Chapter 316: It All Depends on You
The share transfer of Shazhai Molybdenum faced little resistance.
On one hand, Li Tang's intention to withdraw was very clear; on the other, both Tongdu Nonferrous Metals Group and Luoyi Molybdenum gladly accepted the shares Li Tang was selling.
Even though Xiao Yongyue and Liu Shanlong were not happy with this arrangement and also wished to compete for Li Tang's shares, Li Tang had already firmly decided to transfer his holdings exclusively to state-owned enterprises. As Li Tang himself pointed out, if Shazhai Molybdenum's shareholding structure ended up in a fragmented or evenly split scenario, developing the mining rights would become far more challenging.
Chen Aimin, upon hearing about the changes at Shazhai Molybdenum, specifically called Li Tang, praising him highly for this decision, calling him a "youth for the people and country," embodying the spirit of patriotism.
The valuation of Shazhai Molybdenum at two billion yuan was quickly accepted by Geng Feiran and Yu Yong. Upon reflection, they even felt they had gotten quite a bargain. Thus, they chose not to negotiate further, fearing it might anger Li Tang and risk derailing the deal.
The transaction process proceeded smoothly, as everyone involved was experienced in handling such matters.
Li Tang instructed Alice to stay behind to finalize the details, while he traveled directly to Haigang City.
Haigang Steel had already called multiple times, seemingly even more anxious than Li Tang himself about providing loans to Lianying Mining.
Fred, CEO of Lianying Mining, also arrived in Haigang at the same time.
Fred's face was still flushed, as if he'd just consumed half a bottle of liquor. However, when he met Li Tang this time, he didn't offer his customary enthusiastic embrace, appearing somewhat uneasy instead.
Recently, Lianying Mining had faced both good news and setbacks. Fred had frequently traveled to Huaxia and met with various steel companies, but this time was different—this was a meeting directly requested by Li Tang.
"Boss, the situation isn't serious; everything's under control," Fred nervously assumed Li Tang had summoned him to reprimand or even fire him. According to his employment agreement as CEO, if his actions caused significant financial harm to Lianying Mining, the board could terminate his contract without conditions.
Certainly, Fred could not hide the ten-million-AUD fine imposed by the Securities Investment Commission from Li Tang.
Back in Australia, public criticism was fierce. Analysts and commentators loudly demanded Fred's resignation, claiming he wasn't suited to lead Lianying Mining. Some shareholders even submitted formal complaints, requesting Fred's removal.
Fred himself wasn't overly concerned with public opinion, but he worried deeply that Li Tang might listen to external pressures and decide to make an example of him.
He had performed well at Lianying Mining, tirelessly working towards the valuable 10% stock option he'd been granted. At its peak, Lianying Mining's market value had soared past 8 billion AUD, though recently it had dipped slightly below that mark. Still, his stock options were worth hundreds of millions of Australian dollars.
Moreover, Fred knew better than anyone that if Lianying Mining succeeded in developing its mines and exporting iron ore to Huaxia, generating steady profits, its valuation could skyrocket to tens of billions.
He didn't want his journey to end prematurely.
"What's serious?" Li Tang asked casually.
"The ten-million-dollar fine—I don't see it as a bad thing," Fred argued defiantly. "I haven't done anything wrong. The Securities Investment Commission exaggerated minor issues to punish us. The information we released and my statements, judging by the outcomes, ultimately benefited us."
"Hmm," Li Tang replied noncommittally.
"External rumors and accusations are all malicious. People don't know the reality; they're just following the herd or influenced by biased media."
"Rumors can indeed be frightening," Li Tang sighed.
"If you believe the outside criticism and decide to fire me," Fred said bravely, standing upright with a flushed face filled with righteousness, "then I must admit I misjudged you. It would show you're not the wise boss I thought you were, but a foolish one!"
Li Tang suddenly laughed aloud, opened his arms, and warmly embraced Fred. "My trust in you has never wavered."
"You didn't urgently summon me here to fire me?" Fred asked, puzzled. He thought he'd face termination or at least a reprimand.
"Why would I fire you?" Li Tang shrugged casually and waved his hand. "Let's head directly to Haigang Steel headquarters."
During the car ride, Fred sat beside Li Tang in the back seat, still puzzled about the young boss's intentions.
He tried to explain further, "I think our actions have upset certain people. Once our mine becomes operational, it could significantly disrupt global iron ore trade. Many competitors, especially giants like Litto and BHP, don't want us to succeed."
"You think it's sabotage from competitors?" Li Tang asked.
"Maybe not just them," Fred became certain the young man had no intention of firing him and felt Li Tang's trust genuinely.
Li Tang's openness and trust once again impressed him deeply.
"Who else might be against us?" Li Tang wondered aloud, unable to think of anyone else he'd personally offended.
"The government, whether at the state or federal level, isn't fully supportive of our proposed automated and intelligent mining model. Automating mining and transportation will significantly reduce dependence on human labor, thus eliminating numerous high-paying jobs."
Fred had consistently advocated for fully automated mining operations. "They expect our project to create thousands of well-paying jobs. Clearly, our direction contradicts their expectations."
"The ten-million-dollar fine from the commission—is it a warning?" Li Tang realized this possibility.
"Perhaps," Fred admitted. "The intelligent mining concept is my proposal; pushing it forward might've offended certain interests. Maybe that's why many voices demand my departure."
"Don't let criticism bother you," Li Tang advised. "Their priorities differ from ours."
Li Tang had always ignored external distractions, focusing solely on his objectives. He wasn't worried about Fred either; the CEO beside him had stronger resilience than most people.
When they arrived at Haigang Steel's headquarters, Chairman Lu Chenyi and key executives were already waiting at the entrance, a large welcoming banner prominently displayed.
"I heard you were in Huizhou Province. If I hadn't been swamped with work, I would've flown straight there to meet you," Lu Chenyi warmly greeted Li Tang, guiding him inside. "So, I heard you're selling Shazhai Molybdenum?"
"Yes, Chairman Lu, you're very well-informed," Li Tang replied politely.
"Such excellent mining rights, why sell them?"
"We couldn't get the mining permit approved," Li Tang admitted openly, as the matter had already been settled. "Plus, there are too many projects now, making it hard to handle everything."
"Your company has so many high-quality mining rights you can't even develop them all. It's like wasting treasures!" Lu Chenyi said enviously.
Lu Chenyi knew Li Tang's shares in Zhongcheng Mining had been continually diluted, clearly showing Li Tang wasn't deeply invested in the Tarego copper-gold project. Even an asset like Shazhai Molybdenum, the world's second-largest molybdenum reserve with excellent quality and mining conditions, didn't seem to catch Li Tang's interest.
It seemed obvious Li Tang was prioritizing iron ore. The soaring value of Lianying Mining validated Li Tang's judgment. With his shareholding, Li Tang's net worth exceeded two billion AUD, placing him among top-tier wealthy individuals.
"Haigang Steel's scale today is equally enviable, making great contributions to industry," Li Tang praised in return.
"You took over Lianying Mining not long ago, yet your market value has nearly caught up to our well-established Haigang Steel," Lu Chenyi laughed cheerfully. "Youthful vision, I suppose."
Li Tang cared less about the compliments and more about the loan mentioned earlier. "Chairman Lu, your willingness to provide us with loans makes me very happy. I'm counting on Haigang Steel to support us."
"Let's discuss the loan later. First, let's tour our Haigang Steel facilities," Lu Chenyi suggested.
They visited steel smelting plants, refining plants, processing facilities, and finally the bustling port. Giant cargo ships docked, machinery swiftly transferring iron ore powder from ships into warehouses. Trains loaded with ore moved steadily, their heavy cargo causing rails to creak as they departed.
Observing this orderly yet busy scene vividly demonstrated Haigang Steel's deep strength.
"We're the largest steel producer domestically," Lu Chenyi proudly stated, overlooking the busy docks. "We have complete industrial chains and strong sales channels, particularly automotive steel—more than half domestically comes from us."
"Truly impressive!" Li Tang was deeply impressed by this formidable national enterprise.
"We possess an almost perfect industrial chain, yet lack one critical element," Lu Chenyi turned to Li Tang meaningfully. "Seeing you, I see hope. You can help complete this missing link."
"I know Haigang Steel has domestic mining projects already," Li Tang replied, somewhat puzzled. "You've even started production."
"Those are minor efforts, insufficient for our massive demand," Lu Chenyi explained, pointing at mountains of iron ore powder at the port. "We import tens of millions of tons annually, possibly over a hundred million tons from a single company in the future. We need more stable, high-quality iron ore sources."
"We've already signed a supply contract for twenty million tons annually," Li Tang noted, curious about Lu's intention. "Do you want to expand our partnership?"
"Certainly, if your production capacity allows it," Lu smiled. "I heard you discovered a two-billion-ton high-grade iron ore deposit in Guinea?"
"Yes," Li Tang confirmed.
"Can that project be developed similarly to your Australian mines?" Lu asked directly.
"Quality-wise, Guinea's iron ore surpasses our Pilbara mines," Li Tang sighed deeply. "However, Guinea's political instability makes large-scale investment impractical."
One sentence explained everything clearly.
Constructing a massive mining operation requires billions in upfront investments, long-term stability, and predictable governance—precisely what Guinea lacked.
"Political uncertainty indeed makes it challenging," Lu agreed.
"Besides instability, Simandou is far inland, needing a 650-kilometer railway and a deep-water port. Initial investments are enormous," Li Tang honestly stated.
"Your Australian projects were also costly," Lu persisted optimistically.
"No," Li Tang corrected, "they're entirely different."
Li Tang spoke from the heart: "Political stability is critical for mining operations!"
Currently, not many domestic mining enterprises had ventured abroad, and most were still at an exploratory stage. They hadn't experienced enough setbacks yet, thus lacked genuine caution.
However, as someone who could foresee future trends, Li Tang clearly knew which mining projects were viable and which would inevitably encounter insurmountable difficulties.
"I initially thought we might jointly explore and develop the Simandou iron mine, but after hearing your analysis, it does seem extremely risky," Lu Chenyi said thoughtfully.
Lu had extensive overseas travel experience, but he still lacked practical knowledge regarding the construction and operation of foreign mines. In front of Li Tang, he was humble enough to seek advice openly.
"I haven't fully decided how to develop the Simandou iron mine yet," Li Tang admitted. Despite knowing the substantial risks involved, he had decisively acquired the exploration rights and invested heavily in exploration because opportunities were fleeting.
The moment when Litto's exploration rights expired was the only window to seize those rights. Missing it would mean permanently losing this precious opportunity.
In his memories, during the fierce competition over Simandou's mining rights, Salty Sea Valley had invested nearly 2.5 billion USD only to secure less than half of the mining rights in blocks three and four.
Similarly, Chalco Group, the evolved entity of Huaxia Aluminum Corporation, spent over one billion USD to obtain only 40% of mining rights for blocks one and two.
Such facts clearly demonstrated how attractive Simandou—a mine of extraordinary high grade and quality—was in reality.
Despite Guinea's political instability, companies willingly poured immense sums into the project, akin to moths flying into flames.
Li Tang's idea was straightforward: seize the mining rights first and decide later how to proceed.
"Since you've explained it that way, I trust your judgment completely," Lu Chenyi said, finally calming down after initially feeling strongly tempted by Simandou.
"Guinea was formerly a French colony, deeply influenced by Western powers. If we enter hastily, we'll inevitably be ostracized, especially since President Conté still maintains complex ties with Western corporations. Let's wait and observe for now; your analysis is sound."
Clearly, Lu Chenyi had consulted industry experts whose opinions aligned with Li Tang's assessment.
"Chairman Lu, was the main reason you invited me over today to discuss the Simandou iron mine?"
Having spoken so bluntly, Li Tang suddenly wondered if he had perhaps overstated things. Was Lu Chenyi originally considering investing in Simandou as a condition for providing a loan to Lianying Mining?
"That's one matter, but there's another important thing," Lu Chenyi said, pointing to someone beside him. "This is Qu Yong'an from Haigang Steel's Exploration Department; he deeply admires you."
Qu Yong'an had already prepared a cigarette and lighter, ready to courteously offer Li Tang a smoke as a gesture of respect. "Mr. Li, your reputation precedes you! In the field of geological exploration, you're practically a god!"
"I wouldn't exaggerate like that," Li Tang gently declined the cigarette, though his attitude remained friendly. "Minister Qu, do you want to collaborate?"
"If you could give us some guidance, it would truly bless our efforts!" Qu Yong'an humbly requested.
"If we have the chance, I'd be happy to discuss technical matters—I'm essentially a geologist myself," Li Tang replied modestly.
"Forget about future chances; let's finalize it now!" Lu Chenyi boldly interjected. "Since the Simandou project seems problematic, let's find another domestic project instead!"
"What do you mean?" Li Tang was slightly confused.
"We've recently invested significant resources into domestic exploration and partnered with geological teams across various provinces to identify iron ore deposits," Lu Chenyi explained.
Qu Yong'an spoke with embarrassment, "Our exploration has been slow-going. We discovered a sizable deposit in Inner Mongolia, but the ore quality isn't ideal. As you know, domestic iron ore generally has low purity, many impurities, and poses challenges for smelting. Finding even a deposit exceeding a hundred million tons of high-grade ore is challenging—let alone billions of tons!"
"Minister Qu, don't feel too ashamed. Exploration is inherently difficult," Li Tang said understandingly.
Lu Chenyi patted Li Tang's shoulder affectionately, "When you have time, please guide Minister Qu."
Li Tang silently thought he wouldn't have much spare time, but politely replied, "If I have the chance, certainly."
"No need to wait—let's formally cooperate on iron ore exploration in China now!" Lu Chenyi eagerly declared. "You've discovered numerous domestic mineral deposits, such as Shazhai Molybdenum, Qulong Copper, and Qinglong Copper mines. You even personally led exploration in Australia. You understand China's geological conditions and have expertise in iron ore exploration methods."
Li Tang hesitated.
The mining industry had recently entered a prosperous period, with commodity prices surging. Nearly every company had ramped up investments.
While in Guinea, Frando had invited him to collaborate on copper exploration in Congo. Earlier, Li Xingchao had sought his assistance to locate coal mines for Shenxia Group. Now, Lu Chenyi was representing Haigang Steel to propose an iron ore exploration collaboration.
Li Tang's success in geological exploration over recent years was evident. Each of his discoveries stood out significantly, naturally attracting cooperation proposals. This demonstrated widespread recognition of his capabilities.
Nevertheless, Li Tang was feeling stretched thin already.
Lu Chenyi, sensing his hesitation, placed a tempting offer on the table: "If you help us identify domestic iron ore deposits, I'll guarantee a loan to your Lianying Mining!"
He knew Li Tang's current biggest headache was precisely funding Lianying Mining, which desperately needed capital.
Such a condition directly addressed Li Tang's core concern.
"Honestly, Haigang Steel already committed to buying twenty million tons of iron ore annually from Lianying Mining. Given our cooperation and friendship, I feel obligated to help with exploration," Li Tang admitted sincerely.
He didn't mind helping, but he'd just promised assistance to Li Xingchao's coal exploration. After all, geological projects were long-term and required dedicated focus.
Before Li Tang could voice his reservations, Lu Chenyi decisively interrupted, "Then it's settled! Let's not worry about overseas exploration. Domestic projects are much easier logistically."
Domestic exploration would indeed pose fewer obstacles for Haigang Steel, given its considerable financial strength and influence.
Li Tang was still slightly hesitant but asked, "Which region are you planning to explore?"
Lu Chenyi turned to Qu Yong'an, "Minister Qu, please explain."
"We've initiated multiple projects nationwide, but only Inner Mongolia yielded any noteworthy discovery," Qu Yong'an apologized with embarrassment. "Frankly, if you're willing to help, we'll follow your guidance completely!"
In other words, they'd found nothing substantial on their own. They were placing all their hopes squarely on Li Tang's shoulders.
"For every 100 million tons of high-grade iron ore you help us discover, Haigang Steel will pay you 100 million yuan, plus an additional 10 million yuan for each extra 100 million tons found!"
Lu Chenyi's offer was generous, knowing Li Tang's wealth meant typical offers wouldn't move him easily.
Previously, Li Tang would've been overjoyed, but having experienced much already, he maintained his composure.
"You want me to start completely from scratch?" he sighed. "It'll be incredibly difficult."
"I'm fully confident in your abilities!" Lu Chenyi persuaded earnestly.
"It's truly challenging," Li Tang furrowed his brows.
"In addition to cash rewards, for each 100 million tons of ore discovered, I'll provide your Lianying Mining with a 300-million-yuan low-interest loan!" Lu Chenyi went all-out to attract Li Tang's cooperation. "If you find a billion-ton deposit, that's three billion yuan in low-interest loans, with no upper limit!"
"That's far too generous," Li Tang's frown gradually relaxed into a smile.
"An offer like this is exceptionally rare," Lu Chenyi pressed firmly.
"With Chairman Lu showing such sincerity, how could I refuse?" Li Tang happily agreed.
Although financially stable, Li Tang still required substantial funding for Lianying Mining. A substantial low-interest loan from Haigang Steel would significantly alleviate their pressing financial pressures and further solidify their cooperation.
To prevent Li Tang from changing his mind, Lu Chenyi promptly instructed his team to prepare the contract immediately.
From Haigang Steel's perspective, securing a billion-ton domestic iron ore deposit for merely three billion yuan was an outstanding bargain.
Within China, iron ore bases exceeding a billion tons were exceedingly rare and usually controlled by equally massive steel conglomerates. Purchasing such mines was impossible, even at triple the price.
The only realistic option was to discover and develop new mines independently. Given China's vast territory, finding a major new deposit was akin to searching for a needle in a haystack.
Only a geological prodigy like Li Tang offered hope for uncovering significant deposits. Before Li Tang discovered Qulong and Qinglong copper mines, nobody had imagined that world-class copper reserves existed domestically.
Li Tang formally signed the agreement with Haigang Steel, with project timelines at his discretion.
While Li Tang and Haigang Steel finalized their partnership, Fred visited private steel plants nearby, especially in Jiangnan Province, to secure further supply contracts.
Yet, when he reunited with Li Tang later in Haigang, Fred brought troubling news: "Many steel companies that previously showed great interest suddenly reversed their attitudes!"
Li Tang, comfortably staying at the luxurious hotel provided by Haigang Steel, noticed Fred's anxious demeanor and grew concerned.
"What happened?"
"Something serious is happening!" Fred exclaimed urgently.
"Slow down—what exactly happened?" Li Tang grew cautious.
Fred anxiously explained, "At least twenty steel companies previously agreed to sign supply contracts. We hadn't finalized due to their reluctance on prepayments. But suddenly, they're refusing to meet, even terminating existing agreements!"
"Terminating contracts?" Li Tang felt a looming crisis.
Fred urgently emphasized, "This isn't isolated or coincidental!"
Li Tang, now deeply alert, said decisively, "We need to investigate immediately what's behind these sudden changes."
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