A massive chemical factory is currently burning on Dacre Street in Canberra's central business district. The fire hit Mitchell, an industrial suburb 5 kilometres north of Canberra, but is close to residential homes.

Reports said the blaze started midnight of Thursday and continues to send plumes of black smoke into the air because of mineral oil stored in the facility. About 20 to 30 explosions were heard between 2 and 2:30 a.m. and several more later in the morning.

Atmospheric readings are being made by firefighters around the area to monitor if the toxic gas is spreading. According to the Australian Capital Territory Environmental Safety Agency there are no positive readings so far for phosgene, which causes irritation to skin and eyes, sore throat, nausea and other symptoms.

The blaze caused the closure of Flemington road, south of Wells Station Drive and the northbound lane at Randwick Road. It also led to the closure for the day of all schools on the northside of Canberra, including Belconnen, Gungahlin, the Inner North and other schools within the 10-kilometre zone.

Residents of several areas such as Franklin, Crace, Harrison, Watson, Downer, Kaleen, Lyneham and Hackett were advised to stay inside their homes, shutter doors and windows and not to use air conditioners or heaters. About 100 residents have been evacuated to Dickson College.

Since firefighters have placed the factory fire under control and smoke is starting to dissipate, Emergency Services reduced the exclusion zone back just to the suburb of Mitchell. Bus services are back to normal. The blaze did not disrupt air travel.