Chapter 311: The Top Player in Mining Finance
Follett's refusal to meet Charlie wasn't driven by emotion.
In fact, the financing matter in Huaxia had nearly succeeded earlier. Several steel companies had expressed a willingness to invest directly and had even urged the banks to provide large low-interest loans.
Unfortunately, the intervention from the Foreign Funds Utilization Department had thwarted everything at the last minute.
He knew that his boss, Li Tang, was still actively negotiating in Huaxia, attempting to salvage the low-interest loan arrangement.
But Follett was unwilling to wait passively for good news from Li Tang's side.
Before departing for Yanjing, he had originally arranged to meet Philip, the CEO of Lucatti International Group from Magnesium country (USA), to discuss investment opportunities. That meeting had been delayed by the situation in Huaxia.
Recently, Lianying Mining's stock price had surged rapidly. When Philip first heard about this company from Follett, its market valuation was around one billion Australian dollars. Now, it was rapidly approaching seventy billion Australian dollars.
Philip became anxious and called Follett directly.
Their telephone conversation was brief—only a few minutes—but it was enough to confirm that Lucatti International Group was eager to support Lianying Mining's financing efforts. They were prepared not only to invest in equity but also to provide a sizable loan.
Of course, the loan's interest rate was relatively high.
However, considering the current market environment, paying slightly higher interest rates was a manageable risk for Lianying Mining. Iron ore was currently highly profitable; as long as production began and iron ore was delivered, loan interest payments wouldn't be an issue.
Philip flew directly from Magnesium country to Perth for urgent discussions with Follett. They finalized the contract terms swiftly.
Lucatti International Group invested five hundred million USD to acquire a 10% stake in Lianying Mining and committed to a further loan of one billion USD.
In exchange for their investment, Lucatti International Group received a seat on Lianying Mining's board of directors.
Although this financing didn't fully cover the capital required for the first phase of construction, it ensured funding for critical initial aspects, such as mining camps, ore-washing plants, and essential machinery.
Their top priority was to quickly produce iron ore and fulfill deliveries to customers who had signed long-term contracts.
Selling the first ton of iron ore would mean Lianying Mining's construction plan had succeeded!
Delaying construction of subsequent infrastructure, like railways and ports, for two or three years wouldn't significantly affect operations.
Before Li Tang arrived in Perth to formally sign and approve the financing deal, news media somehow caught wind of the arrangement and swarmed Lianying Mining's headquarters, blocking access to their office building.
Though Follett did not hold a press conference, he did grant an interview to the Financial Commentary.
He was skilled at dealing with media and enjoyed sharing his insights publicly.
Upon receiving notification of the interview, journalist Yuna prepared carefully, selecting a neat, elegant outfit.
Following Follett's arrangement, the interview was held at a seaside restaurant, which they reserved entirely.
Today was Sunday. Follett had just finished lunch and was leisurely enjoying afternoon tea.
Yuna felt slightly nervous. She avoided staring at Follett's perpetually flushed face and instead scanned the restaurant discreetly.
She was disappointed.
The mysterious Huaxia boss behind Lianying Mining was nowhere in sight. His absence was regrettable.
"Thank you, Mr. Follett, for accepting our interview during the weekend. I'm sorry to disturb your rest," Yuna began politely after clearing her throat.
Follett sipped his tea leisurely, smiling, "Everyone who knows me knows that I don't have weekends. My working schedule is seven days a week, fourteen hours a day."
He gestured toward the tea across from him. "Accepting this interview was intentional—it feels like a half-day holiday to me. Please relax. Let's enjoy our tea while we chat. The scenery is pleasant, and today's sunshine is delightful."
Yuna sipped her tea politely, then quickly moved on to her main questions. "Lianying Mining has become a unicorn in the mining sector, experiencing explosive stock growth that surpasses even many internet companies. This unprecedented situation suggests you've had great luck, combined with favorable market conditions."
"Lianying Mining has substantial assets and strength," Follett responded confidently. "Our rising stock price isn't luck. Investors have finally recognized our true value."
"But after announcing your ambitious mining construction plan, your project has stalled due to unresolved funding issues. Does this worry you?"
"Funding is no longer an issue."
"We've heard you secured substantial investment from Magnesium's capital markets—is that correct?"
"Yes! This financing will help us successfully extract iron ore!"
"Could you disclose the specific amount?"
"One and a half billion USD!" Follett answered openly, knowing this would soon be publicly announced anyway.
Mentioning it now merely advanced the announcement slightly.
"But that sum won't cover your entire funding need of three billion Australian dollars."
"We've already secured iron ore supply contracts totaling 28 million tons annually with Huaxia steel companies, and we are negotiating more contracts. Eventually, we plan to collaborate with most Huaxia steel companies."
"Does your company plan to dominate the entire Huaxia steel market?"
"Not all, but we'll be the largest supplier. It's not just us who realize this—every investor and shareholder who invested in Lianying Mining sees the same future," Follett explained confidently. "In Huaxia, we not only secured contracts but also large amounts of capital!"
"Are you referring to advance payments?" Yuna asked curiously.
"Advance payments are just part of it. I'm talking about tens of billions of USD in capital!"
"Tens of billions of dollars?"
"We've secured direct equity investments from Huaxia's steel companies and substantial low-interest bank loans. Our first-phase construction funding is fully assured. Even our second-phase plans are already underway!" Follett was exaggerating freely, knowing well there were no penalties for enthusiasm. "We'll have ample funding!"
"Congratulations!" Yuna swiftly changed the topic: "Lianying Mining's current valuation ranks third behind BHP and Rio Tinto among iron ore producers. Will you eventually surpass these two giants?"
Follett usually avoided controversial remarks about competitors. However, he loved making bold statements. "Those two are great companies with over a century of history. But they're aging, and their efficiency in mining and transportation no longer meets current demands. Will we surpass them? Absolutely. Just wait and see!"
"You haven't produced a single ton of iron ore yet. How exactly will you surpass them?"
"Efficiency and cost," Follett answered succinctly.
"That's a rather general response," Yuna remarked, slightly puzzled but moving on quickly. "Did your mysterious boss play a crucial role in securing cooperation with Huaxia steel enterprises?"
"Yes, he's a remarkable boss indeed!"
…
After Follett's interview with the Financial Commentary went public, Austrian media and financial circles erupted into frenzy.
Suddenly, discussions about Lianying Mining dominated public discourse.
The most tangible economic effect was another rapid jump in Lianying Mining's share price—from five Australian dollars per share directly to six dollars.
The company's total market valuation surpassed eight billion Australian dollars!
The news of dominating the Huaxia iron ore market and successfully securing substantial financing fueled this stock price surge.
No one could predict how high Lianying Mining's stock would go.
The extraordinary returns and soaring investor excitement attracted ever more retail investors.
In just two years, shares had risen sixtyfold—a frenzy captivating every investor.
Shares of Lianying Mining on the secondary market were becoming nearly impossible to buy.
Experts in newspapers, television, and radio constantly urged investors to remain calm, warning that every peak precedes a fall.
However, these warnings ironically fueled even greater greed and enthusiasm among the public.
Yanjing.
Li Tang had already received Alice's call, learning about Follett's successful fifteen-billion-dollar financing arrangement with Lucatti International Group.
Additionally, he was closely tracking the enthusiastic market response and soaring stock price of Lianying Mining.
He felt happy seeing the company's rising valuation.
Yet certain developments differed from his initial hopes.
Ideally, Li Tang had wanted Lianying Mining's financing to involve Huaxia steel enterprises directly.
Emotionally, he preferred helping his own people, even if business decisions shouldn't involve sentimentality.
Hai Gang Steel, Hualing Steel, and other enterprises previously showed great investment interest.
Unfortunately, things weren't purely commercial.
Lu Chenyi, Zhu Youxin, Wu Yueming, and others rushed from various locations nationwide to Yanjing, clearly demonstrating their commitment to investing in Lianying Mining.
After brief greetings, Li Tang noted their serious expressions and sensed significant difficulties ahead.
"What's the status regarding your investment?" Li Tang asked directly.
Lu Chenyi sighed, "The Foreign Funds Utilization Department insists we can invest, but we can't negotiate individually with you. They prefer collective representation and insist on obtaining controlling rights."
Lu understood the deeper implications behind this directive but refrained from elaborating, swallowing his frustration silently.
"This approach aligns with our steel industry's longstanding policy—united fronts against foreign enterprises," Zhu Youxin remarked thoughtfully. "There are pros and cons."
"What about the low-interest loan issue we discussed earlier? Is it still feasible?" Li Tang asked directly, clearly prioritizing this crucial matter.
"As long as obtaining controlling shares in Lianying Mining remains possible, other issues can be easily resolved. Otherwise, things become complicated."
"The amount of money involved is just too large."
"Take Zhongcheng Mining, which operates under your umbrella—the total investment budget there even reaches thirty billion yuan, far exceeding what Lianying Mining requires. However, Zhongcheng enjoys full governmental support from top to bottom. Not only does it benefit from streamlined administrative approvals, but banks are practically ready to lend any amount it requests."
"The fundamental difference is that Zhongcheng Mining is, after all, state-owned. Although Li Tang, as a private individual, still has substantial influence, his shareholding percentage has already declined significantly."
"When it comes to capital security, having official backing that can exert decisive influence is the strongest investment environment."
"Lianying Mining might currently be under Li Tang's control, but as a private entity, there are numerous uncertainties. Li Tang, please don't misunderstand—I'm not targeting you personally; it's just an illustrative example."
"Our infrastructure projects require copper and iron. The higher-ups encourage investment in upstream industries, but they're still very cautious about controlling capital outflows."
"Another point: when Lianying Mining conducted their tender previously, several domestic construction companies participated. Yet, it appears Lianying Mining didn't seriously consider any domestic contractors. Eventually, the shortlist consisted solely of foreign construction firms. Relevant authorities are somewhat displeased about this."
"Many people still believe the continued rise in iron ore prices is temporary and prices will inevitably fall."
"If iron ore prices revert to their levels from a few years ago, investing tens of billions into mine development would simply mean losing everything."
"Do you really think iron ore prices might return to their previous slump?"
"No one can predict the future. But at the moment, things don't look promising for our steel companies."
Their conversation continued back and forth calmly, though they didn't attempt to conceal their true feelings.
Clearly, none of them fully understood why the Foreign Funds Utilization Department had imposed these restrictions on their investments.
Originally, they'd strongly desired to invest in Lianying Mining, but this sudden setback extinguished their enthusiasm entirely.
Li Tang sat quietly, listening without moving.
The discussions circled around the same points repeatedly, and the situation seemed understandable enough to him.
After all, from his memory of another timeline, Follett had similarly come to Huaxia and nearly secured a large investment. Several steel companies had almost signed agreements to invest in Lianying Mining, only to see everything halted abruptly at the last minute.
Although the exact process differed, the outcomes were essentially the same.
He didn't believe he had the power to influence higher-level decisions.
Moreover, obstructing steel companies from investing in Lianying Mining would ultimately harm the steel industry in the long run.
His intention to involve domestic investors was purely out of goodwill.
"Since the investment was halted, we should pause the matter for now," Li Tang calmly suggested, having no better option. "Let's revisit cooperation once the situation changes."
Lu Chenyi, sitting to Li Tang's left, reached out to pat his shoulder reassuringly. "I trust you as a person, and I have faith in the potential of Lianying Mining. But the current situation is genuinely challenging. We all want to invest and have money available, but the circumstances simply don't permit it."
"Without our investment, won't this funding gap delay the mine's construction?" Zhu Youxin voiced his concerns.
Everyone present had signed long-term supply contracts with Lianying Mining. If Lianying couldn't complete construction and start production smoothly, they'd all suffer losses.
In other words, everyone was hoping for Lianying Mining's success.
"It won't," Li Tang replied confidently.
Li Tang had invited them to clarify two issues. Firstly, he needed final confirmation on whether domestic financing and loans could proceed this year. Secondly, he had important news to share.
He glanced down at the notebook in front of him. During his previous call with Alice and Follett, he'd noted down several key numbers.
"How did you resolve the funding issue?" Even Wu Yueming was puzzled. Raising three billion Australian dollars seemed impossible to him—unless a giant corporation like Hai Gang Steel stepped in directly.
"Follett secured financing of 1.5 billion USD in Magnesium country," Li Tang stated matter-of-factly.
"One and a half billion USD?" Lu Chenyi exclaimed in shock. "Has it been finalized?"
"Yes." Li Tang nodded. "The only thing left is my signature. Once I sign, the funds will quickly go through formal procedures and be in place this year."
"Hiss…" Lu Chenyi drew in a sharp breath.
Their hesitation—and certain individuals' interference—meant they'd completely missed this round of financing.
Unquestionably, they all considered Lianying Mining a sound investment.
Moreover, they'd already missed the ideal moment!
When they first discussed equity investment with Li Tang, Lianying Mining's market valuation was barely over a billion Australian dollars.
Now, its valuation had skyrocketed to unimaginable heights.
Had they acted swiftly, the ten billion Australian dollars of new shares issued by Lianying at that time could've allowed them to secure up to 40% equity!
Today, investing even ten billion Australian dollars would grant them less than 20% ownership.
The perfect investment timing had been wasted.
Who could they blame?
Now, Li Tang's announcement of substantial external financing signified they'd missed not just the best investment timing, but potentially the opportunity to enter and dominate a high-potential upstream enterprise.
Seeing everyone deep in thought, Li Tang spoke openly, "I called you here today to finalize a decision. If domestic funding were available, I'd reject the Magnesium country's investment. But since domestic support isn't forthcoming, I have no choice but to accept Follett's financing plan."
"Coordinating a domestic agreement swiftly seems unlikely," Lu Chenyi understood clearly the underlying issues.
"For the sake of mining construction and protecting all parties' legitimate interests—ensuring timely iron ore production—we must accept the financing from Magnesium," Li Tang concluded firmly.
No other options existed now.
Of course, to Lianying Mining, it didn't matter where the money originated from. The distinction existed only in Li Tang's personal preference.
Just like watching a sports match, fans always want their home team to win because they have emotional ties.
Lu Chenyi and the others clearly understood Lianying Mining's next steps, and it wasn't entirely negative news.
Lianying Mining securing substantial financing meant rapid mine development, timely ore production, and prompt deliveries under their contracts.
After getting into his car, Lu's secretary turned from the passenger seat, saying, "Chairman Lu, the investment department just sent news that Lianying's CEO publicly disclosed the 1.5 billion USD financing deal in an interview. Following the media reports, Lianying Mining's share price surged again—it's no longer five Australian dollars; it's already surpassed six dollars!"
Lu Chenyi had been persistently working to invest in Lianying Mining and closely monitored their developments.
He had personally witnessed Lianying's shares rise rapidly from one dollar to the current six dollars!
How perfect it would have been if they'd signed their equity agreement at one dollar per share!
Each increase meant direct profits on their investment!
But now, each rise in share price only increased their stress and financial burden exponentially.
Now, the cost of entering had multiplied dramatically.
Bang!
Frustrated, Lu Chenyi slammed his fist against the seat in front of him, complaining bitterly, "That He Lianzong cost us billions!"
"No one anticipated Lianying Mining's share price would rise this fast," the secretary consoled.
"There are many things we didn't foresee," Lu muttered.
"What next? With share prices appearing to peak, should we still discuss cooperation with Li Tang?"
"I can't predict future trends clearly anymore," Lu Chenyi rubbed his temples helplessly. "Let's wait and see for now."
"Our investment department also advised against investing now due to the inflated share price."
"We can hold off on Lianying Mining for now."
As Lu rubbed his temples, he suddenly realized something crucial: "Lianying Mining might still be worthwhile, but we shouldn't forget—the one truly worth investing in is Li Tang himself!"
"What do you plan to do?"
"We've established an exploration company, investing hundreds of millions annually. Li Tang is an expert in this field. Let's find a chance to collaborate with him directly!"
…
"Finished your talks?"
Dai Yingchi walked in, noticing Li Tang gazing blankly at the ceiling. "Any trouble?"
"No," Li Tang sat up straight. "What's the matter?"
"A journalist named Evans from the Gaguo Post has been loitering around our office for days, wanting an interview. I chased him away earlier, but he's back again today."
Dai understood Li Tang's aversion to publicity. Being overly visible wasn't beneficial in industrial circles. Li Tang always avoided media attention, and Dai respected that.
But this foreign journalist was extremely persistent.
"No interviews," Li Tang decisively refused.
"I already told that foreigner exactly the same thing. He's unbelievably stubborn—like a mule! He said if he couldn't meet you, he'd keep coming here every day," Dai Yingchi said. He hadn't intended to trouble Li Tang with such a trivial matter, but given that Evans represented the influential Gaguo Post, forcibly removing him wouldn't look good.
"What does he want from me?" Li Tang had actually met Evans before during the Gongcun copper-gold mine dispute, but he had never held foreign media in high regard and generally avoided interviews.
"He said he wanted to talk about the iron mine in Guinea, as well as various recent activities and rumors involving Lianying Mining."
"The iron mine in Guinea?" Li Tang was surprised. "How does he even know about that?"
"He told me he'd just returned from Guinea by plane. Apparently, he heard you were there, so he specifically flew out to catch you," Dai explained. The main reason he'd approached Li Tang was his admiration for the foreign journalist's persistence. "He claimed he went to Guinea following your footsteps, but ended up missing you."
"I'm not some beautiful woman; why's he chasing after me like this? He must be out of his mind."
Despite his irritation, Li Tang paused for a moment, then instructed, "Bring Evans in, but tell him no photographs. If my picture gets published, I'll need bodyguards whenever I go abroad. Imagine getting recognized on the street, knocked unconscious, kidnapped, and held for ransom. Overseas isn't as safe as here—plenty of bandits."
Evans wore his work clothes, with pockets of various sizes stuffed full of film rolls. Upon seeing Li Tang, he immediately recognized him. "I've interviewed you before, and even taken your pictures! But when I reviewed them later, I noticed you always stood at a distance, your features unclear. Mr. Li Tang, please give me one more chance to interview you!"
"Take away his cameras," Li Tang waved his hand.
Dai Yingchi and two security guards removed the camera hanging from Evans' neck and confiscated all filming equipment from the cameraman who had accompanied him.
"I'll take care of these for now. Rest assured, they'll be returned untouched once you leave," Dai said politely.
Evans looked distraught. "At least audio recording should be okay?"
"Almost forgot—take away his audio recorders as well," Li Tang gestured again.
Evans had no choice but to empty all his pockets, handing over his recorders. He felt helpless, but to have a conversation with Li Tang, he could only comply.
"I'm always traveling the world, so it's inconvenient to reveal my identity," Li Tang briefly explained before studying Evans. "I heard you've been following me everywhere?"
Back when Li Tang initiated the project in Kulun, Meng Country, he'd heard Evans had been actively seeking his whereabouts, sometimes even barging into Southern Wilderness Resources' offices. Clearly, Evans was quite a fanatic when it came to news.
"You're an extraordinary person. The whole world wants to unravel your mysteries!" Evans spoke with bright, fervent eyes, like someone finally meeting his long-admired idol. "I believe everyone would be astonished to see you! If people knew how young you really are, women around the world would go crazy—"
"Stop!" Li Tang interrupted, annoyed. "Just tell me—what exactly do you want?"
"Please grant me a proper interview!"
"I'm just a regular person, like you."
Li Tang had agreed to see Evans solely to curb the reporter's obsessive interest. "There's nothing particularly newsworthy here, so you're just wasting your time."
"But your holdings in Lianying Mining alone exceed three billion Australian dollars! And those are just the visible assets—there's also the Talego copper-gold mine, Talego coal mine, Shazhai molybdenum mine, Gongcun copper-gold mine, plus the recently discovered Simandou iron ore deposit in Guinea—"
"How do you know about my iron ore exploration in Guinea?" Li Tang found Evans disturbing and potentially dangerous precisely because of this knowledge. The foreigner always seemed to know exactly what Li Tang was doing.
"Frando is a friend of mine. Actually, I interview many figures in the mining industry regularly and keep in touch with them," Evans admitted frankly.
"I agreed to see you today only to inform you clearly: you won't get any news from me."
"But you're full of compelling news! Everything you do deeply impacts the global mining landscape!"
"Discovering mineral resources involves a team effort. It's not my accomplishment alone."
"I learned from Guinea's Ministry of Mines and Geology that you've discovered high-grade iron ore at Simandou, with reserves exceeding two billion tons?" Evans abandoned attempts at persuasion, instead seizing the opportunity to ask directly.
"Those aren't reserves; they're projected resources—" Li Tang began, then stopped himself abruptly. Why should he answer these questions? "Don't ask further. These matters are confidential."
"Lianying Mining's stock price has reached astronomical levels. Do you believe this valuation is rational, or could the price drop?"
Li Tang waved dismissively, not wishing to discuss the matter further.
Seeing Dai Yingchi politely urging him to leave, Evans realized he wouldn't get more from Li Tang today, feeling deep disappointment. Though persistent, he respected professional boundaries. He rose to leave but turned back at the door. "If you ever want to give me an interview, please call me!"
He placed his business card on Li Tang's desk and departed.
Once Evans was gone, Li Tang casually picked up the card and tossed it into a nearby box filled with assorted business cards.
To Li Tang's surprise, even without granting an official interview, an article published by Gaguo Post still caused an enormous stir in the mining industry.
The article—written personally by Evans—boldly proclaimed: "Lianying Mining's Mysterious Owner Discovers Another Massive Iron Ore Deposit Exceeding 2 Billion Tons!"
Throughout the year, Lianying Mining had captured unparalleled attention within mining finance circles. It had truly become the top player in the mining finance world, even overshadowing major international mining giants like BHP, Rio Tinto, and Vale.
This company resembled an eaglet, fully poised for takeoff. Many observers felt certain it would soon become a true international mining giant.
Consequently, news about Lianying Mining and its mysterious owner always garnered intense interest. Recently, foreign media had repeatedly investigated the background of Li Tang, the enigmatic Huaxia boss behind the company.
Now, many knew that aside from Lianying Mining, this individual also controlled the Talego copper-gold and coal mines, Shazhai molybdenum mine, and had previously sold the Pebble project. Now, adding a new massive iron ore deposit of two billion tons had further amplified his legend.
This explosive news spread from Gaguo Post across Magnesium country, Europe, Austria, and eventually into Huaxia itself, spreading uncontrollably like wildfire.
Amid the heated debates over iron ore prices, such an announcement—featuring a colossal two-billion-ton iron ore discovery—excited and shocked everyone in the industry, especially the big three mining giants: BHP, Rio Tinto, and Vale.
Their reactions were the strongest, as if a dangerous enemy had invaded their territory, intent on a fight to the death. First Lianying Mining appeared, and now another massive deposit of two billion tons had emerged!
What was Li Tang thinking? Was he determined to ruin everyone?
This reckless man would undoubtedly disrupt the iron ore market completely!
Li Tang himself had no idea about this sudden explosion of news. He flew to Perth shortly afterward, signing to officially approve the financing agreement between Lianying Mining and Lucatti International Group from Magnesium country.
A signing ceremony was held between both parties, but Li Tang did not attend, leaving the responsibility entirely to Follett.
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