The Perth-based company originally planned to produce 19,500 to 20,500 tonnes of nickel but the miner now targets output in a range of 16,000 to 19,000 tonnes.

This will lower cash costs to a range between $5.40 to $5.70 per pound, and when taking Mincor's existing hedging into account, this would equate to cash costs of $US2.50 to $US2.80 a pound.

Nickel prices have shot up since a five-year low of $US4 a pound last week, and are currently trading at around $US5.90 a pound.

On the London Metal Exchange, nickel has collapsed since the start of the year from over $US30,000 a tonne to trade below $US10,000 a tonne last week, hurting much of the nickel industry and prompting a range of mine closures and project delays.

Mincor said in a statement it plans to make up reduced nickel output when prices recover.During the first quarter Mincor produced 4,358 tonnes of nickel in concentrate.