Chapter 883: Iron Ore Joint Venture
After nearly two months of negotiations, Xingyuan Group finally reached an agreement with several major families in Japan, as well as the Heung Kong Foundation, the Malaysian Chinese Foundation, the Singapore Foundation and the Treasure Island families.
After two months of tug-of-war, the Marandu Iron Ore Development Company was officially established, with the Xingyuan Group owning 30% of the shares, the Mitsui Foundation and the Sumitomo Foundation each holding 10% of the shares, and the Fujiwara family and the Ito family each holding 5% of the shares.
The Heung Kong consortium holds 15% of the shares, the major families of the treasure island jointly hold 5% of the shares, and the Malaysian Chinese consortium and the Singapore consortium each hold 10% of the shares.
The transfer of these shares resulted in a $7 billion cash profit for the Lee consortium, which was partly earned by the Lee consortium and not owned by the Marando Iron Ore Development Company.
At the same time, all parties jointly invested $1 billion in iron ore mining, railway construction and port construction according to the shares, completely breaking the blockade of Rio Tinto and BHP Billiton.
Representatives of all parties held a celebratory reception for the signing of the joint venture agreement at the Hong Kong Peninsula Hotel, which was attended by core members of all parties.
At half past six o'clock in the evening of December 8, when the Shanghai investment delegation was still discussing with Xiangjiang and Xiangjiang entrepreneurs, Li Guangyu and Cao Weiqing came to the Peninsula Hotel to attend the celebration.
This time, Li Guangyu was very excited, and the discovery of the Marandu iron ore mine made him have billions of dollars in his account.
Although this kind of profit is certainly not as profitable as his own development, Li Guangyu does not care about this, this iron ore has not been mined and shipped out, even if it has a high value, and now with this huge cash return, he can use it to invest in more industries to obtain more profits.
And if he is facing a lot of pressure to develop alone, especially the financial pressure, you must know that this iron mine is not able to recover the cost in the short term, whether it is a railway or a port, and iron ore mining supporting facilities need a huge amount of money, Li Guangyu does not want to put his own funds on it.
This time, the Marandu iron ore mine is expected to make a profit of more than $15 billion, which is still at the current price, and Li Guangyu sold 70% of the shares for $7 billion, which is currently acceptable to both parties.
Because this mining time will be as long as several decades, and Li Guangyu has the seven billion US dollars in hand, I don't know how many times it has already multiplied by then, and he doesn't care about the loss point now.
As for Japan and the Treasure Island family, these are also willing to eat at such a price, at present, whether it is Japan or Treasure Island, iron ore is mainly imported, especially Japan, they are currently the world's largest iron ore importer, several families very much hope to occupy the initiative in this.
The joining of these Chinese families is, firstly, in the hope of making friends with the Li consortium and deepening the relationship between the two sides, and secondly, to find a stable investment for their family, which is relatively stable and does not have much risk.
Tonight's Treasure Island Hotel gathers influential family heads or core family members in Southeast Asia, Xiangjiang and Japan.
Sumitomo Kiei, the head of the Sumitomo family in Japan, came to Xiangjiang in person, and the Mitsui Foundation was a core member of Mitsui Nagao who attended on behalf of the Mitsui family.
The heads of the Fujiwara family and the Ito family are currently at the top of Japanese politics, so the people who came were the number two in the family, Fujiwara Tomoken and Ito Nobukoto.
On the Malaysian side, Guo Henian is the leader, and Lin Wutong, Li Shenjing, and Zhong Tingsen are the core members of the consortium who came here.
The Singapore consortium was led by Khoo Teck Puat and attended the celebration reception with Wong Cho Yiu, Kwok Fong Fong, Ng Teng Fong, Lee Seng Wai, and Kwok Ling Ming and Wong Chi Siang, who are currently in Hong Kong.
Gu Zhenfu, Lin Tingsheng, Wu Xianwen, and Gao Gao Yuan from Baodao also rushed over from Taipei to attend this meeting of great significance.
This time, more than a dozen family leaders of the Heung Kong Consortium came to the Treasure Island Hotel in person to attend this special reception.
The media in Hong Kong has always been well-informed, and many reporters have been squatting at the Peninsula Hotel, hoping to get some exclusive information here.
When Li Guangyu and Cao Weiqing arrived at the Peninsula Hotel, many reporters surrounded them and asked Li Guangyu countless questions.
Li Guangyu said: "Thank you for your concern for me and my industry, tonight's reception is just a gathering of the establishment of the Marandu Iron Ore Development Company, which does not involve cooperation and agreements in other aspects, and we will not target any forces and groups." ”
The Oriental Daily reporter said: "Li Sheng, according to our information, the relationship between these shareholders behind the Malandu Iron Ore Development Company and you is very good, some people think that the Malandu Iron Ore Development Company is just the beginning of your alliance, and you will cooperate in more industries in the future to jointly deal with the competition of other consortia and forces, I wonder if this is your plan?"
The reason why these forces can unite together, the key point is the link of the Li consortium, it is with the existence of the Li consortium, the forces of all parties will gather together, once these power companies appear to control each other, then it will be a huge consortium power.
It's a pity that Li Guangyu has no intention of making wedding dresses for others, and the current Li consortium is still too far from the strength of Mitsui and Sumitomo Consortium, if this is the case, I am afraid that the Li consortium can only become a vassal of Mitsui and Sumitomo, and Li Guangyu will never allow this situation to occur.
At present, there are many forces that it seems that this is an alliance of the Oriental Consortium, and these families here either have great influence in the world, or have strong influence in the region, once these families are really closely linked, it will be a disaster for many forces and groups.
In particular, Rio Tinto and BHP Billiton are particularly concerned about this, this time these consortium and family cooperation projects are their monopoly iron ore industry, the Pilbara region has always been regarded as their own territory, this time Xingyuan Group wants to break the balance of more than ten years, which makes them very unwilling.
It's just that the forces behind the Marandu Iron Mine are too huge this time, and they don't have much to do to stop it.
The railways and ports, which have always been used as sharp weapons by them, have no effect on the Marandu Iron Ore Development Company, and the other party has made it clear that it wants to build its own iron ore and is not restricted by them.
Looking at the names of the shareholders above the Marandu Iron Ore Development Company, comparing the forces behind them, no matter how strong the two mining groups are in Australia, they can't compete with them in terms of financial resources and strength.
There are three world-class consortia, and a number of regional consortia and families are shareholder-owned, involving many countries and forces, and they can't suppress them if they want to.
The only thing that made them feel relieved was that at present, the Xingyuan Group seemed to have only explored such a huge iron ore, and the pressure on them was not too great.
What Rio Tinto and BHP Billiton executives don't know is that at present, Xingyuan Group is mainly exploring the vicinity of the Marandu iron ore mine to determine the reserves of the Marandu iron ore, and these data are conducive to the negotiation of Xingyuan Group and other forces, and there is still a large area that has not been explored.
And Li Guangyu will obviously prepare a huge surprise for the two extensions, especially now that the dust has settled on the Marandu iron ore mine, Xingyuan Group will shift the focus of exploration to other places.
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