The government of the southern state of Oaxaca says the leak occurred after construction machinery operated by a private company hit a pipeline that carries ammonia to a petrochemical plant.
The government says the pipeline rupture Tuesday caused an explosion. The three dead all appear to be construction workers employed on a highway expansion project.
Ten people were injured and 40 others suffered from inhaling ammonia.
About 1,200 people were evacuated from nearby houses.
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