Chapter 358: Filled with Absurdity
Far-off Congo in Africa had never been the center of global public attention.
The discovery of the Kakula Copper Mine had not yet been officially announced, and therefore, no one was paying any real attention to that remote, unremarkable region.
Instead, the real hubs of global media attention remained concentrated in developed Western nations, particularly America, the United Kingdom, and Canada.
In these places, the mining and capital markets were currently putting on spectacular shows, one after another.
When interviewed by the media, Cliff, Standard & Poor's chief strategic analyst for the Americas, dropped a bombshell announcement.
"Freeport Copper & Gold Company has formally presented a serious acquisition bid to Douglas Corporation," Cliff revealed, leaving the gathered journalists shocked, their astonishment palpable.
These two corporations were America's largest and second-largest copper producers.
Should these two giants merge, it would inevitably create the largest copper mining company in the world.
Such an acquisition would undoubtedly be the largest merger in mining industry history.
Elvin, a financial correspondent from Canada's Financial Post who closely tracked international mining finance, expressed skepticism upon hearing Cliff's news. "Douglas Corporation has recently initiated its own takeover bid for Falconbridge, a subsidiary of Noranda, at a confirmed price of 61 Canadian dollars per share. Falconbridge's CEO, Gentry, confirmed this offer, revealing that Douglas intended to complete the acquisition through a combination of cash and stock."
"You're correct," Cliff acknowledged. "Douglas is indeed in the process of acquiring Falconbridge, but they have been forced to suspend that process temporarily to concentrate all their efforts on defending against Freeport's hostile takeover attempt. Clearly, Douglas has now become someone else's prey."
Cliff spoke confidently, evidently relying on reliable insider sources. He continued, "As far as I know, Falconbridge will now accept the offer from Strata, which has entered the binding-offer stage. Strata's offer consists entirely of cash, amounting to about 16 billion USD. Falconbridge's board clearly prefers an all-cash offer. Moreover, last August, Strata already acquired a 19.9% stake in Falconbridge from Noranda at approximately 20 Canadian dollars per share, laying a solid foundation for a full acquisition. The race for Falconbridge has ended, with competitors like Xianshui Haigu and Anglo-American Resources already withdrawing."
There was no doubt about the credibility of this information. After all, Cliff himself was known to be highly authoritative. Standard & Poor's, adhering to their motto "Investors have the right to know," had firmly established itself as a trusted source of financial news.
The journalists eagerly took notes. Any single one of Cliff's statements could independently become headline-worthy news.
Facing the reporters, Cliff went deeper into the financial implications of these major developments: "Copper prices have surged past 8,000 USD per ton, hitting historic highs. The global copper industry is undergoing intense consolidation. The merger between Freeport and Douglas and Strata's takeover of Falconbridge represent neither the beginning nor the end of this trend. Consolidation is set to continue robustly for some time."
He paused briefly, then continued expansively, "Companies across the sector are relentlessly expanding output and developing new mines. Copper mining has become a highly profitable cornerstone for diversified mining conglomerates. It is easy to predict significant profit growth this year for giants like BHP Billiton and Strata, largely driven by their copper assets."
"High-output copper mines or high-grade, large-scale copper deposits will undoubtedly be prime targets of fierce global competition among mining giants."
"The future consolidation in the copper mining industry will revolve around truly massive, high-quality mines."
"As for emerging players in the copper mining market, we've noticed Zhongcheng Mining, a Chinese company. Once its Talege Copper-Gold Mine enters production, reaching an annual copper output of 500,000 tons, it could generate over a billion USD in annual profits! Going from zero to profits exceeding a billion USD won't take long. Our investigation shows they are accelerating mine development at an impressive pace, strongly supported by the Mongolian government."
"It's unfortunate this company isn't publicly traded, or I would definitely recommend investing in its stock."
Intrigued by Zhongcheng Mining, Elvin quickly asked, "Have any mining giants targeted Zhongcheng Mining? Perhaps BHP Billiton or another major?"
"No," Cliff shook his head. "Certainly, all major mining corporations would love to acquire Zhongcheng Mining, but it's privately held. In China, unless the primary shareholder faces severe financial distress, a takeover is virtually impossible."
"Then why specifically mention this company?" Elvin pressed further, suspecting Cliff had more to reveal.
"Because the founder of Zhongcheng Mining is Li Tang."
The moment Li Tang's name was mentioned, everyone in the room perked up, listening intently. Li Tang had recently created waves of global news coverage, though his name had quieted somewhat over the past half-year, overshadowed by surging copper prices and headline-grabbing corporate acquisitions.
"Li Tang?" Elvin realized he hadn't heard fresh news about Li Tang in some time. However, he had been closely monitoring both the Malu River Coal Project and the Mali River Iron Ore Project in Canada, convinced they would ultimately reintroduce Li Tang, the "Exploration God" from China, to the Canadian public in a spectacular way.
"Perhaps most of you don't yet know—Li Tang has teamed up with famed Canadian prospector Frando on a new copper exploration project in Congo, Africa," Cliff continued, scanning the crowd of journalists. "Besides Freeport's takeover of Douglas and Strata's Falconbridge acquisition, the most significant recent news is undoubtedly the Kakula Copper Project in Congo. This newly discovered deposit has identified over 20 million tons of high-grade copper ore, with rich ore segments averaging over 5% copper content. It's reportedly one of the richest copper deposits ever found worldwide."
"This newly discovered deposit is unquestionably the highest-grade large-scale copper mine discovered in the last thirty years."
"If they choose to sell mining rights, every global mining giant will rush to compete."
"Moreover, Frando's Ivanhoe Mining, a publicly traded company, owns half of the Kakula Copper Mine. Its stock price is poised to surge substantially."
This final remark was clearly directed at stock market investors.
The assembled journalists eagerly scribbled down these revelations, quickly transmitting Cliff's remarks into major news headlines. Whether about large-scale mergers or massive new mineral discoveries, the mining industry provided endless captivating stories.
Meanwhile, in Phoenix, Arizona, at the Freeport Copper & Gold Company headquarters, Terrence reviewed today's headlines. Almost all the major news items were closely related to Freeport itself.
The Freeport-Douglas merger, personally orchestrated by Terrence, was nearing completion. Strata's smooth takeover of Falconbridge had benefited indirectly from Freeport's timely moves against Douglas.
However, the Kakula Copper Mine discovery, a giant high-grade deposit, was situated in the Central African Copperbelt, roughly 100 kilometers northwest of the Douglas-owned FG project!
The first two items posed no surprises—Terrence himself had orchestrated or aided them—but the third left him bewildered.
He summoned Cristóbal urgently.
"Li Tang discovered a massive copper deposit containing 20 million tons, averaging above 5% copper, just about 100 kilometers from the FG project!"
Terrence tossed the newspaper to Cristóbal.
Cristóbal read it quickly, his expression changing rapidly.
"How is this possible?"
Cristóbal couldn't believe what he'd read; it seemed fabricated. "A huge, high-grade deposit couldn't exist near the FG project! I've personally visited southern Katanga, Congo, studied FG's data, and know they previously explored around Kakula. That area is a desert without any known copper outcrops. A copper deposit simply isn't possible there!"
"Not possible?" Terrence trusted Cristóbal implicitly.
"I've seen it myself—no copper indicators at all. That area isn't even part of the Central African Copperbelt," Cristóbal exclaimed incredulously. "Twenty million tons! Impossible! This must be fake. Douglas's experienced team spent years exploring that area—they wouldn't have missed such a massive deposit."
"You suspect the data might be falsified?" Terrence was also beginning to doubt the reported claims.
As CEO of a leading copper mining company, he closely tracked exploration in the Central African Copperbelt, where Freeport itself conducted exploration projects, having already discovered and developed smaller mines.
Acquiring Douglas Corporation was aimed at integrating valuable assets, particularly projects like FG, with several million tons of reserves and annual production exceeding 100,000 tons of copper.
With copper prices now exceeding 8,000 USD per ton, such assets were immensely valuable.
Terrence had dispatched Cristóbal to Congo for a thorough evaluation of the FG project, never expecting the Copperbelt's largest discovery to be Kakula, overshadowing FG completely in terms of size, grade, and potential.
The FG project was dwarfed by comparison—a total, devastating defeat.
One could even say that there was no room for comparison at all!
Clearly, they had narrowly missed a high-grade copper deposit of 20 million tons!
Judging from the content of the news reports, this seemed to be precisely the case.
If the publicly disclosed information regarding Kakula Copper Mine was accurate, just the value of this deposit alone would amount to billions of US dollars!
"From a technical standpoint, I can't believe this report," Cristobal shook his head, striving to remain rational and clear-headed. "Such an enormous, high-grade copper deposit suddenly appearing as if out of thin air—it seems imaginary, and it's difficult to believe."
As he spoke, Douglas Corporation's CEO, Weber, entered the room.
Seeing Terrence and Cristobal, Weber wasn't particularly pleased. "Our company's board has already accepted your offer. We've made that clear. Why call me back here again?"
"This matter doesn't have much to do with the merger between our two companies," Terrence said, motioning Weber to sit down with a smile. "Although Douglas Corporation's name will disappear after the merger, the CEO position hasn't been finalized yet. Since our acquisition involves equity exchanges, your board has proposed you as CEO. Perhaps I'll even become your deputy."
Weber understood this was genuinely possible and hoped it would come true. "If it's not about the merger, then what is it?"
"It's related to the FG project," Terrence handed the newspaper on the table to Weber.
Weber took the paper, unfolded it, and before reading, said with confusion, "Cristobal visited Congo and examined the FG project himself. Our people showed him all the data openly. There's no way any issues exist."
"Read the newspaper first," Terrence wasn't in a hurry.
Weber lowered his gaze, quickly widened his eyes in shock. "The paper says they've discovered a 20-million-ton copper deposit just one hundred kilometers from the FG project?"
Terrence nodded slightly, "Several news outlets have reported this already, but we still have doubts regarding its authenticity."
"No need to doubt; it's definitely fake!" Weber tossed the newspaper aside confidently. "During the exploration phase of the FG project, we conducted extensive geological surveys across the surrounding region. Since the FG project's development began in 1996, we've continued investing annually in new exploration projects across the Central African Copperbelt. Aside from regions with existing mining rights, we've thoroughly surveyed nearly every area!"
"We also conducted extensive exploration there," Cristobal added, familiar from his frequent visits to Congo.
"Cristobal is an exploration engineer who thoroughly understands the geology there. A 20-million-ton copper deposit—especially one with a 5% average grade—is impossible there!" Weber exclaimed as if seeing a ghost. Such news seemed utterly absurd.
"So, you also think this report is fake?" Terrence asked for confirmation.
"I have complete faith in our Douglas exploration team's professionalism," Weber responded firmly. "We've done extensive exploration work in the northern part of the Central African Copperbelt, particularly within Congo, where most copper deposits have been found."
"I was even considering purchasing the Kakula Copper Mine rights if these exploration results were accurate," Terrence said thoughtfully. "Given our experience operating and developing the FG project, we could fully exploit such a massive deposit."
However, Terrence trusted Cristobal and Weber's judgment, shrugging helplessly. "But if it's fake, let's avoid this mess entirely. Whether media fabrication or fraudulent mineral rights claims, as long as we're uninterested and uninvolved, we can't be deceived."
Cristobal picked up the newspaper again, rereading it carefully twice more. His eyes eventually settled on a particular name: Li Tang.
Such an unusual name appearing in such a prestigious newspaper must certainly refer to the same Li Tang they knew—a Chinese national renowned in both exploration and financial circles.
"I initially thought the data was fabricated, but the discoverers mentioned are Frando from Canada and Li Tang from China." Cristobal's earlier certainty began wavering. "These two men are globally renowned exploration experts!"
"What are you suggesting?" Terrence asked.
"I'll give Li Tang a call," Cristobal took out his phone.
They both knew Li Tang and Frando. The two were internationally famous, especially Li Tang, whose reputation extended far beyond exploration, reverberating loudly in capital markets. Lianying Mining's current market valuation was astonishing, accumulating wealth within a few years that typically required generations.
After two rings, the call connected promptly.
"Hello, this is Li Tang."
"This is Cristobal, Alice's father," Cristobal put the call on speaker. "Where are you right now?"
"I just returned to China, to Yanjing. How are you, Mr. Cristobal?"
"I'm doing well."
"Alice is also in Yanjing. If you have time, feel free to visit and relax for a while."
"I'll do that." Cristobal felt awkward having Terrence and Weber listen to their personal conversation, quickly steering the talk back to business. "When we met in Congo, you mentioned launching a copper project there. Is it called Kakula Copper Mine?"
"Yes, that's one of our projects. We're currently raising funds for the next one."
"There's another project?"
"Yes. The discovery of Kakula proved the Central African Copperbelt extends further north than previously known. We've identified the mineralized trend and are now exploring northwestward. Barring any unexpected issues, we'll discover a second deposit."
Cristobal froze in shock, exchanging stunned glances with Terrence and Weber. Clearly, they all understood Li Tang's implication: Kakula was merely their first discovery! Next to this enormous 20-million-ton copper mine, other deposits existed—a chain of them, like pulling sweet potatoes from the earth.
"What's Kakula's exact reserves?" Cristobal suppressed the emotional turbulence within him, struggling to maintain calmness.
"Proven reserves stand at nineteen million tons. Including inferred peripheral resources, total reserves exceed twenty-one million tons."
"And the grade?"
"Overall average grade around 2.5%. The richest sections average 5%. Why do you ask, Mr. Cristobal?"
"Nothing specific, just saw Kakula's news report and wanted confirmation."
"That's correct. Those figures were released by Frando, so they're public knowledge."
"What do you plan to do with Kakula? Sell the mineral rights while copper prices remain high, or develop it yourselves?"
"Exploration continues, so we haven't yet made long-term plans. But such an exceptional copper project undoubtedly deserves the best possible outcome."
"If there's anything I can help with, don't hesitate to call."
"Alice bought a large house in Yanjing, already renovated and ready for move-in. If you have time to visit, call me."
"Alright."
Cristobal hung up, looking up at the two executives before him.
"What's your daughter's connection with Li Tang?" Weber had overheard the call, picking up significant information.
"His daughter Alice is the chairman of Lianying Mining," Terrence explained proactively.
"Alice is your daughter?" Weber exclaimed, astonished. "I had no idea your daughter was such a capable businesswoman, chairing Lianying Mining! Cristobal, you've kept this impressively low-profile—why not share such important news earlier?"
Seeing Weber's stunned admiration, Cristobal felt an immense pride. As a father, witnessing his daughter surpass his own achievements brought boundless comfort.
"Alice has always been exceptional," Cristobal smiled warmly.
"You've raised a remarkable businesswoman," Weber praised sincerely.
Cristobal beamed happily.
Terrence quickly returned to business: "Clearly, Li Tang's words validate the news report. Kakula Copper Mine is genuine!"
Weber still found it hard to believe. "I can't comprehend how we missed such an enormous deposit. Twenty million tons isn't twenty thousand tons! It's like standing before a mountain yet completely missing it."
"I now choose to believe Li Tang," Cristobal revised his previous stance.
Terrence pondered briefly before deciding firmly, "We shouldn't miss out on mineral rights like these. We all know Li Tang isn't overly interested in money, and except for the Pebble Project, he rarely sells mineral rights. But Kakula is different—Frando owns half. We could contact Frando directly; he's known for profiting from selling mineral rights."
Turning to Cristobal, he said, "We urgently need accurate information about Kakula Copper Mine. Given your daughter's special connection to Li Tang, confirm these figures through Alice."
"I'll do that," Cristobal agreed readily.
Terrence looked at Weber and sighed, "It seems we've narrowly missed a 20-million-ton deposit. But never mind; our merger remains truly important. Once completed, Freeport Copper & Gold will become the world's largest copper mining corporation!"
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