INTRODUCTIONMARKET INSIGHT LIMITED (MIL COAL) (1)

COAL MINES IN TANZANIA FOR SALE

Company Name: Market Insight Ltd (MILCOAL)
Leadership Structure:
- Mr. Mukudappa: Chairman
- Mr. Sagar: Managing Director (MD)
- Mr. Kiran Mukudappa: Executive Director (ED)
The ownership structure includes five shareholders, one of whom is a Tanzanian national holding a 7.5% equity stake. There is also a Russian shareholder who operates through a Chinese nominee, facilitating international investment and operational synergy.
Share Distribution: A significant majority of the shares are owned by Indian nationals, indicating a strong interest from Indian investors in the Tanzanian coal market.
Authorization: The Chairman and MD are given the authority to negotiate and finalize the sale of 100% of the mine's equity.

MILCOAL manages 8 interconnected coal mines, providing operational efficiency and logistical advantages. One of these mines has been operational since 2019, contributing to the company’s stable revenue stream. The mine possesses valid operational licenses extending until 2034.
Total Mining Area: The combined mining area spans approximately 45,000 acres, with coal deposits estimated at 3 billion metric tons (MT), revealing significant potential for long-term coal extraction and sales.

The coal deposits are reported to have high-quality standards, particularly noting a specific deposit of 55 million MT from the operational mine. This quality is key for buyer appeal, both in domestic markets and international export.
Currently, sales are evenly divided between domestic consumption and export markets, with notable recent shipments made to major industry-player Adani, thereby ensuring a robust sales pipeline.

All essential infrastructure and equipment necessary for mining operations—including maintenance and transportation facilities—are fully operational and maintained. This includes a state-of-the-art coal washing plant designed to enhance product quality before distribution.
The company prioritizes immediate sale efforts, with a target to finalize the transaction by January 2025.

The coal mining project is strategically located in the Madambasi area of the Mbinga and Ludewa districts in southern Tanzania, particularly within the Ngaka coal field. The site lies approximately 35 km north of Ruanda village and around 1100 km southwest of Dar es Salaam, which is the primary Tanzanian port for international trade.

The region's geology is characterized by Karoo sedimentary formations, which comprise sandstone, mudstone, shales, and rich coal deposits. This geological framework is critical, as coal deposits form in swampy conditions where organic material accumulates and undergoes natural processes over time.
The site is currently in the Greenfield exploration phase, having commenced diamond drilling in 2017 to advance geological understanding, revealing significant coal seams characterized by various thickness levels across multiple drill sites.

A total of three core holes have been drilled, successfully recovering significant thicknesses of coal seams:
- LDD 01: 10.37 m of coal
- LDD 02: 10.79 m of coal
- LDD 03, 06, 07: Notable significant intersections were also recorded.
The drilling phase extended from October 2017 to April 2018, providing foundational data to guide future project development phases.

A range of comprehensive geological investigation techniques have been employed, including:
- Geological Mapping: Conducted surface surveys and sampling across coal outcrops, including trench mapping and structural data interpretation for high-quality assessments.
- Geophysical Surveys: Utilized gravity, magnetic, and seismic methodologies to gain insights on subsurface formations.
- Remote Sensing Techniques: Active assessments using satellite imagery coupled with structural analytical methods to refine drilling protocols and identify promising coal structures.
- Sample Analysis: Coal samples from various geological horizons have been analyzed in laboratories located in Dodoma as well as in India, ensuring quality control and resource assessment.

The Karoo Formation features predominantly consists of Permian-age rocks, playing an essential role in the understanding of mineralization processes in the region.
The formation is stratified into lower sandstone and upper shale facies, presenting varied coal qualities which are essential for market analysis.
An examination of the lithological composition reveals a predominance of carbonaceous mudstones, shales, and conglomerates, which are significant in coal formation and mining.

Continued exploration efforts are necessary, particularly in the eastern and northern regions of the concession, to comprehensively define the resource potential.
A recommendation to engage in extensive core drilling will track the continuity of coal across the concession, crucial for accurate economic assessments and effective market positioning.
It is also advised to conduct detailed surface geological assessments in areas where promising coal outcrops have been identified to maximize the project’s overall value.