There has been an explosion in an electrical transformer at the Mount Isa Mines site in the outback Queensland town.
Emergency services were called to the corner of Railway and Third Avenues just after 3pm on Monday when power was also cut.
The mine site was evacuated and nearby streets were closed after the site's power sub-station caught fire.
Mount Isa Mines confirmed a fire occurred in an electrical transformer causing a partial power outage to surface operations.
"Emergency response procedures have been activated," mine owners Glencore said in a statement.
"There have been no injuries reported and the health and safety of our people and surrounding residents remains our top priority."
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