Oamaru: Bomb disposal experts called to the scene

KiwiRail has halted trains between Christchurch and Dunedin after an explosive substance was found in Omaru. Photo / Andrew Bonallack

Bomb disposal experts are this afternoon rushing to an Oamaru scrapyard after a potentially explosive substance was found.

Scrapmetal workers found what police believe could be gelignite - a dynamite widely used in mining and demolition - inside a bucket amongst scrap metal.

The scrapyard at Industrial Place on the outskirts of town has been shut down.

Nearby businesses have been evacuated.

With a railway line nearby, KiwiRail has halted trains between Christchurch and Dunedin.

One southbound freight train currently being held in Timaru would not move until clearance was given by police, a KiwiRail spokeswoman said.

A spokesman for Southern police's District Command Centre said the substance was "quite possibly gelignite".

"We're no experts, but it's certainly some sort of explosive that shouldn't be there," he said.

"It looks as if it's been left and been forgotten about. Nothing untoward about it."

The New Zealand Defence Force (NZDF) explosive ordnance Ddsposal team is expected to be on site within the next hour.

Police thanked locals for cooperating with the evacuation of the area.