Chapter 298: Your Business is Our Business
"Prioritizing iron ore supply for the spot market makes sense. As soon as the ore reaches the docks, buyers snap it up immediately. There's zero concern about selling it. With a spot price of $40 per ton versus our long-term contract price of $32 per ton, if I were in management, I'd prioritize spot sales too. This is probably Lituo's decision—after all, the money from spot sales goes straight into their pockets."
Ji Lianghan explained his perspective based on what he'd observed firsthand. "It's not just Lituo. BHP Billiton and Hamersley have been doing the same, though Lituo is by far the worst offender."
Zhu Youxin nodded gravely. "That complicates matters."
"Even if the spot market is booming, steel enterprises all have long-term agreements with Lituo. They can't completely abandon contracted deliveries without breaching agreements. But for the iron ore shipped under these contracts, who gets priority is entirely at Lituo's discretion."
Ji Lianghan lowered his voice, whispering confidentially, "A friend of mine suggested we maintain a good relationship with Hu Shitan. He controls the dispatch of iron ore shipments. Once ore leaves the Australian coast, which steel mills receive the ore first is basically up to him alone."
Hualing Steel urgently needed contracted iron ore shipments; without them, their steel production lines faced imminent shutdown, halting their operations.
And they weren't alone—other steel mills were equally desperate. Orders were piling up, some booked years in advance. A shortage of raw materials could trigger severe economic repercussions.
"What exactly do you mean?" Zhu sensed trouble from Ji's tone.
Ji rubbed his thumb and forefinger together, mimicking the universal gesture for counting money. The implication was clear.
"We're a state-owned enterprise, though. This puts us in a difficult spot," Zhu muttered, conflicted and uncomfortable.
"Many private steel enterprises have flexible access to funds. We're at a disadvantage there," Ji acknowledged, understanding Zhu's reservations. For a large state-owned enterprise like Hualing Steel, bribing someone like Hu Shitan would be a serious violation. Moreover, lowering themselves to curry favor with such a person was beneath their dignity.
After some contemplation, Zhu asked, "It's been three days. Hu Shitan promised us a response. Any news yet?"
"Hu had one of his subordinates call me. They said they're currently arranging our iron ore shipment, and it should arrive at our docks very soon," Ji reported honestly.
"Do you trust him?" Zhu had become wary of Hu Shitan's promises.
Naturally, they wouldn't openly question him, since ongoing cooperation with Lituo remained crucial.
"I think he's telling the truth this time. We approached him directly; if he fails again, we'll escalate to Lituo's global headquarters, which wouldn't look good for him either."
"Fine. Let's wait and see," Zhu conceded, lacking a better option.
"Should we book tickets back to Sanxiang Province?" Ji asked.
"No. Let's stop by Yanjing first," Zhu instructed.
"Yanjing?" Ji didn't follow Zhu's logic.
"Remember the news reports from a while back? There was a Chinese enterprise acquiring an iron ore mining company in southern Australia, reportedly starting a 2-billion Australian dollar project."
Zhu was acutely aware that relying solely on the three big mining giants put their steel industry in a vulnerable position. It was time to seek new iron ore suppliers. If a Chinese enterprise could meet their demands—both in quality and quantity—it was definitely worth exploring.
"You're referring to Litang Shengshi Holdings' acquisition in the Pilbara region. But there's been little news lately," Ji said. He'd carefully tracked changes among suppliers. "Some experts doubt the prospects of Lianying Mining. Despite the hype, they're relatively small, low on funds. Many suspect the entire project is merely aimed at inflating stock prices."
"Is that so?" Zhu tended not to trust these so-called expert analyses blindly; he preferred seeing things firsthand.
"Lianying Mining might become an iron ore supplier eventually, but they have a long way to go before extracting and exporting their first ton of ore," Ji explained. "Litang Shengshi Holdings primarily handles early-stage exploration, with little experience in actual mining operations. As a privately owned startup, they lack substantial funds."
"Yet I've heard their name repeatedly," Zhu commented thoughtfully.
"They're indeed outstanding in mineral exploration, credited with discovering several significant ore deposits," Ji agreed.
"In that case, let's pay a visit to this unique company—and the entrepreneur behind it," Zhu decided firmly.
As Zhu and Ji reached the Yunding Tower, Li Tang and his team, including Lei Pingjin, had just landed in Yanjing after traveling from Guinea via France.
"Translate the geological documents from Nimba as soon as possible," Li instructed Lei Pingjin and the others upon arriving at their spacious 19th-floor technical department office. "If we're short on manpower, hire additional translators immediately."
"I can handle the translations, but many technicians don't know French," Lei replied, eager to expedite the process.
"Fine. You supervise translation accuracy—technical terminology is tricky for non-experts," Li agreed.
Having just visited Simandou in Guinea, Li had acquired a solid preliminary understanding of the region's geology and taken numerous photographs. But as the year-end approached, he didn't stay long.
With over a hundred technicians, his company had secured the Grade B Solid Mineral Exploration qualification, along with supervisory certification. Despite this, he still felt short-handed.
Several teams were occupied: some with He Runqi conducting iron ore explorations in Australia; others with Qin Jianshe developing the Taleguo Copper-Gold project; and more handling the application processes for the Shazhai molybdenum mine and Gongcun copper-gold deposit.
That left very few available for Guinea's iron ore project. Hiring additional experts was necessary. Li immediately considered approaching Team 101 of the Qianzhou Provincial Geological Bureau. They'd collaborated before, and he intended to discuss the Guinea project with them in detail.
After all, working in Africa involved numerous risks; he needed to confirm their willingness to participate.
"President Li, you have visitors from Hualing Steel in Sanxiang Province," Dai Yingchi personally informed Li Tang.
"Hualing Steel?" Li asked, puzzled. "What could they want?"
"No idea," Dai shrugged, equally clueless.
"Let's find out," Li headed upstairs, quickly meeting Zhu Youxin and Ji Lianghan.
"You're the famous Li Tang?" Zhu stared at Li, slightly astonished by his youth.
"I am Li Tang. Not sure about being famous, though." Li smiled, ushering them into his office. "Please, take a seat."
Dai Yingchi quietly brewed tea for the visitors, pouring each person a cup.
"I didn't expect you to be so young," Zhu said, glancing around the office. "Your company's employees are all youthful and energetic."
"Our company is quite new, lacking the profound history and depth of Hualing Steel," Li modestly replied, curiously regarding his guests. "President Zhu, to what do I owe the pleasure?"
Introductions had already been exchanged; Li knew Zhu was Hualing Steel's general manager. Such a prominent industry figure visiting him personally was indeed flattering.
"I heard your company acquired an iron ore firm in Australia, currently engaged in intensive mine construction. Is that true?" Zhu asked straightforwardly.
"Interested in cooperation?" Li immediately perked up, fully alert. He knew very well that Lianying Mining desperately needed investors or financial backers for railway and port infrastructure. Securing advance contracts from domestic steel companies alone would significantly propel their project forward.
According to the historical timeline he knew, Hualing Steel would eventually spend over a billion dollars on foreign iron ore investments. If Hualing Steel became their second-largest shareholder, it would immensely strengthen Lianying Mining's prospects.
Of course, history had already changed. Hualing Steel had arrived much earlier than expected, at a time when iron ore prices weren't yet critically high.
"Absolutely!" Zhu affirmed firmly. "How is your mine construction progressing?"
"We'll publicly invite bids soon to select suitable contractors. Next year, we'll officially start building the mining camp, purchasing equipment, and constructing a power plant," Li confidently responded.
"I heard you were actively seeking funds recently. Have you solved your financing issues?"
"Partially solved. We now have initial funding to kick-start the project, but there's still a significant shortfall," Li openly admitted, clearly signaling to Hualing Steel that additional capital contributions were welcome.
Zhu nodded thoughtfully. For a state-owned giant like Hualing Steel, investing in Lianying Mining required careful consideration and thorough due diligence.
"When can your iron ore production actually begin?" Ji interjected, clearly more interested in direct ore supply contracts than investments.
"We aim to start production officially in 2005," Li reiterated Lianying Mining's plans confidently. "We've secured a transportation agreement with Lituo. Once operational, transporting ore to China will face no obstacles."
"Yes, I heard about that agreement," Ji acknowledged, familiar with Lianying Mining's developments.
"The goal of Lianying Mining isn't just iron ore extraction. We aim to build a complete supply chain," Li passionately outlined, pointing at the detailed construction plans. "We'll construct a 200-kilometer heavy-duty railway to transport ore continuously to our port. Here," he indicated clearly on the map, "is our planned port, designed to accommodate at least eight berths, each capable of docking ships up to 200,000 tons."
Zhu and Ji examined the plans intently, deeply impressed by the ambitious scope.
"Our initial goal is 55 million tons annually. Eventually, we could scale up beyond 100 million tons per year," Li continued enthusiastically. "Our vision is to supply continuous, affordable iron ore to boost our nation's industrial growth!"
His vision was genuinely inspiring. Zhu was visibly moved. Historically cheap ore had dampened interest in securing upstream resources. But now, as iron ore prices surged, controlling upstream production had become crucial for competitiveness.
While Zhu silently pondered, Ji chuckled gently, clarifying their immediate concern. "Actually, our visit today was mainly to discuss sourcing your ore. But hearing production won't begin until 2005, that's still a bit too far for our immediate needs."
"The iron ore supply will become even tighter in the future." Li Tang chuckled gently and reminded, "Those who don't plan far ahead will inevitably have trouble nearby."
"You're absolutely right!" Zhu Youxin suddenly raised a thumb, clearly impressed. Li Tang's words had struck precisely the right chord in his heart.
"You can invest by becoming a shareholder, purchasing our bonds, or signing iron ore supply contracts in advance. If you sign contracts now, there'll definitely be price advantages, and once the mine begins operations, your company will have priority in iron ore supply!"
Li Tang was keen on establishing cooperation with Hualing Steel. Such an arrangement would indeed usher in a new chapter for Lianying Mining. Even without direct investment, if Hualing Steel signed an iron ore supply agreement in advance, it would undoubtedly be a tremendous boost of confidence for the capital markets.
Zhu Youxin agreed with Li Tang's suggestion but refrained from showing immediate enthusiasm. Calmly, he replied, "We'll seriously consider your proposal."
"If you decide to cooperate with us, feel free to contact me anytime. I'll then arrange a meeting with the CEO of Lianying Mining." Li Tang wasn't in a rush. Quality speaks for itself. With the continued increase in iron ore prices, he wasn't worried about people overlooking Lianying Mining.
"Alright, we'll stay in touch." Zhu Youxin didn't linger, soon taking his leave but bringing along a copy of Lianying Mining's development plan.
Li Tang could only wait patiently, biding his time.
"How's the project in Africa going?" Dai Yingchi inquired.
"We obtained half of the exploration rights, so it's acceptable." Li Tang had spent considerable time in Guinea. "Has there been any major issue in the company lately?"
"The year's ending, and our HR department is busy evaluating employee performances from the past year for bonus distribution. Honestly, most of our staff performed exceptionally well." Dai Yingchi implied that Yang Kaile's case was just an isolated incident.
"Hmm, another year has passed." Li Tang sighed at how swiftly time had flown. "Tell He Runqi to bring his team back soon; it's almost Chinese New Year."
"Understood." Dai Yingchi glanced around at the several tea cups left uncleared on Li Tang's desk. "You're always traveling, without anyone taking care of your daily necessities. Our HR department staff even help tidy your office occasionally. Perhaps during our next recruitment, we should hire one or two suitable secretaries for you?"
"What do you mean by suitable?" Li Tang laughed.
Dai Yingchi chuckled as well, explaining, "I'll screen candidates and let you conduct the final interview."
Li Tang observed his spacious but somewhat disorganized office. Indeed, a secretary would be helpful—someone who could book flights, organize documents, and schedule meetings. It wasn't appropriate for HR to handle all these minor details indefinitely.
"You handle this then," Li Tang nodded, again delegating the secretarial tasks to HR. "And by the way, book some flights; we need to head over to Qianzhou Province."
After Lei Pingjin organized the Nimba iron ore data and their field reconnaissance notes, Li Tang flew to Zhucheng, Qianzhou Province, accompanied by Lei Pingjin.
Geological Team 101 remained unchanged.
Zhou Zhenxing, slightly hunched, had just stepped out of Li Zaiqiang's office, not noticing the visitors who had entered.
"Captain Zhou!" Li Tang called out.
Turning around, Zhou Zhenxing was overjoyed upon seeing Li Tang. "Li Tang! When did you return?"
"I just landed and came directly here." Li Tang approached him warmly. "Is my dad here?"
"He's in the office going over project data." Zhou Zhenxing enthusiastically grabbed Li Tang's arm, heading towards Li Zaiqiang's office. "It's been so long since you visited!"
The Chief Engineer's office was modest, with walls showing obvious signs of wear.
Hearing footsteps, Li Zaiqiang first noticed Zhou Zhenxing and asked curiously, "Captain Zhou, is there something else unclear?"
But soon after, he noticed Li Tang and the others following behind Zhou.
"Chief Engineer Li, look who's here!" Zhou laughed heartily.
Surprised, Li Zaiqiang quickly put down his pen upon seeing his son. "You're off work early this year?"
"Not yet. I have something important to discuss with you." Li Tang motioned to Lei Pingjin, who handed over the documents. "Our company secured an iron ore exploration project in Guinea, Africa. We need a geological team to carry out the fieldwork."
"Earlier this year, I heard you went to America searching for iron ore. How come you're now running to Africa?" Zhou Zhenxing asked in astonishment.
"We found a promising project and went to take a look." Li Tang casually took a wooden stool and sat down.
"You mean the Pebble Project, right? You sold it for 330 million USD!" Zhou raised his thumb appreciatively. "You're truly impressive, making money both domestically and overseas. When news of your success reached us, Director Han couldn't stop praising you, calling you a real pride of Qianzhou Province!"
"You've heard already?" Li Tang hadn't realized that news had reached this far.
"Of course!" Zhou spoke enthusiastically. "I even read in the local evening newspaper that you're officially the richest man in our Qianzhou Province now! 330 million USD—that's over 2 billion RMB! Excluding your other businesses, just this alone makes you a big tycoon!"
"Not that rich," Li Tang humbly waved off the praise.
"This data isn't very detailed." Li Zaiqiang swiftly browsed the provided documents, quickly finishing them due to their brevity.
"So, how is it?" Zhou took the documents from Li Zaiqiang's hands, glancing over them himself.
"This is your own investment?" Li Zaiqiang asked Li Tang.
"Yes. The plan is to invest 50 million USD for exploration," Li Tang affirmed.
"We don't know much about Africa's geology. And there are serious concerns regarding safety and health conditions when traveling abroad," Li Zaiqiang expressed his apprehension.
"Take your time to consider. If it doesn't seem suitable, I can hire another geological team," Li Tang didn't insist.
Zhou Zhenxing, engrossed in reading, suddenly lifted his head seriously. "You shouldn't say that! No matter how difficult your project is, if you ask, we'll absolutely do it!"
Zhou quickly returned the documents to Li Zaiqiang and immediately picked up the phone on the desk, dialing urgently.
After speaking briefly, he hung up and turned back. "Director Han will arrive shortly!"
"It's not that urgent," Li Tang clarified, wanting to discuss willingness first.
"It absolutely is! Your issue is our top priority!" Zhou insisted earnestly. "Director Han heard you're here and immediately stopped whatever he was doing to rush here. He'll arrive within ten minutes!"
"I've troubled Director Han unnecessarily," Li Tang felt slightly embarrassed.
"Don't be so distant. Without your support, both Qianzhou Provincial Geological Bureau and our Team 101 would still be struggling!" Zhou recounted the projects Li Tang had brought them. "Qulong Copper, five million; Qinglong Copper, fifty million; Taleguo Copper-Gold project—just exploration fees alone totaled tens of millions! Not to mention our technical team still stationed in Yanjing, collaborating with Zhongcheng Mining, earning millions annually in technical consulting fees."
Zhou patted Li Tang's shoulder emotionally. "We remember all your kindness!"
Li Tang nodded modestly, changing the topic. "Are there many exploration projects lately in Qianzhou?"
"They've been gradually increasing. Unlike previous years, when we got no government funding and no mining companies invested—complete drought! Technicians were so desperate, many left for coastal cities doing odd jobs. Thanks to your projects, they've all returned. Every employee appreciates your generosity!"
Just then, Han Dexun rushed in breathlessly, eyes immediately brightening upon seeing Li Tang.
"Li Tang, you're here!"
"Director Han, I originally planned to visit you, yet you came instead." Li Tang noticed Han's slightly plumper face covered in sweat.
"You're the God of Wealth! How could we make you come visit me?" Han laughed openly, clasping Li Tang's hands. "It's been a long time! You seem much more mature now."
"I've experienced quite a lot recently," Li Tang admitted.
"The Pebble Project fetched 330 million USD?" Han asked eagerly.
"I just mentioned it!" Zhou interjected, "He's practically the richest man in Qianzhou now!"
"Not quite," Han replied candidly. "But certainly in the top three!"
"You're exaggerating," Li Tang laughed awkwardly.
Han pointed to Li Zaiqiang. "We joke that with his son's enormous wealth, Chief Engineer Li doesn't even need to work. Yet, no matter the project, he always works harder than anyone."
"That's definitely true!" Zhou agreed wholeheartedly.
"Director Han, please don't tease me," Li Zaiqiang remained modest, unaffected by Li Tang's success, genuinely passionate about geology.
Han nodded respectfully, turning back to Li Tang. "What exactly do you need from us?"
"There's a project in Guinea, Africa." Li Tang glanced briefly at his father. "I'm here to check your availability. If you're unavailable, I can also approach the China Geological Survey in Yanjing."
"Working conditions in Africa are challenging. My concern is our staff might struggle with the environment or fall ill," Li Zaiqiang worried genuinely, concerned about repercussions for Li Tang.
Han reassuringly patted Li Zaiqiang's hand. "Chief Li, you've already done plenty for us. Leave Africa to Captain Zhou and other team members. We'll handle it."
Zhou confidently stepped forward. "Absolutely! We have plenty of qualified personnel. Your business is our business—money or not, we'll complete this project for you!"
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