Chapter 360: Welcoming the Arrival of the First Ton of Iron Ore
Niu Fu's words were like a bucket of cold water, extinguishing everyone's hopes, yet he had his own intentions.
Watching Li Tang leave, he quickly followed, stepping into the elevator without saying a word. Qin Jianshe and Zhao Hepu, who had good relationships with Li Tang, joined him as well.
"President Niu, is Wukuang Group also interested in Kakula Copper Mine?" Li Tang clearly understood their intentions.
Niu Fu also knew what Li Tang was thinking. Returning to the office now would mean facing relentless entreaties from those waiting upstairs. Leaving the company entirely was the only way to avoid disturbances.
"Who wouldn't be interested?" Niu Fu didn't hide his intentions but wasn't overly direct either, opting for a more personal approach. "You've been overseas for so long, and we haven't been in contact. Recently, the international mining market has become extremely volatile—very hard to understand. If you're free, let's find a tea house and sit down to chat, just casually, to pass the afternoon."
"Our company's copper mines and smelters have encountered some technical difficulties recently. I'd also like to discuss these issues with you," Zhao Hepu chimed in, placing his hand on Li Tang's shoulder with a friendly smile.
Li Tang glanced around at the elevator, seeing familiar faces of business friends he regularly interacted with, especially Qin Jianshe, who was not only involved in Zhongcheng Mining but also an old classmate of his father. Under these circumstances, he couldn't refuse.
They didn't go far, just to the leisure area downstairs at Yunding Tower.
This place had a gym, table tennis, billiards, fitness equipment, and a tea bar.
Seeing Li Tang enter with Niu Fu and the others, employees who recognized Li Tang immediately fell silent.
Li Tang didn't speak but chose a quiet booth by the window, inviting Niu Fu, Zhao Hepu, and the rest to sit down.
"What kind of tea?" he asked politely.
"Jasmine or green tea is fine," Niu Fu quickly replied to the attendant nearby. Turning back with a smile, he added, "It's getting warmer; green tea is good for cooling down."
"We also have food here; employees eat for free," Li Tang offered graciously. "Have you eaten? Would you like something?"
"We're not employees here; can we also eat for free?" Zhao Hepu joked.
"Of course! President Zhao, you coming here for a meal is our honor!" Li Tang responded warmly.
"Our canteen is boring; I'll come here to eat in the future." Zhao Hepu, always serious about food, smiled broadly. "Can we order dishes like abalone or lobster?"
"Certainly. Whatever President Zhao wants, we'll have it!"
"Hahaha!" Zhao Hepu laughed heartily. "Then I'll stay and eat dinner here tonight!"
After some casual talk, the atmosphere relaxed significantly.
Returning to the main topic, Li Tang said, "Kakula Copper Mine is indeed a rare high-grade deposit with massive potential. However, in the short term, Frando and I are not considering strategic partners."
"What Qian Hao said earlier makes sense. Given the current historically high copper prices, cashing out now seems wise," Zhao Hepu returned to a more serious tone.
"I understand. This sudden spike in copper prices is temporary. Once major copper mines ramp up production, the supply will rise, and prices will inevitably fall," Li Tang explained, repeating points he'd made earlier before introducing new thoughts. "Indeed, we currently lack the financial strength to develop a mine of this scale. Also, Congo's situation is very unstable. Developing mineral rights as a private enterprise there will be fraught with challenges. Having spent time there recently, I witnessed firsthand the chaos of that region. Mining operations there typically require armed protection. Without strong backing, a private enterprise investing tens of billions of dollars into Kakula Copper Mine—a world-class deposit—could easily face extortion, or worse, lose the mine entirely."
He spoke from direct experience. "Law and order are almost nonexistent there."
"So, what's your point?" Niu Fu asked carefully.
"A mine of this magnitude definitely requires state backing, along with commitments of local governmental protection to proceed safely," Li Tang spoke candidly, fully aware of his limitations. No amount of money or expertise could deflect a bullet.
"Take Douglas Corp as an example. Their FG project, developed in Congo in 1996, and other Western copper mines in the area were protected through official financial aid or substantial interest-free loans provided to Congo. Our country also maintains close contacts in the region."
"To safely develop Kakula Copper Mine, we'll similarly need to coordinate at a higher governmental level or conduct beneficial exchanges for security guarantees."
"In this sense, state-owned enterprises have the greatest advantage in developing these mineral rights."
Hearing this, Niu Fu strongly agreed, nodding thoughtfully. "I underestimated your understanding of the situation. Clearly, you've already considered these factors."
"This applies not only to Kakula Copper Mine but also to Simandou Iron Mine," Li Tang continued cautiously. "I've always preferred partnering with state-owned enterprises for mining rights in Africa."
Niu Fu was instantly energized, recognizing the significance of Li Tang's words. Speaking privately with them implied deeper intentions.
"Do you have a clear timeline for developing Kakula and Simandou?"
"Not yet," Li Tang answered honestly, sharing his considerations openly. "Guinea is even more unstable than Congo right now, with nationwide strikes disrupting everything. Simandou's exploration barely began before it stalled completely. For Kakula, thorough exploration must finish before we can proceed with feasibility studies."
"You're right!" Niu Fu, impressed by Li Tang's composure, calmed his enthusiasm. "All these mining companies rushing to meet you upon hearing about Kakula are too impatient. While mining copper is highly profitable now, newly discovered mines take years to become profitable. Patience is essential."
"Exactly," Li Tang agreed calmly. "Whether it's for the country, the industry, or personal ambitions, we must plan carefully, progressing step by step toward our goals."
The reasoning was simple yet rarely followed. But in Li Tang, Niu Fu saw steady, deliberate progress. Perhaps soon, Li Tang might break the foreign stranglehold on China's mineral resources.
Looking nationwide, Li Tang seemed the most promising figure capable of resolving China's resource shortages—and he was already on that path!
"Our attempt to acquire Noranda a few years ago was also encouraged from above," Niu Fu admitted, trusting Li Tang enough to speak openly. "Back then, Wukuang barely had three to five billion yuan in liquid funds, nowhere near the tens of billions needed."
"I understand," Li Tang nodded.
Resource shortages needed solutions urgently, especially copper, with an 80% import dependency. Major global copper mines remained controlled by mining giants who manipulated global prices through production, forcing others to import at dictated prices. This kind of dependence was uncomfortable, and the entire industrial system was anxious for a change.
"Later, your suggestion to acquire Noranda's subsidiary—Falconbridge, focused on upstream mineral extraction including nickel, copper, and zinc—was excellent. Sadly, despite you and Hu Zhenchi negotiating together, it still failed," Niu Fu lamented deeply. "You probably saw the news—Strata finally acquired Falconbridge for $16 billion, more than twice our original offer. What a missed opportunity."
"After acquiring Falconbridge, Strata's total assets reached $40 billion," Zhao Hepu added emotionally. "Just three or four years ago, Strata had a market cap around $2 billion—similar to ours. Now they've become the fifth-largest mining giant worldwide, a textbook case of successful diversification!"
"Missing that chance was truly regrettable," Niu Fu acknowledged, undeterred. "Still, our failed attempt at Noranda wasn't entirely fruitless. It validated our approach to expanding overseas."
"Copper prices may dip soon, but long-term, I still strongly believe in its potential," Li Tang shared confidently. "Copper is globally scarce. Despite short-term fluctuations, the long-term outlook remains strong."
"Hearing this, Wukuang Group will be even more committed to investing heavily in copper," Niu Fu affirmed strongly. "We're now studying Qulong Copper Mine's development. You know, its average grade is low—just a tenth of Kakula's. But domestic copper mines must be developed, given the scarcity."
"Demeng's bio-hydrometallurgy copper refining technology will be applied to Qulong," Zhao Hepu mentioned.
"Copper mining plans can unfold gradually. Once Talego Copper-Gold Mine is developed, it'll ease domestic copper import pressures significantly," Niu Fu turned to Qin Jianshe. "Jianshe has been under tremendous pressure managing Zhongcheng Mining, losing quite some weight lately."
"So far, construction of railways, water pipes, and facilities are progressing smoothly," Qin Jianshe replied briefly but firmly.
No one could ignore Zhongcheng Mining's growing significance or Qin Jianshe's critical role anymore.
"For now, let's put aside copper mining," Niu Fu concluded calmly.
Niu Fu looked at Li Tang, changing the subject: "As you know, even though our Wukuang Group doesn't smelt much steel, we import tens of millions of tons of iron ore each year, assisting steel mills that lack import-export licenses for iron ore."
Hearing this, Li Tang wanted to laugh but forced himself to remain serious. Over the past few years, countless steel companies had privately cursed Wukuang's Iron Ore Trading Division for profiteering through iron ore speculation, blaming them unfairly for the soaring prices.
Such accusations were clearly biased.
"What happened with iron ore?" Li Tang asked.
"We've participated in iron ore price negotiations," Niu Fu began. "Negotiations started last October and finally made progress this June."
"How's the price?" Li Tang vaguely remembered but asked anyway.
"Up 20% from last year," Niu Fu sighed.
"Over 70 USD per ton?"
"Exactly," Niu Fu sounded frustrated. "Initially, we tried very hard to limit price increases. At first, we refused any hike. Later, after prolonged negotiations with BHP and Rio Tinto, we compromised at a 15% increase, nearly ready to sign. But then Vale unexpectedly announced a 25% increase agreed with Nippon Steel."
"Nippon Steel is a subsidiary of Mitsui, and Vale's management is effectively controlled by Mitsui! They were negotiating with themselves—what nonsense!" Li Tang laughed bitterly.
"When Vale announced their deal, Rio Tinto and BHP refused to accept our 15% deal, and negotiations collapsed again," Niu Fu explained wearily. "Now everyone finally returned to the table, settling at a 20% hike. If nothing changes, Lu Chenyi will announce the negotiation results. Then, steel enterprises and iron ore traders will sign long-term contracts at this rate."
"I was busy in Africa, so I haven't closely followed iron ore negotiations," Li Tang admitted, aware that iron ore prices deeply impacted his interests. Winning Mining's profitability depended heavily on iron ore prices.
They talked throughout the afternoon.
Li Tang had just arrived home when he received a call from Frando.
"I've released the Kakula Copper Mine drilling updates," Frando sounded cheerful.
Ivanhoe Mines, Frando's listed company, required regular updates to shareholders, or Li Tang wouldn't have bothered releasing the information.
"I know. Media already spread it from Canada to China," Li Tang replied. With prominent figures like Chen Jinghe and Lai Xiangrong traveling to Beijing to meet him, it was obvious Kakula's copper mine discovery had made global headlines.
"Impressive, isn't it?" Frando sounded enthusiastic, puffing on his cigar. "Our Kakula mine is stunning the world! No other copper deposit compares—not even those from Chile or Peru. Trust me, Kakula will transform the global copper industry!"
"Indeed. All major Chinese copper enterprises have already approached me," Li Tang replied.
"The CEO of Strata stopped by Canada after handling Falconbridge's acquisition to inquire about Kakula," Frando added. "Cristo from Freeport-McMoRan also visited to explore partnership possibilities. BHP and Rio Tinto reached out as well."
Clearly, these global giants tempted Frando. "Copper prices are historically high now. Selling the mining rights could fetch a fortune."
"What's your opinion?" Li Tang asked.
"I'll follow your lead."
"Let's finish exploration first. There's no rush."
"My thoughts exactly," Frando agreed. "If we raise enough capital to develop the mine, operating a heavy-asset mining company is where the real money lies."
"Yes," Li Tang affirmed.
"Besides Kakula, I just returned from Baffin Island. Exploration at Mary River Iron Mine has reached depths of around 200 meters. Progress is slow, but results are promising. Currently, we've identified about 300 million tons of reserves."
"Good."
"Our exploration team believes, based on geophysical data, the deposit is stable and likely extends over a kilometer deep. Given suitable conditions, we might uncover billions of tons of iron ore at around 67% purity. It could become one of the world's largest iron ore regions, rivaling Australia's Pilbara and Brazil's Carajás."
"Should exploration continue deeper?" Li Tang asked cautiously.
"Even in summer, it's extremely cold. Shallow drilling is already challenging. Deeper drilling would damage equipment. My advice is to drill no deeper than 300 meters. If conditions permit, we'll develop shallow reserves first. Deep exploration in such harsh conditions poses too much risk."
"I agree." Li Tang understood the extreme environment on Baffin Island. Even basic machinery operations faced severe challenges there, let alone deep drilling.
"Can we publicly release these initial 300 million tons of iron ore results? Regulations require us to announce our findings periodically," Frando sought Li Tang's approval, as Li Tang held 80% of Cold Iron Mining.
"I understand. Complying with Nunavut's mining regulations is necessary," Li Tang agreed calmly.
"Great! Next time, we'll celebrate over champagne! Working with you is incredibly satisfying," Frando laughed heartily.
After hanging up, Li Tang received another call—this time from Follett.
While in Congo, Li Tang had proactively contacted everyone due to unreliable signals. Hearing Li Tang was back in Beijing, Follett reached out immediately.
"I heard you discovered a copper mine in Congo!" Follett sounded astonished.
"It seems the news truly reached every corner of the world," Li Tang responded.
"Boss, you should seriously consider injecting Malo River Coal Mine, Kakula Copper Mine, and possibly Mary River Iron Mine into Winning Mining. With Winning Mining becoming profitable this year, we'll have ample resources to develop new mines, creating a diversified, world-leading mining giant!" Follett spoke passionately, envisioning ambitious growth.
Coupled with his capital market expertise and extensive connections, he believed success was within reach. Overtaking giants like BHP wasn't idle boasting but a strategic objective.
"Realizing that is complicated," Li Tang didn't reveal much. "What important matter prompted your call?"
"Our Kitchi Iron Mine officially began operations. Some initial equipment issues were resolved, and now we're fully operational. However, production is limited at first as we gradually ramp up capacity. This year, we expect around 10 million tons."
Follett called primarily to share this achievement.
Producing the first batch of iron ore marked a historic milestone, akin to a birth after a lengthy pregnancy. This event symbolized the project's success, validating previous efforts.
Consequently, Winning Mining's stock surged dramatically—from 23 AUD to 30 AUD, with market capitalization surpassing 45 billion AUD. The upward trend continued, soon expected to exceed 50 billion AUD, placing it firmly among global mining leaders such as BHP, Vale, Rio Tinto, Anglo American, Strata, and Freeport-McMoRan.
Recent news about prolonged iron ore negotiations finally concluding—with prices rising—further boosted mining stocks.
"We succeeded," Li Tang quietly acknowledged after a thoughtful pause. These simple words encapsulated profound relief and optimism about the future. The journey hadn't been easy, but perseverance paid off.
"Our iron ore shipment left port using Rio Tinto's rail and harbor facilities. The first 200,000-ton shipment departed Geraldton Harbor and will reach Haigang City in about two weeks, supplying Haigang Steel."
Follett's excitement was palpable. "The inaugural shipment ceremony was grand, attended by Governor Zachary and officials from the Federal Ministry of Industry and Mining. Everyone places immense hope in Winning Mining's bright future. Profits will only grow!"
"Yes, everything will continue improving!" Li Tang smiled genuinely.
Ironically, despite Winning Mining's massive market cap, today marked its very first shipment of iron ore—a phenomenon attributable to booming market conditions.
International capital feverishly chased mining stocks—particularly iron, copper, and gold—driving Winning Mining's remarkable rise into a unique industry unicorn.
Follett didn't dwell sentimentally, continuing, "I mentioned this to Alice earlier. Originally, she was scheduled to attend the welcoming ceremony in Haigang City. Since you're now in Beijing, perhaps you could participate personally."
"There'll likely be swarms of media." Li Tang disliked public attention.
"Your choice. Alice confirmed her attendance, so you could delegate to her."
"I'll attend," Li Tang decided, recognizing the historical importance. He could attend discreetly without media exposure.
After ending the call, Li Tang immediately returned to Yunding Tower, instructing Dai Yingchi to track the ship's journey and book tickets once the arrival date was confirmed. He'd travel to Haigang City with Alice, He Runqi, and senior executives to welcome this first historic shipment.
Welcoming this first ton of iron ore ashore was currently their most significant priority.
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