Platinum miner Lonmin has announced it plans to invest $75 million in its Messina platinum mine in order to boost output.

The amount, which will be spent over the next ten years, will see production nearly doubled at the mine in South Africa.

After the decision was announced, shares at the firm increased by 2.4 per cent after trading on the Johannesburg Stock Exchange.

The increase will see production rise to 75,000 ounces a year by 2007 with considerable modernisation planned at the site.

A spokesman told Platts: "At a time when mining is going through difficult times in South Africa this deal may sound ambitious, but we see a lot of value in it.

"This is going to strengthen Lonmin's position in the world and put a lot of money into the pockets of hard working South Africans."

The move follows the recent announcement by the Competition Commission to approve Lonmin's takeover of the former Southern Platinum mine.