Chapter 358: Risks and Opportunities Coexist

India's own diamond mineral resources have been depleted, and when Indian merchants first entered Antwerp in the 70s, they initially started with rough diamond processing, which the Jews were unwilling and disvalued. Pen, fun, pavilion www. biquge。 info

The discovery of the Argyle diamond mine in Australia in the late seventies had a profound impact on India's diamond processing industry: the Argyle mine was flooded with small diamond roughs on the market, especially suitable for Indian processing with low labour costs, cutting out small, affordable diamonds.

The Argyle mine has a huge production and a large proportion of gem-quality diamonds, but the particles are basically relatively small, but the small grains that produce are almost 90% of the world's production.

Zhang Nan has to thank the Argyle Mine, it is because of the continuous supply of colored diamonds and the speculation of colored diamonds by sellers that the treasures on hand will increase in value.

At the bottom of India's labor costs, the wages of those low-level diamond cutters in India will not be counted in dollars at all, but in cents, which is incredibly cheap - even after more than 20 years, these workers will be paid $100 a month.

When I was chatting before, I knew from Jia Yin's mouth that most of the diamonds cut in India weighed less than 3 points, and 99% of them were small diamonds below 20 points. While these small diamonds account for 90 per cent of the world's cut diamond weight and 35 per cent of the wholesale value, it is clear that ambitious Indian diamond traders are more than just that.

But without the deposits under their direct control, the Indian diamond tycoons represented by Manu Jain can only be constrained by the status quo, or are still suppressed by the old diamond magnates represented by the Jews.

After the collapse of the Soviet Union, the Indians began to import rough diamonds from Russia (now the diamonds produced in the Soviet Union are simply processed and then exported, and they don't give you rough diamonds at all.) But even after more than 20 years, Indians will only get about $10 million a year from Russia, which is better than nothing.

And Zhang Nan knows that this situation will not change in 2016 - without mines, then you will never be able to become the real controller.

Throwing such a big bait, Zhang Nan was not afraid that the other party would not take the bait.

Through Guan Xingquan's instant translation, Manu Jain and Dilip Mehta already know the old bottom: they are desperate to get a first-hand supply of diamonds, and it would be better if they could get a stake in the diamond mines.

The two Indians did not suspect that Zhang Nan was talking in vain, and they both thought that there was no need for a person of Mr. Allen's worth to make such a joke.

As for the expressions of the two women, it is easy to understand - India is notoriously patriarchal, and few men will tell their big secrets to their women, and they guess Mr. Allen is also such a person.

Besides, it's not so strange for a crazy lover of top diamonds to have a diamond mine on hand, and if a person likes something, he can do things that no one else can understand.

It is not for nothing that there are rich people who want to drink fresh milk and raise a few cows themselves.

After the two Indians finished discussing it themselves, Manu Jia Yin said to Zhang Nan: "Mr. Allen, how much output will your diamond mine produce in a year, primary ore or secondary ore, and what is the quality?"

If we are to cooperate, we need to own the actual stake in the mine, and it must not be less than 30%. ”

It's clever not to ask where the mines are: all the famous diamond mines are famous, and the diamond mines owned by Mr. Allen must not have been mined, and this will be the highest trade secret for the time being - that giant of Del Bes is always watching all the diamond sources on this planet, and if a new large diamond mine appears, before you can produce it on a large scale, Del Bes will take action.

Unless it's in a country like the Soviet Union or China that Delbys can't afford to mess with, it's a takeover or a commercial strangulation: as long as more diamonds are released from stockpiles, investors in new mines may not be able to make ends meet.

Large-scale diamond mining is an extremely large investment project, especially in some remote primary mines, which will make the vast majority of diamond merchants in the world despair!

In short, there are risks and opportunities.

If you can't withstand the previous waves of commercial strangulation by Delbys, investors may lose money to be pants and jump off buildings!

Zhang Nan smiled after hearing this, and said: "At present, about 10% of the world's gem-quality diamond production is both primary and secondary ores. I can only give you 5 percent of the shares, and you have to invest 20 percent in the upfront until the industrial mining stage begins. After that, the investment and output profits are distributed according to the actual proportion of investment, and at least 60% of the diamonds produced can be processed and sold by you, including the proportion of high-grade diamonds. ”

Manu-Jain jumped up when he heard this: "This is impossible, Mr. Allen!

Zhang Nan waited for the other party to finish speaking before saying, "Don't worry, two of you." The upfront investment plus the need to withstand the early strangulation of Delbyss requires at least two billion dollars in capital reserves, and the vast majority of the risk of this money will be borne by me.

Business, talk slowly, those diamonds won't run under the ground. We're here to shop and visit, aren't we? Today is not the time for negotiations. ”

Now it was Manu Jayin and Dilip Mehta's turn to laugh, and the two found themselves a little out of shape: about 6% of the world's rough diamond business, which can add a heavy weight to the group's position in the international world diamond community!

Moreover, although the two are important figures in the family, they are not yet decision-makers and dictators, and this business negotiation is not something that these two can decide immediately.

As for Zhang Nan's sentence of "preparing 2 billion US dollars", Jia Yin and the others did not think that he was talking nonsense: a mine should account for 10% of the world's output, and the initial investment of more than 1 billion US dollars is not much!

This would be a huge investment, especially for Indians who would either lose their money or even collapse their entire family, or who would be able to straighten their way through the diamond trading commissions in Antwerp after making unimaginable profits!

There is no rush in this negotiation, at least until Zhang Nan comes up with conclusive evidence of mineral deposits, and then enters the field investigation stage, and then enters the formal negotiations.

......

Business negotiations aside, and the next step is a pleasant visit.

Originally, it was to let the Americans watch the excitement, which made Jia Yin more attentive: to let Mr. Allen see the actual processing capacity and technology level of his side, and then to prepare the evidence of the actual sales ability of the "Two Rose Group" diamonds, which also took a lot of time.