Chapter 285: You Will All Become Billionaires
Li Xinqi's vacation had already ended, but she decided to stay a bit longer in Perth, a decision no one at the Shenxia Group had any objections to.
However, she eventually returned home.
Probably sensing the remarkable transformation in his daughter's demeanor after her return, Li Xingchao proactively called Li Tang.
"I received the gifts you sent through Qiqi. Her mother was also delighted upon seeing them," Li Xingchao said, clearly pleased with Li Tang's thoughtful gestures. "Let us know in advance when you plan to return; we'll pick you up."
"I still have a lot of work here. Once I finish, I'll return," Li Tang replied. Having been away for a long time, he genuinely felt more comfortable in his homeland, especially regarding food and drink—something difficult to find satisfaction with abroad.
"I've already seen news reports about your work," Li Xingchao's voice grew deeper, carrying a magnetic resonance. "Shenxia Group is also a shareholder in Lianying Mining. As its general manager, I'd like to formally thank you on behalf of Shenxia Group."
"For what exactly?"
"You've done a tremendous job for Lianying Mining. Under your guidance, a company that previously had an unclear future is now seeing genuine hope of profitability!"
When Li Xingchao reflected on this privately, he wondered if he could manage Lianying Mining successfully if he were in Li Tang's shoes.
It would have been extremely difficult, nearly impossible.
Developing iron ore required massive initial investment and entailed high risks. No one could confidently guarantee success. Even taking everything into account, the situation seemed hopeless for Lianying Mining, with all potential paths blocked.
Unless they sold their mining rights to major corporations like Rio Tinto or BHP, profiting from stocks, profitability seemed unattainable otherwise.
Yet, in precisely this impossible situation, Li Tang had carved out a new path.
Securing the iron ore transport agreement with Rio Tinto wasn't something an ordinary person could achieve.
Naturally, to force Rio Tinto's hand, Li Tang had paid a significant price—the Pebble Project. Industry insiders could clearly see the immense potential wealth hidden within that mining project. Many people struggled to understand why Li Tang had so casually given away the mining rights at such an early stage, just when it showed enormous promise.
"We're still far from making profits," Li Tang wasn't complacent at all.
In his vision, Lianying Mining represented much grander ambitions.
"If your goals weren't overly ambitious, like setting annual iron ore production at only five million tons, you could produce iron ore with minimal initial investment," Li Xingchao was relatively optimistic about the project now. "You'd just need to build a processing plant and basic infrastructure."
"We can only use Rio Tinto's transportation system for three years."
"You shouldn't have set a time limit in the contract," Li Xingchao expressed regret. "You should have capped it at 60 million tons total. With an annual output of five million tons, you could have utilized their facilities for twelve years, ensuring stable profitability. Tens of millions in annual profits would be quite substantial!"
"The agreement is already signed."
"That was indeed an oversight."
"It doesn't matter. It's within our expected range."
"I know you have big ambitions," Li Xingchao continued. "If you succeed in your plan to build a mine with a 55-million-ton annual production capacity, investing two billion Australian dollars, you'll accomplish something most entrepreneurs can only dream about."
"We'll see what the future holds."
"The risks are significant. Be cautious!" Li Xingchao remained concerned. Though Australia was one of the most favorable mining investment environments globally, it still harbored hidden threats. Wherever people gathered, interests and conflicts inevitably followed. Local regulators might not always uphold fairness and truth, potentially favoring local interests over foreign investors.
"I understand."
Li Tang knew the path he had chosen was perilous and full of potential troubles. Thus, he insisted on hiring local talent rather than relying solely on trusted personnel from China. Locals understood their region's nuances better and knew how to navigate governmental systems.
Li Xingchao shifted topics, his voice somber: "Is Li Zhaocai your friend?"
Earlier, Li Tang had called specifically requesting information about Haixin Steel, which prompted them to closely monitor the situation once a bloody incident emerged.
"I suppose," Li Tang recalled the wealthy young heir with long hair and a carefree demeanor. "What's the matter?"
"He has officially taken over his father's business as the new chairman of Haixin Steel," Li Xingchao's voice carried deep concern. "For a 22-year-old leading a multibillion-dollar steel company, the future looks troubling."
"It's definitely a huge test for him," Li Tang agreed but didn't overly worry about it. After all, he and Li Zhaocai had only met briefly, far from being lifelong friends.
"Li Haixin was truly a remarkable entrepreneur," Li Xingchao lamented sincerely. "He personally guided product restructuring, producing high-quality, low-cost steel products, controlling over half the local steel market. He could have led Haixin Steel to even greater success!"
"Life is unpredictable," Li Tang replied quietly.
"You're his friend, but in business, avoid emotional decisions. They'll cloud your judgment."
"Actually, I have no business dealings with him. We just met twice."
"That's good," Li Xingchao continued, reluctant to end the conversation. "I recently spoke with CEO Niu from Wukuang Group. He spoke highly of your vision."
"Oh?" Li Tang smiled. "What did he say?"
"Niu mentioned your optimistic views on domestic and global mining markets, particularly iron ore."
"CEO Niu is very insightful. I learned much from him," Li Tang humbly replied.
Li Xingchao laughed heartily, "Do you see potential in coal mining as well?"
Coal mining was Shenxia Group's core business, generating hundreds of billions annually.
"Absolutely," Li Tang immediately answered.
"Recently, electricity shortages in the western regions have caused rationing. Policies promoting the transfer of electricity from west to east are driving coal demand, continuously pushing coal prices upward," Li Xingchao sounded delighted but cautious.
"The good times for coal will only get better!" Li Tang assured him confidently. "Demand for coal, particularly coking coal, will surge dramatically, even necessitating significant imports in the future!"
"You're extremely optimistic, perhaps overly so," Li Xingchao pondered aloud. "One point I disagree with is that although we import coal, our exports far exceed imports. We're the world's largest coal producer, accounting for half of global output."
"That's currently true," Li Tang replied neutrally.
"I find your ideas a bit crazy," Li Xingchao admitted frankly. While hoping Li Tang's predictions would come true, he remained cautious as a corporate leader.
He hesitated to believe Li Tang's words fully.
Many domestic coal mines were abandoned, with coal bosses eager to sell mining rights now that prices were rising. He feared investing too much into such volatile assets.
"Now is indeed an excellent time to buy at the bottom. Miss this chance, and it might not return," Li Tang chuckled knowingly.
He knew the coal market was about to become utterly frenzied. Industrial growth demanded electricity, and electricity required coal. As eastern industrial demands surged beyond supply, coal prices would inevitably soar. Li Tang knew this but had no intention of jumping into that turbulent market.
"Should we increase our investment?" Li Xingchao cautiously sought Li Tang's advice.
"Feel free to invest," Li Tang advised openly. "But always adhere to green development practices!"
"Green development?" Li Xingchao was intrigued. Although experts often mentioned sustainable practices, hearing Li Tang advocate for them felt special. "Your vision is always ahead of others!"
After ending the call, Li Tang hurried to Lianying Mining's headquarters, having received Alice's notice about a visitor.
In the conference room, Fred was staring thoughtfully out the window, unaware of Li Tang's arrival.
"Mr. Fred!" Li Tang greeted warmly.
Fred turned around, his usually flushed face breaking into a wide smile as he warmly embraced Li Tang.
"Have you waited long?" Li Tang asked apologetically.
"Half an hour, but your company's coffee is excellent," Fred laughed.
Seated face-to-face, Li Tang offered another cup of coffee, which Fred politely declined.
Fred had arrived not alone but with a professional team. "We're very optimistic about iron ore's future," Fred declared openly.
"We're aligned on that," Li Tang nodded.
"We've learned from insiders at Rio Tinto and BHP that they're preparing to significantly raise iron ore prices during next year's negotiations!" Fred explained, clearly having done thorough research. "Iron ore prices will undoubtedly skyrocket!"
"You're exceptionally well-informed," Li Tang admired Fred's market instincts. "Since you're optimistic, what are your plans next?"
"You previously invited me to join Lianying Mining, correct?"
"Yes, and our doors remain open," Li Tang reassured.
Fred studied the visionary young Chinese man across from him, feeling profound admiration. He had initially doubted collaborating with Li Tang, but recent events had shifted his opinion dramatically.
"I've seen news reports about your transport agreement with Rio Tinto," Fred praised sincerely. "You've accomplished what countless other miners in the Pilbara region couldn't!"
"Our work has just begun," Li Tang admitted humbly. Mining exploration and approval were only the first stages. Real challenges lay in subsequent construction phases, filled with enormous costs, lengthy timelines, and countless hidden risks.
They needed an experienced leader to navigate these rough waters.
From the very start, Li Tang had identified Fred as that capable captain.
With a sincere smile, Li Tang confidently told Fred, "Join me. Together, you'll all become billionaires!"
After all, this was someone with a proven track record, especially in the iron ore industry.
"I believe you are a capable and strong enterprise, and I'm willing to lead you," Fred said bluntly.
He said "lead," not "join."
This demonstrated his innate leadership qualities.
"Welcome aboard!" Li Tang didn't need to say anything more.
His attitude had already been clearly conveyed to Fred.
"I've always loved winning since I was a child. I thrive on competition!" Fred felt the need to have a deeper discussion with Li Tang: "Joining Lianying Mining, I don't intend to just drift along. I only want to accomplish big things!"
His concern was that his future strategies might clash with the boss's vision, limiting him at every turn.
This was exactly what had happened at his previous nickel-mining company. He had planned to raise 3.5 billion Australian dollars to invest heavily in the nickel industry, but the major shareholder, Eagle Magnesium Resources, accused him of self-interest, causing him to leave unhappily.
He knew himself well, and so did his team. That plan carried his ambitions. He was never one to rest easy; he always aimed to climb higher peaks.
"As I've told you, I want to transform Lianying Mining into a world-class mining giant and challenge the positions of BHP and Rio Tinto!" Li Tang had repeatedly expressed his ambition.
Fred looked into Li Tang's eyes and finally confirmed something crucial.
They shared the same ambition.
And the same level of confidence!
Perhaps even arrogance!
To talk of challenging behemoths like BHP and Rio Tinto sounded ridiculous and laughable.
But they were both warriors.
"It appears we share the same vision!" Fred made up his mind at this moment.
"We will build our own mines, railways, ports, and even own our own shipping fleet in the future!" Li Tang outlined a more detailed vision. "Let's fulfill these grand dreams together!"
He stood up and extended his hand to Fred.
Fred also stood, firmly grasping Li Tang's hand, his grip powerful and confident. "We share a common dream."
They sat down again.
Gradually, their excitement subsided.
After all, real work wasn't just visionary speeches but practical execution. Ultimately, it was about making money. Dreams alone wouldn't put food on the table.
"What kind of compensation do you and your team have in mind?" Li Tang asked, curious about their expectations.
"We need a substantial equity stake," Fred, accustomed to discussing financial terms, didn't hesitate. "Our team wants a 30% share in Lianying Mining!"
"That's quite a bit," Li Tang smiled gently, though privately he thought Fred was asking for too much.
"I've always preferred working for myself. It motivates me to run the business well," Fred explained. Previously, when founding enterprises, he'd always held significant equity.
Financially speaking, Fred was already a billionaire. He lived comfortably, with no worries about livelihood. Working was purely for pursuing his dreams.
Merely receiving a salary clearly wouldn't appeal to him.
"I can't meet such a big request," Li Tang chuckled lightly. "I control 75% of Lianying Mining, but that doesn't belong entirely to me. Splitting half of that with you is obviously impossible."
"So, what can you offer us?"
"Five percent," Li Tang opened his palm, indicating the number five.
"Too little." Fred glanced at his team. "Look, my team is full of elite talent. He's excellent in finance, he's specialized in mining construction, he's an expert in mining law, and his father is a high-ranking federal official..."
He began introducing his team, proudly presenting their strengths.
"Six percent," Li Tang compromised slightly.
Fred knew asking for 30% had been excessive. Realistically, he understood it was unlikely to be granted. After all, Lianying Mining had grown to a level where it could manage without anyone in particular, himself included.
Yet, Fred didn't feel inferior. He knew exactly his value and ability. Joining Lianying Mining, he would undoubtedly contribute significantly.
"Ten percent," Fred insisted firmly, locking eyes with Li Tang.
"Seven percent," Li Tang responded calmly.
"Ten percent!"
Fred had already set his minimum bottom line beforehand. He was stubborn; once he reached his lowest price, he wouldn't budge further. Otherwise, he'd rather abandon the deal. Perhaps this young Chinese entrepreneur didn't yet know this trait of Fred's, but those who had dealt with him understood it well.
"Deal!" Li Tang nodded, agreeing but setting his own conditions immediately afterward. "The ten percent equity stake will be in stock options. Your team must achieve certain company milestones to actually obtain these options."
"What milestones?" Fred obviously knew he couldn't receive 10% of the company outright without conditions.
Considering Lianying Mining's current valuation of over 300 million Australian dollars, that 10% was worth more than 30 million dollars—not a trivial amount.
Even the CEOs of giants like Rio Tinto and BHP earned just a few million Australian dollars annually.
"Lianying Mining's first production phase aims to reach an annual capacity of 55 million tons of iron ore. We are already implementing this plan, targeting completion in 2005 and full capacity operation by 2006," Li Tang detailed his specific goals. "If your team accomplishes the first-phase target, you'll automatically receive 2% in stock options."
"Just two percent?" someone murmured quietly, thinking it too small.
"And after that?" Fred asked.
"The second-phase goal is to reach an annual output of 100 million tons of iron ore. We'll initiate this phase after successfully completing the first, ideally by 2008," Li Tang continued clearly. "Upon completing this stage, you'll receive an additional 3% equity, totaling 5%."
"Hmm." Fred fell into deep thought.
"As for the third phase, after 2010, our target will be 150 million tons annually!" Li Tang spoke earnestly, gazing firmly at Fred. "Once this goal is achieved, you'll have the full 10%."
Hearing this plan, it sounded less like a goal and more like sheer fantasy.
Even Rio Tinto and BHP didn't currently have production capacities reaching 150 million tons! According to this young man's statement, he planned to achieve in about ten years what giants like Rio Tinto and BHP had accomplished over a century!
What kind of madness could lead to such ambitious dreams?
"This is a challenging target," Fred said quietly, realizing clearly that the young man before him wasn't joking about challenging Rio Tinto and BHP. He truly intended to do it.
"These production goals seem impossible!"
"Without completing even the first phase, considering the second and third seems unrealistic."
"The amount of capital required is astronomical—10 billion Australian dollars wouldn't even be enough!"
"Perhaps we should set more realistic goals," some of Fred's team expressed disbelief.
They doubted these lofty goals could ever be realized. They were clear-sighted. The iron ore market lacked sufficient momentum to quickly foster another Rio Tinto.
"If this were an ordinary target, I wouldn't have invited you here," Li Tang praised them indirectly. "If it were only about a small iron ore company producing a few million tons a year, we'd easily achieve that."
He wasn't boasting. Given the current foundation laid by Lianying Mining, they were indeed qualified to say such things.
"On what grounds can you propose such ambitious goals?" Fred didn't doubt Li Tang, but he wanted a realistic basis.
"Iron ore's future will surpass our imaginations!" Li Tang confidently met Fred's gaze. "In the future, countless amounts of money will flood into the iron ore market."
Li Tang hadn't finished yet. He proudly continued, "Our Chinese economy will inevitably maintain rapid growth, creating immense demand for iron ore. You've seen this clearly. I'm Chinese, and just relying on the Chinese market, we can grow significantly!"
"I have a deep connection with China," Fred had closely observed China's economic rise. "I believe your judgment."
Li Tang turned toward Fred's team passionately, declaring, "When we achieve these three-phase targets, Lianying Mining will become a mining giant worth tens of billions, perhaps even surpassing one hundred billion dollars! At that moment, your 10% stake will be worth billions of dollars!"
He looked directly into everyone's eyes. "You will all become billionaires!"
"I agree," Fred worked precisely to challenge himself. Such ambitious goals perfectly aligned with his inner ambitions.
He also put forward another condition: "Regarding business management, whether personnel, financial affairs, or project decisions, I need considerable autonomy! While serving as CEO, I don't want constant interference or opposition!"
"If you operate according to the company's overall goals, I won't interfere with daily management," Li Tang clarified firmly. "As long as you adhere to the company's strategy, I'll support your decisions!"
Li Tang clearly understood the importance of unity and synchronization within a company, willing to take a supportive role, letting Fred shine brightly at the forefront.
"That's exactly what I wanted!" Fred had no further concerns.
"However, if you fail to meet the company's objectives, we reserve the right to replace the CEO," Li Tang reminded them.
Having settled terms, they formally signed the agreement.
At a company-wide meeting, Li Tang proudly introduced Fred, "Mr. Fred, from today onward, is our CEO!"
Alice had already prepared the hiring agreement for Fred's team and voiced no objections. She was exhausted from managing everything alone and welcomed professional help.
Other employees also quickly accepted Fred, who smoothly integrated, warmly interacting with everyone, showing no discomfort at all.
The very next day, Fred immediately began restructuring departments.
Satisfied that Fred was adjusting perfectly, Li Tang asked Alice to monitor closely and regularly update him, then flew back to Yanjing.
Returning to China, Li Tang quickly explained his decisions to major shareholders like Wukuang and Shenxia Groups, seeking their support.
Though initially skeptical of Fred's controversial reputation, shareholders ultimately trusted Li Tang's judgment and vision, giving their full support for the ambitious new direction.
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