The fire is burning at Duchess, southeast of Mt Isa, on a 1km-1.5km front, the Department of Community Safety (DCS) says.
Fire crews were called to the scene just after 11am (AEST), after a train carriage tipped at Duchess, spilling about 50kg of phosphate on the tracks.
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A DCS spokesman said it's believed several spot fires and the large grass fire were sparked when the fertiliser came in contact with the tracks.
Three fire crews are battling the blazes, with a fourth on its way, he said.
"There's no reports of injuries and no property at risk at this stage."
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