Fenxi has joined forces with local company Great Lakes to form Fenxi Mui Mining.
The joint venture hopes to start mining by 2016.
The concession agreement for coal exploration area C and D in Mui Basin, eastern Kenya, was signed in 2010 by the Ministry of Energy, Ministry of Mining, National Treasury and Kitui County Government, among others.
The ministry of energy advised that 2010 testing revealed two areas in Kitui country, 180km from Nairobi had potential for 400million tonnes of coal.
Fenxi Mui has contracted Nairobi-based Nortken International to undertake an environmental assessment for areas C and D for approval by the National Environment Management Authority.
The company, together with the government will carry out a feasibility study of the facilities required to support mining operations, while land will be acquired from locals residing in coal-rich areas.
