Authorities said the blaze in the GRI scrap yard on Underwood Street was about 50 metres by 20 metres in size.

Residents of Queanbeyan West, Jerrabomberra, Karabar and Harman were advised to close their windows as smoke billowed over Queanbeyan. 

NSW police have closed off the Canberra Avenue exit leading to the industrial estate.

A resident told The Canberra Times she heard explosions from the site.

“I heard the bangs from my house and wondered what it was,” Adam Keesing told The Canberra Times.