Chapter 472: Fan Wu's Deep Solution
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If you want to enter the iron ore industry in Western Australia, you must at least open these joints.
One is to obtain exploration rights from the government, which is the primary problem to be solved, with the mineral exploration rights in a certain piece of land, you can ensure that your rights and interests are not violated, and what you pay can be rewarded.
The second is to have enough funds to maintain the operation of his own mine, but this Fan Wuzhi has never been worried.
Third, it is necessary to have the right to build railways and ports, without their own ports and railways, ore can not go to sea, that is also impossible, although Rio Tinto and BHP Billiton have railways, there are also ports, but want to use their existing resources to compete with them, unless they are crazy, it is impossible to achieve this wish.
Of course, in addition to these three things, there is a more important condition, which is that you must know where to find the bonanza, and if you can't find it, everything is in vain.
In this case, few local enterprises in Western Australia have the courage and ability to compete with the two extensions, which not only means that the initial investment will exceed billions or even tens of billions of dollars, but also the later returns are difficult to guarantee that they can generate surpluses, and the most important thing is that they may face the tilt of the two expansions at any time, which is what everyone is most worried about.
Rio Tinto's position in Western Australia and even in Australia as a whole is deep-rooted, the influence is extremely deep-rooted, Australians have become accustomed to living in their shadow, as for the sense of resistance, or some, but few people will be stupid to stand up and say no to them is also the result of Australia's conservative style has always been.
Therefore, when the problem of iron ore was not sick, Heides said very directly that even if the government allows and supports it, this matter is not easy to operate, and it is really a combination of manpower, material resources, financial resources and luck to achieve this breakthrough, and there is also a premise, that is, the two extensions will not lag behind.
"The distance from the development area to the port is at least two or three hundred kilometers, how much money does it take to build such a long railway, and how much time does it take?" And most of the nearby areas, the two extensions have been explored, to explore only to go deeper inland, is like that, all kinds of resources such as power security are more difficult, these are to add investment, generally according to our inference, the establishment of a new mining company, even if the beginning of the exploration of the mining area, but to the official mine and transport out, it will take at least five years how many companies can afford such a large investment. β
Fan Yi nodded, and said in his heart that Heids's words are still more pertinent, and the ore industry is a relatively low-tech industry in Australia, and it is far from being able to be compared with other high-tech industries in addition to the relatively intensive capital investment.
Even if the turnover of the land is huge. However, the annual income is not enough in Fan Wuxi's opinion. If you don't see the important role of steel in the national economy. and the huge steel gap that China needs to solve after the deepening of reform and opening up. Fan Wuxian is too lazy to make this money. He just made something relatively fresh. It's also much more to make land money than to toss it like this.
But as an outstanding businessman with brains, vision, and experience. Fan Wuxian feels that sometimes making money also has to talk about politics. He has gained a place in Western Australia, and he can compete with the two extensions. In the future, it will have a say in the world's iron ore industry. The impact is quite far-reaching.
So Fan Wuxian said to Hydes. "If we want to explore mineral resources in Western Australia. Can this application be approved quickly? β
Heids said with a smile. "The current land policy of our country. It is to welcome economic liberalization. If your company is willing to come to WA for development. We are of course very welcome. The greater the investment amount. The greater the contribution to our local economy. Needless to say. I think Governor Skye is of the same opinion. β
Fan Wuxian nodded. Ask Heids to keep drinking. As a senior economic expert in the state government. The Heiders dialect is basically representative of the WA government's attitude. Basically, there won't be much deviation.
Originally, the current environment is. Australia is in the midst of economic reforms. Fan Wuxian took this express train. In addition, most of the workers and technicians will come to Australia from Chinese mainland. This is also in line with the principle of building a strategic partnership between China and Australia. There can be no objection from the state government's side.
Hydes took his leave after the banquet, but Fan Wuxian gave him two antique vases as a souvenir.
"It's just an ordinary handicraft, probably not an antique, but it needs to be identified by an expert." Fan Wuxian said.
There are very few politicians in the world who do not accept bribes, let alone an economic expert like Hyders, who works in government agencies, but he is very happy to accept the gift of Fan Wuji, and said that he is very willing to welcome Fan Wuzhi to visit the state government on behalf of Governor Skye, and he will facilitate the meeting between Fan Wuzhi and Governor Skye as soon as possible, so as to establish high-level contacts between the Western Australian government and Fan's Investment Group to promote Australia's economic construction.
Helms's words are also high-sounding, but Fan Wuxian knows very well in his heart that Australians also like to see beautiful large dollar bills, although Australia is very beautiful, but the outside world is also very attractive, and only with money can you go abroad, which is also the wish of many Australians.
Money is a tried and tested stepping stone wherever you go.
After sending Heids away, Fan held a short meeting of important cadres to learn about their work in Western Australia.
Carter, the head of the WA branch, immediately reported the information obtained by the company's WA branch to Fan Wuxian, and they had found out the situation of Rio Tinto and BHP Billiton's branches of influence in WA in Western Australia, and clearly marked the developed and undeveloped mining areas of the two on the map.
"Now it seems that only the northern interior has not been explored, but if you want to get there, the investment will be astronomical." Carter said helplessly after explaining to Fan Wuxian about the curve indicated by the lock on the map.
"I've never thought it would go that farβ" Fan shook his head.
In front of everyone's eyes, he drew two lines with a pencil on the large map, enclosing an area.
Although Rio Tinto and BHP Billiton occupy most of the mining area, and it is a rich mineral, in order to avoid conflict, there is a series of empty areas between the two companies, these places are terra nullius, and at the time of previous measurements, the iron content of ore in these areas is also very high, but it is still lower than the rich ore being mined by Power Tinto and BHP Billiton.
The principle that the developed ore can be used directly, Rio Tinto and BHP Billiton directly abandoned the slightly lower quality mining areas and went directly to those rich mines, which caused a large blank area between the two to be undeveloped.
What Fan has nothing to plan is this vast area of borderless land.
Fan Wuxian said to the surprised employees, "My goal is to take such a large area, how much do you think it will cost?" And what will be the reaction from the WA government? β
Carter had been studying this issue for a long time, he scratched his head, visually surveyed the area marked on the map, and then said to Fan Wuxian, "This is probably less than 70,000 square kilometers, and it is an area that the WA government has basically abandoned, and no one has ever wanted to survive in the gap between Rio Tinto and BHP Billiton, so the valuation here will be very low." Probably, I'm guessing we'll need less than $10 million to get this place. β
After hearing this, Fan Wuxian couldn't help but sigh and said, "It's only 10 million Australian dollars, it's really cheap." β
It is no wonder that when the commercial value of this land has not yet been highlighted, although there is iron ore in this wasteland, everyone thinks that the quality is relatively low and not worth the investment, so the land price is also very low, and Carter gave an estimate of 10 million Australian dollars, which is already overestimated.
Fan Wuxian thought for a while and then confessed to Carter, "Okay, I'll authorize you, within 20 million Australian dollars, you can make your own decisions and find a way to buy the exploration rights of this area." β
"Ten million Australian dollars, if it exceeds this number, even if my supervisor is too incompetent!" β
"Also, by arranging for me to meet with Governor Case at the appropriate place, I hope to have everything sorted out at once, and even though Hydest says it will take at least five years to see profits, I hope to be able to get it all done within two years, so we're running out of time." Fan Wuxian then made his own request.
Carter confidently assured Fan Wuxian, "Boss, please rest assured, Australians are lazy, and the five years they say, in our opinion, two years is enough, and it will not delay your plan." β
"If you can achieve this goal within two years, I will promote you to the top of the group." Fan Wuxian also offered his own incentives to Carter.
The top of the group! After hearing this, Carter was as excited as if he had been beaten with chicken blood, this is not a height that can be reached by any person, and when he enters the senior management of the group, he will get not only money, but also stock and option awards given by the boss, although it may not be the head office, but it is enough for him to live happily with his family for several lifetimes.
After Fan Wuxian saw Carter's expression, he also felt very satisfied, people are heroes, money is courage, and when it comes to the critical moment, the role of the dollar is incomparable.
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