The South Korean company may also develop a coal deposit and transmission facilities as part of the power project, and expand into electricity sales, the Seoul-based company said today in an e-mailed statement.

Daewoo International Corp., a South Korean trading company, may invest about $300 million in a coal- fired power project in Madagascar, the company’s second electricity-generating venture in the country. The shares jumped.

Daewoo International is part of a Korean group led by state- run Korea Resources Corp. that has a 27.5 percent stake, worth $1.39 billion, in Madagascar’s Ambatovy nickel project, Korea’s biggest mining venture. The company is building a $180 million, 120-megawatt power plant to power the nickel mine.

“Based upon our experience from the Ambatovy project, we plan to expand into power production as well as plant projects linked to resources development projects,” Daewoo International said in the statement.

Daewoo International shares jumped 10 percent to 25,950 won at the close of trade in Seoul, after earlier rising as high as the 15 percent daily limit to 27,050 won. The stock, which has slumped 45 percent over the past three months, fell by the daily limit yesterday and on Sept. 1.

There were no specific reasons for sharp fluctuations in the stock price recently, the company said in a separate statement, responding to a request from Korea Exchange Inc. to clarify the causes of the price movements.

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