Chapter 400: Indulging All Night
Alba, Richard, Wiggins, and others must have been nearby. Upon hearing that Li Tang had arrived early, they also couldn't sit still and hurried over.
There was no one else at the reception—just the senior executives from the three sides. None of them seemed interested in casual drinking or idle chatter. As soon as they entered, they walked directly towards each other.
"You arrived quite early today," Alba greeted Li Tang sarcastically. "Looks like you were eagerly awaiting our next meeting."
Clearly, Alba's remark about arriving early was sarcastic, referencing the fact that Li Tang had been late to the previous two official meetings.
"You also arrived quite early. Wasn't the reception supposed to start at nine o'clock?" Li Tang glanced at his watch; it was only eight-thirty. He hadn't eaten dinner yet, and although he was starving, he had no interest in the fruit and snacks nearby. However, he was extremely interested in Alba's intention behind holding tonight's reception.
"We've prepared cocktails, wines, champagne... I hope tonight we'll be able to open a bottle of champagne and celebrate together," Alba said, gesturing toward the selection of expensive wines displayed nearby.
"Celebrate what?" Li Tang asked.
"Our Rinto board of directors has agreed to your proposal. They believe that cooperating with you will significantly promote the global iron ore industry," Alba didn't conceal anything and spoke frankly. "You already hold exploration rights for Simandou's northern blocks 1 and 2, and have invested resources into exploration with some promising results. Since you've shown interest in blocks 3 and 4 in the southern area as well, we at Rinto are willing to fulfill your wishes by transferring these exploration rights to you!"
Rinto had compromised.
Clearly, to Rinto's board, successfully acquiring Gala Aluminum—elevating Rinto's aluminum division instantly to the top three globally—was far more critical.
By comparison, the exploration rights to Simandou, despite being incredibly attractive due to their potential reserves exceeding one billion tons of high-grade iron ore, required stable political conditions in Guinea, enormous investment, and possibly decades of continuous development to realize their value. When forced to choose between immediate benefits of the Gala acquisition and the distant future of Simandou, sacrificing the exploration rights was acceptable.
Of course, Rinto didn't want to give up anything, but judging from Li Tang's attitude, that wasn't feasible. Thus, they had made their choice.
Rinto already controlled multiple iron ore subsidiaries globally, including many iron ore claims in Africa. Even though Simandou was arguably the finest undeveloped iron ore deposit, Rinto still preferred to place their bet on aluminum. Successfully acquiring Gala Aluminum would raise Rinto's global stature immediately. If the aluminum business continued its rapid growth, Gala Aluminum's value appreciation in three to five years could significantly enhance Rinto's overall market valuation, potentially allowing it to surpass BHP and become the world's largest mining company.
That was Rinto's true ambition!
"You're sure you're transferring it to me?" Hearing the news, Li Tang momentarily couldn't believe it. After all, forcing Rinto to compromise wasn't easy. At this moment, he clenched his fists, a wave of excitement surging in his heart, ready to erupt at any moment. But since the objective hadn't been formally achieved yet, celebrating too soon wouldn't be appropriate. Additionally, showing excessive happiness in front of Alba and other Rinto executives would seem disrespectful.
If he could genuinely secure all exploration rights for Simandou from Rinto, this would undoubtedly become his sweetest-ever cooperation with Rinto.
It wasn't just Li Tang—Alice, Lü Caiqing, and others also felt immense excitement hearing Alba's straightforward agreement. However, it still wasn't the time to celebrate openly; they had to suppress their overwhelming joy.
Alba felt incredibly humiliated, but he had no choice. To complete the acquisition of Gala Aluminum, he had to bow down to Li Tang.
"If you're willing, tonight we can discuss in detail how to transfer exploration rights for Simandou's southern blocks 3 and 4," Alba suggested.
"Of course, I'm willing!" Li Tang smiled.
Among the four options he'd presented to Rinto—Hamori Iron Ore Company, Hope Iron Ore Project, Rinto's Gala Iron Ore subsidiary, and the Simandou exploration rights—Simandou's exploration rights arguably represented the smallest immediate practical value. Developing Simandou into an operational mine was still a challenging and distant prospect. It required substantial money, time, and effort, as well as diplomatic relations with the Guinean government and careful management of political risk.
Still, having it was better than having nothing. Decades from now, perhaps twenty or even thirty years later, if Guinea stabilized and became investment-friendly, this exploration right would become extraordinarily valuable.
At least for now, developing it in the short term was extremely difficult. It could be seen as a long-term investment for future generations.
"I assume you won't hesitate regarding this deal," Alba maintained a blank face, clearly feeling humiliated by this transaction. Handling this personally on behalf of the board, Alba wondered whether this would become an embarrassing stain on his legacy, possibly drawing future criticism.
Nevertheless, circumstances had forced his hand. He had to move forward strategically to minimize damage.
"In return, you must unconditionally approve our Rinto acquisition bid for Gala Aluminum!" Alba sternly reminded Li Tang.
"I've always supported Rinto's acquisition of Gala Aluminum! I think this deal not only makes mining history but will also spark revolutionary changes in the global aluminum industry!" Li Tang's mood lifted, causing his words to flow more positively. "As we say, it's a marriage made in heaven!"
Alba snorted softly, knowing full well Li Tang was a man who wouldn't yield until he saw concrete benefits. Alba wasn't interested in trading further words.
"Tomorrow is the final voting deadline. We don't have much time."
"Tomorrow, before the deadline, we'll cast our sacred approval vote!" Li Tang laughed heartily.
"Transferring the Simandou exploration rights to you isn't free," Alba reminded him. They'd organized this late-night reception specifically to quickly settle this matter face-to-face with Li Tang.
"We don't expect it for free," Li Tang chuckled. "Does Rinto have a price in mind for Simandou's southern blocks 3 and 4 exploration rights? Since not much exploration has been done yet, frankly speaking, an overly high price wouldn't be appropriate."
Not appropriate?
Alba wanted desperately to demand an exorbitant price and ruthlessly fleece him. Unfortunately, this wasn't the right time. If Li Tang became enraged again and directly opposed the acquisition tomorrow, they'd lose any chance of compromise!
"In fact, over the past two years, we've conducted some exploratory drilling within our license areas and made promising discoveries," Viduka intervened to explain. "We've drilled five holes that intersected ore, and the quality is excellent. Clearly, Simandou's multi-billion-ton high-grade inferred iron ore resource is steadily being confirmed."
"Yes, I never doubted Simandou's resource potential," Li Tang nodded, thoughtful. "Tell me your price. If it's reasonable, we won't have any further disagreements."
Time was limited, so Alba directly offered: "Eight hundred million magnesium dollars! All cash, with full payment completed within one month of signing the agreement!"
Without question, eight hundred million magnesium dollars was an astronomical figure!
However, considering Simandou's potential reserves exceeding two billion tons of premium-grade iron ore, this price wasn't unreasonable. Historically, in Li Tang's original timeline, just the northern blocks 1 and 2 of Simandou saw Saltwater Valley invest 2.5 billion magnesium dollars merely to secure a 40% stake, highlighting how dramatically iron ore values could increase in a heated market.
Still, to Li Tang personally, eight hundred million felt excessive. Wah Sin Taifu's Sino Iron Project was acquired for just four hundred million magnesium dollars, although its ore quality was inferior, increasing extraction costs. However, this price served as a reference.
He pointed to a young executive in his team: "He represents Wah Sin Taifu, who recently acquired Sino Iron Project in your own Western Australia."
"Yes, we completed that acquisition last year," the young executive confirmed promptly.
"The Sino Iron Project has reserves of two billion tons but sold for just four hundred million magnesium dollars!" Li Tang smiled towards Viduka. "We both conducted exploration work there, so neither of us can fool the other. We know Simandou's proven resources so far are around two billion tons, meaning your southern blocks 3 and 4 combined have about one billion tons. Comparatively, based on Sino Iron Project, that means these rights are worth around two hundred million magnesium dollars."
"Sino Iron can't compare to Simandou!" Viduka immediately objected. "Sino Iron's average ore grade is less than 40%, requiring complex crushing and beneficiation, significantly increasing costs. Simandou iron ore averages over 66%, and can almost directly feed blast furnaces!"
"But acquiring a mining right is all about future development. Besides technical data, you must consider actual investment conditions," Li Tang countered. "Sino Iron is in Western Australia—politically stable with excellent infrastructure. Look at Guinea: nationwide instability, inadequate infrastructure! We've all been there; just reaching the southern mining blocks requires a full day of driving on muddy roads!"
Li Tang also argued forcefully and quickly began bargaining: "Eight hundred million magnesium dollars is far too high."
"Seven hundred eighty million magnesium dollars," Alba responded quickly, making a minor concession.
In truth, the price the board had authorized Alba for the Simandou iron ore rights was much lower than eight hundred million. But as the negotiator, it was his duty to protect as much profit for Rinto as possible, hence his deliberately inflated starting price.
Hearing this figure, Li Tang couldn't help but laugh: "Mr. Alba, your generosity in offering a discount is indeed swift, but isn't the margin too small?"
"Then how much discount do you feel is appropriate?" Alba retorted.
"Considering Guinea's unstable situation, I'd say the Simandou southern mining rights realistically are worth about one hundred million magnesium dollars. I'll be generous and offer you one hundred fifty million!" Li Tang announced loudly.
Upon hearing this, Alba almost stormed out immediately. Yet, he knew he couldn't afford to lose his temper at this critical moment. Even though Li Tang's insatiable attitude irritated him immensely—so much so that he desperately wanted to punch him—he had to endure it.
"This is outright robbery!" Alba responded angrily, no longer bothering with politeness. "Once you obtain exploration rights for southern areas three and four of Simandou, together with your northern areas one and two, you'll have control over an enormous mining area, creating economies of scale in development. If you alone develop all four regions, you'll save at least half the infrastructure investment—that's easily two to three billion magnesium dollars!"
Alba wasn't exaggerating. If Rinto and Li Tang separately developed Simandou's northern and southern regions, they would each have to build railways and ports, effectively doubling the investment. But if only one company handled development, only a single railway and port would be necessary, significantly cutting costs. This was precisely why Alba had dared to initially demand eight hundred million magnesium dollars.
"The development of Simandou is still far off in the future; it's pointless to discuss infrastructure investment now." Li Tang couldn't argue logically here, so he diverted attention. "What we're discussing right now is the value of the mining rights themselves!"
Viduka sneered quietly from the sidelines. Clearly, Li Tang's statements were contradictory. Moments ago, he'd argued the investment environment in Simandou was terrible, but now he wanted to ignore that entirely and just focus on the rights themselves.
Alba chose not to waste time arguing about these technical or environmental details. Time was pressing.
"One hundred fifty million is far too low; our board would never accept it," Alba said. "If word gets out, other industry figures will think I'm an idiot or accuse me of betraying Rinto's interests and colluding with you!"
"Mr. Alba has dedicated himself wholeheartedly to Rinto. Your integrity is unquestionable—I can attest to that!" Li Tang flattered Alba on the surface, but he was unwilling to give in significantly on the actual price. "But your suggested price of seven hundred eighty million magnesium dollars is absurdly high."
The gap between one hundred fifty million and seven hundred eighty million was vast. In typical negotiations, such differences would undoubtedly lead to a stalemate. Without prolonged negotiation lasting weeks or even months, a deal would usually be impossible.
Yet, Rinto no longer had the luxury of waiting. Having already conceded the Simandou rights to secure Gala Aluminum, what more could they hold back?
"I won't waste time. I'll halve our initial asking price—four hundred million magnesium dollars!" Alba gritted his teeth and directly cut the price by half.
"Four hundred million?" Lü Caiqing muttered quietly. If it were his decision, he'd probably accept such an offer immediately. After all, premium rights like Simandou didn't come around often. Missing this chance could mean eternal regret if Rinto decided to withdraw their offer. Unfortunately, this was Li Tang's decision to make.
Li Tang secretly rejoiced. Clearly, Rinto's board hadn't placed too high a valuation on Simandou. With current iron ore prices hovering around eighty magnesium dollars per ton—historically quite high—future market forecasts showed prices nearly doubling again within a year. Thus, Li Tang believed Rinto could accept a lower immediate price.
"Two hundred million magnesium dollars," Li Tang counter-offered.
Alba's mouth twitched; his subsequent offers approached the board's minimum acceptable limit: "Three hundred eighty million magnesium dollars. That's my final price—any lower, and the deal is off!"
"Two hundred twenty million," Li Tang continued calmly.
"Three hundred seventy million!" Alba's voice sharpened decisively. "Our board won't approve anything less! I've reached the absolute limit of my negotiating authority!"
"Let's stop arguing," Li Tang had an idea and quickly suggested a compromise. "Let's meet in the middle at three hundred million magnesium dollars."
Seeing Alba about to erupt, Li Tang hurriedly explained, "Remember, when I sold you the Pebble Mine rights, I only asked for three hundred thirty million magnesium dollars! Pebble Mine is the world's largest undeveloped mineral deposit, containing over three thousand tons of gold alone! Realistically, three hundred million for half the Simandou rights is entirely reasonable!"
Alba's eyelids twitched uncontrollably. Mentioning Pebble Mine ignited his frustration. In addition to the three hundred thirty million magnesium dollars paid to Li Tang and the costly iron ore transportation agreement, Rinto had invested several hundred million more in exploration and regulatory approvals, especially for lobbying and negotiating within Alaska. Yet, the Pebble Mine faced intense opposition from local indigenous groups, leading to frequent protests and severe project stagnation. Hundreds of millions were potentially wasted!
So far, every project involving Li Tang had ended poorly for Rinto. Initially, Pebble Mine had seemed like an incredible bargain, but now it was struggling immensely. The acquisition of Gala Aluminum had likewise been hijacked by Li Tang. Unfortunately, Rinto had no effective countermeasures besides swallowing their grievances.
Three hundred million magnesium dollars was precisely the minimum bottom line given by the board for Simandou's southern rights. Alba hadn't managed to preserve even a small additional profit for Rinto.
"Let's sign immediately," Alba said anxiously, checking the time.
"Fantastic!" Li Tang laughed heartily, warmly shaking Alba's hand with both of his.
"Alongside signing the Simandou deal, you must also sign a written commitment guaranteeing you'll unconditionally support our Gala Aluminum acquisition vote," Alba added sternly.
"I'll gladly do so!" Li Tang laughed joyfully, motioning his legal team to quickly draft both documents alongside Rinto's lawyers. The Simandou transaction required agreement from multiple parties, including Guinean governmental approval, so it would take significant time to finalize. For now, however, they could confirm a binding legal agreement preventing any backtracking.
While the lawyers were finalizing details, Alba made one more condition: "Gala Aluminum has business in Huaxia, so our acquisition needs approval from Huaxia's antitrust regulators. I expect you to fully cooperate without conditions in that review process."
"I can't control official investigations," Li Tang clarified, then promised, "but wherever I can assist, I promise unconditional cooperation."
This reassurance slightly comforted Alba, as it meant Huaxia was unlikely to obstruct an acquisition beneficial to a major domestic enterprise acquiring Simandou rights cheaply.
After signing the documents, it was past midnight. The reception's wines, fruits, and snacks remained untouched. Even when the venue was cleaned afterward, everything was exactly as originally arranged.
"We did it!" Alice couldn't contain her excitement any longer, loudly cheering once inside their vehicle.
Besides the driver, the only other passenger was Gao Jingjing in the front passenger seat, equally exhilarated. "Joining Li Tang Holdings has given me such intense business experiences so quickly! These unforgettable moments will stay with me forever..."
She spoke passionately but received no response from her boss. Thinking she'd said something inappropriate, she glanced back, only to realize she'd misunderstood. Instead, she witnessed a scene she shouldn't have.
In the back seat, Li Tang and Alice were passionately embracing and merging into one another. Their wildness was shockingly intense.
Indeed, this victory warranted uninhibited celebration.
But wasn't this celebration method overly bold? Didn't her boss already have a girlfriend?
Finally, Li Tang gently pushed Alice away, wiped his moist lips, and instructed Gao Jingjing, "First, head to a restaurant. After everyone's eaten, we'll go to a bar. Tonight, our entire team celebrates all night long!"
"Celebrate!" Alice shouted joyfully, completely uninhibited now. Li Tang knew this woman would only become more audacious from here on. But once this path was taken, there was no turning back.
Still, amidst the excitement, Li Tang remained rational and reminded everyone, "Although we'll celebrate all night, remember we still have unfinished work. Don't forget tomorrow's shareholder vote for Gala Aluminum."
"I won't forget!" Alice flipped her golden hair back, gazing at Li Tang seductively with her deep blue eyes. "Tonight, we'll celebrate this victory passionately, indulging all night long!"
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