An operation is underway to salvage a 8.5 metre vessel grounded near Red Mercury Island / Whakau around nine last night

Coastguard got all on board to safety -- and Waikato Regional Council was alerted this morning.

Maritime staff expect to complete the operation tonight, and will continue to monitor the situation.

It's believed there's low risk of fuel escaping the vessel and any that does will disperse quickly without any environmental impact.