A controversial bonfire topped with a replica of a mosque was set alight before police could remove the display in Moygashel, Co Tyrone.
The PSNI said it had begun a “significant and complex policing operation” to remove what it described as a hate display from the bonfire.
Police said the operation was at an advanced stage when the bonfire was lit.
The Moygashel Bonfire Association had earlier posted on social media that a decision had been made to “light it asap” following confirmation that contractors were moving in to remove the bonfire.
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