The Dunedin City Council has reached an agreement with the owner and operator of the Saddle Hill quarry over what quarrying will take place while the future of the facility is being negotiated.
Following concerns from neighbours the quarry was to expand, the council in April asked the Environment Court to clarify the legality of the quarry, owned by Saddle Views Estates.
Company director Calvin Fisher said the quarry had existing-use rights, but the council said it could not find any paperwork to support that.
The council and representatives for Mr Fisher and the quarry operator have been in mediation talks for some time.
In a statement released on Friday, council hearings committee chairman Cr Colin Weatherall said the council was seeking postponement of the court hearing in order to continue mediation. If mediation was successful, the court would not have to hear the case in full.
While the parties had "differences" during mediation to date, each had gained a better understanding of the issues and respective positions.
Both sides had agreed to interim restrictions allowing quarrying to continue to meet existing agreements with customers.
The operators were also allowed to clear the upper slopes of loose material to ensure the safety of workers.
"In doing this, the quarry owner accepts that the skyline outer rim should be retained while discussion is ongoing. The lower slopes may be worked while a final resolution is sought," Cr Weatherall said.
