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A large quantity of diesel has spilled into the North End Lake alongside the Nelson Mandela Bay Stadium.
Environmental consultants, Xtreme Projects are already on site and working on containing the spill.
Brendan Kelly is a committee member at the Eastern Province Powerboat Club which has it's headquarters at North End Lake.
He was at the scene a short while ago and told Algoa FM News that the spill appeared to have been caused by a problem with Pharmaceutical company Aspen's stand-by diesel generators.
Kelly says something went wrong, with the diesel that is pumped into the room where the backup generators are housed, overflowing into the stormwater drains that feed into the lake.
He says they are hard at work to clean it up as soon as possible.
Aspen has confirmed that it regrettably experienced a diesel spill at its Gqeberha-based manufacturing site earlier on Tuesday.
Spokesperson Shauneen Beukes says the unconfirmed volume of the spill originated from a diesel generator owned and operated by Aspen's service provider Himoinsa Southern Africa (Pty) Ltd.
Aspen says the diesel spill has been contained and the clean-up operation is almost complete.
Extreme Projects will leave the barriers in place until Wednesday to ensure that any residual diesel is contained and cleaned up.