Emergency crews who were unable to save the boat are now trying to contain a diesel spill with booms.
The 10-metre fibreglass yacht was engulfed in flames when firefighters arrived at Fishing Point at Buttaba near Lake Macquarie just after 5am on Wednesday.
For full report head to http://news.ninemsn.com.au/national/2014/07/16/09/12/yacht-burns-and-sinks-off-nsw-coast#yX6JZFSrOcV0QEe6.99
