A water bomber was been dispatched to the Labrador City area on Saturday afternoon to respond to early reports of a forest fire, according to a provincial forest fire duty officer.
Conservation Office Chuck Porter said ground crews were on the scene of the fire, which he added was moving away from the town.
Karen Oldford, mayor of the neighbouring community Labrador City, said the fire is situated behind the White Lake area near the Iron Ore Company of Canada site.
Additional helicopter crews were dispatched out of Happy Valley-Goose Bay to help battle the blaze.
A fire ban was issued in Labrador City Friday night due to dry weather conditions and a heat wave in the area.