Chemical analysis of electroplating effluent revealed the presence of very high concentrations of nickel (393 ppm) in the effluent. Bioassay was carried out to test the toxicity of nickel chloride to Aspergillus niger. In contrast to 50% conidial inhibition at 1.7 mM nickel, hyphal extension was affected even at a lower concentration (0.4 mM), suggesting that hyphae are more sensitive than conidia to nickel. An increase in nickel concentration resulted in a proportionate decrease in the hyphal extension. Nickel (II)-resistant mutants of A. niger M1, M2, and M3, were obtained using direct selection, stepwise adaptation, and ultraviolet mutation techniques. Biosorption of Ni (II) by the mutant M3 was 50% more than that of its parent strain.