Material Empire

Half of Heizi's words were taught by Qin Hai before he came to Russia, and the other half came from his own perception. His father, Fu Wenbin, was the director of the Pingyuan Iron and Steel Plant. After the steel plant closed down, Fu Wenbin was depressed for a long time. Later, when he heard that Qin Hai had taken over the Pingyuan Iron and Steel Plant, Fu Wenbin was so happy that he talked about it for many days. From his father's performance, Heizi could understand the old man's feelings for the career he had been engaged in. He believed that to unlock the hearts of Ge Geqi Keli and others, he must start from this angle.

Sure enough, after hearing Heizi's words, the elders were silent for a while. Ggechkoli tapped the table lightly with his fingers, groaning silently; Chudakov poured Erguotou into his mouth silently; Wagner and Abegyan mechanically picked peanuts on the table and poured them into their mouths deliver. The atmosphere at the wine table was a little depressing for a while, which made Seryozha feel a little uncomfortable.

"Mine Manager Ge Ge Chi Koli, do you think these words of Mr. Fu from China make sense? Whether it will be successful or not, you all have to say something?" Seryozha urged impatiently.

Don't look at Seryozha who has become the governor now, but there are not many cities. Elections require the ability to fool around. Whoever speaks more suspensefully is more likely to be elected. Seryozha was elected based on his stupid personality, and he is really not good at the current kind of work that requires brains to do persuasion.

"Mr. Fu, do you really plan to mine this iron mine, not just to seal it up?" Gegchikori didn't answer Sergey's question, but asked Heizi.

"Seal it up?" Heizi was a little taken aback, "Why did we seal it up?"

Gege Chikoli said: "Some time ago, several Japanese brought by Governor Tsereteli also said that they wanted to buy iron ore. But the purpose of their purchase was not to mine it, but to seal it up , and then exploit it in a few decades. To be precise, they want to take advantage of Russia’s current economic difficulties to occupy all these resources, which is unacceptable to us.”

"Why don't they mine now?" Xie Qijin asked.

Chudakov finally put down the wine bottle and said, "Isn't the reason obvious? The Dubiago iron ore is mainly composed of siderite, with a part of limonite, and the ore grade is only 30%. The grade of iron ore purchased by companies from Brazil and Australia can reach more than 60%. Most steelmakers in Japan cannot use ore from Dubiago iron ore, so they do not intend to mine this iron ore.”

"Chudakov turned out to be the deputy chief engineer of our iron mine." Ggechkoli gave an introduction to everyone in order to explain why Chudakov knew about these situations.

"But, if they don't plan to mine it, why did they buy it?" Xie Qijin was still a little confused.

This question was answered by Wagner. He said: "This is because the Japanese want to focus on the long-term. They bought this mine and sealed it up. Once there is a new breakthrough in technology or there is a problem with the international supply of iron ore , they can unseal the mine at any time.”

"After all, the price of our mine is too cheap. Even if they buy it and seal it up, they won't have much loss." Abedjiyan added in a displeased tone.

"Can I ask, what is your price for this iron ore?" Heizi asked.

The four old men all turned their attention to Sergey. Sergey was a little flustered, and he said falteringly: "Iron ore is a resource in Chita State, so the price is determined by the state council, and I am just an executor. At that time, China My friend hasn’t come yet, and there is only one buyer in Japan, so the price may indeed be a little lower.”

"So, how much is it?" Heizi asked.

Seryozha said: "At that time, the purchase price of the state assembly newspaper was 80 million U.S. dollars. The Japanese felt that the price was a bit high and said that they could only pay 50 million U.S. dollars. However, the price has not been negotiated yet. This matter was rejected."

"80 million US dollars is not too low." Heizi seemed to be talking to himself.

"What did he say?" Seeing that Xie Qijin did not translate Heizi's words, Chudakov asked Xie Qijin.

"Oh, he said that 80 million US dollars is not too low." Xie Qijin said.

"This is a large mine with a theoretical reserve of 1 billion tons." Chudakov said, but his tone was not too strong, because as a mining engineer, he also knew the existence of the Dubiago iron mine. Defects.

"The grade of Dubiago iron ore is too low, and the ore has high phosphorus content, which is not conducive to smelting. In addition, the mining area is located in an alpine region, so it is very difficult to mine. The price of such an iron ore is 80 million US dollars. Low." Heizi said calmly.

The purpose of their trip was to win the Dubiago Iron Mine. How could it be possible that Heizi hadn't done relevant homework beforehand. Obtaining the mining rights of this iron ore is only the first step in iron ore mining. The next step requires a lot of infrastructure construction, and the investment may reach hundreds of millions of dollars. Song Hongxuan organized mining experts to conduct calculations using second-hand data. It is estimated that after the Dubiago Iron Mine is put into production, the mining cost per ton of iron ore will be as high as more than 40 US dollars. Including transportation costs, the price will even increase by 70% compared with imports from Brazil. The ore is more expensive. It can be said that the acquisition and development of the Dubiago iron mine is not economically cost-effective at all, which also determines that the mining rights of the Dubiago iron mine cannot be sold at a higher price.

However, the development cost is about to be extremely high, so Qin Hai still intends to take this iron mine into his pocket and carry out preliminary development. Its purpose is only one, and that is to break Vale's blockade and force Vale to bow its head.

From the perspective of Vale, they believe that China is carrying out large-scale infrastructure construction, so the demand for steel is rigid and cannot be reduced, which in turn determines that the import of iron ore is necessary. Vale holds the lifeblood of China's iron ore supply, and can raise prices as much as it wants, regardless of what the Chinese think.

Of course, iron ore is not only produced in Brazil and Australia in this world. Africa, South Asia, the Far East and other places are rich in iron ore, and China itself has a lot of iron ore. However, the mining cost of all these iron ores is very high. Rationally speaking, instead of mining these iron ores, it is better to accept Vale's price increase request.

Vale also made such calculations before it dared to offer a 70% price increase. In their view, even if the price has been increased by 70%, they still have a price advantage, and there is no need to worry that Chinese steel companies will not accept it.

However, they never imagined that their negotiating opponent was someone who was never willing to be coerced by others. Qin Hai is convinced that Vale and BHP Billiton also have their own sore feet, and they are not fearless. As long as Chinese steel enterprises dare to put on a desperate posture, the other party will definitely admit defeat.

He would rather pay a higher cost to mine the Dubiago iron mine than accept Vale's request for a price increase. This is Qin Hai's way of showing his determination. Although in the end he will not necessarily develop the Dubiago iron mine with all his strength, but he must pretend to be decent. Only in this way can Vale and BHP Billiton be bluffed.

Heizi naturally understands this set of plans, but he will not reveal it in front of Ge Ge Chi Keli and others. He just pointed out the defects of Dubiago Iron Mine, and then waited for the reaction of Ge Ge Chi Keli and others.

"You're right." Chudakov nodded, "If that's the case, why did you buy the Dubiago iron mine?"

"We need a supply of iron ore that we can control." Heizi said, "We plan to spend 2 billion US dollars to develop the Dubiago iron mine. We will use the latest open-pit mining technology, which can extend the mining season and guarantee In the early winter, there will be no shutdown due to the cold. In addition, we will build a large-scale concentrator and pellet sintering plant near the iron ore, with an annual capacity of more than 50 million tons. If these projects can be put into production, you can imagine Let’s see what Chita Prefecture will look like.”

"Is what you said true?" Abedjiyan asked.

Heizi smiled slightly, took out a stack of blueprints from his bag, handed them to Abedjiyan, and said, "Before I set off, the technicians of our group had already made a preliminary plan for the development of the iron ore. Take a look at the blueprint."

"blueprint?"

Several old men exchanged glances with each other, and then they all moved to Abedjiyan's side and began to look at the blueprint that Heizi gave them. Chudakov is a mining engineer, and his ability to read pictures is better than others. He pointed to the signs on the picture and explained it to several partners. The more they listened, the more excited they became, and smiles gradually spread on their faces.

"So, do you really want to develop this iron mine?" Ge Ge Chi Keli asked.

Heizi said: "At this point, does mine manager Gegeqikeli still think I'm joking?"

"So, where are you going to use the workers to build this mine?" Gegechkoli asked again.

This is another sensitive question. Heizi came prepared and replied calmly: "We will send a group of engineers from China, and we will also send some workers to participate in the construction. But the main construction work, as well as the future mining work, We prefer to use local workers in Chita State. In view of your understanding of the Dubiago Iron Mine, our group hopes to hire you as a mine consultant to help us better develop this mine.”

"If so, that's great!" Gogchikoli said. "As long as you can keep this promise, we will support your work."

"No, it should be said to support our common cause." Heizi corrected with a smile.

"Yes, for our common cause, cheers!" Ge Ge Chi Keli raised the bottle and said loudly.