HomeEast AfricaDaewoo may invest US$300 million in Madagascar

Daewoo may invest US$300 million in Madagascar

Better known for
producing cars like
this, Daewoo plans to
invest in a coal
project in Madagascar
Seoul, South Korea — MININGREVIEW.COM — 04 September 2008 – South Korean trading company Daewoo International Corporation may invest about US$300 million (R2.25 billion) in a coal- fired power project in Madagascar – the company’s second electricity-generating venture in the country.

Making this announcement here, the South Korean company revealed that it might also develop a coal deposit and transmission facilities as part of the power project, and expand into electricity sales.

Bloomberg News reports that Daewoo International is part of a Korean group led by the state- run Korea Resources Corporation, which has a 27.5% stake – worth US$1.39 billion (R1-.5 billion) – in Madagascar’s Ambatovy nickel project. This is Korea’s biggest mining venture, and the company is building a US$180 million (R1.35 billion), 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 ,” Daewoo International said.

Daewoo International shares jumped 10% at the close of trade in Seoul, following the company announcement.

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