Chapter 289: Behemoths Lurking Around the World
Qin Jianshe still hadn't fully understood Li Tang's decision.
It was too risky.
Inside his office, he brewed a fresh pot of tea and invited Li Tang over for a conversation.
Their relationship now was vastly different compared to a few years ago. Back then, at Wukuang Exploration Company, Qin had served as Deputy General Manager while Li Tang was merely an ordinary new employee.
In the blink of an eye, seemingly overnight, everything had changed.
Now Li Tang had become the Chairman of Zhongcheng Mining. Qin needed to report to him and follow his instructions. Moreover, Qin owed his appointment as General Manager entirely to Li Tang's strong recommendation; otherwise, the board would never have agreed to such an appointment.
"I love tea. Every time I return to our country, I bring back some good tea," Qin motioned toward Li Tang and took a sip himself.
"It's indeed good tea," Li Tang smacked his lips appreciatively, savoring the fragrance unfolding within his mouth.
"The bribery investigation against us by Mongolia—we can't interfere with it. Given the current situation, the approval process for our project development report may drag on indefinitely," Qin said with visible frustration. Dealing solely with this issue for so long without resolution had clearly left him discouraged.
To be honest, there wasn't any good solution beyond continuously pressuring the Mongolian authorities.
Of course, they weren't actually in a rush.
Mining operations never went smoothly; delays of several years were common. The board and shareholders had placed no real pressure on him; any stress came purely from his own high standards.
Seeing Li Tang quietly sipping his tea, Qin added thoughtfully, "Once the project succeeds, Mongolia will gain significant tax revenues and hundreds, even thousands of high-quality jobs. In fact, both parties have aligned interests. We can afford to wait."
Li Tang understood Qin's point: they could simply wait and see who would lose patience first.
"We don't need to waste time playing waiting games," Li Tang replied decisively.
"You proposed exchanging part of the Talege copper-gold mine's equity for coal mining rights," Qin hesitated, voicing the real complication, "but our planned investment totals 15 billion yuan. If Mongolia receives a 34% equity stake, shouldn't they also contribute proportionally to construction costs?"
If Mongolia contributed nothing yet enjoyed profits, that clearly wouldn't be fair. Other shareholders certainly wouldn't agree to this. After all, 15 billion yuan meant Mongolia would effectively gain 5 billion yuan without any effort.
"Of course, both parties should invest proportionally," Li Tang said matter-of-factly.
"But as far as I know, Mongolia simply doesn't have that much money!" Qin pointed out anxiously. "Even selling all their livestock wouldn't raise five billion yuan!"
"That's not a big problem." Li Tang already had a clear strategy before making such a bold offer.
He calmly continued, "We can't delay the entire project simply because Mongolia lacks funds, right?"
Qin Jianshe, seeing Li Tang so calm and relaxed, was still puzzled. "But if we wait until Mongolia raises the funds, who knows how many years that might take?"
"We'll finance it ourselves," Li Tang replied casually, sipping tea. He wasn't personally contributing any money from his own pocket to the 15-billion-yuan Talege project, so financing wasn't a personal worry.
Qin stopped drinking his tea, staring curiously at Li Tang, waiting for clarification.
Li Tang looked up, noticed Qin's confusion, and smiled, "We'll invest the entire 15 billion yuan, but 5 billion of it will effectively be a loan to Mongolia."
"How will they repay it?" Qin wondered aloud.
"Once copper production begins and generates profits, Mongolia's dividends and associated tax revenues will first repay our advanced construction funds," Li Tang explained confidently. "Only after the entire advanced sum is repaid will they start receiving real dividends."
Qin fell into deep thought. Indeed, this idea was quite practical.
"Besides," Li Tang leisurely continued, "land allocated for mine and railway construction can be offset against part of the funds owed."
Qin realized the implications immediately. "With your plan, Mongolia won't receive any actual dividends for many years."
Indeed, since management and decision-making were in their hands, profits and revenue accounts would be controlled by them. Even if Mongolia coveted those profits, they couldn't access them directly.
"In fact, Mongolia probably won't see a penny for at least two decades," Li Tang said with a grin, clearly visualizing future expansions that would continuously require more funds—funds Mongolia couldn't provide, thereby creating a never-ending cycle.
Qin had never considered such a long-term strategic perspective. Mongolia not receiving dividends for twenty years seemed almost cruelly calculated.
"You're certain Mongolia will accept such terms?" Qin doubted Mongolia's leadership would overlook such details.
"What other choice do they have?" Li Tang shrugged nonchalantly. "If they have funds, then fine, we'll follow standard procedures—dividends, taxes, everything in place."
"If Mongolia realizes they won't see returns for years, they might refuse to cooperate," Qin cautioned.
"They won't think that far ahead," Li Tang said calmly. "During phase one, we invest 15 billion yuan to build a mine producing 120,000 tons of copper annually. Once operational, with current market prices, annual revenues will exceed 3 billion yuan and profits around 500 million. Considering dividends and taxes, Mongolia can repay several hundred million yuan each year."
Li Tang elaborated carefully, "Moreover, as the mine stabilizes, production and revenues will increase further. Realistically, Mongolia could repay the entire 5 billion within five years."
"What about after five years?" Qin asked naturally.
"In five years, we'll propose expanding production capacity to 500,000 tons annually, requiring another significant investment," Li Tang laughed openly. "Mongolia, still unable to contribute, will again rely on our financing. Thus, the cycle continues."
"Our internal assessment also suggests a five-to-ten-year break-even period," Qin noted, thoughtfully following Li Tang's reasoning. "If the market performs exceptionally, we might break even within three to five years of stable operations. But your plan seems to trap us too—constantly reinvesting, never extracting profits."
"But we control vast quantities of copper ore," Li Tang declared boldly.
Of course, Li Tang wasn't being altruistic—he was confident copper prices would soar in the next few years, ensuring substantial profitability regardless. Furthermore, since initial investments came from other major shareholders, his own risks were minimal. Once production started, all dividends became pure profit for him.
At that moment, someone knocked on the office door. Guo Fengchun peeked inside and smiled when seeing Li Tang, "President Li, you're here."
"What's the matter?" Qin asked immediately.
"Yoshida Yuki from Shin-Nippon Steel is here requesting a meeting," Guo replied. Recently he'd had multiple interactions with the Japanese delegation, so both parties were familiar.
"Let them come in," Qin instructed, turning towards Li Tang. "Want to meet them too?"
"Why not? Nothing to hide," Li Tang smiled confidently. "Perhaps the one who falsely accused us of bribery is among them—I'm curious to see what they want."
"Yoshida visiting now likely means he's heard we're entering the coal mine project," Qin speculated.
"They never intended substantial investment," Li Tang scoffed. "Bayar and Jirigala pinned hopes on them mistakenly. Honestly, only we can truly develop the coal mine effectively."
"We have little coal-mining expertise," Qin pointed out realistically.
"Mining coal isn't complex," Li Tang assured confidently. "Our country operates countless coal mines—mostly without advanced technology yet still highly productive. Besides, one of our shareholders, Shenxia Group, is China's leading coal-mining company—they have ample experience."
Qin shot Li Tang a knowing glance. He wondered privately if Li Tang aimed to acquire coal-mining rights primarily as a substantial favor to Shenxia Group. It was common knowledge among insiders that Li Tang was romantically involved with Li Xingchao's daughter, Li Xinqi.
Presenting a grand gift to his future father-in-law would certainly be understandable.
As they talked, a group of Japanese delegates entered. Their stature was short, but their appearance impeccably tidy and professional.
Qin Jianshe stood up to greet the visitors. "Mr. Yoshida Yuki, you never come unless you have something important to discuss—welcome!"
Yoshida Yuki bowed deeply and politely. "We've seen each other many times since we're both working on projects here; it would indeed be beneficial to communicate more."
He chatted briefly with Qin Jianshe, then turned his head and saw Li Tang comfortably seated on the sofa, clearly without any intention of standing up to greet them.
"You must be the famous Mr. Li Tang," Yoshida remarked. Although he'd seen Li Tang before, they had never spoken directly. He bowed again with a broad smile. "Your reputation precedes you!"
Li Tang, holding his tea cup in one hand, still didn't rise. He simply pointed to the sofa. "Please sit."
"Oh, thank you." Yoshida Yuki genuinely appeared polite and respectful, sitting straight-backed on the sofa.
If not for their strong suspicion of having secretly reported false bribery charges against them, one would think these Japanese guests were truly gentlemen. Unfortunately, appearances could be deceiving—it was impossible to tell a gentleman from a villain simply by manners.
"What do you want to discuss with us?" Li Tang asked, clearly uninterested in idle pleasantries.
Yoshida had already contacted his headquarters, explaining the current challenges they faced here. Clearly, headquarters couldn't offer him much assistance. However, upon learning that their competitor was Zhongcheng Mining from Huaxia—a once-famous company whose parent company was Li Tang Prosperity Holdings—they conducted some deeper research.
Naturally, they knew about Li Tang Prosperity Holdings, and they also knew this company had recently acquired Australia's Lianying Mining. Lianying Mining had been vigorously advancing its iron ore project, making significant headlines lately—particularly the exciting news about signing a significant iron ore shipping agreement with Rio Tinto.
Having investigated thoroughly, headquarters suddenly became less concerned about losing the coal project and more intrigued by a completely new idea: Could they buy a stake in Li Tang Prosperity Holdings?
It sounded like a wild idea, yet it was exactly what his president had tasked him with.
Shin-Nippon Steel inherited the DNA of Mitsui Corporation, whose strategy was always to secure minority stakes in promising resource companies—whether coal or iron ore. They never sought controlling interests, usually aiming only for modest stakes—perhaps 25%, or even just 10% or 5%. Their goal was simple: get a seat at the table, gain access to crucial operational insights, and reap benefits indirectly through strategic collaboration.
Mitsui had one of the world's most prominent shipping enterprises, extensive industrial expertise, and ample funding. Wherever they invested, they provided comprehensive support services, which in turn generated significant profits.
This was how they thrived.
Yoshida hesitated briefly before slowly bringing up the topic. "I heard you're interested in Talege Coal Mine and negotiating with Mongolia for a partnership?"
"Yes," Li Tang nodded. There was no reason to deny this; clearly, Yoshida already knew.
"We've established an excellent cooperation framework with Mongolia. If you're interested, we could collaborate to jointly sign the agreement with Mongolia and develop the coal mine together!" Yoshida's attitude remained genuinely friendly.
Li Tang initially thought Yoshida had come to question or even accuse them, but seeing Yoshida's sincere attitude, he became momentarily surprised and somewhat puzzled. "Collaborate?"
"Shin-Nippon Steel is a major consumer of coking coal and the single largest steel company globally in terms of iron ore consumption," Yoshida immediately explained his strengths. "Working with us, whether it's coal or iron ore, you'll never worry about sales channels."
"You have a point," Li Tang acknowledged.
"Additionally, we have a mature shipping fleet, providing excellent and affordable maritime transport services."
"Hmm."
"We also maintain deep relationships with BHP Billiton, Rio Tinto, and Vale. In fact, we've taken minority stakes in many of their mining operations." Yoshida Yuki, somewhat sidestepping the coal project, emphasized their iron ore presence. "Many might not be aware, but we dispatch large teams annually to Brazil, assisting Vale in developing iron ore mines. We send over a thousand experts each year, providing comprehensive technical and managerial support. In short, our experience with iron ore mining is extensive!"
"You want to buy a stake in Lianying Mining, don't you?" Li Tang suddenly understood.
"No," Yoshida shook his head.
"No?" Li Tang was even more confused. "Then why tell me so much about your impressive iron ore operations? Just to show off?"
"Not showing off." Yoshida smiled awkwardly, then clarified openly: "We actually want to buy into Li Tang Prosperity Holdings itself."
"What?" Li Tang was genuinely startled.
This was the first time someone had actively proposed buying into the holding company directly. Just like Mitsui Corporation's past approach with Vale, Yoshida sought an indirect path to gaining influence in mining assets.
In previous years, Mitsui Corporation went to great lengths to gain a foothold in Vale, even acquiring a competing iron ore company first, before merging into Vale and earning the shareholders' trust. Later, they gradually sent managers to take over Vale's operations—not as the largest shareholder, yet decisively influencing its management decisions.
"Our president at Shin-Nippon Steel greatly admires your company and especially appreciates your personal talent. He wishes to establish long-term cooperation," Yoshida smiled enthusiastically.
"That's certainly an ambitious idea." Li Tang admitted to himself that the Japanese indeed had unconventional thoughts.
"If you are willing to collaborate, we will offer comprehensive assistance, be it mining operations or financing—we possess vast experience!" Yoshida couldn't gauge Li Tang's reaction yet, so he continued highlighting his company's advantages.
He clearly understood that gaining a stake in Li Tang Prosperity Holdings meant indirectly investing in numerous high-quality global projects—not just Australia's iron ore, but Mongolia's Talege copper-gold mine, and Huaxia's Shazhai Molybdenum Mine—all world-class mines with unlimited potential.
Curious about their offer, Li Tang asked bluntly, "Aside from these additional benefits, what exactly do I get from your investment?"
"We know Li Tang Prosperity Holdings is still a startup and needs substantial funds for operations and project development," Yoshida replied, holding up two fingers. "We can inject two hundred million U.S. dollars into your company!"
"Two hundred million dollars?" Li Tang acknowledged this as a significant sum. "And what exactly do you want in return?"
"We wish to acquire 20% equity and a seat on the board of directors," Yoshida stated plainly. This had always been their typical approach—minority stakes with advisory presence.
"Two hundred million dollars for 20% means you value our holding company at one billion dollars." Li Tang considered this carefully. While he felt slightly underestimated, he admitted privately that this was the first time someone explicitly valued his company.
One billion dollars valuation wasn't trivial. Domestically, it would certainly qualify as a large enterprise. After all, Li Tang Prosperity Holdings still had no stable revenue stream, essentially living project-to-project—many wouldn't even be interested at this stage.
"Your company has several valuable mineral assets, but you don't have absolute control in most of them. For instance, your stake in Talege Copper-Gold Mine has already been diluted down to 17%," Yoshida evidently had conducted detailed research. "Clearly, your main limitation is capital. With our involvement, your projects would receive substantial financial and operational support. In short, we can guide you onto the fast lane toward becoming a world-class mining giant!"
Looking earnestly at Li Tang, Yoshida added: "Moreover, we would not interfere in your management decisions—you would retain absolute autonomy!"
"That's indeed a tempting offer!" Li Tang chuckled lightly.
"Our reputation speaks for itself. Internationally, we've cooperated with numerous mining giants, and they all praise our partnership highly."
"Is this proposal from Shin-Nippon Steel itself, or is Mitsui Corporation behind this?" Li Tang clearly understood the difference.
"For now, it's specifically Shin-Nippon Steel's initiative," Yoshida answered truthfully. "But partnering with us naturally opens doors to various other Mitsui Corporation businesses."
Mitsui Logistics ranked highly among the Fortune 500, notably excelling in maritime shipping. Mitsui Corporation also owned internationally famous firms, such as Toyota Motors.
Iron ore mining, oceanic transport, smelting, specialized steel production, automobile panel processing, vehicle assembly, and global sales—this was a comprehensive, vertically integrated industrial ecosystem.
Truly, they were industrial behemoths lurking globally.
Li Tang certainly found such collaboration attractive—it could provide immense convenience internationally. Partnering with such global giants would drastically reduce obstacles, accelerate development, and shorten the timeline to global recognition.
Huaxia's largest steel groups already collaborated extensively with Mitsui Corporation.
Yet, Li Tang still had his own firm development strategy. Even without Mitsui Corporation's assistance, he believed he could achieve his goals independently. No matter the difficulties ahead, he would carve his own path, fearlessly forging ahead through every obstacle.
Moreover, with the strong backing of Wukuang Group, Shenxia Group, and Purple Mining, he had no shortage of allies.
Finally, Li Tang firmly shook his head and replied decisively:
"I won't agree to your investment."
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