Take a decorating knife and remove as much of the cracked paint as you can. It's probably chipping away easy enough if it's fresh. WHen you've got as much as you can off, sand it down well. Then Prime it before painting it again. If the fireplace is ever used at all, make sure to use heat resistant paint.
I think in situations such as these it is always better to have a knowledge of what paint was applied, eg water or oil based and what it was applied to.
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