Empty bale believed to have carried drugs found at second crime scene after diver died near $20 million worth of cocaine at Newcastle port

Police remained tight-lipped about the location of the second crime scene on Wednesday, describing it as being up-river from the Port of Newcastle's Berth Two, where 50kg of cocaine was recovered after a diver - apparently collecting drugs from the bottom of a ship that had last come from Argentina - perished.

A police spokesperson told the Newcastle Herald the second crime scene had been set up after a bale was found - believed to have contained some of the cocaine.

The bale had been broken open and left empty by the time it was discovered by police.

There were reports circulating on Wednesday that investigators had recovered as much as 100kg of cocaine so far during their investigation, but the police spokesperson told the Herald this was not accurate - no additional drugs had been recovered at the time of publication.

The identity of the diver remained under wraps - other than the fact he was a foreign national. Police were working to notify his family before releasing any further details.

It came after port workers discovered a diver wearing specialised equipment floating in the water on Monday morning. Despite attempts to revive him, he died at the scene.

A multi-agency investigation, including the NSW Police Organised Crime Squad, Australian Federal Police and Australian Border Force recovered 50kg of cocaine with an estimated street value of $20 million which appears to have been brought into the country attached to the Aret. Gr Majuro - a ship from the Marshall Islands.

Police have interviewed all crew members aboard the bulk carrier, which remains in port.

According to the Port Authority of NSW, it is due to depart at 7am on Monday.

The 50kg haul is believed to be only a portion of what was being smuggled into Newcastle, in what Organised Crime Squad commander Detective Superintendent Robert Critchlow described on Tuesday as a "high-end, sophisticated operation".

Detective Superintendent Critchlow said ships used for drug trafficking operations of this sort were often transporting the illicit substances "unawares".

Investigators are looking for information about two vessels in seen in the area after the ship's arrival on Sunday night - a rubber duck-style boat and a five metre Quintrex aluminium runabout with a green stripe on the side.

The Herald contacted the Port of Newcastle for comment, but was referred to NSW Police.

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