Chapter 301: Opening the Door to a New World
"President Zhu, you've truly offered us timely assistance!"
This was exactly the result Li Tang was hoping for!
It wasn't realistic at this moment to expect steel mills to come up with investments of tens of millions or even billions of dollars to acquire equity stakes. But it was feasible to sign a long-term supply contract in advance.
This was a good start.
Once they secured the first customer, more would inevitably follow.
"After all, your company is new. The key issue is whether your iron ore quality can remain consistent," Zhu Youxin still voiced his concerns.
Stable iron ore quality, with predictable grades and acceptable impurity levels, was fundamental. If the ore-processing level was subpar, impurities could significantly increase waste and severely reduce blast furnace lifespan, causing enormous losses.
"Rest assured, President Zhu. The quality of the iron ore at our Qiqie mine is excellent, and processing it is straightforward. Just give us a few days. The CEO of Winning Mining will soon come to visit with iron ore powder samples for your inspection," Li Tang replied confidently.
Li Tang had great confidence in the iron ore produced by his company.
In truth, iron ore production was considered among the simplest processes in the entire mining industry, especially in the Pilbara region of southern Australia, where iron ore grades were naturally high, simplifying the refining process.
In fact, several mines under mining giants like BHP Billiton and Rio Tinto in the area produced ores so pure they required virtually no additional processing, and could be sold directly from extraction.
The Qiqie iron ore mine typically had raw iron ore grades ranging from 40% to 50%, which needed processing to reduce impurities. After processing, the iron ore powder could reach a grade of about 58%, meeting the general standards of most domestic steel mills.
"I definitely trust your technical expertise!" Zhu Youxin said without further doubt. "Since the CEO of Winning Mining will come personally with ore samples, should we negotiate the contract with you or with the management of Winning Mining?"
He was more inclined to trust Li Tang, as he understood the management at Winning Mining consisted mainly of foreigners. Securing a deal directly with Li Tang would obviously be more reassuring.
"You can sign the contract with me directly. I'll hand it over to Winning Mining for implementation afterward. Although I'm not directly involved in daily management, my word still carries weight there," Li Tang assured him, showcasing his influence.
"So, what type of contract is Hualing Steel looking to sign with us?"
"We want a long-term and stable supply agreement. Most importantly, deliveries must strictly adhere to the contract, both in timing and quantity," Zhu Youxin emphasized. He then thought of his recent troubles and sighed, "To tell you the truth, we've recently had issues securing stable iron ore supplies. The three major iron ore giants prioritize supplying the spot market because prices are higher, making their profits greater. This, in my view, is a violation of the contractual spirit."
"Did they cut your contracted supply?" Li Tang asked curiously.
"They haven't completely cut supplies, but they often delay deliveries, seriously affecting our production schedules. If our inventory runs dry, we risk stopping production entirely."
"We'll take this lesson to heart," Li Tang acknowledged, realizing Zhu was subtly warning him against acting like the iron ore giants.
"To get straight to the point, Hualing Steel wants to sign a ten-year agreement with Winning Mining, for a supply of two million tons of iron ore annually. Can you handle that?"
"Two million tons per year? No problem!"
"Regarding pricing, what kind of discount can you offer us?" Zhu asked, obviously hoping for the lowest price possible.
"Our planned processing facility will produce iron ore powder with a 58% grade, slightly lower than the standard 62% price index," Li Tang considered briefly, then quickly came up with a proposal. "Since iron ore prices fluctuate every year, we can't set a fixed long-term price. How about this: we'll supply you at a discount of 15% off each year's benchmark long-term contract price."
This discount was partly due to the lower grade of iron ore planned by Winning Mining, which naturally warranted a slightly lower price. Additionally, Hualing Steel was signing the contract early, thus deserving a discount. A greater discount would put excessive financial pressure on Winning Mining.
"So, you mean 85% of the long-term benchmark price?" Zhu confirmed.
"Yes." Li Tang nodded. "Two million tons per year means twenty million tons over ten years. If you need more in the future, we can always increase the quantity."
"That sounds reasonable." Zhu felt satisfied. Considering the spot market was already significantly higher than the benchmark price, getting an additional 15% discount was substantial.
"Of course, this price is FOB—excluding freight, insurance, and port handling fees," Li Tang clarified, knowing that transportation costs varied greatly between steel mills.
"Can you make it an 80% discount?" Zhu laughed good-naturedly.
Li Tang smiled wryly. "Iron ore mining involves high upfront investments. Even with rising ore prices, our profit margins remain thin. If we gave you an 80% rate, we might lose money!"
"With better management and cost controls, larger discounts become possible," Zhu said knowingly.
"Eighty-five percent is already the maximum discount for early contracts. Only companies signing early agreements and providing advance payments can get this rate. All others will receive at most 90%," Li Tang firmly stated.
Though just a 5% difference, at a supply level of tens of millions of tons annually, the total financial impact would be enormous—potentially reaching hundreds of millions of dollars. For a startup like Winning Mining, such a discount posed significant risks. Li Tang trusted Fred and his management team's ability to gradually reduce costs, which gave him the confidence to offer such terms.
"Alright, then." Zhu smiled and accepted the proposal.
"Once we sign the contract, can you provide a $10 million advance payment?" Li Tang double-checked.
"If your ore's quality meets our blast furnace requirements, we'll sign a formal agreement and pay you a $10 million deposit without hesitation." Zhu didn't consider this sum problematic, as Hualing Steel's greatest need was stable iron ore supply rather than immediate cash.
"We'll bring ore samples for your technicians to test and verify," Li Tang assured.
"Great. We look forward to formalizing our cooperation!" Zhu cheerfully raised his teacup, proposing a toast, "Let's substitute tea for wine and drink to our partnership!"
"Thank you, President Zhu, for generously assisting Winning Mining at a critical juncture," Li Tang said sincerely, realizing the significance of this contract.
It was like opening the door to a brand-new world.
At least a small gap had appeared, allowing rays of hope to flood through.
"To be frank, the three iron ore giants hold too much power. They've monopolized the market," Zhu said honestly, placing high expectations on Winning Mining. "If a domestic company can produce iron ore and influence the market, it would benefit our entire steel industry. From the bottom of my heart, I wish your company rapid growth."
"We won't let you down!" Li Tang replied firmly, downing his tea in one go.
They didn't chat for long but quickly reached a preliminary agreement. The formalization depended on Winning Mining's ore quality passing Hualing Steel's tests. Once that occurred, Fred would finalize the contract. Hualing Steel promised to pay $10 million within thirty days of signing.
With the terms simple and straightforward, iron ore trade involved little technical complexity.
After their talk, Zhu instructed his driver to take Li Tang back to his relatives' home in the suburbs before returning to Hualing Steel's headquarters.
When Li Tang arrived, he found everyone gathered around a heater, munching sunflower seeds and chatting warmly.
"Who did you go out for tea with?" Lin Feiming asked casually as Li Tang joined them.
"Hualing Steel's representative," Li Tang replied, rubbing his cold hands and warming them near the stove. A cold snap had recently hit, and the weather was damp and freezing.
"Hualing Steel is a big company," his relatives immediately started gossiping excitedly. "A villager from the next town works there, earning over a thousand yuan monthly, with plenty of overtime pay. He even gets free rice and flour during holidays!"
"That kind of company requires good connections. Not just anyone can enter."
"Having a stable job like that can bless an entire family."
The extended family gathered around, enthusiastically discussing this topic endlessly.
Li Zaiqiang returned with several jewelry boxes containing gold and silver bracelets, necklaces, and earrings. He handed them to Li Xiuqin as part of the wedding gifts. "These are presents for the bride from our family."
"These look expensive! Did you just buy them?" Li Xiuqin asked, somewhat anxious about the expense.
"Yes, from a branded store in town. They're genuine."
"You bought so many. It must've cost a fortune," Li Xiuqin said worriedly.
"It wasn't much. It's appropriate for a family wedding," Li Zaiqiang reassured her, avoiding further talk about money. "The banquet venue is settled, next to the Tax Bureau. We've also arranged wedding cars, which will arrive tomorrow."
"Thank you so much. You've saved me a lot of worry," Li Xiuqin gratefully said. "The money I gave you earlier probably wasn't enough, right?"
"Don't worry," Li Zaiqiang reassured her, still carrying the cash untouched in his pocket. "We've got it covered."
Satisfied, he approached Li Tang and asked, "Are you sure about the wedding cars?"
"No worries," Li Tang replied confidently.
"What kind of cars did you get?" Li Zaiqiang asked curiously.
"I'm not sure exactly, but the cars definitely won't be bad."
"Then there shouldn't be any problems."
Li Zaiqiang had full trust in Li Tang. In his view, no one in their twenties could handle matters more reliably than his own son.
Early the next morning, Zhu Youxin's secretary indeed arrived with the wedding convoy. Twelve cars lined up, each worth at least four or five hundred thousand yuan, with five of them even exceeding a million yuan. To show special support, even Zhu Youxin's personal car was included.
They were clearly official vehicles—sleek and uniformly black.
"President Zhu said your matters are our matters. He personally gave instructions to dispatch all our group's best vehicles," the secretary explained, handing the keys for all twelve cars directly to Li Tang with a smile. "Each car has been filled with fuel. Once you're done, just let me know, and we'll come pick them up."
"How could we trouble you further? We'll return the cars ourselves," Li Tang responded politely, aware he couldn't casually impose on others.
"If you decide to return them yourselves, just park them directly in our group's headquarters parking lot." The secretary glanced at the villagers gathering around curiously and thoughtfully asked, "Do you have enough drivers? If you're short, I can leave behind some of our transport department drivers to help throughout the wedding."
"We have enough people; thank you, though." Li Tang politely declined, feeling uneasy about accepting such extensive assistance.
"Alright. If you need anything, just call me anytime. I'm available twenty-four-seven." The secretary waved goodbye and turned toward a business van parked behind. Besides the twelve sedans, they had also brought two business vans carrying the twelve drivers, who then got into their vehicles.
Li Xiuqin, unfamiliar with such a scene, stood bewildered.
Li Zaiqiang quickly grabbed some cash, stuffing two hundred yuan into each red envelope, then handed them one by one to the drivers as they boarded their vehicles. For a short trip that wasn't even far, the drivers happily accepted the unexpected bonus.
The gathered relatives, friends, and villagers stood astonished, eyes wide at the long line of luxury cars parked along the road. Local kids on school break gathered excitedly to watch.
Unaware of the actual situation, some villagers murmured curiously, "Did some important official come to inspect our village?"
Li Tang placed the keys on the table and explained amidst everyone's curious gazes, "The people from Hualing Steel Group kindly lent these cars to us for a few days. We'll return them after the wedding."
"These cars must be really expensive!" someone exclaimed doubtfully.
"The first few look like million-yuan luxury models. Look at those hood ornaments—only big bosses get to ride cars like that!"
"If anything happens, a tiny scratch could cost tens of thousands!"
Seeing everyone carefully keeping their distance, Li Tang reassured, "Just be cautious while driving. But you don't need to worry too much. All these cars have insurance. Even if something small happens, we won't be held responsible."
Then, slightly puzzled, he asked, "Do we actually have enough drivers in our village?"
"Yes! Plenty of folks here have driver's licenses," Fan Heguang eagerly responded, eyes glued to the cars, clearly mesmerized. He dreamed of owning a car, though never dared imagine owning such expensive models.
"In that case, arrange the drivers," Li Tang suggested, turning to Lin Feiming. "Cousin, you've got experience driving trucks. How about you handle this?"
"No problem!" Lin Feiming enthusiastically agreed.
Li Zaiqiang hadn't expected Li Tang to resolve the issue of wedding cars so quickly, greatly easing their preparations. Nevertheless, privately, he expressed some concerns, pulling Li Tang aside, "You asked others for help—this favor won't cause you trouble later, will it?"
"You've heard Auntie talk about Hualing Steel before. They're a renowned and reputable enterprise; no need to worry."
"If a small favor ends up costing you millions later, that's certainly not worthwhile." Li Zaiqiang knew Li Tang now ran substantial businesses.
"Relax," Li Tang assured confidently. "We're already in business with Hualing Steel, and this is just a small courtesy. In fact, they'll even attend the wedding to congratulate us."
"As long as you know what you're doing." Li Zaiqiang nodded, reassured by his son's words.
With all preparations completed, the wedding festivities kicked off amid joyful firecrackers. First, they went to the bride's home to fetch her personal belongings.
Early on the wedding day, the groom arrived at the bride's house with the impressive twelve-car convoy. Her family home bustled with excitement.
Handing out red envelopes, drinking celebratory drinks, jokingly breaking down doors to "seize" the bride... the procession unfolded like a playful siege, accompanied by laughter and clever negotiations. Eventually, the bride was successfully "captured."
Seeing the luxury car lineup, the bride's family felt incredibly honored. After a brief rest upon returning home, everyone set off for the restaurant venue to hold the ceremony.
The venue featured exquisite decorations, a grand wedding ceremony, and cheerful blessings from friends and relatives, making the day extraordinarily memorable.
Li Tang, in a formal suit as a groomsman, found himself caught up in the excitement. Although inside this youthful body dwelled a soul slightly weary with experience, such a joyous event would inevitably draw anyone into its festive spirit, filling their heart with boundless joy and happiness.
After the ceremony, Fan Heguang approached Li Tang with heartfelt gratitude, offering a drink enthusiastically, "Li Tang, when it's your turn to marry, we'll make it even grander. Our whole family will definitely come!"
"That's a promise—I'll remember who said that!" Li Tang laughed happily.
"When will you get married? Among us cousins, we all grew up together—but now only you remain unmarried!" Lin Feiming teased, joining the lively banter. "I've got two kids already. You really need to hurry!"
"Soon," Li Tang replied, chuckling.
"When that happens, we'll have another reason to celebrate," Fan Heguang exclaimed eagerly. Though he barely slept from excitement last night, he remained energetic. "After the wedding, let's go fishing! Our river has plenty of big fish."
"I'm an expert fisherman!" Lin Feiming boasted nostalgically. "Remember when we spent New Year's at Grandma and Grandpa's? I always caught the most fish, and you guys got to enjoy thanks to me!"
"Absolutely," Li Tang laughed, agreeing wholeheartedly.
"See, even Big Boss Li Tang agrees!" Lin Feiming said triumphantly.
As they chatted, the beautiful bride gracefully approached in her wedding dress, taking a seat beside Fan Heguang. Having finished greeting family after the ceremony, she finally joined them.
"This is my wife, Yan'er," Fan Heguang introduced proudly. "This is my cousin Li Tang, a big business owner based in Yanjing…"
"Not exactly a big boss—just doing my job," Li Tang said modestly, eager not to distance himself too much from the family. These last few days spent preparing and his role as groomsman had already brought everyone closer.
"They arranged the wedding cars and ceremony," Fan Heguang added gratefully.
"I never expected such a beautiful wedding," Yan'er said joyfully, eyes filled with gratitude. "Thank you all so much for everything."
When booking the venue earlier, Li Tang had specifically requested the restaurant arrange a special stage and emcee, spending an extra two thousand yuan. Clearly, it had been money well spent.
As they spoke, the bride's brother approached, gesturing toward the newlyweds, "The leaders from our tax bureau just arrived. You two come greet them with me."
"Let's all go together!" Lin Feiming eagerly called everyone to greet the important guests.
The tax bureau was nearby, and colleagues had arrived early. Only several key leaders, busy with official duties, arrived at the last minute.
"Director Liu, you're here!" the bride's brother warmly greeted. Although it was his sister's wedding, he felt immense pride seeing his bosses and colleagues attending.
"Congratulations!" Director Liu replied cheerfully.
"This way, please," the bride's brother courteously guided them.
As the bureau officials moved toward their seats, they spotted Zhu Youxin entering with his secretary and immediately greeted him enthusiastically, "President Zhu!"
Hualing Steel was one of the province's largest taxpayers, making interactions with the tax bureau frequent and familiar.
"Director Liu, here for the wedding too?" Zhu Youxin smiled, shaking hands warmly.
"Indeed! Are you related to the bride or groom?" Director Liu asked curiously.
"Groom's side," Zhu replied cheerfully.
"We're on the bride's side. It seems we're relatives now!" Director Liu laughed.
"Come, let's sit together," Zhu invited warmly, then noticed Li Tang nearby. "President Li, rare opportunity—join us for a toast later!"
"This gentleman is...?" Director Liu asked curiously.
"This is Li Tang, Chairman of Li Tang Shengshi Holdings," Zhu formally introduced. "His company is based in Yanjing, with global operations. He's a giant in the mining industry!"
Li Tang smiled modestly, "Today, I'm just a groomsman, responsible for welcoming everyone. Distinguished guests, please come in."
"We'll sit first, then!" Zhu chuckled. "Join us later for drinks!"
"Certainly!" Li Tang readily agreed, stepping aside as the bride's brother led Zhu and the bureau leaders inside, deeply impressed by Li Tang's prestigious connections.
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