The establishment of an explosive materials storage warehouse off Buckland Road at Murmungee has been voted down by Wangaratta council.

Located 9km south of Beechworth, Full Bore Drill and Blast proposed the facility would store 100 tonnes of ammonium nitrate and 70 tonnes of ammonium nitrate emulsion, used to make explosives.

Consumption would include 48 tonnes a week, with the annual consumption estimated at 2500 tonnes, to be used in extractive industries such as quarry operations.

The development was proposed to be located on 68 hectares in a Farming Zone and the facility would be for storage only, with no mixing or processing of chemicals to be undertaken on the land, and explosives would be used offsite.

The application was advertised to adjoining landowners and occupiers, with 21 objections and six letters of support received.

An applicant and objectors meeting was held on 9 June with a range of concerns voiced including a lack of security, proximity to residences, fire risk associated with site and surrounds, limited truck access during wet season, traffic impacts to Buckland Gap Road, excessive storage capacity in a rural area, history of explosive accidents elsewhere, and consequences of explosives igniting.

Two people would be employed between 6am and 8pm Monday to Saturday, however, objectors raised concerns with security risks.

"The storage of ammonium nitrate carries inherent risks due to its classification as a dangerous good and its potential misuse," they said.

"While security measures could be implemented through permit conditions or other regulatory frameworks, the application does not provide sufficient detail to demonstrate that risks associated with unauthorised access or misuse can be adequately mitigated in this rural setting.

"The limited person surveillance on particular days/times, and the reduced passive surveillance opportunities given the isolated setting, raises legitimate concerns as to whether an acceptable level of risk can be achieved."

The planning assessment considered the proposal to pose significant off-site risks and potential amenity impacts, including risks to nearby dwellings and agricultural activities in the event of a fire, explosion or chemical accident.

An explosion report provided within the application suggested a tolerable risk to life and property, however, council officers deemed that it was not appropriate to introduce the risk at all.

Council officers noted the development was outside a Bushfire Management Overlay, although it would be located in a bushfire prone area.

"This still raises serious concerns given that ammonium nitrate is an oxidising agent that can significantly intensify fire behaviour, and external bushfire conditions could lead to catastrophic escalation," the report read.

"There are concerns around environmental impacts including contamination of soil and waterways in the event of spillage, overland flow or firefighting runoff carrying contaminates, and impacts on biodiversity and agricultural land quality."

Although relevant water authorities did not object (subject to conditions), they raised concerns that the proposal did not adhere to 50m waterway setback policy.

Council officers concluded that the proposal failed to demonstrate why the proposed high-risk use must be located in a rural, bushfire prone location.

"The proposal fails to demonstrate that there would be a strong net community benefit outweighing the identified risks," they said.

Cr Harry Bussell spoke against the officer's recommendation as he believed the location was the most ideal location.

He said the planning scheme does not clearly allow for dangerous goods such as what has been proposed.

"This product ammonium nitrate is used as as component for explosives, used for blasting rock. and rock products are the most important products that we all use in our lives everyday," Cr Bussell said.

"We don't have a specific zone for these goods so I believe the farming zone is the best fit."

Councillors voted 5-1 in support of the recommendation to refusal the permit.