A Tanzanian consortium has announced that it is to begin platinum mining in the country after tests showed strong potential for pgm finds.

The consortium - named Goldstream Mibango Platinum Project (MPP) - comprises Australian firm Goldstream Mining and British platinum giant Lonmin.

Goldstream's managing director George Kenway told The East African he had high hopes for the project, particularly with the support of a "heavyweight platinum producer" like Lonmin.

The deal marks the development of the country's first platinum mine, with production expected to be commenced within the next five years in Kigoma.

Sam Lwakatare, chairman of the Mibango Platinum Project said the next stage of the project development is scheduled to begin next month.

Lonmin entered into a joint venture agreement last summer to explore for platinum on the eastern shores of Lake Tanganyika.