The discovery of huge graphite deposits by three companies in Tanzania will help the country diversify export earnings, making it one of the world's leading producers of the mineral.

Graphite could bring the country close to competing with China, the largest producer of the commodity in the world, with an output of 780,000 tonnes last year.

The volume of graphite discovered is yet to be revealed but Uranex (one of the three companies) plans to produce up to 100,000 tonnes by 2017. A second company, Kibaran, is expecting to produce 40,000 tonnes when production starts.

"If production begins for all the companies, we will become the biggest producer of graphite in the world as companies investing in Tanzania are preparing to sign lucrative deals with China," said the Commissioner for Minerals at the Ministry Of Energy and Minerals Paul Masanja.

Australian-based Kibaran Resources will invest over $77 million into graphite exploration in southeastern Tanzania.