The fire, which burnt out 2000 hectares on the Beecroft Peninsula and at its height threatened the Currarong township, started in the range impact area around 11am.

Fanned by strong westerly winds, the fire soon took hold and with the southerly change late in the day, fire authorities had real concerns for the safety of the seaside village.

Because the fire was in an area used for live firing and could contain unexploded ordinance, Rural Fire Service crews were unable to battle the blaze on the ground.

A fire-bombing DC10 and a Hercules, out of Richmond Air Force Base, was used to drop fire retardant to stop the blaze heading north towards the village.

As conditions calmed overnight, the blaze was brought under control with the RFS scaling back the warning on the fire to 'advice' as it no longer posed a direct threat to the town.

In a statement, Defence said a live mortar fire exercise was in progress at the time.

“The firing was being conducted in compliance with all applicable fire safety procedures and tolerances,” the spokesperson said.

The exercise was stopped when the fire started.

“The fire was successfully contained within the Beecroft Weapons Range Impact area and did not exit that area at any time,” the spokesperson said.

“Live firing activities conducted by the Australian Defence Force, particularly on defence training areas and ranges, take full account of fire risks.

“This is achieved through implementing effective Defence instructions policies and procedures, which were updated in 2013, to take account of the findings of national inquiries and to reflect current warnings and other related protocols.

“Current Defence instructions and guidelines are set out in Fire Protection and Training Area Manuals and in weapons ranges’ standing orders.”

The statement concluded due to the potential risk from unexploded ordnance within weapons range impact areas, fire-fighting did not extend into impact areas.

The Beecroft Weapons Range Activity website stated the range was closed from 9pm on Sunday, November 22 until 1pm on Friday, November 27, with live firings taking place between 8am and 6pm Wednesday and Thursday from from 8am to 10am on Friday.

There is a massive defence exercise off the South Coast, with navy currently having 10 ships and two submarines and three squadrons taking part in operations.

On Friday morning RFS District Officer James Morris said the fire was still burning slowly and there was only low fire activity.

“We have five appliances and 30 personnel still on site and the aircraft have continued to strengthen containment lines in the north east corner of the blaze,” he said.

“Being in the impact zone it is hard for us to fight as we can’t do anything in that area.

“Crews will be there all day assisting air operations and undertaking back burning and monitoring.

“There is no danger to the Currarong village.

“I would expect to see smoke coming out of the area for a week or so.

“Crews only expect to be there until containment lines are 100 per cent wrapped up.”

He said fire investigators were still investigating the cause of the blaze.