Shares in nickel miner Minara Resources slumped after the company warned a pipeline failure had affected production at its Murrin Murrin operation near Leonora.

The company said it was fixing the problem in the autoclave circuit.

Minara maintained its full year production guidance for Murrin Murrin of between 30,000 and 34,000 tonnes of nickel, but warned year to date production was tracking at the lower end of the range.

"A safe sequential restart of the autoclave circuit will commence once the investigation and rectification works are completed," Minara said in a statement.

Minara today was also dropped from the S&P/ASX All Australian 200 index.