Chapter 293: Australian Iron Ore
Soon the car came to the Black Cloud Australia Branch, and it was the first time Bao Zixuan came here. However, when choosing a location, he will report to him, and the entire Australian branch is located on a busy street in Melbourne.
The first floor is the showroom and store of Black Cloud, where all Black Cloud products can be purchased. The second floor is the game experience area, where everyone can come and experience it for free for 30 minutes. It doesn't matter if you buy it or not, so many children like to come here, but due to the overcrowding, they can only experience it for 30 minutes a week to relieve the pressure of work caused by dense crowds.
The third floor is the company's leisure area, and the fourth floor is the office area for ordinary employees. The fifth floor is the conference room and management offices, and the sixth floor and above are all empty, making the 16-story office building seem a little empty, but with the entry of the black cloud mobile phone, it has also begun to be a lot more lively.
Seeing Bao Zixuan come in, all the employees stood up and applauded spontaneously. And there were cheers at the same time, after all, it was the first time the boss had come here, so that these many employees recruited from Australia had seen this legendary figure for the first time.
Bao Zixuan walked among the employees and said, "Thank you for joining Heiyun, believe in Heiyun, believe in me Bao Zixuan." I don't have any official words, clichΓ©s or polite words. All I can say is that every effort in Black Cloud will be rewarded, and I wish you all a happy work. β
In fact, Bao Zixuan doesn't like to make so-called speeches in the crowd, but sometimes there is really no way. Now that the company has reached this scale, it is sometimes impossible for many branches to come over once a year, and if they don't say anything, who will remember this boss.
During the inspection of the Australian company, the financial statements were reviewed, and several employees who did their best work were rewarded. Bao Zixuan and Wu Guangzheng returned to the hotel.
They need to recharge their energy and prepare for the investigation, acquisition, and purchase of iron ore that will begin tomorrow. However, if you want to make a difference in iron ore now, you can't do without the support of several giants, and the next thing is to play in negotiations.
The iron ore triumvirate refers to the three iron ore production, development and marketing groups of Brazil's Vale, Australia's BHP Billiton, and the British Rio Tinto Group. The cold snap in the steel market caused the price of iron ore, which had been rising since 2002, to plummet. Determined to make a comeback in the 2009 international iron ore negotiations, the China Iron and Steel Association and various steel companies have stated that iron ore prices should be reduced. However, the bottom line was touched by the three iron ore giants, and the negotiations were temporarily deadlocked, so that it was impossible to buy the spot mines of the three giants.
BHP Billiton was formed by the merger of two giant mining companies and is now the world's largest mining company. Founded in 1885 and headquartered in Melbourne, BHP is one of Australia's oldest and largest companies. Bileton is a pioneer in the international mining industry and was once known for its innovative and intensive approach to operations.
Now the whole world knows that Xiangjiang Bao Huo Dong Mining Company is coming to negotiate the purchase of iron ore, and many companies want to participate. After all, with the current scale of construction of the steel plant, this is definitely a stable long-term customer, and the black cloud itself can consume a lot of products. There is no problem on the market, the key is who can win this order, the current steel market in the entire market is not good, the shipbuilding industry, the construction industry, the automobile industry and other large steel purchases are shrinking, so that the price of iron ore is not high.
Bao Zixuan has asked Blackstone Fund to buy many bankrupt steel companies in advance, but the scale is very small. In the future, it can be used by yourself, but it can be said that it is difficult to supply the entire Chinese market, and now most of the resources are in the hands of the three giants.
Arriving at BHP's headquarters in Melbourne, Bao Zixuan was warmly welcomed. After all, this is the existence of the God of Wealth now, and no one can resist the charm of money.
BHP's President Stevenson personally came to receive Bao Zixuan and his party, which is enough to show the importance of this negotiation. Stevenson, 50, has been with BHP Billiton for 25 years. It can be said that in addition to the family relationship, its own ability has also been recognized by the whole company.
Stevenson said: "Welcome Mr. Bao and Mr. Wu to BHP Billiton, everyone is still used to the weather in Australia!"
Bao Zixuan: "It's very good here, I'm going to buy some farms here, and I can come over for vacation at any time when the time comes." I find you to be really happy, and you can live here for at least 5 more years. β
Stevenson: "If you like, I've got some farms in the West where we can be neighbors." β
Bao Zixuan: "That's good, it's a good choice to be a neighbor with you." β
Seeing that Wu Guangzheng didn't say a word, Stevenson knew that as long as he got Bao Zixuan this time, there should be no problem. He said with a smile: "The black cloud company has explained in advance about your origin, and we also hope to cooperate with entrepreneurs with strength and ideas like you." However, we need to discuss the quantity and price that your company wants to buy. After all, the price is too low, and we can reduce the price appropriately, but it is a little difficult for me to accept so much at once. β
"The cooperation price provided by the staff of Heiyun to BHP Billiton is 20% off the market price, which is basically not profitable for mining companies. However, at present, the price of iron ore is sluggish, and if you really bite the bullet, you can follow, but this is basically losing money and making money, and it will definitely not last long. β
Bao Zixuan: "This is just our first offer, but now the steel industry is not in a recession. We are also facing a lot of risks, and we hope that the two sides can reach an agreement at a reasonable price. However, what I can convey to you is that we can sign a long-term and stable supply agreement, and BHP Billiton's coal, iron, aluminum, copper and other metal minerals are all long-term procurement objects of Baohuo Dong Mining Company. And we can pay the margin in advance, 30 years, I think it's a not short contract. β
Hearing that a stable supply agreement for 30 years could be signed, BHP's senior management was very impressed. After all, no company in the market dares to do this. In fact, Bao Zixuan didn't think that he would make a deal at this price, and BHP Billiton would not agree as long as he was not stupid.
Stevenson: "Mr. Bao is so optimistic about his steel company, after all, this is a big contract. β
Bao Zixuan: "I look at long-term interests in business, and it is estimated that it will be difficult for the company to go bankrupt as long as the descendants do not fail to achieve our scale." The main thing is that I'm not 23 years old yet, and as long as nothing else, I think I can still work together in 30 years. β
"I can pay the deposit in advance at the beginning of the cooperation and settle the payment every quarter. You should understand that I don't like to owe money in business. β
Stevenson: "How much margin do you have to pay, and we can only give you a maximum of 9.5 percent off the market price." Mining is different from the tech industry in that it is not as profitable, I hope you can understand. β
Bao Zixuan: "$200 million, long-term in BHP's account. However, after our calculation, 9.3% off is a price that you can accept. And all the goods are transported by ourselves, but you have to bear the costs of railway transportation and terminal storage in the early stage. In addition, our company has the right to renew the contract for 20 years at the end of the contract in the future, and the deposit can be increased to 500 million US dollars. β
The current negotiations are all investigated by the staff in advance, and Bao Zixuan's coming over is just a signing. It won't be as naked as before, so it will be too passive.
So lawyers on both sides began drafting the contract, and in the presence of local officials, Bao Zixuan and Stevenson signed their names. The contract, which at the time gave Stevenson unprecedented prestige at BHP Billiton, almost had BHP Billiton's management dig him up and whip him a few years later.
The total annual supply of 50 million tons of minerals is discounted, not to mention that it is still so long. The most important thing is that if you breach the contract, you will have to pay the deposit multiplied by the number of years, and if you break the contract after 30 years, you will have to pay $6 billion. There is also the right of first refusal when the contract expires, which is a contract that no one dares to break with. Bao Huo Dong relied on this contract to resell it every year, and he can earn hundreds of millions of dollars, and it is increasing year by year.