699 Mining tycoons
One to play? nbsp; After a joke, Huang Gang said: "Zhenhua, let's talk about it, what is the current situation of Mu Tongtie. ”
Lin Zhenhua also put away his ridiculous look and replied: "After repeated negotiations, the Bolivian authorities have agreed in principle to our acquisition of 50% of the mining rights required by Mutong Iron, which is equivalent to 22 billion tons of reserves. Our early infrastructure work has already begun, and the construction of a dedicated railway from the Mutong Railway to the Pacific Ocean has begun. Our plan is to achieve an annual production capacity of 20 million tons of iron stone this year. ”
"It's only 20 million tons ......" Huang Gang was a little disappointed, obviously this figure was quite different from the figure he expected.
Lin Zhenhua said: "This is already the limit. You must know that the Mutong Iron Demand has basically not been developed before, although it is a large demand of more than 40 billion tons, and the annual output is only a few million tons. It is not easy for us to increase our production capacity to 20 million tons in one year. What's more, the construction of the railway will also take some time, and before that, even if our stone can be dug up, it will be difficult to transport it. ”
"That's just as well." Huang Gang accepted Lin Zhenhua's explanation, and he also knew that the construction of the mountain would take a certain amount of time, and it was not easy for Hanhua to do this. The construction of demand mountains and railways are both things that require huge investment, and the acquisition of demand rights also requires a price. In the first two years, Hanhua raised 50 billion yuan to invest in Mutong Iron Demand, and if there is no such large-scale investment, I am afraid it will be difficult to reach 20 million tons of production capacity in 10 years.
Lin Zhenhua continued: "Our goal is to increase the production capacity to 50 million tons next year, and 200 million tons in three years, and then BHP Billiton and Vale will only be able to act according to our faces, which will make me anxious, and I will fight a price war with them, and I will be able to break them out of business." ”
"Huh. Mr. Lin is really domineering, when he is engaged in industry, he can squeeze others out of bankruptcy, and he has such a great courage to engage in industry. Huang Gang said, "I regret it now." If you knew this, the NDRC should have given you more support and invested as soon as possible. ”
"It's not too late, is it?" Lin Zhenhua said, "At most, we will be able to reach 50 million tons of production capacity in one year, although it is not enough to meet domestic demand, but as a bargaining weight." is more than enough. ”
Huang Gang nodded and said: "Indeed, with a production capacity of 50 million tons, it can also become a bargaining weight." But this year's hurdle is still insurmountable. You can reach a production capacity of 20 million tons this year, and the actual output is estimated to be a little more than 10 million, which is still a drop in the bucket compared to our annual import volume of 200 million tons. ”
"Who says we can only produce 10 million tons?" Lin Zhenhua smiled, "Don't underestimate us, okay?" ”
"What do you mean?" Huang Gang was surprised, "Didn't you just say that you could only reach 20 million tons of production capacity this year?" This level should not be reached until the end of the year. So I put a discount, and I guess you will be able to scoop 10 million tons this year. ”
Lin Zhenhua said: "This is just the situation of Mutong Iron Need, who told you that we only have one Mutong Iron Need?" ”
Huang Gang's eyes lit up: "That's right." How did I forget that Chairman Lin still has other places in his hands? How about it, how many mountains do you still have, and what is the scale? ”
"Actually, it's not much, it's about 20 places around the world." Lin Zhenhua said proudly, "Our company's operation department has noticed the sharp rise in the price of international iron demand stone, and has notified the demand mountains in various places to start full production. ”
"When did you control so many of the Mountains?" Huang Gang asked. He had always heard that Hanhua was in need of mountains overseas, but he didn't know much about the specific situation. Now listening to Lin Zhenhua's words, he was taken aback. It is a rebellious thing for a company to have more than 20 mountains overseas. ..., Lin Zhenhua said: "This has been a matter for many years, and the earliest is almost in the mid-80s of the last century. At that time, we were working on projects in Africa, and sometimes the client's side was short of funds, so we asked the other party to compensate for the right to purchase demand. This goes back and forth. In Africa, we scooped up more than a dozen iron and copper needs. In addition to Africa, we have also scooped up some iron needs in Mongolia, the Philippines, Peru and other countries, all of which are high-grade rich needs. ”
Lin Zhenhua is from the past generations, and he is very aware of the history of the skyrocketing global resource prices after entering the 21st century. Because of this foresight, he began to seize every opportunity to acquire the world's mountains in the 80s of the last century, and now, the benefits of such acquisitions are finally showing.
"Alas, I, an official of the National Development and Reform Commission, really don't have as much vision as you Zhenhua." Huang Gang said sincerely, "More than ten years ago, you were already laying out the demand industry, and at that time, the entire global demand industry was in a depression stage, and everyone was eager to sell the demand mountain in their hands." ”
"So we picked a bargain." Lin Zhenhua said, "The mountains we scoop are basically the price of cabbage. Over the years, in order to maintain the low-level operation of these mountains, we have also paid a lot of money. ”
"It's worth it, it's worth it." Huang Gang said, "Now it can be said that the time has come, the cabbage has become jade, and your early investment is probably more than 10 times the income now, right?" You, Mr. Lin, are about to become a tycoon in need of business. ”
Lin Zhenhua said with a smile: "It's still early for the tycoon." It doesn't matter if the income is not profitable, we are very satisfied if we can share the worries of the country and solve the country's resource bottleneck. ”
"That's right, I know Zhenhua, you have always put the interests of the country first." Huang Gang hurriedly put a high hat on Lin Zhenhua, but what he said was indeed the truth, Hanhua has always spared no effort in sharing worries for the country, and this alone is not in vain for the National Development and Reform Commission to go to the EU to stand up for Hanhua.
"We have preliminarily calculated that before the end of this year, the output of our major global demand mountains, coupled with the accumulation of the past, can provide at least 50 million tons of iron stone and 2 million tons of copper stone. All these needed stones will be sold to China to solve the urgent needs of the country. Lin Zhenhua said.
Huang Gang said excitedly: "This is really good, it's just a charcoal in the snow." If you can provide 50 million tons of iron stone, we will import tens of millions of tons from other channels. This makes it much less dependent on BHP Billiton and Vale. They have no means to blackmail us, and I am afraid that they will have to compromise on price. ”
"Director Huang, we have to say ugly things in front, we provide iron and copper stones. You can't discriminate on price, and you can't give us any less than the fee. Lin Zhenhua said. This kind of thing must be said first, don't let Huanggang fish in troubled waters and lose his profits.
"Of course." Huang Gang promised that as an official of the National Development and Reform Commission, he really didn't want to take advantage of Hanhua. "We need to use the stones you have provided as a weight to price BHP and Vale. But in terms of the final price, we will definitely consider your interests. You have been guarding these mountains all these years, and you have paid a lot, and if you don't give you some reasonable benefits, we don't want to go. ”
"That's pretty much it." Lin Zhenhua said with a smile.
Hanhua Heavy Industries Group was able to provide 50 million tons of iron stone within the year, and quickly reported to the Chinese delegation in Rio de Janeiro, Brazil, to participate in the iron stone negotiations. The officials of the Chinese delegation, who were in a difficult situation, received the news like a spring rain after a long drought. The spirit was greatly lifted, and when I sat down at the negotiating table again, the confidence was obviously very different. ...," Mr. Dobbins. Mr. Wolak, I would like to reiterate once again my position. We fully understand the difficulties faced by BHP Billiton and Vale in terms of rising costs and are willing to accept an appropriate premium over 2003 prices. But the price increase that we can accept cannot exceed 10%, which is our bottom line. Zhang Yi, the chief negotiator of the China Iron and Steel Association, said to the negotiators of BHP Billiton and Vale.
"Mr. Zhang, isn't the bottom line you said two days ago 15%? Why is it suddenly 10%? Dobbins from BHP asked curiously. After negotiating for so long, he has always felt that China should not be able to hold back and should improve its bottom line, but who knows that the other side actually did the opposite. On the contrary, the bottom line has been lowered, which is too abnormal.
Zhang Yijin smiled faintly and said: "We recalculated our costs and thought that a 15% price increase was unacceptable, so we readjusted the bottom line and changed it to 10%. ”
"It's completely impossible." Vale's negotiator, Volak, said with a disdainful smile. "Our bottom line is also very clear, 58%, there is no room for negotiation."
"This price has been accepted by both Japan's Nippon Steel and South Korea's POSCO, and there is no reason for Chinese steel companies to enjoy higher discounts." Dobbins added.
Zhang Yijin said: "Two, I don't think it's necessary to play this kind of word game between us. Nippon Steel and POSCO have equity in both of your companies, in the words of us Chinese, the fertilizer water does not flow into the fields of outsiders, and the price of iron needs stone rises or does not rise, and the money is in their pockets, so it is completely useless for you to use these two companies as examples. ”
Wolak sneered, "If that's the case, I don't think there's any need for us to talk about it." We have communicated our terms many times before, and any price increase of less than 58% is unacceptable to us. I think that if you insist on not accepting our terms, we will have to be very sorry to stop supplying China with iron-clad stones. ”
"Really? That's a very regrettable thing indeed. Zhang Yijin smiled faintly, "If that's the case, we have no choice but to turn to other demand companies to get the iron needs we need." ”
"Other demand companies?" Dobbins shrugged and said, "Are you sure you're able to get such a large amount of Iron Stones from other companies?" At present, there are only two demand companies in the world that can provide more than 200 million tons of iron and stone. It's very coincidental that both companies are here. ”
This is the monopoly power, both companies are international demand giants, once they join forces to raise prices, downstream manufacturers have no room for counter-offering. Both Wolak and Dobbins believe that with the current demand for iron in China, it is impossible to leave their two companies.
"Maybe it used to be like that." "However, in the near future, there should be a third company that has reached this size, and that is China's Hanhua Demand Company." By the way, Mr. Lin Zhenhua, Chairman of the Board of Directors of GCA Demand, also asked me to bring a verbal invitation to the two of you, and he would like to invite the representatives of your two companies to come to Santa Cruz, Bolivia, next month to attend the groundbreaking ceremony of the new demand area of Mutong Iron Demand. ”
Mutong! Both Wolak and Dobbins widened their eyes, as senior managers in the demand sector, they knew too well the reserves needed for the Muthong Iron. If the plant is fully operational, it will be able to produce more than any existing BHP Billiton and Vale.
Fortunately, this giant iron demand has been in a state of low development since its discovery, with an annual output of only a few million tons, and has no influence on the iron demand stone market. This is due to the lack of sufficient funds from the Bolivian government to carry out the development and the limited access to transportation. ..., however, now the Chinese are actually eyeing this iron need, and if this is true, then the situation will change significantly. Who doesn't know that the Chinese now have money, and throwing billions of dollars to develop an iron demand is just a drop in the bucket. As for the transportation conditions, in the final analysis, it is a matter of investment, and when the funds are in place, is it still a complicated matter to build the railway?
Oh my God, when did this happen! The damn marketing managers in the company didn't even know such important information.
"I'm sorry, Mr. Zhang, you mean that China is interested in investing in Mutong Railway?" Dobbins asked anxiously.
Zhang Yijin made a lazy look and replied: "It's not that I intend to invest, but I'm already investing." If I'm not mistaken, right now, Mutong Iron Needy is already producing Iron Need. Last year, China Hanhua Demand Company obtained 50% of the mining rights of Mutong Iron Demand for 1 billion US dollars, which is 25 years. ”
"50% of the right to take demand? Is this true? Wolak asked stupidly.
Zhang Yijin smiled: "Is it true, I think Mr. Wallak can go and see it in person, Hanhua Demand Company has already sent you an invitation." As for me, after the negotiations here, I will also go to Bolivia to see what is going on on the ground. How's that, gentlemen, do you think our negotiations can be concluded? ”
Wolak and Dobbins looked at each other and said in unison, "No! We think...... A slightly lower range than 58 per cent should also be acceptable. (To be continued.) If you like this work, you are welcome to (.) to vote for recommendation, monthly pass?