Interpac Business and Migration Solutions Melbourne Australia

（July13, 2010）

MINARA Resources' share of nickel produced at the Murrin Murrin mine in Western Australia fell 15 per cent both on quarter and from the year-earlier period.

It's share of cobalt production of 275 tonnes in the second quarter fell 16 per cent on quarter and 28 per cent on year.

Minara Resources owns 60 per cent and operates the Murrin Murrin nickel cobalt joint venture project, while Glencore International AG owns the 40 per cent balance.

Total production from the mine in the second quarter reached 6,680 tonnes of packaged nickel, down 15 per cent both on quarter and on year, while cobalt output of 459 tonnes was down 16 per cent on quarter and 28 per cent on year, it said in a statement.

"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, Minara said.

Production guidance from Murrin Murrin for 2010 remains unchanged at the lower end of a range for nickel of 30,000-34,000 tonnes, which takes into account the impact of the pipeline failure and the budgeted triennial major plant shut scheduled for late 2010, it reported.

Minara was cash flow positive in the second quarter with cash on hand at June 30 of $363 million, up 32 per cent on quarter. Minara's sales position remains unhedged in both currency and price.

（Source: theAustralian）