Sinotech Minerals Exploration Co Ltd and Power Capital LLC announced on Thursday that they will establish a mining fund totaling 1 billion yuan ($161.9 million), which will seek opportunities among fast-growing small and medium-sized mines.

The first phase of funding is 500 million yuan, of which 100 million yuan will come from Sinotech Minerals.

The fund will have an eight-year investment horizon and a target internal rate of return of more than 30 percent.