No contact had been made yet with the three nightshift workers at the Avebury nickel mine on Trial Harbour Road near Zeehan, a Tasmanian police spokeswoman said.
One of three mine rescue teams at the site entered the mine and found the source of the fire about 400 metres in, the miners were located alive and well shortly after.
The mine is owned by Sydney-based Allegiance Mining whose chairman Tony Howland-Rose who headed for Tasmania on hearing of the fire.
After learning the workers had been found Mr Howland-Rose said he wasn't overly concerned because it wasn't a coal mine.
He says the blaze was caused by a vehicle which had caught fire in the mine.
Queenstown Police Inspector Mark Beech-Jones said the men appeared to be fine despite their ordeal.
"We've dispatched a number of ambulance service personnel there just to give them a check up but from our initial discussions with them, they are fine," he told the ABC.
Earlier police said they hoped that the trapped miners had found sanctuary in one of number of refuge stations built into the mine.
The mine tunnel is 1.2 kilometres on an incline, meaning workers can drive down into it.
Rescue operations began at 7.45am (AEDT) after a worker noticed smoke coming from a shaft.
Avebury nickel mine is a new project for the company established after successful drilling last year.
Allegiance Mining requested a trading halt on its shares on the Australian Stock Exchange before the start of trading on Thursday.