Emergency services race to seal Grosvenor Coal Mine near Moranbah as fire burns underground

Clouds of smoke have been rising from the Grosvenor Coal Mine. (Supplied)

An underground inferno is pumping out clouds of black smoke as Anglo American works to extinguish a fire at its Grosvenor Coal Mine in Central Queensland.

Emergency services are closely monitoring the wind direction and have issued a warning to people to stay indoors and keep windows and doors closed.

The mine is on the outskirts of the township of Moranbah, which has a population of about 9,500.

Queensland Mines Rescue Team members worked through the night pumping nitrogen into the mine in an effort to starve the fire of oxygen.

The truck-mounted GAG unit, which has a modified jet engine, is being used to inject nitrogen into the mine while other workers attempt to seal the shafts.

Anglo American has confirmed the fire broke out at its mine around 6am on Saturday when methane gas ignited on the longwall coalface.

All workers at the mine, about 190km south-west of Mackay, were safely evacuated.

It is the same mine where five workers suffered extensive burns after a methane explosion in May 2020.

Smoke plumes visible

Isaac Regional Council mayor Kelly Vea Vea said the smoke plumes were visible from the end of town.

"There is no smell but we are starting to think about smoke warnings and for there to be some impact from the smoke," she said.

"Let's be clear, this isn't from a bushfire, it's from a coal mine so it will have a different impact."

Ms Vea Vea said council was considering the emotional impact on the community as well as any health or environmental impacts of the fire.

"You're talking about hundreds of workers who have already been through some quite stressful circumstances," she said.

"We need to be looking after people's mental health and physical wellbeing."

She said there was widespread relief no-one had been hurt.

"It's an underground disaster in a highly volatile environment so I am relieved it was evacuated safely and the situation is being overseen by professionals," she said.

A Resources Safety Health Queensland (RSHQ) said mine inspectors remained at the site to provide support as the process to seal the mine is carried out.

Exclusion zones are in place to ensure the safety of personnel while the work is undertaken.

Minister demands explanation

An Anglo American spokesperson said the site was closed with only essential emergency services team members.

"We are implementing the necessary process for temporary pre-planned sealing from the surface of the mine according to the site’s safety health management system," they said."Only essential workers are attending the mine, with all other crew members on full pay for the next seven days while we work to understand the evolving situation."

Mines Minister Scott Stewart said independent inspectors including the Serious Incident Investigation Unit from Resources Safety and Health Queensland (RSHQ) along with workers' representatives had attended the site.

"This is a serious incident that should not have happened and a full and thorough investigation will now begin," Mr Stewart said.

"RSHQ was working with Anglo American as it seals the mine, but it is too early to tell whether it will reopen.

"I expect Anglo American to ensure its workforce is prioritised and given what they need."

Ms Vea Vea said the community was wondering how another mine fire had occurred four years after the disaster.

"It's hard to understand how it could have happened with the control in place and the experience of 2020 that reverberated through the entire industry," she said.

"Today I am thinking about these workers, their livelihoods could have changed on a dime and [it] puts their future in a precarious situation."