demolition will take place in two stages.
The first stage of the knockdown is the former Spotlight building and bridge to the car park, and the second phase includes the car park and Lounge Lovers site.
