We call it tapestry brick. We've one on the dining room of our 1930s weatherboard. We've left it as in and built a wine rack into the box part. The walls are all dark wood panel which we're leaving. If I was painting the panelling I'd paint the fire place. Plenty of pictures here on Houzz of fireplace make overs.

photos Jan

Thanks for the follow up! I knew this fireplace would be the death of me! We ended up just rendering and painting for this winter, and we have just worked with our cabinetmaker to add some shelving on either side - awaiting design and quote. Im actually really happy with the fireplace, but I'd like to tile it eventually. @C P yours looks fantastic! Argh! I can't upload pics!

This style of fireplace surround was common in the 1960s in many mid-century modern and post-war homes. It wasn't expensive then due to the cheap labour with lots of stone-masons immigrating from post-war Europe. There is a lot of skill and craftsmanship to get all of the irregular stones to fit together harmoniously. Poorer houses didn't have fancy stone fireplace surrounds, but exposed face brick, often to match the exterior or just the chimney. Today it is a very different story, with stone masonry a dying art, many of the stonemasons from the 1960s having since retired (or gone to the big stone quarry in the sky), and not many younger people taking up this trade. So today stonemasons who are skilled enough to do this type of work to this standard are rare and can charge what they like for their craftsmanship. It would be an act of vandalism to smother this craftsmanship in common render as it is a beautiful feature, and could never be re-instated. I would use it as a starting point to give your living room a cool mid-century modern vibe. Best of luck, Dr Retro of Dr Retro House Calls/Dr Retro Virtual Visits