Operations at one of the world's largest zircon projects will be suspended for up to two years in a bid to improve challenging market dynamics.
Perth-based Iluka Resources, the world's largest producer of zircon, said it is preparing to suspend mining and concentrating operations at its Jacinth-Ambrosia project in South Australia's Eucla Basin. 
The suspension is expected to commence on   April 16 for between 18 months and two years, "depending on market conditions".
At peak production the Jacinth-Ambrosia operation has the ability to supply 25 to 30 per cent of global zircon demand.
Iluka managing director David Robb said the decision would improve the company's free cash flow at a time of subdued market demand.
"Over time, it will also improve return on capital by accelerating inventory drawdown, therefore reducing working capital," Mr Robb said.
"In addition, to the extent that perceptions of an inventory 'supply overhang' might impact market dynamics, then Iluka believes its contribution to a reduction in global inventory will impact those dynamics positively."
Iluka said it expected net cash cost benefits of $30 million in 2016 and $45 million in 2017, after shutdown costs of $16 million and $25 million respectively.
The suspension will result in approximately 33 Iluka employees being made redundant, with the company flagging further job losses associated with contractors and support services.
After scaling back production at the mine in the past, in recent years Iluka has operated the mine at full capacity and stockpiled heavy mineral concentrate.
Iluka said it had 800,000 tonnes of concentrate inventory currently at the operation.
Citi analyst Clarke Wilkins said there was likely to be enough concentrate to maintain finished production (after processing in Western Australia or Victoria) through the shutdown.
"Including [Jacinth-Ambrosia] concentrate that has already been transported to WA we estimate that there is about 950,000 tonnes of heavy mineral concentrate??? that can be processed through the WA or Murray Basin dry plants to maintain finished production through the production shutdown," Mr Wilkins said.
"The other key decision we expect from Iluka in 2016 is whether to approve that Cataby mine development in WA that would allow the [synthetic rutile] kiln to run beyond the end of 2017. Balranald in the Murray Basin is the other major project pending approval, but given higher capex and the uncertain market, we expect this likely to be delayed until further trials are undertaken to lower mining costs from the higher strip ratio."
Zircon is used in the manufacture of ceramics, including floor and wall tiles.
The miner said it would advise the market of "expected physical and financial parameters for 2016" when it reports its full-year results on Friday.