Refugees on Nauru have been exposed to asbestos dumped next to their settlement.

Reports this week say asbestos sheeting taken off buildings by workers from the Nauru Utilities Corporation has not been safely disposed of.

It appears the potentially deadly material was packed into shipping containers which were dumped metres from the Fly Camp settlement, home to several dozen refugees.

Leaked minutes from meetings between Nauru's Government and Australian officials suggest authorities were aware of the asbestos issue in October last year.

Workers from the Brisbane construction firm Canstruct, which has been working on an Australian Government contract on the island, reportedly spotted “asbestos placed at the back of Fly Camp”.

“There is a need to create awareness to our clients on the dangers of asbestos, as most of them are not aware of the danger,” the document said, according to the ABC.

Refugees were “using the asbestos to build sheds, unaware of the dangers of using them”, the meeting minutes said.

The Department of Home Affairs has told reporters that the asbestos “does not belong to the Department or its contracted service providers and is not related to any regional processing activities”.

“The Department is aware of this matter and it has been raised with the Government of Nauru for appropriate action.

“The Department and its service providers are working to educate residents about the dangers of the material and encourage them to keep away from it until it can be safely removed by the Government of Nauru.”