Material Empire

Vale monopolizes more than 40% of the world's iron ore trade, and in the eyes of outsiders, it is an invincible giant. But Callum himself knew that this kind of strength was actually very weak. The mining industry is a capital-intensive industry. From the acquisition of a mine to the construction of roads and the purchase of equipment, huge sums of money are spent in every step.

Vale has hundreds of billions of dollars in capital, but it also has hundreds of billions in liabilities. Every day, the company pays tens of millions of dollars in interest, and at the same time pays tens of millions of dollars in depreciation for the equipment it owns, and then counts the rents, employee wages and other expenses of branches, mines, etc. around the world. The company must ensure an annual operating income of more than 20 billion yuan in order to ensure a break-even balance.

What Qin Hai saw was the weakness of Vale. He knows that the iron ore transaction with Vale is crucial to China's steel industry, and it is also a matter of life and death for Vale itself. If the talks between the two sides really collapse, China will undoubtedly suffer greater losses, but Vale cannot be alone, and it will also suffer from a catastrophe.

Vale's confidence comes from the belief that China's steel industry pursues rationality and will not be willing to fight to the death with Vale. But it never expected that China would really start to play with its heartbeat, and it would be a comparison with Vale, who would be the first to blink.

Does Callum dare to bet? Obviously, he has no such guts. China's current posture is to warn Vale that if they do not give in, the Chinese would rather spend more money and find new sources of ore supply. If such a pattern is really put together, China will lose billions or even tens of billions of dollars, which is affordable for a country. And Vale will be completely bankrupt in this fight, and even if Callum wants to play, the board behind him will not hesitate to show him a red card.

However, it is not in the interest of Vale to back down after being frightened by the Chinese, so Callum must find a way to figure out the Chinese's hole cards and see if the Chinese really want to go to war, or are they just fighting? bluff.

A top-secret e-mail flew to the far east through the submarine optical cable, and appeared on the computer screen of Sun Zhenjiang, general manager of Pujiang Xinzhen Resources Trading Company.

In a steel war ten years ago, Sun Zhenjiang lost all the billions of assets he had accumulated over more than ten years in business. Fortunately, the elders of the family had some old connections in the upper class, which helped smooth out the money he had borrowed from many banks. , Only then did he preserve his personal freedom. His original trading company was forced to close down, and he went abroad to stay for a few years to see that the limelight had passed. Then he returned to China and registered the Xinzhen Trading Company in Pujiang, specializing in the business of importing foreign minerals. One of its biggest businesses is iron ore.

When doing business in the early years, Sun Zhenjiang had a group of little brothers who grew up together in the compound and helped each other. During the steel war, Sun Zhenjiang dragged these little brothers into the water, and then tried to let the little brothers relieve him, but he was outraged by the public, and he almost escaped being hunted down by these little brothers. After returning to China this time, Sun Zhenjiang didn't even dare to go back to the capital to do business, let alone join hands with these little brothers.

As a loner, he could only go to the Vale. On the surface, he is the agent of Vale in China, and in private, he also serves as a commercial spy. During those years of making steel products, he had contacts with many domestic steel companies. In the subsequent steel war, Sun Zhenjiang did not have conflicts with the steel companies, and he is still acquainted with each other until now. Coupled with the fact that he was able to obtain iron ore from Vale, he became a guest of various steel companies.

Sun Zhenjiang was both excited and apprehensive when he received the email from Jofts. What makes him excited is that Vale asks him on major strategic issues, which means that his status in Vale has improved and he will have more capital to fight for interests in the future. What makes him uneasy is that he knows the meaning of what he is doing. This is not just providing a little background information, but spying on China's core industrial intelligence.

"I've lost all my face! If you cause trouble again, don't expect your family to save you again!"

Ten years ago, the angrily shouted by the elders suddenly rang in Sun Zhenjiang's ears. He subconsciously held his head and covered his ears, trying to block out the sound.

Do you want to take the risk and help Joefts with this matter? Sun Zhenjiang was caught in a contradiction. Taking one step forward may bring unlimited rewards, accompanied by the risk of prison; but if he takes a step back, he will lose the trust of Vale in him, and then he will stop in the market and can only live a poor life. day.

NND, riches and honors come with risks. Didn’t my father go to the battlefield with his head in his hands in exchange for a prominent position and the glory of his children and grandchildren? Why can’t he take a risk?

Thinking of this, Sun Zhenjiang picked up the phone on the table, dialed a number, and greeted the phone affectionately: "Hey, Mr. Xiang, I'm going to Hongyuan for a business trip tomorrow, do you have time to sit down?"

In the office of the general manager of Hongyuan Iron and Steel Company, Pang Yongfu and Xiang Pengda were sitting opposite each other, the cigarettes in their hands had formed long butts, but neither of them noticed it.

"Sun Zhenjiang said that he can help us get Vale's iron ore." Xiang Pengda reported to Pang Yongfuhui.

"What channels does he have?" Pang Yongfu asked, "Hasn't the country strictly prohibited companies from contacting Vale in private?... This Qin Hai has covered the sky with one hand and has fooled us all. I want to see how he gets down in the end. "

"Qin Hai is currently busy looking for mines all over the world. I heard that he has found Russia and wants to develop the Dubiago iron mine." Xiang Pengda continued Pang Yongfu's words.

Pang Yongfu sneered and said, "It's not like we didn't know about the situation of the Dubiago iron mine. It is difficult to mine in the alpine region, and the iron ore is of low grade and high in phosphorus content. Anyone who wants such ore will want it anyway. I don't want it."

"So, we can only find a way to connect with Vale. In the past two months, we have used domestic ore. Although there are subsidies from the Economic and Trade Commission, the cost is higher than Vale's ore, and the domestic ore grade is higher than that of Vale. Low, our equipment capabilities can't be brought into full play, and both sides are at a disadvantage." Xiang Pengda said.

Pang Yongfu lowered his voice and asked, "Old Xiang, do you think Sun Zhenjiang is reliable?"

"It's hard to say." Xiang Pengda said, "However, his parents and seniors have some prestige, and their words still have some weight."

"Fart!" Pang Yongfu said contemptuously, "It really has a lot of weight. How could this Sun Zhenjiang fall so hard in 1993?"

The steel circle is only that big, and everyone in the circle knows about the steel war in 1993. Xiang Pengda said with a smile: "That can't be helped. The planning committee took the lead that time, and the matter of liberalizing steel prices was related to the reform of the entire material supply system. It was the top priority of the country at that time. It’s so over the top, it’s no wonder that he didn’t stumble. If his parents and seniors didn’t help him settle it, he would be able to get through the prison.”

"What happened this time is pretty much the same as back then." Pang Yongfu said, and then he thought of something again, couldn't help shivering, and said, "I remembered that Wang Hongsheng, the planning committee, also used Qin Hai as a gunman back then." , Daqin Group gained its prestige in the steel industry that time, and also registered with the chief. This time it is Qin Hai again, tell me, does this feel a bit predestined?"

"Mr. Pang, do you believe this too?" Xiang Pengda smiled, "I feel that Sun Zhenjiang's game this time is not as big as last time. Isn't he just pouring in a little iron ore to solve our urgent needs?" , even if there is some conflict with the notice from the Economic and Trade Commission, it is estimated that there will be no major problems based on the relationship between the superiors, right? The most important thing is that we are doing business with him, and we don't know about other things. Even if something happens to him , what does it matter to us?"

"That's the truth." Pang Yongfu nodded, "Now the Economic and Trade Commission is betting all their treasure on Qin Hai. They don't even think about it. Qin Hai is a private enterprise. Even if this matter is messed up, the Economic and Trade Commission will do nothing. He can't. We are different, if we continue like this, we will have to get a red card from the province this year."

"Then you mean that we can contact Sun Zhenjiang?" Xiang Pengda asked.

"You can grasp this matter." Pang Yongfu said vaguely.

Bah, you old fox, cursed Xiang Pengda in his heart. He knew that Pang Yongfu was afraid of taking responsibility, so he asked him to top the tank. It was Pang Yongfu's achievement if this matter was done, and it was his arbitrariness to advocate to Pengda if it couldn't be done. How could Xiang Pengda be willing to do such a bad thing. He pretended to be embarrassed, and said: "Mr. Pang, Sun Zhenjiang said on the phone that he wants to meet with you. Of course, we don't need to talk about the ore. The main thing is to get in touch. I am alone. There's not enough weight in front of you."

"This kid still has such a big score?" Pang Yongfu said without anger, "How dare he say such a thing because he is a second-generation child who has passed away?"

Xiang Pengda shook his head and said: "President Pang, I don't care about his background, the main reason is that he still has the relationship with Vale. Once the country is released in the future, if we want to reconnect with Vale, we have to rely on him Besides, he can avoid the control of the Economic and Trade Commission and get the ore from Vale, which is also of great help to us."

"Well, if that's the case, then it's okay for me to meet him. However, let's make an agreement. I won't talk about things related to ore. You can just agree." Pang Yongfu urged.

Xiang Pengda was overjoyed and said, "No problem, I'll book a hotel right away."