Canada-based Semafo plans to develop a 130MW hydroelectric power plant in the bauxite-rich region of Boke, Guinea.
The $230m project will be located on the Cogon River, and will be independent from the company's Kiniero gold mine, located about 650km east of Conkary.
Electricity generated by the plant will be supplied to Compagnie des Bauxites de Guinee, a mining company owned by the Guinea Government and Halco Mining.
Power will also be supplied to the local villages and other miners in the area.
The International Finance Corp and Electricité de Guinée will provide funds for the hydro project.
Production is slated to commence by the end of 2012, with completion scheduled three years later, reports Bloomberg.