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Mirabela expects $370m write-down

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MELBOURNE, Feb 14 AAP

February 14 2013, 4:22PM

Nickel miner Mirabela expects to write down the value of its Brazilian Santa Rita assets by $US380 million ($A369.34 million) and possibly more.

There have been cost blow-outs during the mine's commissioning, while Mirabela also blamed a significant decline in its market value and that of other nickel miners and declining nickel prices.

The non-cash impairment charge will affect its 2012 full year results.

It is subject to board approval and the amount could vary further after an external audit.

The company performed an impairment test on the recoverability of its assets.

Mirabela axed hundreds of jobs in Brazil last July as part of a cost cutting plan while nickel prices languished.

The company's shares closed flat at 47 cents on Thursday.