Big Canberra chemical fire brought under control

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Firefighters in Australia on Friday brought under control a huge chemical fire in capital Canberra that sparked fears of toxic smoke plumes affecting nearby residents.

"We are 100 per cent confident that we have it contained," Australian Capital Territory Fire Brigade chief officer Paul Swain told reporters, but said it could take until Saturday to put the blaze out altogether.

Residents were woken by loud explosions and fireballs as flames leapt hundreds of metres into the air when the inferno broke out at a factory overnight.

About 100 people were evacuated from nearby areas while those within a 10-kilometre (six-mile) radius of the industrial suburb of Mitchell were told to stay indoors and keep windows closed.

Witnesses said homes shook and windows rattled with some residents thinking the city was being bombed. Reports said 20 to 30 blasts were heard.

"I woke up because the house was shaking," Lucy Brown, 19, told the Canberra Times.

"At first I thought it was an earthquake and then I thought it was a bombing."

Two people were reportedly injured.

The Emergency Services Authority (ESA) said the fire was producing acrid black smoke plumes that could contain phosgene, which can cause irritation to skin and eyes, nausea, dizziness, vomiting and chest pain.

But ESA Commissioner Mark Crosweller said initial readings of air quality were encouraging.

"Any smoke from any fire has a level of toxicity... so it's always wise to stay out of smoke-impacted areas," he told reporters.

The blaze, which could be seen from several kilometres away, caused traffic chaos with roads closed, bus services cancelled and schools shut.

It was not immediately clear what started the fire although an ESA spokesman said the plant had drums of transformer oil and sodium powder, which were believed to be causing the explosions.

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