A company is contesting charges it starting to remove asbestos at Sovereign Hill without monitoring conditions as required by law.
Sodomaco Investments claims the Victorian Workcover Authority cannot prove friable asbestos was removed from the outdoor museum's Taylor's Cottage in Magpie Street on March 24, 2016.
A contested mention at the Ballarat Magistrates Court on Thursday was told Sodomaco Investments workers attended Sovereign Hill with a hygienist and removed vinyl floor tiles.
Defence barrister Jim Stavris said WorkSafe could not prove the work involved asbestos because there was no sample.
He said Sovereign Hill was not charged over the incident but received an official warning.
The VWA prosecutor said it was relying on an environmental report and a police record of interview where the company admitted it was asbestos.
Magistrate Ross Maxted said the prosecution case was strong and a fine would be issued if the company pleaded guilty.
But Mr Stavris requested an adjournment for a further contested mention, which will be held in July.
Sodomaco Investments faces two charges under the Occupational Health and Safety Regulations 2007, including failing to monitor conditions and failing to ensure people were not exposed to health risks.