New Horizon Capital, one of China’s largest private investment funds, may invest $ 200 million in Russia’s Noion-Tologoiskoye zinc and lead deposit near the lake Baikal, a source close to the negotiations said.

“The deal implies investments in the development of the Russian deposit with the participation of an experienced Chinese mining operator Baojin its branch is already investing in the project and the participation of a large international co-investor New Horizon Capital,” the source said.

Baikalruda, owned by Chinese mining company Baojin, has already invested around $100 million in the construction of an ore dressing plant located near the deposit.

The plant with an annual capacity of 500,000 tonnes of ore will be launched in 2014. The company plans to raise the capacity to 3 million tonnes per year, which requires $200 million in investment. The works will start in 2016.