Chapter 629: Cooperative Development
Feng Xiaochen saw that Lu Ram had already gone to the Dao, so he stopped going around in circles, and he said: "Minister Lu Ram, the method you proposed earlier to exchange iron ore for equipment is unacceptable to us. Luo Ye is not a metallurgical company, they have no use for iron ore, and if they want to sell this iron ore to other steel companies, it is equivalent to acting as a salesman for you, and I don't think you will pay them a commission. ”
Lu Ram hurriedly declared: "No, no, no, I have already told Mr. Wang that the settlement price of our ore can be reduced by 10% on the basis of the international market price, which is equivalent to the commission we pay." ”
"However, the shipping cost from Gabe to China is much higher than the shipping cost from Australia to China, and the 10% reduction you have reduced is not enough to make up for the loss of freight. ”
"That'...... What if we agree to a 15 percent drop?"
"Huh, 15%?"
“20%!”
Luram was also out of the way. If the ore can't be mined, it's no different from waste stone. As long as he can mine more ore, what can a 20 percent reduction in price count? He understood that the Mr. Feng in front of him was very shrewd in his calculations, and he had already eaten the capital that he had no counteroffer, so he could only stretch his neck and wait for the other party to cut it.
Feng Xiaochen didn't accept Lu Ram's sincerity, he shook his head firmly, and said, "Even if you are willing to reduce the price by 30%, Luo Ye will not accept this plan. It is very difficult to sell iron ore, and Luo Ye is not a sales agency, so it is impossible to waste energy on such a thing. ”
"Xiaochen!" Wang Weilong couldn't listen anymore next to him, and called out to Feng Xiaochen in a low voice. He invited Feng Xiaochen to come over, but he didn't let Feng Xiaochen smash the pot. Even if Feng Xiaochen was unwilling to help them sell iron ore, Wang Weilong would rather go to the street to sell it himself and make this deal happen. If Feng Xiaochen just used this method to help lower the price, Wang Weilong would certainly like to see it. But seeing that Feng Xiaochen said it to death, where could Wang Weilong calm down.
Hearing Wang Weilong's voice, Feng Xiaochen didn't wait for him to say anything, he turned around and reached out and patted him on the shoulder, signaling him to remain silent, then turned back and said to Lu Ram: "Mr. Lu Ram, I have another idea, I don't know if you are interested." ”
"Of course, Mr. Feng's idea must be very good. Luram put on a good look. He knew that Feng Xiaochen wanted to facilitate this deal, so he was not as anxious as Wang Weilong. Now that he heard that Feng Xiaochen was going to give him an idea, of course he accepted it gladly.
Feng Xiaochen said: "I think that with your country's current economic strength and technological strength, it is very difficult to develop the Piesig iron mine. Even if we agree to accept the terms of ore for equipment, how will you sell the ore other than the ore you used to pay for the goods? I would suggest that you bring in a strategic partner with whom you will develop the Pitsig Iron Ore Mine, where you will only be responsible for providing the resources and this strategic partner will be responsible for providing the funds for the purchase of equipment. In this way, you can get the equipment, and Luo Ye does not need to accept iron ore as payment, wouldn't it be the best of both worlds?"
"Strategic partner?" Lu Ram's heart moved, "Can Mr. Feng recommend a partner to us?"
"Absolutely. Feng Xiaochen's answer should be very refreshing, "There are many iron and steel companies in China that have such investment capabilities, and I am willing to find out their intentions for Mr. Lu Ram." However, since it is a strategic cooperation, I am afraid that some of the terms of cooperation will have to be determined in advance, so I can explain it to them. ”
"What conditions?" asked Luram.
Feng Xiaochen said: "First, the two sides adopt the method of joint stock operation, Gabay shares with resources, and the Chinese side shares with capital and technology, and the income of the mine is distributed by both parties according to the proportion of shares. ”
"It's natural. ”
"Second, the sale of iron ore is the responsibility of both parties, but in the case of multiple buyers, Chinese steel companies have priority in purchasing. ”
"Well, uh...... In principle, yes. ”
Lu Ram stumbled slightly, and then agreed. He began to understand Feng Xiaochen's intentions, the so-called priority of procurement, that is, if Chinese companies want the ore of Piet Sig Iron Mine, then Gabay must guarantee it. Now it seems that this condition is a bit excessive, because Piethiger's iron ore cannot be sold if it is begged for others to buy, and Chinese companies are willing to buy it, and Ullam is definitely unwanted.
But in case there is a little turmoil in the international iron ore market, and Australia, Brazil and other iron ore powers want to get stuck in China's neck, Feng Xiaochen's priority is very useful, it can allow China to have a viable backup ore supply, so as to have an extra hole card in the iron ore trade dispute.
Understanding the other party's purpose, Lu Ram's first thought was to use this to negotiate with Feng Xiaochen, if you don't agree to my conditions, I won't use it as a spare tire for you. But after thinking about it, he gave up this idea, the reserves of Piesig iron ore are still passable, but the output is not high, it is not a big iron ore, and the supply of iron ore is not enough to influence the international market.
Lu Ram's emotional fluctuations, Feng Xiaochen saw it. He was actually mentally prepared for Lu Ram to talk to him about the conditions, if Lu Ram really wanted to do this, Feng Xiaochen didn't mind directly serving tea to the guests, so that Lu Ram knew what it meant to be "a weak country without diplomacy". Fortunately, Lu Ram is also a person who knows the times, and he agreed to Feng Xiaochen's request without hesitation, which saved Feng Xiaochen from fighting any more psychological warfare with him.
"Thirdly, the equipment used in the mining area should be prioritized for the purchase of Chinese products, and only if China is unable to provide such equipment, can it be purchased from other countries. ”
"The premise is that the quality and performance of the Chinese equipment can meet the requirements, and the price cannot exceed your quotation in the international market. ”
Luram declared that he could not leave an opening in this place. Chinese equipment is cheap, and this is based on the premise of competition with Western manufacturers. If in the future, Chinese companies take advantage of their monopoly position in procurement to quote a sky-high price for equipment, and they will not become the wrongdoers?
"In terms of price, Minister Luram can rest assured that what we offer in the international market will be as much as we offer to the country of Gabe, and it will definitely not increase by a single cent. ”
"Well, then I can also accept this condition. ”
"Finally, there is one more point, which cannot be regarded as a condition, but our sincerity in cooperation with your country. In view of the fact that the Piesig iron ore mine has not yet been fully explored, the Chinese side can provide you with the exploration technology and the necessary funds, but the new reserves obtained from exploration should be included in the scope of cooperation between the two sides. ”
"This condition...... It's a bit harsh, isn't it?"
Luram finally questioned it. It is relatively easy to value the minerals that have been explored, so that it is easy to calculate the equity of each party when working with the other party. If the cooperation is extended to minerals that have not yet been explored, the risk is greater. In the unlikely event that the new reserves are much larger than the current proven reserves, Gabeco will lose a lot.
Feng Xiaochen smiled, and he said, "Mr. Lu Ram, do you think that with Gabe's own ability, he can complete the exploration of unknown reserves?"
Lu Ram shook his head, iron ore exploration is not a simple matter, Gabay has no technology in this area at all.
Feng Xiaochen asked again: "So, if you hire Western countries to help you explore, can you afford the required expenses?"
Luram shook his head again. Of course, the cost of exploration will not be higher than the value of the iron ore itself, but the problem is that the current proven reserves of the Piesig iron ore mine have not been fully developed, so how can Gabay come up with additional money to invite Western countries to help explore new reserves? Even if they do so, they do not have the strength to exploit them, so isn't this money equivalent to being spent in vain?
Feng Xiaochen said: "That's right. You can't do it yourself, and you can't afford to spend money to hire someone else to do it. If more reserves can be discovered in Gabe, then you can have two or three Pitsig iron ore mines, and thus create more jobs and foreign exchange earnings, and that is not also a good thing for you?"
"Well, we can say yes to that. "Lu Ram figured it out, iron ore buried in the ground will not give birth to cubs, the Chinese are willing to help themselves explore for free, once the exploration is out, and they are willing to invest in development, Gabe's country is equivalent to lying down to earn money, why not do such a thing?"
"Very good!" Feng Xiaochen showed a bright smile, "I like to do business with honest and cheerful people like Minister Lulam. If Minister Luram can agree to these conditions, when this exhibition is over, I will return to China and start contacting investors for you. Once the funds are in place, we will complete the purchase of equipment in China and then ship it to Gabay to put into production, and in less than two years, the output of the Piesig iron ore mine will definitely increase fivefold, and we will be able to underwrite all the iron ore, and we will definitely not let Minister Luram worry about the sale of iron ore again. ”
"If that's the case, that's great!" Lu Ram was overjoyed, Feng Xiaochen's proposal was really a surprise for him. If Feng Xiaochen can really help them find a strategic investor, contribute money, technology, and equipment to help them mine iron ore, and at the same time be able to underwrite the ore, it will be like a pie rain in the sky, which is enough to make all the 30 million people in Gabe eat with a round stomach.