A giant, 1.8tonne brass bell, known as the 'Nimmity Bell', fell and trapped the coordinator of the project beneath it in Nimmitabel on Thursday.
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A NSW Police spokesperson said emergency services were called to the location about 2.30pm on July 23 after reports the bell had fallen, trapping a 77-year-old man.
Nimmitabel Lions Club president John Harrington said the man injured was the bell committee coordinator Howard Charles.
"I got there about 10 minutes after it happened," Mr Harrington said on Friday.
"I thought God, how is he still alive. I think most of the people there were in shock.
"But at least he's still with us. He'll probably keep terrorising me for years to come!"
Mr Harrington said all he knew was that work was being conducted on the coupling where the bell would swing, if needed, when the incident occurred.
A NSW Ambulance spokesperson said the bell had not landed on Mr Charles, but he had been trapped inside it when it fell.
They said ambulance officers on the scene found he had suffered a head injury, bleeding from the hand and possibly had a sore ankle or leg and was airlifted to Canberra Hospital.
On Friday morning, the police spokesperson said the latest update on Mr Charles' condition was that he most likely had to have surgery on his ankle and possibly had a collapsed lung, but at this stage his injuries were not life threatening.
"Knowing Howie, he'll be okay. He's a pretty tough bugger," Mr Harrington said.
Mr Charles is a local identity in Nimmitabel, with Mr Harrington saying he was "very community-minded" and had been involved in various projects in the town.
The 1.8tonne bell was made in New York in 1920 and was only installed about four weeks ago, after a long campaign by the community to obtain and get it erected, which was led by the Nimmitabel Lions Club.
A community fundraising campaign for the project raised $60,000 in six weeks and the NSW government also donated $10,000 towards the purchase of the bell.
"The bell will serve as an additional reason for tourists to stop in town. More tourists in our towns is always a positive outcome," Snowy Monaro Regional Council mayor John Rooney said in March 2019.
Mr Harrington said the bell was not damaged in the fall and would be reinstalled once he received a report from SafeWork NSW, as the matter was now before the organisation.
"The worksite was a very safe worksite," he said.
"If I said no the project isn't going ahead, I think he [Mr Charles] would be on my doorstep tonight."
On Friday morning a spokesperson for SafeWork NSW said the organisation was making inquiries after receiving notification of the incident and no further comment could be made at this time.
UPDATE, 3PM: A Snowy Monaro Regional Council spokesperson said approval was sought for the erection of the Nimmity Bell which included the structure being designed by an independent, practicing structural engineer.
"Subsequent approval was issued for its erection and in late June the bell was erected on private land," the council spokesperson said.
"The incident is currently under investigation by SafeWork NSW officers and council will be assisting SafeWork NSW inspectors in any way with this investigation.
"Council is unable to provide any direction on the bell's future until this investigation is complete."