Shares in Australia's second largest nickel producer Minara Resources Ltd gained more than five per cent after the company said it expected to avoid a second plant shutdown this year.
Minara had earlier warned it expected to shutdown the Murrin Murrin nickel processing facility, located near Leonora in Western Australia, to repair corroded pipes in its hydrogen sulphide plant.
"However, from the moment we made the announcement the hydrogen sulphide plant has performed very well and, at this stage, we will only undertake the statutory shutdown planned for around late March 2005," Minara managing director Peter Johnston said in an open briefing to the stock exchange.
"Continuous close monitoring has indicated there has been no further deterioration of the plant and therefore the additional 10 day shutdown at this stage appears to be unlikely," he said.
If the second shutdown is not needed Minara's production will hit the upper end of the 33,000 to 35,000 tonnes of nickel metal forecast for the current financial year.
Minara shares closed up 11 cents at $2.15.
MRE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
