The company will own the facility in a 50-50 joint venture with China-based Yijian Group and the project is expected to cost more than RMB2.4bn ($350m).
Initially, the project will produce ten million metric tonnes of processed fuel per year, transforming low-grade brown coal into high-thermal value coal.
CoalTek CEO Chris Poirier said China has demonstrated its commitment to the very highest environmental and efficiency standards.
"We look forward to meeting those standards while delivering value on this project through the deployment of our unique and proven technology," Poirier said.
