Chapter 195: Controlling the Source Means Controlling the Narrative
Gores didn't appear to acknowledge Zhao Hepu's implied protest — or perhaps he fully understood it and simply chose to ignore it. "The treatment and refining charges have already been set. You may choose to sign the contract or not. That's up to you."
He was as blunt as ever.
The world's most productive copper mines were controlled by just a few mining giants. BHP Tuo, for example, held majority control of Escondida, the largest copper mine in the world — the only one that produced more than a million metric tons of copper per year.
Such a production scale put BHP Tuo in a category of its own, giving them enormous influence over global copper concentrate supply.
That's why Gores could be so confident and uncompromising in his stance.
Because right now, the copper concentrate market had far more buyers than sellers. High-quality supply didn't worry about demand.
Zhao Hepu understood immediately — further debate would be pointless.
Gores had made it clear: take it or leave it.
The Chinese smelters had no leverage. They could only accept the dictated price.
Seeing the entire room fall silent, Wu Yan stepped forward and distributed documents to each company. "As you've heard, prices are fixed. The documents I'm handing out now list the quantities of copper concentrate each of your companies will be allocated next year."
Not only had the price already been decided, but the volume each company would receive had also been predetermined.
There would be no negotiations — not even on volume.
Once it was clear no one was going to object further, Wu Yan took out the full set of contracts. "The cooperation model is the same as previous years. Please review the terms. If everything looks in order, we can sign today."
Zhao Hepu flipped through the contract. The clauses were basically the same as last year's. But the pricing — it stung.
He looked around and saw that every other company executive wore the same heavy expression. Their faces were tight with frustration, but none of them made a move to object.
Because they all understood: refusing to sign meant giving up copper feedstock for next year.
And then what? Compete on the open spot market?
That would only bring lower prices and more risk.
They had no real choice.
One by one, the companies signed the contracts, suppressing their dissatisfaction.
Wu Yan arranged a formal banquet to celebrate the agreement and show courtesy to Gores.
But Gores declined the dinner. He wanted to spend time with his family instead.
This triggered another wave of misunderstanding among the Chinese executives.
It seemed to them that the CEO of BHP Tuo didn't even consider them worthy of a meal.
Feeling slighted, they too declined the invitation and went off to dine among themselves.
Sharing similar frustration, they found solace in each other's company. They could finally vent.
Jintian Copper, a company with more than ten years in the industry, had never been involved in upstream mining. They only handled smelting, refining, and trading.
After the negotiations, General Manager Lu Zhentian felt especially crushed — even more than Zhao Hepu or Feng Sinian.
"You all have copper mines, either passed down for generations or developed through your own efforts. You can produce your own concentrate," he grumbled into his cup.
He was mainly referring to Tongdu Nonferrous Group, whose headquarters were in Huizhou — a region known as the ancient copper capital, with centuries of mining history.
"And some of you have the biggest copper mines in the country," he said, looking at Jiujiang Copper.
Then he turned to Zhao Hepu, half-joking, half-serious. "When are you guys going to start mining Qulong? Wukuang Group got so lucky — discovering a ten-million-ton deposit. Once you begin production, you'll owe us at Jintian at least a million tons of copper concentrate every year!"
"Qulong won't be in production anytime soon," Zhao replied, shaking his head with a bitter smile.
Their pyrometallurgical smelters still relied entirely on imported concentrate.
Only Demen Copper Mine used a bioleaching process to produce and refine copper on-site — that segment brought in most of Wukuang's profits these days.
And for that, they had to thank Li Tang.
Zhao couldn't help but wonder — what exactly were Li Tang and Qin Jianshe up to in Mengguo?
Lu Zhentian, drunk and emotional, said what was on everyone's mind: "You guys are lucky — every one of you has a mine. When you control the source, you hold the key to wealth. If my company had a Qulong or Qinglong, I'd stake everything on developing it. Let's see if Gores would still act all high and mighty! I'd throw a chair in his face!"
Some laughed at his bold words — but deep down, they knew it wasn't that simple.
Even if Qulong and Qinglong went into full production, would that truly eliminate China's dependence on imported copper?
Talk was easy. Reality was complex.
…
The next morning, Zhao Hepu brought the freshly signed contract to Ouping Guo. Together, they went to report to General Manager Niu Fu.
"So, it's settled?" Niu asked. He cared a lot about Wukuang's annual copper concentrate contracts.
"It went like previous years," Zhao replied. "No haggling over price. BHP Tuo gave us a fixed rate. They'd already finalized terms with Japan before coming here."
"Japan has been the world's largest importer of copper concentrate for decades. The big mining firms always negotiate with Japan first, then use that price globally," Niu said, flipping through the contract and pausing when he saw the figures. "The amount of concentrate we secured isn't very high."
"It's not. So many domestic smelters competing. We only get a small portion," Zhao said, visibly troubled.
He felt like he had failed. The price and the volume were both lower than expected.
"I still have a decent relationship with Gores. He's probably still in Yanjing, right?" Niu asked.
"Yes."
"Then I'll try to meet with him personally. Maybe I can help Wukuang get another million tons. Shouldn't be a problem."
To him, arranging a dinner meeting was a small effort. If it meant securing more supply, why not?
After all, he was the general manager of Wukuang. Surely Gores would give him face.
"If you go in person, it'll definitely work!" Zhao said quickly, flattering him.
"Ultimately, we need to do both — mine our own ore and import what we need," Niu said. "Over the last four years, China's copper concentrate imports have grown by over 10% annually. That shows how strong domestic demand is — and this supply gap will continue for years."
"BHP Tuo and other firms see this, and that's why they can set such arrogant prices," he added. "If we want to regain bargaining power, we must control quality resources. We must control the source."
Niu had a clear grasp of the situation.
Domestic copper ore was low-grade and low-volume — thus the heavy reliance on imports.
If China had multiple mines producing hundreds of thousands of tons annually, foreign companies wouldn't be able to push them around so easily.
That's why Wukuang had made a strategic decision: in the years ahead, they would spend $7 billion to acquire an undeveloped copper mine in Chile with reserves of 16 million tons.
The company's top brass had already agreed on this direction — they had to go global.
If they couldn't find good resources at home, they'd acquire them abroad.
Controlling the source meant controlling the narrative.
In recent months, their international investment department had been scanning the globe for new targets.
"Qulong is still in the exploration phase. Mining and ramp-up will take at least four or five years," Zhao said cautiously.
Even if you've identified a mine, developing it usually takes a decade or more.
"Let's stabilize things one step at a time," Ouping Guo said with a more optimistic tone.
Niu nodded. They couldn't rush it.
Then he looked at Zhao Hepu. "By the way, any news from Li Tang and Qin Jianshe? They've been in Mengguo a long time."
"About a month ago, Qin was in Kulun on business. He called me briefly to give an update on the Taluge project," Zhao replied, trying to explain.
He hadn't really followed up much since then — and that made him nervous in front of Niu.
After all, he'd only reported on the project once since they left.
"You mean the same update you gave me last month?" Niu's tone turned sharp. His face, full of authority, became stern.
"They'd found ore, and the results looked decent… that's all I was told."
Zhao looked uneasy. "I've been trying to get in touch with the team. Guo Fengchun picked up a few times, but he doesn't understand the technical side. He just keeps saying things are going well and to trust them."
"You people really don't inspire much confidence!" Niu snapped.
The office turned cold in an instant.
"There's no signal at the project site," Ouping Guo offered as a defense.
"Oh, right, I almost forgot — I have something important to report. It's about the Taluge project," Zhao said, suddenly remembering. "I meant to tell you yesterday, but got delayed with the BHP Tuo meetings."
"What is it? Something about Li Tang?" Niu's interest peaked.
Anything related to Li Tang always got his full attention.
"Yes," Zhao nodded, carefully watching Niu's expression. Seeing no immediate anger, he continued, "Ren Qingqing, who manages finances, told me the funding we raised is basically all spent. She says the remaining shareholders need to quickly send in the final 20 million yuan."
"What?" Niu was stunned. "We split the funds into three installments. Nearly 100 million has already been transferred to Zhongcheng Mining's account. You're telling me it's all gone?"
"Gone… and apparently we still owe the Guizhou Bureau and the Geological Survey some payments," Zhao said nervously.
"Over 100 million in under a year? How?!" Ouping Guo was equally shocked.
"Ren Qingqing said most of it went to pay the Mengguo drilling contractors," Zhao replied carefully, walking on eggshells.
"She also said Li Tang signed off on every payment."
"That kid… does he think money grows on trees?" Ouping muttered.
"He didn't skim off any for himself, did he?" Niu asked, half-joking, half-serious.
That kind of mistake would be catastrophic.
"I asked. Ren Qingqing said all expenses are accounted for. No funny business."
"Is he in cahoots with the local drilling firms?"
"That's harder to say… But from what I know of him, I don't think so."
"If he can't give me a good explanation when he gets back, I'll personally drag him in to be dealt with!" Niu growled.
Zhao silently prayed that Li Tang hadn't done anything foolish. Still, he chose to trust him. "So… about the remaining funds, what should we do?"
"Contact the other shareholders at Zhongcheng Mining. Tell them to wire the last 20 million," Niu instructed without hesitation.
He still didn't understand how Li Tang had burned through 100 million so fast.
But this year's mining market was strong, and the partner companies had all made hefty profits. A few million more would be no issue.
"Got it. I'll call them right away."
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