Plans to demolish the Port Kembla stack on September 5 have been scrapped because the date is "too soon" to satisfy all relevant authorities.
The surprise decision came after a meeting yesterday between the Department of Infrastructure and Planning, the Environment Protection Authority, WorkCover and Wollongong City Council.
A planning spokesman said a new demolition date would be set "once all issues are properly addressed".
"No demolition will occur until the government is satisfied the work is safe, the methods are appropriate and all relevant concerns and issues have been fully addressed ... The government will be responding to recently received correspondence on this issue very shortly," he said.
PKC general manager and director Ian Wilson was concerned about the consequences of the delay on planning with organisations such as NSW Police for the day.
"We've doorknocked the exclusion zone homes and businesses several times, we held a well-attended community information session recently, we're open and available for anyone with questions," Mr Wilson said.
"The feedback I'm getting from talking to the locals is that a lot of people are ready for Port Kembla to start a new chapter, and redeveloping the PKC site for new business is necessary to do that.
"We're committed to making that new chapter a reality, which is why we're working with the agencies as comprehensively as we can."
PKC had already shifted the demolition date once - from September 6 - because the change minimised the impact on locals, according to Mr Wilson.
The working group involved in yesterday's meeting will meet PKC next week to start the process of setting a new demolition date.
Wollongong City Council will write to Planning Minister Brad Hazzard for an assurance all compliance measures were met.
"I'm happy about the idea of making sure the community's fears are adequately addressed. If that means a delay, that's fine," Wollongong Lord Mayor Gordon Bradbery said.