Tanzania's state mining (SMC) subsidiary Stamigold is planning to expand production at its Biharamulo gold mine to reach 40,000oz of gold in 2015.
The projected quantity is four times that of the company's expected production capacity for this year, reported Reuters.
SMC acting managing director Edwin Ngonyani was quoted by the news agency as saying: "We have started mining a new open pit and extended the life of the mine for three more years.
"We are still doing some more exploration work and there is a possibility that the life of the mine can be further extended if we find sufficient gold reserves."
The Tanzanian Government purchased African Barrick Gold's Tulawak gold mine and other exploration rights in the area in November last year and renamed it Stamigold Biharamulo. The mine is located in the gold field region near Lake Victoria in Tanzania.
After restarting the mine last month, the government aims to produce 10,700oz of gold this year, a decline from the 44,338oz and 84,101oz of gold produced in 2012 and 2011 respectively.
According to Stamigold, the total cash costs at the mine are expected to come down from the current $920 per ounce to $800 per ounce after increasing the production capacity.