Fire and Rescue crews have been called to a fire burning in bush and grassland behind the Boral sawmill, north of Narooma.
The fire broke out at 4.45pm on Monday, October 3.
Nine personnel from the Dalmeny and Bodalla units are on the scene protecting assets and working to restrict the flow of fire into wood chips at the rear of the premises.
The cause of the fire is unknown.
The Rural Fire Service has warned of smoke on the Princes Highway.
UPDATE: Remains of a pile burn conducted last week at the Dalmeny sawmill flared in very windy conditions on Monday evening.
The Dalmeny Kianga, Bodalla and Narooma RFS brigades responded to the fire around 5pm with concerns the fire could spread to stockpiles of timber behind the sawmill located just north of Dalmeny on the Princes Highway.
A front-end loader was used to cover the smouldering pile and RFS volunteers doused it with water. Firefighters remained on scene as the strong winds persisted.