Chapter seven hundred and fiftieth eight to figure out the thoughts of the Chinese
Thanks to the large tracts of land seized during the Tsarist era, Russia is rich in various resources. After the collapse of centralized power, local governments are keen to sell what they can to obtain short-term profits. As for
Only the Chinese, who have always been frugal, have such a concept of how much resources should be left to future generations. What European countries believe in is that after you die, you will be responsible for the floods.
Seryosha is also a person with this idea. He was able to become governor because he promised to bring a prosperous life to the people in the state. As for the means used, the people did not care.
The Dubiago iron ore is sold to Chinese companies for mining, which is a welcome thing for Chita residents. The resumption of iron ore operation means a large amount of investment and sufficient job opportunities, which has gradually become a factor for the industry.
The declining Chita Prefecture is a shot in the arm.
Gegeqikeli and others had previously opposed Japanese companies to acquire iron ore, just because the Japanese had no desire to mine iron ore, but just wanted to spend some money to occupy the mine, and then consider mining in the future, maybe even
I have the idea of reselling it. If this is the case, not only will it not bring prosperity to Chita, it will also hinder other people from developing this iron mine.
The future that Heizi described to Gegeqikeli and others was very suitable to their taste. Especially Heizi hinted that they could be given a good position in the future and let them use their spare energy, which made them even more happy.
The way for the fighting nation to express their joy is naturally to drink heavily. Before they poured Gege Chikoli and others as well as Seryosha under the table, everyone had reached an agreement and agreed to the Chinese company's acquisition of the Dubiago iron ore. Related
The procedures will be completed with assistance from the Chita State Government.
While Sunspot was making progress in Russia, in the vast steppes of eastern Mongolia, dozens of prospecting teams were busy everywhere, and an unprecedented scale prospecting operation was also underway.
"Attention. There is a geomagnetic anomaly!"
"Lower the altitude and lower the pod!"
"Record the position, east longitude...north latitude..."
An aerial survey aircraft modified from Yunba was hovering in the low altitude. Under the cabin, a geomagnetic measurement pod hung on a long cable. Using aeromagnetic surveying to find iron ore is currently the most effective method. As early as the 1950s and 1960s, my country had carried out a nationwide aeromagnetic survey and identified several iron ore reserves. As the demand for iron ore resources increased, 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 with an excited face. He was Wanbaokang Wanbao, the heir to Phu Kang Steel Company in Hongyuan Province.
Kang's father, Wan Donghua, is Qin Hai's business partner. With the technical guidance provided by Qin Hai, Fukang Steel Company has become the largest private steel company in Hongyuan Province. Wan Baokang was once a playboy, and he once pursued it obsessively.
Singer Qin Ling. Later, under Qin Hai's provocation, Wanbaokang cheered up and began to look for business opportunities abroad in order to prove her strength.
Several years later, although Wanbaokang failed to get his beauty back in the end, he made brilliant achievements in his overseas career. Two years ago, he invested 20 million yuan to buy 2,000 square kilometers of grassland from Mongolia.
Prospecting and mining rights. This time, with the help of Qin Hai, he was able to hire a capable team of geological and mineral surveyers to start surveying the grassland he bought.
The printer squeaked and sent out a piece of recording paper with red and blue lines printed on it. The captain of the survey team stepped forward. He picked up the recording paper and glanced at it for a few times. He couldn't help but beam with joy. He turned to Wan Baokang, who was staring at him and said:
"Mr. Wan, I have good news for you. According to aeromagnetic data, this area is very likely to contain a very large iron ore, with reserves 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 for me to Mr. Qin in Beijing and tell him that I have found a mine, a big iron mine!"
Chinese companies are going out across the board to look for new iron ores around the world. It is impossible for Vale and BHP Billiton, as mining giants, to be unaware of such a big movement. In fact, in the mining areas that Chinese companies have their hands on, these two mining giants
Both have conducted investigations, but because of the high cost of prospecting and their pessimistic attitude towards subsequent mining costs, the two giants did not get involved in depth. I heard that the Chinese have started to conduct local exploration regardless of labor, and some places are even already under development.
With all the preparations ahead, the two giants were a little panicked.
“What did the Chinese say during negotiations?”
In Vale's president's office, company president Callum was learning the details of the negotiations from Lapaz, the negotiator who had previously been sent to negotiate with China.
The first negotiation with China broke down, which did not attract much attention at Vale headquarters. After Lapaz returned to the headquarters, he conducted a routine report. Callum did not attend that time and only listened afterwards.
After a moment of paraphrasing by the assistant, he put it behind him. The Chinese would not accept the request to increase the price of ore by 70%. This was estimated by the company's strategy department in advance. Another estimate they made was that China
People will soon ask for a second negotiation and will give in during the negotiation.
Vale has no reason not to be so optimistic, because they hold the best and cheapest iron ore in the world. After adding in the cost of sea transportation of more than 10,000 kilometers, 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 can still only accept it. As for them walking away from the first negotiation, that's of course
Because the Chinese love saving face, they want to express their anger in this way. However, it is of no use. They will definitely come back in the end and receive an even more humiliating slap in the face.
Callum waited for two months, but did not receive the Chinese request for the next negotiation. Instead, he received an intelligence summary provided by the strategic department about the Chinese's crazy prospecting for minerals around the world. According to the estimation of the strategic department, Chinese companies at least
US$500 million has been invested in acquiring exploration rights and mining rights. Some mines that had failed to close down in the competition with Vale have also been acquired by the Chinese. A large number of mining equipment orders have been flown to mines around the world.
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 Jofts, Director of the Strategy Department, 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
It is 66%. However, the infrastructure conditions in the mining area are extremely poor. If you want to transport the ore out of Africa, you need to build an 800-kilometer railway line. The initial investment is huge and has no development value."
"So, why did the Chinese develop it?" Callum asked, slapping the report with his hand.
"I think..." Joffts hesitated, "Maybe it's because they lack experience. They don't understand the costs of iron ore development and don't have the ability to calculate costs. You know, developing the Simandou iron ore is far inferior to buying us or directly.
BHP’s ore is cheaper.”
Callum glared at Jofts. He didn't believe that the Chinese developed the Simandou iron ore because they were temporarily confused. This was not a matter of buying two kilograms 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? Jofts is right about one thing, that is, it is economically unreasonable to develop the Simandou iron ore mine. Instead of spending billions of dollars to build a
Railways, and spending billions of dollars to purchase mining machinery, might as well just buy Vale's ores. However, precisely because this matter is unreasonable, the mystery behind it is more worthy of exploration.
In this way, La Paz returned to Callum's sight. 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 would give Vale 30 days to consider. If the time expires, Chinese companies will no longer cooperate with Vale. He also said..." La Paz did not dare to continue.
The following words are a bit fierce.
"What else did he say?" Callum saw La Paz's hesitation and asked.
"He said...Chinese companies will not buy another kilogram of iron ore from Vale in five years," Lapaz said.
"What a loud tone." Callum murmured. Qin Hai's warning had actually been relayed in La Paz's last report, but at that time the entire Vale Valley decision-maker did not take this warning into account.
Take your words seriously. In business negotiations, it is normal to say harsh words to each other. Afterwards, both the speaker and the listener will pretend to have forgotten what they said. The kind of thing where you use the harsh words of the past to bully others.
, that is, children only know how to do it when they play house. As long as it is not written in black and white in the shopping mall, it is okay to do it.
But now, Callum begins to believe Qin Hai's threat. More than two months have passed since the negotiation. Qin Hai has not proposed to negotiate again, and there is not even any contact such as phone calls or emails.
It seems that they really want to sever ties with Vale. When coupled with the behavior of Chinese companies in prospecting and mining around the world, Callum became a little uneasy.
"You have to think of something and be sure to understand what the Chinese think. This is very important for the company's decision-making." Callum told Joftz. (To be continued.)