Minara Resources has reported its share of nickel produced at the Murrin Murrin mine in Western Australia slumped 15 per cent both on quarter and from the previous year.

Its share of cobalt output of 275 tonnes in the second quarter plunged 16 per cent on quarter and 28 per cent on year.

Minara Resources operates the Murrin Murrin nickel cobalt joint venture project in which it has a 60 per cent stake. Glencore International AG owns the remaining 40 per cent.

Output from the mine in the second quarter totalled 6,680 tonnes of packaged nickel, a decline of 15 per cent both on quarter and on year. Cobalt output of 459 tonnes, meanwhile, fell 16 per cent on quarter and 28 per cent on year.

"Production was impacted by the pipeline failure in one of the four ore-leach autoclave circuits on May 25," which has now been safely restarted, the company said.

Production guidance from Murrin Murrin for 2010 remains the same at the lower end of a range for nickel of 30,000 to 34,000 tonnes. The figures take into account the impact of the pipeline failure and the budgeted triennial major plant shut set for late 2010.

Minara Resources, Australia's second largest nickel producer and one of the top 10 in the world, was cash flow positive in the second quarter with $363 million cash on hand at June 30, an increase of 32 per cent on quarter. The company's sales position remains unhedged in both currency and price.