The Chinese Fenxi Mining Industry Group Company that has won concession to mine coal in Kitui's Mui Basin operations is legal.
A letter from Mr Yang Wusheng deputy chairman of Fenxi Group to Ministry of Energy PS Patric Nyoike declared that the firm is a limited liability company incorporated in Shanxi province, China.
Kitui leaders including Water minister Mr Charity Kaluki Ngilu and Mutitu MP Kiema Kilonzo have cast doubt on the legality of the Chinese firm. The two have vowed to block the coal mining project. The leaders doubts were caused by a Mui Basin Blocks A and B community delegation led by Kiema that toured China in May. The delegation that was among four that have toured Chinese coal mines of late, reportedly established that Fenxi Mining Group does not appear to operate any mines.
However, an earlier delegation to China from Blocks C and D where the mining concession to Fenxi have been awarded, gave the firm a go ahead to mine the mineral. It was led by defense assistant minister Mr David Musila and included and Law Society of Kenya Chairman Mr Eric Mutua.
In a letter dated July 5th 2012 and titled, Clarification of certain inaccuracies and misinformation among other media reports, Fenxi's Mr Wusheng alludes to July 3rd 2012 Star report entitled China firm to mine KES 3.4 trillion coal does not exist.
He said that contrary to reports that Fenxi does not own any coal mines, the firm is a fully pledged mining company with a long history in coal operations. It has proven coal reserves are about 5.8 billion tonnes. Kenyan MPs have visited its mines in Taiyuan City, hundreds of miles from Beijing. In 2011, total production by the Company was approximately 30 million tonnes. We unreservedly confirm that Fenxi has the financial resources and technical capacity to unsuccessfully operate the Kenyan Mui Basin Blocks C and D concessions. The Wusheng as he dismissed claims that the company was non existent.
On doubts that the awarding of the coal mining concessions to Fenxi Group could have flouted the procurement procedures Mr Wusheng pointed that coal concessions were awarded to Fenxi through an international, competitive and transparent tendering process.
Further responding to claims by MP Kiema Kiema that his delegations was taken to mines belonging to XMC firm because Fenxi had none, Mr Wusheng avers that the two had a relationship. He further clarifying that Fenxi, Jingu group and other companies are all associated companies through elaborate shareholding structures which we are not at liberty to disclose.
Although Mr Wusheng admitted that the Kiema team was not taken to Fenxi coal mines, he dispels claims that Fenxi had conflicting physical address. He said that Kiema group was taken to existing Jingu and Fennxi offices at rooms 406-408, CYTS Plaza,5 Dougzhimen South street, Benjing.
Source - All Africa.com
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