A part of Oamaru's industrial area has been cordoned off and part of the main southern main trunk line, after an explosive substance was found in a bucket at a scrapyard this morning.
Police received the call from Everitt Enterprises in Industrial Pl, about 10am.
Senior Sergeant Jason McCoy said it was not clear at this stage if the substance was gelignite, or something similar.
An area of about 300m around the yard has been cordoned off and evacuated while awaiting the arrival of an expert army explosives team from Burnham, near Christchurch.
All trains scheduled to pass through the area on the main trunk line have been stopped in the meantime.
