The billionaire Forrest family has tipped another $31 million into its privately held Australian nickel business amid expectations it will burn cash and face an impairment.

Andrew and Nicola Forrest’s private Wyloo vehicle paid more than $700 million to acquire Mincor Resources last year, but has already been forced to announce closure of the mines following a significant slump in the nickel price. Mincor was also affected by product quality issues linked to higher than expected arsenic levels in the nickel ore.