Chapter 299: Getting More and More Competitive
Li Tang certainly wouldn't let the geological team work for free.
Not only would he pay, but he intended to offer compensation far exceeding the domestic standard.
After all, working on overseas projects was both tougher and more dangerous.
Just like the Taleguo Copper-Gold Project in Mongolia, the technicians sent abroad not only received their basic salary—just over a thousand yuan per month—but also a daily overseas allowance of between 300 and 500 yuan, depending on their professional rank. This amounted to over 10,000 yuan monthly, a huge improvement compared to their usual earnings.
Those who went abroad indeed worked harder, but they also experienced the happiness brought by earning nearly ten times their normal salaries, dramatically improving their families' living standards.
Those without opportunities to work abroad were envious and often asked eagerly about future overseas projects.
Following Han Dexun's decision, the Qianzhou Geological Bureau swiftly signed a formal contract with Li Tang's Shengshi Holdings for the Simandou Iron Ore exploration project in Guinea.
Initially, Li Zaiqiang also wanted to participate personally, but Han Dexun and Zhou Zhenxing believed he had been working too hard these past years and insisted he take a rest. They appointed Pan Yuexing to lead the team instead.
Pan Yuexing, already head of Geological Institute at Team 101, typically led most projects except the largest ones, and thus had accumulated significant experience. This new African project, involving over a hundred million yuan, was a rare opportunity, and the leadership fully trusted him.
Seeing Pan Yuexing's eager expression, Li Tang reminded him, "The New Year is approaching, so there's no rush to set off immediately. Take this time to select your team, arrange the necessary paperwork, and draft a work plan. Although Guinea's technical standards and approvals are nearly nonexistent, we still need to hold ourselves to a higher standard."
"Based on the local geological data and the project's area you provided, I've already arranged for someone to prepare an initial work plan," Pan Yuexing replied carefully, aware of the pressure. "However, we lack geological maps for that region. Elevations and coordinates are also missing, so we'll need to start from scratch in the field."
"True, it's quite undeveloped over there, with primitive tribes and almost no geological work done previously."
"For now, our design plan can only be preliminary. It'll definitely require adjustments once we're on-site."
"That's fine," Li Tang understood.
In China, many areas had already undergone geological surveys during the 1950s and 1960s, providing valuable historical data. But in Africa, everything had to be done from scratch, significantly increasing the workload. Li Tang knew this very well.
"When should we leave after New Year?" Pan Yuexing asked, eager to add this impressive project to his professional résumé, boosting his future career prospects.
"On the seventh day after New Year. We'll meet up in Yanjing and then fly to Guinea," Li Tang set the schedule. Then he booked his flight and prepared to return immediately to Yanjing.
The villa Li Tang bought by the river in Zhucheng was renovated, but no one had moved in yet. His parents had moved from their small apartment provided by Team 101 to a new, comfortable home assigned by the Geological Bureau several years ago. With just the two of them, it felt warm and cozy. Moving into a spacious villa now would only feel empty.
They planned to save the villa by the river as Li Tang's future marital home.
When Li Tang arrived home, his mother, Tang Chuqiu, was busy cooking dinner in the kitchen. Hearing the door open, she stepped out, saw Li Tang and Li Zaiqiang walking in together, and greeted them warmly, "Finished work already?"
"We left early today," Li Zaiqiang replied, removing his shoes.
Li Tang, too lazy to change shoes, sank comfortably into the living room sofa, feeling relaxed and warm at home. "What's for dinner?"
"Dry pot beef, your favorite since childhood."
"Extra spicy, please!" Li Tang called out happily. He absolutely loved spicy food.
"I've already added half a pound of chili peppers!" Tang Chuqiu exclaimed, amused yet concerned. "I don't know why you're so fond of spicy food, even more than your dad and I."
Thinking about spicy food, she suddenly remembered something else. "Can Li Xinqi eat spicy food? If she can't, you should take care of her and eat lighter dishes more often."
When Li Tang first returned, his mother had repeatedly expressed disappointment that he hadn't brought Li Xinqi along. She understood once Li Tang explained that Li Xinqi still had work.
"She can eat some spicy food, but not too much," Li Tang replied.
"Eating too spicy isn't good for the stomach anyway. You should reduce it," Tang Chuqiu advised gently. She had met Li Xinqi before and liked the polite, well-mannered girl very much.
"Restaurant food outside usually isn't very spicy, so I always crave your cooking whenever I come home!" Li Tang laughed warmly.
Hearing this, Tang Chuqiu felt deeply satisfied. "Then stay home till New Year. I'll cook different dishes every day and fatten you up!"
"I haven't started vacation yet. Actually, after dinner, I have to catch a flight back to Yanjing. My colleagues are waiting," Li Tang admitted reluctantly.
"You're leaving again?" Tang Chuqiu frowned, worried. "I thought you'd stay home longer this time. You've been traveling so much, always between America and Australia…"
"Next year he's going to Africa," Li Zaiqiang interrupted. "He just signed a contract with Team 101 today."
"Africa?" Tang Chuqiu grew upset. "It's so far away, and there are diseases there. Why go to such a place?"
"There's a good project there. It's not as dangerous as you think," Li Tang reassured her gently.
Knowing she couldn't convince her son otherwise, she turned to her husband. "Are you going too?"
"I wanted to go, but Zhou and the others insisted I rest. Pan Yuexing will lead instead," Li Zaiqiang answered, comfortably turning on the TV. "Next year, I'll take it easy, just reviewing documents at work and leaving projects to younger colleagues."
This reassured Tang Chuqiu somewhat. The thought of staying alone all year was unbearable.
Holding a spatula and wearing her apron, she asked worriedly, "You're heading straight to Africa after returning to Yanjing? You won't even be home for the New Year? That's terrible!"
"No, I'll go after the New Year," Li Tang clarified, also unwilling to miss celebrating at home.
"That's good. Your Aunt called earlier, reminding us we promised to celebrate this year at her place. Your cousin is getting married soon," Tang Chuqiu mentioned thoughtfully. "It's been many years since you last visited her."
"They're in Sanxiang Province, right?"
"Yes, right near the provincial capital."
Suddenly, Li Zaiqiang chimed in from the TV side. "No matter how busy you are, you must come home early and help with the preparations. I'll drive us there with your grandparents. We'll all go together."
Sanxiang Province bordered Qianzhou, and the drive wouldn't take too long.
"I'll definitely come back early!" Li Tang promised. As the company's boss, he had flexibility over his schedule.
After a warm family dinner, Li Tang asked his father to drive him to the airport, where he met up with Lei Pingjin and others before flying back to Yanjing.
Although there wasn't much urgent business, he needed to handle year-end tasks: employee bonuses, annual summary meetings, and next year's work plan.
Meanwhile, He Runqi had returned from Pilbara with workers from his hometown. After sending them home on buses, he finally had time to meet Li Tang to report recent progress.
"The project at Hamersley Range, which we named Shura Iron Ore, has identified two main ore bodies totaling just over one billion tonnes. With further exploration, it could easily reach 1.1 billion tonnes," He Runqi said, handing over documents.
"The northern desert area, according to geophysical anomalies, has significant mining potential."
"Indeed, the northern alluvial areas are promising," Li Tang acknowledged.
"Follett says exploration is on hold until we have more funding. It's a pity; with adequate investment, we could easily identify two or three billion tonnes," He Runqi expressed regretfully.
"Follett's right; follow his plan," Li Tang said calmly. "Right now, Lianying Mining needs to focus capital on mine construction and ore extraction. We can continue exploration when iron ore sales generate enough cash flow."
"I completely agree," He Runqi nodded as usual.
"Did your hometown workers get paid properly?" Li Tang asked, concerned.
"Yes! They're ecstatic—earning ten times their usual income has transformed their lives. They're home now, enjoying their newfound prosperity," He Runqi proudly reported.
"That's good," Li Tang smiled with relief.
"Next year, they won't go abroad again, but they've saved enough to take time off comfortably," He Runqi concluded.
Li Tang arranged departmental responsibilities for the coming year and reviewed each team's annual summary. Based on HR assessments, bonuses were then distributed accordingly.
The company still had no profits this year, but the earnings from selling its shares in Shazhai Molybdenum were sufficient to keep operations running.
The recent arrival of fifty million yuan in cash was more than enough to pay the six or seven million yuan in year-end bonuses. Even if operating funds became insufficient later, they could always transfer more from their foreign currency accounts.
With the bonuses distributed, each employee received nearly double last year's amount, marking a satisfying end to their busy year.
Dai Yingchi organized a team-building event and group dinner before the holidays began.
Alice had also flown back from Perth, Australia. As chairwoman of Lianying Mining, her holiday schedule didn't align with China's Spring Festival.
"During the Spring Festival holiday, will you take a vacation to visit your father and sister in the U.S.?" Li Tang asked her.
They were alone in the office. Despite the informal setting, Alice maintained a professional demeanor, always meticulous in separating personal matters from work.
"I already visited home during Thanksgiving," she responded calmly.
"Oh, right—you don't celebrate Spring Festival."
"Here is this year's main financial summary for Lianying Mining. Please review it." She handed Li Tang a financial statement.
"Are there any significant issues?" Li Tang skimmed casually through the dense tables and numbers.
"So far, no major issues. Follett appears to be quite professional in managing the company," Alice replied confidently.
"Good," Li Tang trusted Alice's judgment and didn't probe too deeply.
She continued discussing company operations. "Thanks to Follett securing a 200-million Australian-dollar loan, the bidding process went smoothly. Mondi Engineering, recommended by the governor of Southern Australia, won the contract. Construction will likely begin soon."
"That's excellent news," Li Tang said, smiling.
"The international price of iron ore has soared continuously this past year, especially in China, where spot prices have surpassed 40 USD per ton." Alice looked at Li Tang with her piercing blue eyes. "Your predictions were accurate. The iron ore market is truly booming—this is a great opportunity for Lianying Mining!"
"I never doubted it," Li Tang replied confidently. "It'll only get better."
"Due to improved market sentiment, mining companies have become increasingly attractive to investors. After our recent stock split, our share price rose from 10 cents per share to over 30 cents. The company's market value now exceeds 400 million Australian dollars." Alice watched Li Tang's reaction carefully.
They had acquired this company for just 2,000 dollars, raised another 100 million dollars during a round of financing, and now its growth was substantial and genuine.
Alice admired Li Tang not only for his geological expertise but also for his strategic investment foresight. He entered the iron ore market at its lowest point, seizing the ideal moment to invest.
Yet Li Tang appeared unimpressed, even slightly dissatisfied. "Only 400 million dollars? Let's wait until it's worth 40 billion. The company still has a long way to go."
Alice was somewhat skeptical. "If we announced today that we wanted to sell the company, it could easily fetch double the valuation—at least 800 million dollars! Investors are becoming increasingly optimistic about the iron ore market."
"I wouldn't sell it even for 8 billion dollars," Li Tang firmly declared.
Iron ore, this wild beast, had barely begun to show its strength. Only once prices surged above 100 USD per ton would its true value become apparent.
After a lengthy afternoon discussion, Alice quickly returned to Perth by plane. Although China was entering its holiday, Lianying Mining operations required her constant attention.
Back at the Cloudtop Building, employees gradually left for their hometowns after the team-building event, especially those whose homes were far from Beijing.
Li Tang discussed holiday plans with Li Xinqi. As they weren't married yet, Li Xinqi wouldn't accompany him home for New Year but planned instead to travel abroad with her parents.
With this arranged, Li Tang brought the gifts Li Xinqi had prepared, boarded a plane, and returned to Zhucheng in Qianzhou Province.
His parents were busy packing, while Li Tang drove his father's SUV to pick up his grandparents from the countryside. They then set off together toward Sanxiang Province.
The father and son alternated driving, taking their time on the leisurely journey.
—
Sanxiang Province's capital city.
Hualing Steel's headquarters was located along the riverside.
Ji Lianghan rushed anxiously into General Manager Zhu Youxin's office, looking utterly frustrated. "President Zhu, procuring iron ore has become impossible!"
Even with the holidays approaching, they were busier than ever. The company had already decided internally that employees would get only half a day off for New Year's Eve.
Work was exhausting, but emotional stress was even worse.
"What's the problem now?" Zhu asked urgently.
"I just spoke with Wu Yan."
"What did he say?" Seeing Ji's expression, Zhu sensed trouble.
"Last month when we visited Haigang, the spot price for iron ore was at 40 USD, equal to this year's contracted benchmark price. But just as the long-term contract took effect, spot prices began rising again!"
Ji Lianghan had initially thought if the spot and contract prices were equal, they could simply buy extra iron ore from the spot market, even if it meant paying extra storage fees. But when he contacted the three major iron ore giants, they had all increased their prices.
"What's the current spot price for standard 62% iron ore?" Zhu asked anxiously.
"Yesterday, the FOB price was 50 USD per ton; today, it's already risen to 50.5 USD," Ji groaned. "The price goes up every day! The iron ore market is becoming chaotic!"
As procurement manager, he would bear heavy responsibility if iron ore shortages halted production at their three major steel plants.
Buying quality ore cheaply had become almost impossible. Even the long-term contracts signed last year were frequently delayed. Plus, their company had recently increased production, boosting their demand significantly beyond their contracted volume. They had no choice but to buy extra ore on the spot market.
After visiting key domestic ports, Ji discovered the problem wasn't unique to Hualing Steel. Thousands of steel companies nationwide were scrambling for iron ore.
Even first-tier steelmakers like Haigang Steel and Shagang were struggling despite their long-term contracts. Smaller steel plants faced even greater hardship. Competition among steel companies had become increasingly fierce!
"Why such a drastic increase?" Zhu was surprised. They had assumed last year's rise to 40 USD merely anticipated the new contract price. Yet now, prices continued to climb far beyond expectations.
"At this rate, the spot price will likely keep rising," Ji warned, worried worse might come.
"Have the three major suppliers reduced supply, causing the shortage?" Zhu speculated.
"No," Ji shook his head firmly. "This year's iron ore shipments are significantly higher. All three suppliers have increased production. They're not withholding shipments."
"I see," Zhu contemplated deeply.
"Demand from Japan, South Korea, and Europe hasn't changed significantly, but our domestic imports have grown annually. Demand this year remains strong, but global production can't keep up. Our domestic steel plants competing fiercely for ore is driving up spot prices. Ships barely dock before ore is snapped up instantly," Ji sighed helplessly.
"The situation is critical," Zhu agreed, quickly calculating potential impacts.
Fixed steel order prices remained profitable, despite rising raw material costs reducing margins slightly.
"What should we do?" Ji asked anxiously.
"Contact the suppliers immediately. Whatever the cost, we must secure enough iron ore!" Zhu decisively ordered. "Whether long-term or spot price at 50.5 USD, we can't afford production stoppages."
"Understood!" Ji nodded and quickly exited.
Restless, Zhu paced around his office, finally stopping at the window. Through the transparent glass, he overlooked the majestic river flowing through the provincial capital. Across the river, high-rises were being constructed rapidly.
New buildings, bridges, and tunnels sprang up nationwide, each project consuming vast quantities of steel. Such robust infrastructure growth would continue unabated for at least the next five to ten years.
"The supply chain must be secured at the source!" Zhu lamented, frustrated that Sanxiang Province lacked iron ore resources and regretting his failure to acquire more mines when prices were lowest.
"One must always plan ahead…" Zhu murmured, recalling a conversation in Beijing with a young man.
—
Li Tang and his family had arrived in the Sanxiang provincial capital.
His aunt's home was located on the outskirts, where urban expansion was rapidly encroaching. New construction was visible just 500 meters away, causing locals to speculate when their land would be requisitioned.
His aunt ran a small shop from her two-story house, benefiting from nearby construction workers buying cigarettes and alcohol.
Red decorations and "double happiness" characters adorned the house, signaling the upcoming wedding.
"Li Tang's here! I knew you'd come!" Lin Feiming's family, who had arrived earlier, greeted them warmly.
Relatives inside chatting over sunflower seeds quickly came outside, warmly welcoming the arriving guests.
Inside, due to the chilly weather, a stove heated a blackened teapot boiling vigorously. Li Tang's aunt quickly poured tea and offered snacks, saying, "The bride's family will arrive soon to discuss wedding arrangements."
His aunt, Li Xiuqin, had three children. The eldest son and second daughter had married and had children already, whose laughter filled the house. Her youngest, Fan Heguang, 26, was marrying soon, and the wedding details were mainly arranged by their elders.
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