Chapter 402: Victory or Defeat Hangs by a Thread
Seeing Lü Caiqing's enthusiastic gesture, Rong Yijian suddenly became intensely curious. "What exactly has Li Tang done that made you hold him in such high regard?"
Lai Xiangrong also found it puzzling.
He knew perfectly well that before this project, Lü Caiqing and Li Tang had never worked together or even met. The investment in Galuminium Group was their very first cooperation.
They hadn't met frequently, yet Lü had already become completely captivated by Li Tang's talent.
He was aware of Li Tang's brilliance, but wasn't Lü's admiration a bit exaggerated?
"What's going on with you?" Lai Xiangrong smiled curiously at Lü Caiqing. "What exactly did Li Tang do?"
"We've acquired the mining rights to Simandou Iron Ore!" Lü Caiqing's eyes gleamed with excitement, barely containing his exhilaration.
"Simandou Iron Ore mining rights?"
Rong Yijian was equally puzzled.
Lai Xiangrong certainly knew about the mining rights. "The Simandou mining rights already belonged to Li Tang. Previously, when Li Tang personally conducted exploration in Guinea, news of the discovery had indeed caused quite a stir in the mining industry, especially among iron ore and steel companies. But that was iron ore—what does it have to do with Galuminium Group now?"
"Originally, Li Tang only held mining rights to blocks No. 1 and No. 2 in the northern part of Simandou," Lü Caiqing reminded him.
"Oh, right, blocks No. 3 and No. 4 in the southern part of Simandou belonged to Lituo. Technically, all original mining rights of Simandou were under Lituo's control…" As Lai Xiangrong spoke, mentioning Lituo seemed to trigger realization. He abruptly looked up. "Did you just say Li Tang acquired all the Simandou mining rights?"
Lü Caiqing smiled broadly, nodding slightly.
"Impossible!" Lai Xiangrong understood how these international mining giants operated. Such global mining companies didn't lack capital at all, earning billions of dollars in net profit annually.
Even when conducting massive acquisitions like Galuminium Group's, involving nearly $38 billion in cash, they had ample financing channels, effortlessly raising sufficient capital.
They would never sell their core mining rights just for cash!
Mining rights represented the foundation of any mining enterprise!
Mining rights determined a mining enterprise's potential for growth and expansion!
Companies like Lituo, BHP, Saltwater Valley, and Eagle Magnesium Resources had, over recent years, scoured the globe for valuable mining assets. Whenever a valuable mineral resource appeared—no matter the price—they inevitably secured it.
Acquiring mining rights enriched their resource reserves, laying solid foundations for future expansion. Moreover, this practice also allowed them to maintain their monopolistic dominance in the mining industry!
Often, they acquired mining rights without any immediate plans to develop them or even without any intention to exploit the resources promptly.
Yet, these companies willingly spent astronomical amounts to prevent vital mining rights from falling into competitors' hands.
Companies from Huaxia, for example, were major rivals to these global mining giants. By controlling mining rights, they effectively controlled resource production volumes and held significant market influence, further enhancing their monopolistic dominance.
Possessing monopolistic dominance meant having the decisive voice in the market, translating into greater profits.
BHP, Lituo, and Saltwater Valley—the three giants of the iron ore industry—leveraged their dominant industry positions and vast financial resources, increasingly consolidating global iron ore resources into their hands.
Their ultimate goal was to shape the global iron ore market by their own rules, tolerating no disruption from outsiders.
Snatching mining rights from these corporations was akin to pulling teeth from a tiger's mouth—extremely challenging.
This might only happen if they needed substantial financing or required strategic downstream partnerships to open sales channels.
Some of these mining giants occasionally permitted Chinese companies to hold minor stakes in specific mines, but rarely significant ones.
Mining rights as substantial as those of Simandou, once fully operational, could produce 50 million to even 100 million tons annually!
Moreover, the quality and volume of reserves from Simandou would significantly impact the global iron ore market!
Bringing such a major mine into production would profoundly influence the entire industry!
Previously, Lituo had become infuriated when Li Tang cleverly snatched the exploration rights for part of Simandou from under their noses. They even formed a dedicated team to sue Li Tang and his company in international courts.
However, Li Tang's timing had been perfect—he intervened precisely when Lituo's exploration rights had just expired. According to Guinea's mining laws, Lituo had failed to invest the legally mandated funds into exploration activities over the years, constituting a breach of contract. Therefore, Guinea's government legally reclaimed the rights, rendering Lituo's lawsuit futile.
Since then, Lituo harbored deep resentment toward Li Tang, deliberately sabotaging him in several other projects.
Lai Xiangrong remembered vividly how Lituo's country manager in Huaxia, Hu Shitan, had been actively undermining Lianying Mining during its earlier crisis.
He knew well about the fierce rivalry between Li Tang and Lituo—not exactly life-and-death enemies, but definitely rivals who felt immense animosity whenever they met.
Therefore, hearing that Lituo had willingly relinquished the remaining Simandou mining rights to Li Tang felt surreal.
"Li Tang executed a brilliant strategy!"
Lü Caiqing briefly recounted the intricate battle between Li Tang and Lituo.
On the surface, it sounded simple: Li Tang leveraged his shares in Galuminium Group, threatening to use his decisive voting power against the merger, thus forcing Lituo into a concession.
But reflecting carefully, the stakes were enormously high!
Li Tang had risked nearly four billion USD as leverage!
Meanwhile, Lituo faced an agonizing decision—successfully acquiring Galuminium Group versus preserving their critical iron ore assets.
This wasn't a mere business negotiation—it was a psychological battle, testing who could bear greater mental pressure and who had stronger nerves.
"Li Tang truly has audacious courage!" Rong Yijian exclaimed, clearly astonished after hearing Lü Caiqing's detailed account.
Previously, his impression of Li Tang hadn't been particularly positive.
He viewed Li Tang as somewhat selfish and overly profit-driven.
Regarding the Xinuo magnetite project, Li Tang had twice advised him to proceed cautiously, implicitly discouraging him from investing. Rong Yijian had interpreted this as Li Tang fearing Huaxin Taifu's success could threaten his exclusive market position in Huaxia.
However, through this Galuminium Group investment, Rong had suddenly realized Li Tang's remarkable abilities.
Even Lai Xiangrong, nearing retirement but still deeply concerned about industry developments, remarked thoughtfully, "Gaining control over the entire Simandou iron ore mining rights provides an enormous boost for our domestic steel industry and overall economic development! Our economy desperately lacks mineral resources! Now, Simandou's development value has effectively doubled!"
Rong Yijian nodded firmly, highly appreciative of this achievement. "I'm sure our senior leaders will feel greatly encouraged upon hearing this news!"
Everyone in the industrial system deeply understood the frustration of being strangled by foreign mining corporations regarding mineral resources.
The government had already begun comprehensive planning, offering full-scale support to capable enterprises attempting to break through and reach industry origins overseas.
Yet despite significant determination, actual achievements had been disappointingly sparse. Few successful examples existed, let alone prominently displayed ones.
Only Li Tang had shown tangible progress over recent years, offering hope of breaking through the solid defenses established by the three iron ore giants.
Now, he'd secured yet another crucial mining asset!
"Caiqing, come with me to report this news immediately to the Chairman," Lai Xiangrong could no longer sit still, eager to share the significance of Simandou's acquisition with the Group's Chairman and ultimately deliver this joyous news to their senior government leaders.
…
Li Tang flew back to Huaxia first.
Transactions involving Lituo—such as the transfer of shares and cash associated with Galuminium Group—required some time and antitrust approvals from regulatory bodies in Galand and Magnesium.
Additionally, transferring Simandou's mining rights also needed more time.
Thus, Li Tang currently had little to do but wait.
Just after disembarking from the plane, Li Tang realized he'd been escorted through special channels within the airport to an unfamiliar area, significantly differing from his typical arrivals.
Only upon seeing Lai Xiangrong, Niu Fu, Lü Caiqing, and others, did Li Tang finally understand the situation clearly.
These heavyweight figures had come personally to receive him.
No wonder the airport had felt like he was being abducted and escorted like a criminal.
In addition to the many familiar faces, there were some unfamiliar ones, and they clearly appeared to be influential figures. The man standing in front of Chen Aimin had an extraordinary presence at first glance. These individuals had specifically come to welcome Li Tang's triumphant return, but more importantly, they were clearly eyeing the Simandou and Mali River iron ore mines under Li Tang's control.
After some casual conversations, Li Tang attended a welcoming banquet, where he met several new leaders and caught up with old friends.
Early the next morning, as usual, Li Tang arrived at the company to hold a morning meeting and listen to reports regarding various recent company activities and business operations. The morning meeting lasted the entire morning. Upon stepping out of the meeting room, Li Tang discovered Niu Fu waiting outside with Zhao Hepu, Qin Jianshe, and several others.
"Shall we have a casual lunch together?" Li Tang suggested, noting it was already noon.
"Sure," Niu Fu readily agreed.
"Jingjing, arrange lunch for us…"
Before Li Tang could finish his instructions, Niu Fu interrupted, "Just let's eat at your company's cafeteria downstairs. After years of eating at Wukuang Group's cafeteria, I find cafeteria food tastes more authentic."
"Mr. Niu, you're helping me save money!" Li Tang laughed heartily. Without further politeness, he led Niu Fu and the others down to the cafeteria.
Everyone had already met the night before, but due to the presence of some senior leaders, the conversations had remained rather superficial. Niu Fu's visit today was primarily to congratulate Li Tang. After all, Li Tang had truly shone brightly on the international capital market stage in Galand, demonstrating remarkable acumen in front of financial circles worldwide and showcasing the prowess of Huaxia entrepreneurs.
"When I first heard about your investment in Galuminium Group shares, I thought you were just fooling around with some spare money," Niu Fu commented. Despite his typically stern appearance, his face always softened into a gentle, elder-like expression whenever he met Li Tang.
"Initially, it really was just a bit of fooling around," Li Tang admitted earnestly, patting his chest to emphasize his sincerity. He originally intended just to make a quick buck. But Lituo's subsequent aggressive behavior thoroughly provoked him. Seizing the moment, he decided to teach Lituo an unforgettable lesson. Judging from the outcome, his goal had certainly been achieved.
Zhao Hepu appeared to have grown even larger physically, barely fitting into the armchair, with half of his body awkwardly suspended off the side. He showed immense enthusiasm for the cafeteria food, having already finished two large bowls of rice, and still seemed unsatisfied. Yet, when the conversation shifted to the Galuminium investment project, he reluctantly put down his chopsticks, wiped his oily mouth with a napkin, and laughed heartily, "Lately, every news outlet has been eagerly reporting about your big investment in Galuminium Group! You made such a dramatic entry into the international investment market, completely startling everyone back home. People thought you had gone mad!"
"It really was a bit impulsive," Li Tang wasn't being polite; rather, he was genuinely reflecting with lingering apprehension. In hindsight, if Lituo had stubbornly held its ground, the outcome would have been mutually destructive. Forget anything else—his own principal of 650 million USD, much of which had been borrowed, could have vanished entirely. Victory or defeat had hinged on a single thought! It had been far too risky. In the future, he would avoid taking such enormous risks that could destroy years of hard work in an instant.
"Now, many international economic analysts and financial giants have stepped forward, proactively dissecting your investment strategies," Qin Jianshe remarked. Qin looked somewhat thinner, his cheeks slightly sunken, yet his eyes remained sharp and spirited. He often ate at this cafeteria and had grown tired of its food. After a few bites, he stopped eating entirely. "You've really become famous overnight in the capital market!"
"How much profit did you actually make?" Niu Fu asked directly.
"I saw the news reports mentioning profits of 1.87 billion USD," Zhao Hepu eagerly interjected.
"Not that much," Li Tang clarified with a smile. "In total, we mobilized about 3.8 billion USD, most of it financed through loans, which incurred interest costs, plus commissions paid to Jiangda Securities. Altogether, costs approach 100 million USD. If Lituo's antitrust approval drags on, delaying the payment date, our loan interest will rise, possibly surpassing 100 million USD."
"Subtracting 100 million USD from 1.87 billion USD still leaves a huge sum!" Zhao Hepu shook his head incredulously, irritated by Li Tang's nitpicking. Earning over a billion dollars in half a year, yet Li Tang still wasn't satisfied? Wasn't this sheer greed?
"Money is nothing but an external possession," Li Tang shamelessly retorted.
"Mr. Niu, look at this brat, he's developed quite the attitude!" Zhao Hepu expressed disgust exaggeratedly.
Niu Fu chuckled warmly, asking Li Tang, "What's your next step?"
"For our Li Tang Prosperity Holdings, the most critical project this year is the development of the Mali River Iron Ore Mine. Thanks to Lituo's cooperation, we'll likely face fewer obstacles now. This year, we'll strive to complete all approval procedures, aiming to start mine construction next year."
"You've accumulated so much foreign exchange—are you just planning to sit on it?" Zhao Hepu couldn't help salivating at the thought of Li Tang's immense cash reserves. "Why not invest in our mining and metallurgy company? We're constructing a new smelter."
"Your business only earns tiny profits," Qin Jianshe, knowledgeable about the mining and metallurgy company's situation, interjected bluntly. "It's merely processing fees—very unstable. Li Tang, since you clearly have exceptional talent in investing, you shouldn't waste your abilities. Deepening your involvement in the capital markets is your best path!"
"Are you seriously considering doing finance and industrial business simultaneously?" Niu Fu reminded Li Tang gently, adopting an elder's tone. "Expanding your business scope that widely would keep you incredibly busy! Besides, others have seen how you handled Lituo. Anyone contemplating partnerships with you will certainly be wary."
The international financial community was widely discussing Li Tang's audacious investment in Galuminium Group, labeling him as a fearless and aggressive capitalist newcomer. Many prominent investors had already begun openly criticizing Li Tang, with some even organizing collective resistance.
Li Tang hadn't paid much attention to external opinions. Still, he had clear thoughts about his future plans and spoke openly: "My primary focus will undoubtedly remain in industry. Investing isn't truly my expertise. Honestly, handling Galuminium Group's stock recently left me mentally exhausted. I'll wait until Lituo's payment arrives before deciding my next projects."
"What about Simandou Iron Ore?" Niu Fu pressed further. Their purpose for visiting today was specifically to learn Li Tang's intentions directly. Wukuang Group had long been interested in iron ore ventures but lacked sizable mining rights to realize their ambitions.
"Regarding Simandou…" Li Tang paused thoughtfully, then clearly outlined his approach. "Our company already owns the rights to blocks No. 1 and No. 2 in the northern area. Now, we can also acquire rights to southern blocks No. 3 and No. 4 from Lituo. However, Hualu Group and Huaxin Taifu currently have stakes in blocks 3 and 4. I haven't fully negotiated with those two companies yet. If they're unwilling to contribute funds, I'll cover the entire transfer cost myself and secure 100% ownership before planning further steps. If they're interested in participating, we'll have detailed discussions."
Throughout his explanation, Li Tang notably omitted any mention of Wukuang Group. Evidently, Wukuang Group currently held no position in Li Tang's strategy for Simandou.
Niu Fu understood immediately but refrained from directly addressing it. He nodded lightly, remarking diplomatically, "This mining right is incredibly significant. If we successfully develop Simandou and increase annual output to over 100 million tons of high-quality iron ore, it will tremendously benefit our national mineral resource supply."
"It's challenging," Li Tang admitted realistically. "Guinea's political situation remains highly unstable. I've never been particularly optimistic about Simandou's development."
"The nationwide strike in Guinea has ended, and the current situation seems stable," Niu Fu argued gently.
"Still, many uncertainties remain," Li Tang responded, keenly aware that Guinea's internal conditions remained precarious.
Discussing Simandou suddenly reminded Li Tang that perhaps he should visit France soon, preparing proactively for potential future challenges.
Niu Fu said little more, only offering gentle encouragement, "You carry heavy responsibilities. Your journey ahead will be arduous!"
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