Nickel production from Minara Resources Ltd.'s (MRE.AU) Murrin Murrin mine and plant has been suspended after the failure of a heat exchanger last week, the company said Wednesday.

The acid plant at Murrin Murrin remains offline, the company said, after a heat exchanger in the acid plant --where acid is run through the ore to extract a nickel-rich solution-- failed last week.

At the time of the failure last week, production was continuing at reduced rates. However, Minara said today that metal production is now on standby.

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. It said Wednesday that it was still assessing the impact of the failure on those forecasts.

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

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