After seeing your before/after photos in your [kitchen thread[(https://www.houzz.com.au/discussions/kitchen-reno-ideas-suggestions-please-dsvw-vd~3651370?n=11) I thought I'd bump this thread. I have a better idea of the whole space now. Have you had any more ideas of what to do? I think by cladding the whole surround and wall above could have big impact and modernise so it ties in with your new kitchen. Also give some balance as it sits alongside the glossy black bench. If you like the warm of timber, you could clad running the wood horizontally. This final photo is cataloged as a transitional look but same idea with cladding all the way up. ETA: That artwork would look great on a dark grey backdrop.

I would suggest a stone hearth matching the plain stone trim but not as wide as the whole unit to reduce tripping hazard. Possibly with a black trim edge. Then a mantle shelf. the same stone would be great but probably too heavy. I think a 'live edge' timber mantle would be great and introduce an organic edge to the straight lines and angles. then paint the flat surface a neutral colour as others have suggested. display something with white/cream tones (candles?) and something with an accent colour on the mantle. if mantle too pricey a big artwork a little wider than the fireplace itself with some black in it or a black background chinese screen or similar. I have no commercial affiliation with them (just like their work) and don't know where you are based but Time 4 Timber Brookvale NSW could probably help you with a live edge shelf/mantle. good luck!

In terms of the mantle - it may have been something more fancy previously. We have 3 fireplaces in our little 2x1 - including the one with the stove. Here is a photo of one of them - although it looks like the timber mantle and surrounds have been screwed on at a later date to suit the house rather than being original.

strip part of the brick and mantle back to orignial if the exposed colour lines up with the room, strip the whole thing. Looks so well crafted not to pay respect to the past