The global mining company Xstrata is planning to let go of 150 workers following the suspension of its Cosmos nickel mine in the Goldfields.
The company says the move is in response to adverse market conditions, including low nickel prices and a strong Australian dollar.
Xstrata says its nickel mine north of Leinster will be placed in care and maintenance.
BHP-Billiton announced job losses at its Nickel-West operations in the Goldfields earlier this year.
A mining analyst says the move be Xstrata reflects wider global market conditions.
Patersons Securities' Simon Tonkin says Western Australia's nickel sector is being hit by adverse global economic conditions.
"The state of the global economy with the downturn in China and also the Eurozone, nickel is usually a lead indicator, and obviously nickel has been down in the doldrums a bit," he said.
However, the chief executive of the Shire of Leonora is putting a positive spin on the region's nickel mining industry.
Shire CEO Jim Epis says he expects the market will bounce back.
"With Leonora we've had the ups and downs before, with the Leinster nickel mine being put on care and maintenance and other gold mining operations within the shire," he said.
"It's something that the people living within the shire of Leonora are accustomed with."