Base Titanium, the Kenyan unit of Base Resources in Australia, aims to raise nearly $270m to develop a heavy mineral-sand deposit in the south of Mombasa, Kenya, the company has announced.

The company expects to start the Kwale Mineral Sands project by mid-2013.

The proposed mine is set to annually produce 330,000t of ilmenite – about 10% of the world’s supply – and 80,000t of rutile, which represents 14% of global output, and 40,000t of zircon.

Base Titanium plans to take on a minority partner, acquire a syndicated loan from international banks and raise equity to finance the project, reports Bloomberg.

The project will have an initial 11-year mine life that could possibly be extended by a couple of years.