Australia Battles Blazes To Stop 'Mega-Fire'

Firefighters are trying to tame an enormous bushfire in southeastern Australia which could merge with other blazes to create a "mega-fire" if weather conditions worsen.

Crews have been battling fires that flared in high winds and searing heat across the state of New South Wales last week, destroying 200 homes and leaving many others damaged.

While dozens of blazes have been contained, 58 were still alight and 14 of them out of control, enveloping Sydney in a thick white smoke haze that prompted warnings for people to stay indoors and avoid exercising.

The main area of concern was near the town of Lithgow, west of Sydney, where a huge fire that has already burned nearly 155 square miles (99,000 acres) was threatening the communities of Bilpin, Bell, Clarence and Dargan.

Tea cups sit on a letterbox at a home destroyed by bushfire

Officials fear intensifying heat and winds this week could push it into another blaze at nearby Mount Victoria in the Blue Mountains and then move towards the populated areas of Katoomba and Leura.

"I don't think I've ever used the word mega-fire," said New South Wales rural fire service commissioner Shane Fitzsimmons.

"But the reality is that the modelling indicates that there's every likelihood that in the forecast weather conditions that these two fires, particularly up in the back end of the mountains, will merge at some point."

Lyndon Dunlop with his father among the ruins of his grandparents' home

The Australian military is investigating whether it was responsible for starting the blaze, northwest of Sydney.

The Australian Defence Force said its personnel were carrying out explosive ordnance training in the area on Wednesday, the day the blaze started.

Amid the worst fire disaster in the state for nearly 50 years, New South Wales declared a state of emergency on Sunday, which gives firefighters the power to forcibly evacuate people, with penalties for refusing.

Emergency Services Minister Mike Gallacher said every possible resource was being used, including firefighters being drafted in from interstate and the possibility that the military could also be deployed.

"Everything is being thrown at this, I can assure you," he said.

Sue Dunlop sits in front of her home of 41 years which was destroyed

With hundreds of people evacuated from their homes due to the encroaching flames, police have revealed they are dealing with reports of looting from victims, although the number of incidents is small.

State Premier Barry O'Farrell called looters "scumbags" and vowed to track them down.

"I'm just appalled that at these critical times, when people have been evacuated from homes or whether people have left homes because of fire dangers, that other scumbags in the community would front up and seek to rob them," he said.

Police, meanwhile, said a young boy, reportedly aged 11, was being questioned about deliberately lighting a fire on the New South Wales Central Coast last week that forced hundreds of people to flee their homes and saw the closure of Newcastle airport.

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