Minara Resources Ltd. (MRE.AU) has cut production at its Murrin Murrin nickel processing plant after the failure of a heat exchanger, the company said Thursday.

Minara said that the acid plant--where acid is run through the ore to extract a nickel-rich solution--has been taken offline as a result of the failure.

"Production from the rest of the operation continues at reduced rates. The impact of the heat exchanger failure on the company's production is being assessed," the company said in a statement.

Minara is 72%-owned by Glencore International PLC (GLEN.LN).

In an update in April, the company said it expects to produce 33,000 metric tons to 37,000 tons of nickel over the year to the end of December, around 2%-3% of global mined nickel production.

-By David Fickling, Dow Jones Newswires; +61 2 8272 4689; david.fickling@dowjones.com

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