First Quantum Minerals is set to cut jobs at its Ravensthorpe mine in Western Australia.
It was also revealed the mine would move to a new "two weeks on and one week off" roster in order to save money.
The mine employs around 640 workers.
Job losses are also likely at the company’s head office in Perth.
It has been a tumultuous few months for Ravensthorpe mine after a chemical spill closed the site in December.
On December 15th 2014, First Quantum Minerals advised a structural failure to the atmospheric leach tank at the Ravensthorpe site.
The tank contained acid-leaching nickel in slurry and the company said the spill had been contained within the plant’s protective bunded area.
Ravensthorpe was closed from December until early February as a result.
Ravensthorpe produced 36,445 tonnes of nickel in 2014 despite the closure of the mine.
However nickel output for the rest of 2015 is set to suffer with the company predicting it will produce between 24,000 to 30,000 tonnes.
Australian Mining contacted First Quantum Minerals for comment.