Update: The beach has reopened, City of Newcastle has confirmed, with the liquid successfully decanted and removed from Newcastle beach.
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Earlier: NSW Fire and Rescue Hazmat crews have closed Newcastle Beach after a 1000-litre drum of "dangerous materials" washed ashore.
Emergency services were called in after midday on Sunday to reports a large drum of liquid became stuck on the sand.
Crews used the markings on the side of the drum to identify it as hydrochloric acid and immediately setup a 200-metre exclusion zone, closing the beach and asking people to leave the water. It has since been discovered that the tank contains oil.
Hazmat crews are confident the tank has remained sealed and have started the process of safely decanting the liquid.
The beach is expected to remain closed for some time.
"City of Newcastle is supporting emergency services responding to an incident relating to potentially dangerous debris washing up on Newcastle Beach," a statement from Newcastle council said.
"The immediate area is being cleared and secured. Please avoid Newcastle Beach until otherwise advised."
A NSW Fire and Rescue spokesman said the lid was intact and the team believed no oil had escaped from the drum. He said it would be difficult to know the origin of the large tank, with several container ships passing the coast, as well as recent flooding sending plenty of debris out to sea.
On Friday Marine Rescue NSW appealed to boaters to stay off the water this weekend.
"There will be huge amounts of debris in the water, both floating and submerged, such as large trees and dead animals, caravans and garden sheds," Deputy Commissioner Alex Barrell said.
"You don't want to be hitting anything like that. Not only is it going to damage your boat but a collision can easily fling those on board into the murky and polluted water, risking their lives and their health.
"Channel markers and other navigational aids will have been washed away or displaced in floodwaters and channels and sandbanks can have completely changed shape since the last time you went out."
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