Base Resources Limited (LON:BSE) is to ramp up production at its Kwale mineral sands project in Kenya to offset declining grades.
The plan will save US$60mln in fixed costs and also reduce average operating costs, the miner said.
The original plan for Kwale was to run at 1,800tph up to 2024, but the new plan shortens the life by two years.
Mining rates will rise to 2,400 tonnes per hour until 2022 as three hydraulic mining units are bought on stream, which will cut operating costs by 20%.
Rutile production will rise to 93,000 tonnes per year, ilmenite to 414,000 tonnes and zircon to 34,000 tonnes.
Upfront costs of the new mine are estimated at US$33.7mln or US$13.1mln more than the estimated capital required for the original plan.
Exploration in the surrounding areas will replace the increased production, Base said.