Steady March quarter for Minara

Shares in Minara Resources have risen after the nickel miner reported stable production at its Murrin Murrin operation for the March quarter.

For the three months to the end of March 2009, Minara said a total of 7,762 tonnes of nickel was produced, up slightly from the previous corresponding period's 7,754t.

Cobalt production for the quarter reached 450t, down from 494t.

Minara holds a 60 per cent interest in Murrin Murrin, located near Leonora, while Glencore International holds the rest.

During the quarter, the average nickel price was pegged at $US10,459 per tonne, a dramatic shift from the $US28,863/t reached in the previous corresponding period.

Minara also stated that its staff turnover at the mine has dropped significantly, "reflecting the shift in the labour market in Western Australia's resources sector".

The miner also said it cash position remains strong with cash balance being maintained through its focus on cost reductions and the new business plan implemented in the previous quarter.

"Sulphur spot market prices are returning to historic levels," Minara said.

"The price reductions will flow through to Minara's long term contracts during 2009.

"This will have a positive impact on the company's cash position and Murrin Murrin's operating costs."

Shares in Minara were up two cents to 55 cents at 12:38 AEDT.