THE NSW Government approved a land rezoning for 200 houses and industrial and commercial uses at Boolaroo on the former Pasminco lead and zinc smelter site.
It is the first stage of a $750 million redevelopment of the 130-hectare site.
The approval follows criticism of the state government for its handling of lead contamination on land around the former smelter and for failing to commit money for a second intersection at the Pasminco site.
Lake Macquarie City Council approved the project's first stage last November.
It took the government nine months to approve the rezoning.
Planning Minister Tony Kelly said yesterday the approval would help create 800 jobs in an extension of the Cardiff industrial estate.
"The rezoning is the first stage of the redevelopment of the [Pasminco and Incitec] sites, which should over time provide up to 1000 dwellings and around 1600 jobs," Mr Kelly said.
The council delayed the first stage for more than a year over concern that one intersection for the Pasminco redevelopment was inadequate.
It asked the government to pay for two state road intersections, but received no commitment.
A compromise was reached for rezoning to proceed if provision was made for "a second intersection in future".
Another compromise was reached over cleaning up lead contamination around the smelter site.
About 2 million tonnes of lead-contaminated soil on the Pasminco site was being removed and stored in a 15-hectare containment cell on the site.
But for the 1800 residential properties surrounding the old smelter, a "cap and cover" approach was adopted rather than removing contaminants.
The state government was criticised in March for ignoring serious concerns about the "cap and cover" method.
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