"Chen Sheng, there is another important thing, Christmas Creek Iron Mine, we have recently negotiated with several international mining groups, and at present, the conditions are similar, among which Rio Tinto I think is the best choice." After Zhou Jiayang finished speaking, he took out a document from the side, handed it to the boss and said: "The mine in Christmas Creek is 120 kilometers away from the nearest Rio Tinto railway line, and 300 kilometers away from the others, if you take into account mining and transportation, it is necessary to build a two-way track, in a desert area like western Australia, the cost of this kind of railway is as high as 3 million US dollars per kilometer, and if you cooperate with other companies, you will have to pay an extra 500 million US dollars for this piece alone, which is not cost-effective." ”

"With this advantage, is there no lion to open his mouth?" Chen Zhiwen asked. Mining, an industry with huge investment, is generally a sky-high investment, not only mines, but more importantly railway transportation, ports, etc., only sea freighters, can be contracted by professional shipping companies.

Therefore, under normal circumstances, the use of existing infrastructure is the best model, some countries will also come forward by the government to build infrastructure, but in western Australia, birds do not, the Australian government is not willing to invest so much money, just purely sell the exploration rights of a large area of uninhabited land, to attract international mining and oil giants, and as long as there is enough mineral energy, the giant companies will naturally invest in infrastructure, and the entire industrial chain can also pay taxes, the Australian government will not lose money.

However, there is also a disadvantage to this, that is, the mining giants have gradually monopolized the transportation infrastructure in western Australia, and other players can freely buy the exploration rights, but if they survey the mineral deposits, they have to be subject to these giant companies.

But in Chen Zhiwen's view, this is also normal, people have invested a lot of money in infrastructure step by step in the past few decades, and now they should get a "semi-monopoly" return, if it is themselves, they may only feel that the return is too little.

It's just that in business, now that he has the right to survey and no transportation infrastructure, he naturally has to stand on his own point of view.

"Of course, they have put forward a lot of stricter requirements than other mining companies, but infrastructure is a dead end, and relatively speaking, it is still the most cost-effective." Zhou Jiayang said that during this time, Hutchison's British management finally played its due role, and negotiated with several mining giants for several months, and the entire project was also handed over to Richard to be responsible.

"What kind of cooperation model is that?" Chen Zhiwen asked.

"Joint venture development, the entire Christmas Creek iron ore mine will be valued together, and then we will have 60% of the equity, and Rio Tinto will be 40% of the equity, but the mineral development needs to be handed over to Rio Tinto, and the various expenses required for the entire project, including the development of mineral deposits and railway construction, will be shared by both parties in proportion." Zhou Jiayang replied: "It is this valuation, it may take a while to decide, originally Rio Tinto asked for 50%, but we strongly insisted that it became the current 64 points." ”

"It's 64 points, but if it's really operated like this, I estimate that half of the profits will be taken away by them, and we all understand it." Chen Zhiwen took a sip of coffee and said.

In the joint venture between the two parties, the right to operate, is often more important than the equity, because with the right to operate, even if the shares are lower, there will be a lot of room for operation, such as the joint venture automobile company in the future, the right to operate, the right to sell, the right to release, the right to purchase, the right to purchase are in the hands of the foreign joint venture brand, a 150,000 or so cooperative brand car, just the licensing fee has to give the foreign party about 10,000, at the same time, in terms of procurement, many simple parts that can be produced in China are also produced by overseas companies, and finally, For a joint venture brand car, the foreign party takes 7% of the profits, and high-end jobs such as design will always be placed abroad, such as Volkswagen, Toyota, China, BBA, General Motors, etc.

This is also why when the rise of domestic automobiles is significant, only looking at the income of basic workers, perhaps not as good as joint venture brands, but a large number of R&D, quality, suppliers and other positions are left in the country, all the funds can be circulated internally, driving a large number of high-paying jobs, and ultimately driving the income of basic workers. And if it can be exported on a large scale, with higher returns, and can also seize the market for cars in other countries, you know, in Japan in the 2020s, there will only be one core scale industry left in the automobile industry (those high-tech but small market industries are not counted, although they make money, but they can't drive large-scale employment), if this piece of fat is eaten by domestic cars, then Japan will really only rely on a special industry in the future.

"Everyone actually knows this, and we will also arrange special personnel to keep an eye on it in the future, plus third-party audits, although it cannot be avoided, but it can always be controlled to a certain extent." Zhou Jiayang said: "This may be a tacit understanding in the industry. Later, it will depend on whose path is higher. ”

"That's the only way to go, it's actually similar to finding other homes." Chen Zhiwen shrugged and said. Compared with the automotive industry, the greasy in the mining industry may be much smaller, after all, the product is single, and the purchased things are also contrasted, unlike automobiles, too many technical requirements, can only be decided by foreign parties, and no technology can only be left to the test.

"In terms of talent training, we have also recruited some Chinese from other international mining giants, but it is difficult for us to find the most basic skilled workers, not because of high requirements, but because there are too many quantitative requirements, and many people in Hong Kong and Wanwan are not willing to go, so we don't have enough choice." Zhou Jiayang said again.

"Have you considered looking for someone from the mainland?" Chen Zhiwen asked, it is indeed unrealistic to find people who are willing to do this kind of work in Hong Kong Bay, there is no such enterprise in these two places, and the economy of the two places is not bad, who wants to go outside to mine until it is a last resort? Although Hong Kong's economy is not doing well this year, it is estimated that there are not many people in a desperate situation, and it is far less than the demand for people from large-scale mineral deposits.

"In the mainland, language is a problem, and it definitely needs to be discussed with the domestic side, and again, Rio Tinto may not agree, and we estimate that they also know our ideas, and they are probably more willing to use their own people." Zhou Jiayang said.

"It's not their turn to have the final say, we are the owners of this mine, besides, the labor cost of the mainlanders is much lower, this account should be calculated with them, if they don't agree, then use the extra cost of their people to calculate them." Chen Zhiwen said: "As for the language problem is not very important, with some translations on the line, can earn a lot of foreign exchange, the country can still draw some translations, and there are a large number of professional miners in China, although the mining method is different from abroad, but after all, it is the industry, and then learn to learn, it is easy to get started, and then teach them basic English overseas in the future." ”

Hong Kong's population, coupled with the attraction of real estate and finance to high-quality talents, is destined to have no good industry here, and similarly, when Chen Zhiwen's overseas industries need a large number of people, Hong Kong is not a place that can be transferred, unless a small number of people can be transferred from factories like in China.

The mining industry is even more special, in the global Chinese community, only the mainland can provide so many people, and if Hutchison wants to develop in this industry, it does not necessarily have to be all Chinese, but at least some, at least, some technical personnel need to be Chinese, so as to gain a firm foothold in this industry and have their own basic plates.

"Then this issue also needs to be included in the next round of negotiations." Zhou Jiayang nodded and said: "When it comes to the Chinese, I will arrange for the person in charge of the mainland to communicate with the relevant departments to see if the mainland can send people to sea and how many people can be sent." ”

"In the previous draft agreement, did you stipulate the iron ore to be produced, and how to distribute the right to sell?" Chen Zhiwen asked again. The mining industry, joint ventures, will generally be allocated for the right to sell, such as the production of ore, according to a certain proportion, who will sell, this is a very influential right, whether it is coal mines, iron ore, copper mines, oil, etc., most of the time are necessities, in the absence of oversupply, it is still very popular, such as can affect large shipping companies, large smelting companies, and even exaggerated, can affect some countries.

"This point hasn't been discussed yet, but depending on what Rio Tinto means, they want to monopolize this piece, what does Chen Sheng mean?" Zhou Jiayang said.

"Are they dreaming?" Chen Zhiwen shook his head and said: "According to the holding ratio, I want 60%, based on this, if in other aspects, Rio Tinto is willing to regress, then we can reduce it to 50%, this is the bottom line, we need to control half of the sales." ”

If you want to develop an industry, you must develop this part of the market yourself, otherwise, why bother, and sell the Christmas Creek iron ore directly at a price. Ore market, although the profit is very high, but it is still not comparable to the most basic real estate, not to mention, let's say that some cities in Southeast Asia, now to buy some buildings, rent out to collect rent, before the Asian financial crisis in 97, the profit will not add up to less than minerals, but this is purely cash, without any influence. The difference between minerals is that as long as the scale is large enough, it can have direct dialogue with many countries, which is what Chen Zhiwen needs, otherwise it is easy to invest in American IT companies.

"Okay, I'll talk to Richard about it, he's still in England." Zhou Jiayang said with a smile. Although on the bright side, Hutchison is still Richard's big class, and Chen Zhiwen also abides by his original promise and does not change his position, but the power of Hong Kong and domestic business has been in his hands, no way, the boss's Chinese, how can the ghost guy control the core business, and some overseas businesses such as ports and now mining, are under Richard's responsibility, and in fact, for him, Hutchison is larger, and Richard's resources will be much larger than the former CEO of Hutchison.

"In addition, the valuation price of iron ore can not be regressed, although it is said to be a joint venture, but I don't want to pay for this project, so the funds after the joint venture, need to be able to meet the investment of various development and infrastructure, so that we are equivalent to holding shares, buying these facilities, and waiting for the minerals to come later, then there is a profit, we will invest in the next phase, this model, is my ideal plan." Chen Zhiwen said again.

"Indeed, the investment in the mining industry is too big, and with this money, it will be more cost-effective for us to invest in Hong Kong real estate or Japanese real estate." Zhou Jiayang nodded and said, this year, Hutchison has invested a lot of money in the real estate market in Japan and Hong Kong, and the latter Zhou Jiayang is also very optimistic about the future, the former has risen by almost 15% in more than a year, and the income is very considerable, and the yen exchange rate is still slowly rising, which is more cost-effective.

"In addition, when the land matter is completed, we will prepare a little more funds to go to the UK to acquire some shares of Rio Tinto." Chen Zhiwen said again.

(End of chapter)