Nickel sulphide explorer and producer Western Areas is putting its Finnish spin-off on the backburner.

The move signals the company is unlikely to go ahead with a London listing this year for the base metal asset seen as a key plank in its diversification strategy and a new vehicle for the miner's former boss Julian Hanna, according to a report in The West Australian.

But WA's most profitable nickel miner said it is taking heart from UBS analyst predictions as much as one-third of the world's nickel producers are underwater at current prices, suggesting supply constraints are looming.

Asked yesterday if he expected the planned FinnAust Mining float on London's Alternative Investment Market would happen this year as planned, Western Areas managing director Dan Lougher said it would be "a long shot".

"We will look at that again later this year, probably in October," he said, adding the market was "somewhat subdued".

Western Areas owns a little over 80 per cent of FinnAust, which has nickel, zinc, copper and cobalt exploration projects in Finland and is chaired by Mr Hanna. Its flagship operations are at Forrestania in WA.