Material Empire

Chapter 763 Find out what the Chinese think

Thanks to the large tracts of land seized by the tsarist era, Russia is rich in various resources. After the collapse of centralized power, local governments are keen to sell what they can sell to obtain short-term benefits. As for how much resources to leave to future generations, only Chinese people who have always been frugal have such a concept. European countries believe in flooding after death.

Seryozha is also a person with this kind of thinking. He was able to become the governor because he promised to bring a prosperous life to the people in the state. As for the means, the people don't care. The sale of Dubiago Iron Ore to Chinese companies for mining is a welcome event for the residents of Chita. The resumption of iron ore operation means that there will be a lot of investment and sufficient job opportunities, which is a booster for Chita, whose industry has gradually declined.

Ge Ge Chi Koli and others opposed Japanese companies to acquire iron ore before, just because the Japanese did not have the desire to mine iron ore. With the idea of ​​reselling. If this is the case, it will not only fail to bring prosperity to Chita, but also hinder other people from developing this iron mine.

The future that Heizi described to Gegeqikeli and others was very to their taste. In particular, Heizi hinted that they could arrange a good position for them in the future and let them play their spare heat, which made them even more happy.

The way for the fighting nation to express their joy is naturally a booze. Before pouring Ge Ge Chi Koli and others under the table, everyone has reached an agreement, agreeing that Chinese companies will acquire the Dubiago Iron Mine, and the relevant procedures will be completed with the assistance of the Chita State Government.

While Heizi was making progress in Russia, dozens of prospecting teams were running around on the vast prairie in eastern Mongolia, and an unprecedented prospecting operation was also underway.

"Attention, there is a geomagnetic anomaly!"

"Lower the altitude, lower the pod!"

"Record the azimuth, east longitude... north latitude..."

An aerial survey plane modified by Yunba hovered in the low sky. Under the cabin, a geomagnetic survey pod was hung on a long cable. It is currently the most effective method to find iron ore by means of airborne magnetic surveying. As early as the 1950s and 1960s, my country had already carried out a nationwide aeromagnetic survey, and identified several iron ore deposit areas. With the growing demand for iron ore resources, China began to turn its attention to neighboring countries.

In addition to a dozen aeromagnetic experts sitting in the cabin, there was also a young man wearing a dirty suit but full of excitement. He was Wan Baokang, the heir of Fukang Iron and Steel Company in Hongyuan Province. Wan Baokang's father, Wan Donghua, is Qin Hai's business partner. With the help of Qin Hai's technical guidance, Fukang Iron and Steel Company has become the largest private iron and steel enterprise in Hongyuan Province. Wan Baokang was once a playboy who obsessively pursued singer Qin Ling. Later, under Qin Hai's aggressive method, Wan Baokang cheered up and began to look for business opportunities abroad in order to prove his strength.

Over the past few years, Wanbaokang has made brilliant achievements in overseas business although it failed to embrace the beauty as it wished. Two years ago, he invested 20 million yuan to buy the prospecting and mining rights of 2,000 square kilometers of grassland from Mongolia. This time, still with Qin Hai's help, he was able to hire a capable team of geological and mineral surveys to start surveying the grassland he bought.

The printer creaked, sending out a piece of recording paper printed with red and blue lines. The captain of the survey team stepped forward, picked up the recording paper and glanced at it, couldn't help but look overjoyed, then turned to Wan Baokang who was eager to see through, and said, "Mr. Wan, I have good news for you. According to the aeromagnetic data, this area is very dangerous. There may be a super-large iron ore, and the reserves are estimated to be between 800 million tons and 1.4 billion tons.”

"Oh yeah!" Wan Baokang jumped up in the cabin, "Quickly, send a telegram to Mr. Qin in the capital for me, telling him that I have found a mine, a big iron mine!"

Chinese companies have gone out across the board to search for new iron ore around the world. It is impossible for Vale and BHP Billiton, as mining giants, to be unaware of such a big movement. In fact, the two mining giants have conducted investigations in the mining areas where Chinese companies have been involved, but because the cost of prospecting is too high and they are pessimistic about the subsequent mining costs, the two giants did not get involved in depth. Hearing that the Chinese started to conduct surveys locally without counting labor, and even some places were already undergoing various preparations before development, the two giants were a little panicked.

"What do the Chinese say when they negotiate?"

In the Vale's president's office, the company's president Callum is learning the details of the negotiations from La Paz, the negotiator who had previously sent to negotiate with China.

The collapse of the first negotiations with the Chinese side did not attract much attention at Vale's headquarters. After La Paz returned to the headquarters, he gave a routine report. Callum didn't attend that time at all. He just listened to the assistant's report afterwards, and then ignored it. The Chinese will not accept the request for a 70% increase in the price of ore. This is estimated in advance by the company's strategy department. Yield in negotiations.

Vale has no reason not to be so optimistic, because they hold the highest quality and cheapest iron ore in the world. After adding more than 10,000 kilometers of sea transportation costs, its price is still higher than that of iron ore produced in China. much cheaper. Chinese steel companies have no reason to reject Vale's ore. Even if Vale raises the price of ore by 70%, Chinese companies still have to accept it. As for their leaving in the first negotiation, it is naturally because the Chinese love face and want to express their anger in this way. But there is no use in doing so, and they will definitely come back in the end to accept more humiliating slaps in the face.

Callum waited for two months. He did not wait for the Chinese's request for the next negotiation, but he waited for the intelligence summary provided by the strategic department about the Chinese's crazy prospecting around the world. According to the estimates of the strategic department, Chinese companies have invested at least 500 million US dollars in the acquisition of prospecting rights and mining rights. Some mines that were defeated and closed down in the competition with Vale have also been bought by the Chinese. A large number of mining Equipment orders have flown to global mining machinery manufacturers.

"The Simandou iron mine in Guinea? Hasn't this iron mine been proven to have no development value at all?" Callum took the report and asked the director of the strategy department Geoffs in surprise.

"Yes." Jofts said, "We have evaluated this iron mine. According to the existing exploration data, the reserves of this iron mine are 2.25 billion tons, and the prospective reserves may reach 5 billion tons. The ore grade However, the infrastructure conditions in the mining area are extremely poor. If the ore is to be transported out of Africa, an 800-kilometer railway line needs to be built. The initial investment is huge and has no development value.”

"So, why did the Chinese develop it?" Callum asked, patting the report with his hands.

"I think..." Jofts faltered, "Maybe they lack experience, they don't understand the cost of iron ore development, and they don't have the ability to calculate costs. You know, it is far worse to directly buy us or BHP Billiton's ore is cheaper."

Callum glared at Jofts. He didn't believe that the Chinese would develop the Simandou iron mine because of a moment of confusion. This is not a matter of buying two catties of apples on the street, but an investment of tens of billions of dollars. How could the Chinese not conduct a serious evaluation of such a large project. Geofts is right in saying that it is economically unreasonable to develop the Simandou iron mine. Instead of spending billions of dollars to build a railway and spend billions of dollars to purchase mining machinery, it is better to directly Buy ore from Vale. However, precisely because this matter is unreasonable, the mystery is more worth exploring.

In this way, La Paz returned to Callum's vision, and he was called to the president's office to re-report the details of the negotiation to Callum.

"Mr. Qin, the other party's negotiator, said that he gave Vale 30 days to consider. If the time passes, Chinese companies will no longer cooperate with Vale. He also said..." La Paz dared not continue, The words behind are a little fierce.

"What else did he say?" Callum saw La Paz's hesitation, so he asked.

"He said ... Chinese companies will not buy another kilo of Vale's iron ore in five years," La Paz said.

"What a big tone." Callum murmured. Qin Hai's warning had actually been relayed in La Paz's last report, but the entire Vale's decision-makers at that time did not take it seriously. In business negotiations, it is normal to talk harshly to each other. Afterwards, both the speaker and the listener will pretend to have forgotten the words. The kind of thing that uses the cruel words of the past to run on others is something that children only do when they play house. As long as there is nothing written in black and white in the mall, it is okay to say it.

But now, Callum began to believe Qin Hai's threat. More than two months have passed since the negotiation, and Qin Hai has not proposed to negotiate again, not even contacted by telephone or email. It seems that he really wants to cut off relations with Vale. When it comes to the behavior of Chinese companies looking for ore and mining around the world, Callum is a little apprehensive.

"You have to find a way, and you must understand the Chinese people's thinking, which is very important for the company's decision-making." Callum instructed Joefts.

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