FIRE crews have managed to contain the blaze that destroyed a shed on Lower Mountain Rd in Dundowran.
As investigations continue a Queensland Fire and Emergency Services spokeswoman said it is believed the cause of fire may have been from the spark of a grinder.
Station Officer from Hervey Bay Fire Station John Pappas from said crews have the fire under control and are preventing any risks of explosion.
NOON UPDATE: CHEMICALS inside a burning shed at Dundowran are believed to be at risk of exploding.
Paramedics are also on standby to attend the shed fire.
11.30AM: Police are evacuating people from within 500m of a chemical fire, burning out of control at a storage shed in Dundowran.
About 11am seven fire units were called to the blaze on Lower Mountain Rd.
Toogoom, Burrum Heads and Dundowran Rural Fire Service crews are all on the scene.
The road was quickly shut and crews are working to douse the blaze.
The spokeswoman said no-one was inside the shed, which is believed to contain chemicals.
A scientific crew were heading to the scene to investigate.
The spokeswoman said residents in the area should close windows and motorists should avoid the area.
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