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Minara Secures Nickel Plant Gas Supply From Woodside (Update1)

By Jason Scott

June 6 (Bloomberg) -- Minara Resources Ltd., Australia's second-largest nickel producer, secured alternative energy supplies for its Murrin Murrin mine from Woodside Petroleum Ltd., a company spokesman said.

Murrin Murrin has been running at reduced capacity since June 3 when a fire at an offshore natural gas plant owned by Houston-based Apache Corp. cut supply, said a spokesman for Perth-based Minara who declined to be identified. A statement detailing Minara's accord with Woodside will be released later today, the spokesman said.

Minara last month forecast production of 34,000 metric tons to 38,000 metric tons of nickel this year. Apache, the second- biggest supplier of natural gas into Western Australia, halted output at its Harriet, East Spar and John Brookes fields, affecting more than 20 industrial customers including BHP Billiton Ltd., Rio Tinto Group and Newcrest Mining Ltd.

Minara rose as much as 13 cents, or 3.3 percent, to A$4.02 in Sydney trading. It was at A$3.94 at 12:26 p.m. local time, reducing its decline since the June 3 fire to 6.4 percent.

To contact the reporter on this story: Jason Scott in Perth at [email protected]