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Chapter 572 Development boom in Western Australia

The iron ore deposits in the Pilbara region of Western Australia are mainly distributed in four major mining areas:

South Central District, Hamersley District, North Pilbara District and Kimberly District. The iron ore deposits in these areas have thick ore bodies, large scale, good continuity and stable ore grade.

Before 2000, the main companies directly engaged in iron ore development here were three very large mining companies: Hamersley Iron Ore Co., Ltd., Abilene Iron Ore United Company and BHP Iron Ore Co., Ltd.

Among them, Hamersley Iron Ore Co., Ltd. is Australia's largest iron ore production company and belongs to BHP Billiton, the world's number one company.

Nowadays, in the North Pilbara region where large and medium-sized mining companies used to gather, a super-large mining company FMG Resources Company has emerged after the combination. This vast hot land presents a situation of four powerful forces, each occupying one piece, dividing the entire Pilbara region into

Four chunks.

Perth, the capital of Western Australia

This is a pleasant seaside town with a population of more than 200,000. There are no high-rise buildings in the city, and villa buildings with a strong Victorian style can be seen everywhere.

The only five-star Hills Hotel in the city center, with a height of 12 floors, is the center of political and economic activities in Pas City, and is also the corporate asset of the Royal Family Foundation.

Wang Yaocheng, a distinguished guest from Hong Kong, has stayed here for more than ten days. He has frequent contacts with high-level local political and economic circles here, and the guests he meets most often are guests from mainland China.

Cathay Pacific recently launched a route from Hong Kong to Perth, with six flights per week, and each flight is full of passengers.

The plane was filled with leaders and bidding teams from major Chinese companies, rushing to this remote town in Western Australia to pursue huge business opportunities.

On the streets of Pas City, there are obviously many more Asians with yellow skin and dark eyes. They communicate with local residents in blunt English, which has become a new scene in Pas City.

The merged and reorganized version 2.0 of Australia's FMG Resources is holding a bidding meeting and long-term supply meeting for the North Pilbara development project here. The guests are all leading enterprises in the domestic steel industry, as well as leading Chinese railway and terminal construction companies.

The company has strong construction capabilities.

Specific participating units include Mitsui Consortium, China Steel Group, China Railway Engineering, China Harbor, CITIC, Anshan Iron and Steel, Baosteel, Minmetals, Shougang, Wuhan Iron and Steel, Taigang, Tangshan Iron and Steel, Handan Iron and Steel, Panzhihua Iron and Steel, Maanshan Iron and Steel, Xinyu Iron and Steel,

Project leader of Jiangsu Fengli, Hebei Wenfeng, Lianfeng Steel, Valin and other units.

The City of Pas in August

A development boom that is rare in history has ushered in. In this hot summer season, the craze for economic development has almost boiled over.

An arrow pierces the clouds, and thousands of troops come to meet you.

In this regard, senior officials of the Western Australia regional government were extremely shocked;

Unexpectedly, the consortium owned by the world's richest man, Wang Yaocheng, would have such huge influence and appeal in China. He had to re-examine his important position and become more enthusiastic.

The Royal Family Fund truly explains what it means to be a wealthy and willful tycoon. The original blueprint for the first phase of the project planned by FMG was completely overturned, and it was re-planned on this basis, and the scale was more than doubled.

Plan according to version 2.0;

The Duanyun Mine planned by FMG, plus the six large and medium-sized mining companies it has successively acquired, has a total of seven mining areas, which are listed as A1, B, C, D, E, F, and G mining areas.

Among them, the A1 mining area is Duanyun Mine, which is also the main mining area of ​​version 2.0 FMG Resources Company.

Due to the expansion of the scale, the original planning blueprint is no longer applicable. Version 2.0 FMG Resources Company has determined to complete the first phase of the Pilbara region project before the fourth quarter of 2006.

The total investment in the project is determined to be 8.2 billion Australian dollars, with a total designed production capacity of 150 million tons of iron ore, comprehensive expansion and updating of mining working faces and production facilities in seven mining areas, and the introduction of a batch of mining equipment to expand the production capacity of the mining area.

The original annual iron ore production capacity of the six mining companies reached 11 million tons. After the first phase of project transformation, it will reach a scale of 40 to 42 million tons. The production capacity is expected to triple.

These large and medium-sized mining companies have abundant reserves and resources. What restricts their production capacity are personnel, capital and sales channels, as well as serious bottlenecks such as transportation and terminal facilities.

Mining companies do not have that many staff to produce, they cannot transport the products out, and they do not have enough terminal loading and unloading capacity for transportation. To solve all these constraints requires huge amounts of money.

It just so happens that Royal Family Fund has massive cash flow.

If you are short of everything, you are not short of money, and anything that can be solved with money is no big deal.

After solving these bottlenecks, in the open-pit mining Pilbara region, expanding production capacity is as simple as one plus one equals two.

The re-planned Duanyun Mine in the main production area has increased the designed production capacity in the first phase from 55 million tons to 110 million tons, doubling the planned production capacity.

overall

The first phase of version 2.0 of FMG Resources Company has a designed production capacity of 150 million tons, an increase of 2.72 times from the original planned production capacity of 55 million tons. The total investment has rapidly increased from AUD 3.75 billion to AUD 8.2 billion, and the investment has increased by 2.18 times.

If we take into account that the original company chairman Cairns Forrest deliberately reduced investment in order to attract more investment funds to invest, the actual development funds should be 5.5 billion Australian dollars, an increase of 149% compared with 8.2 billion Australian dollars of investment.

This reflects the benefits of large-scale production. The planned two-track dedicated iron ore transportation line is still 400km, and the original planned railway line has not changed.

It's just that the heavy-haul train design for iron ore requires more construction costs for bridges, culverts and roadbeds. The investment has increased by 1.7 times, but the annual transportation volume has increased from the original 150 million tons to 400 million tons, and the transportation capacity has doubled.

Two and a half times.

China Railway Engineering Company, China's leading railway construction company, has rich experience in building the Qinling coal heavy-haul railway. As long as the construction funds are in place, a dedicated heavy-haul transportation line for iron ore in the Pilbara region is not a problem at all.

Compared with the complex geological conditions of the Daqin Railway, the construction conditions in the Pilbara region are very excellent.

It is located in the vast and vast plateau of Western Australia. The altitude gradually decreases from the inland to the sea. The terrain is mainly plains and hilly mountains. The foundation is rooted in the red mountain rock continental plate, which is very suitable for the development of heavy-haul railways.

The 400-kilometer-long railway line requires the erection of more than 100 bridges and culverts, but it does not need to pass through tunnels, nor does it need to face complex issues such as demolition and environmental protection, greatly reducing construction costs.

In addition, it is necessary to increase the railway network connecting the other six mining areas to form a complete iron ore output artery, further increasing the construction cost.

The scale of the Cape Anders iron ore storage yard has been expanded, and the newly built Port Hedland will build five deep-water terminals for 300,000-ton iron ore ships to dock directly, as well as six 200,000-ton and six 5-year-old terminals.

The 10,000-ton iron ore loading and unloading terminal has a designed annual throughput of up to 450 million tons.

At the North Pilbara development project tender meeting and long-term supply meeting

Hao Wei, the newly appointed president of FMG Resources and commander of the first phase project, has reached three major cooperations with construction companies from afar.

First;

The project party signed a formal contract with China Railway Corporation for the construction of a double-track heavy-haul railway. The total project value is 1.68 billion Australian dollars. It is expected to be completed in the third quarter of 2006, and the construction period will be 24 months.

second;

The project party signed a formal contract with China Harbor Engineering Company for the construction of a dedicated iron ore terminal in Port Hedland. A total of five 300,000-ton berths, six 200,000-ton berths, and six 50,000-ton berths will be constructed. The total project value is 3.552 billion Australian dollars.

(Including Andersen Cape Iron Ore Storage Yard Project).

All projects are expected to be completed in the third quarter of 2006, with a construction period of 24 months.

third;

The project party signed a formal contract with China MCC Group for mine construction and mining equipment, as well as the construction of a mineral processing plant. The total project value is 1.912 billion Australian dollars. It is expected to be completed in the third quarter of 2006, and the construction period will be 24 months.

From the date of signing the contract, the project party will pay 30% of the project payment, and will gradually allocate project funds based on the progress of the project.

This ratio is much higher than that of international engineering projects, which shows the rich and wealthy style of the Royal Family Fund. They are really not short of money, and the payment to the construction project party is the international hard currency US dollars converted according to the ratio.

Similarly, the project stipulates that the penalty for delaying the construction period is very high, and there are large rewards for completing the project in advance with quality and quantity.

This has further stimulated the enthusiasm of China's leading domestic construction companies, and they have expressed that they will mobilize their best troops to participate in the construction battle in the Pilbara region.

The construction company attaches great importance to it from top to bottom and will invest the greatest enthusiasm in construction to ensure that the project is completed with high quality within the construction period.

Use it as an overseas model demonstration project to show China's style of building an iron army.

Domestic steel companies participating in the Pas meeting were very enthusiastic. If the credibility of the FMG Resources construction project led by Royal Family Fund is 10%, then poor former company chairman Cairns Frist does not have even one point.

Look at their construction spirit. Comparing the two, they are instantly crushed to a pulp.

Meeting site

FMG Resources Company reduced its price by 8% according to the 2006 "long-term agreement", and cooperated with Anshan Iron and Steel, Baosteel, Minmetals, Shougang, Wuhan Iron and Steel, Taiyuan Iron and Steel, Tangshan Iron and Steel, Handan Iron and Steel, Panzhihua Iron and Steel, Maanshan Iron and Steel, Xinyu Iron and Steel, Jiangsu Fengli, Hebei

Wenfeng, Lianfeng Steel, Valin and other major steel companies have signed long-term iron ore supply agreements, dividing up the 150 million tons of iron ore production capacity in the first phase of the project.

FMG Resources has signed dozens of long-term supply agreements and received more than 1.26 billion Australian dollars in deposits, which is equivalent to recovering half of the 30% advance payment for the first phase of the project.

With its thick legs backed by the consortium, it showed strong influence when it first appeared.

At the same time, the Western Australia government sent strong support.

The state parliament initiated a special procedure, convening a hearing on the development project of FMG Resources Company and a vote by the state parliament, which reviewed and approved a bill for 22,000 two-year work visas and a naturalization quota for 4,200 professional workers.

It also plans to invest AU$220 million to improve water, electricity, gas and other public facilities in the North Pilbara region, and plans to invest AU$350 million to build 160 kilometers of roads to improve traffic conditions in the region.

As a member of the developed country camp, Australia's Western Australia government can receive large amounts of support funds from the central government and has a considerable degree of administrative freedom, and can independently determine the talent introduction policies needed for economic construction.

For His Excellency Lord Wang Yaocheng's huge investment in the construction of the Pilbara project, everyone from the governor to the senators and representatives of the House of Representatives gave the green light and welcomed it with both hands and feet.

The investment projects of Royal Family Fund in Australia are carried out vigorously and vigorously, and the bonus of wealth aura and status aura is absolutely indispensable.

After that, Royal Fund announced a series of investment plans;

Carrefour Supermarket Group will open no less than 20 stores in Western Australia, Hong Kong Global Telecom will soon land, HSBC announced the expansion of branches and bank outlets in Perth, Swire Shipping Company will open a direct liner from Hong Kong to Perth, Hong Kong and Shanghai

The hotel company announced that it will build three four-star Miramar Hotels, and Cathay Pacific Airways will significantly increase flights to Perth, up to 20 flights per week, and increase international flights to Sydney and Melbourne...

In response to the consortium's strategic measures to develop Western Australia, the consortium companies have launched practical actions one after another, forming a joint force to fuel the construction boom and rapidly changing the Pilbara region's style and style, adding a strong sense of style.

Asian flavor.


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