Chapter 361: A Mine Whose Reserves Surpass the Nation's Total
Before departing for Haigang City, Qin Jianshe brought someone to meet Li Tang.
"This is Wang Wengen, chairman of Zhengwei International Group."
"Hello, hello! I've admired your reputation for a long time, and finally, I get to meet you in person! You're truly impressive, such a young talent!" Wang Wengen greeted him warmly. His demeanor wasn't arrogant or authoritative; rather, he seemed more like an ordinary businessman, leaning forward slightly with a genuine smile.
In his thirties, slightly overweight, with a round face and thinning hair, Wang Wengen resembled an amiable neighbor rather than a tycoon.
"You're Wang Wengen, from Guangdong province, right?" Li Tang asked, sizing him up.
"Yes, that's me," Wang replied, still smiling.
"Chairman Wang, you're the truly impressive one!" Li Tang reached out to shake hands with him. "Zhengwei International Group has a bright future. Under your leadership, it'll surely establish a great foundation!"
"Compared to your Li Tang Shengshi Holdings, Zhengwei International is really nothing special," Wang Wengen humbly responded.
"We're both low-key individuals. Perhaps we'll get along quite well," Li Tang remarked casually.
"You've heard of me?" Wang asked.
"Of course. You're well-known in Guangdong Province, and your future prospects are very promising. Zhengwei's main business is high-tech industries, right? That's definitely a highly promising field."
Li Tang wasn't just flattering Wang. He never adopted the approach of exaggerated praise and sugary words. Wang Wengen was genuinely an extraordinary figure.
In fact, among private mining enterprises in China, Wang Wengen could be regarded as the number one figure. Most large mines, especially those significantly influencing the national economy, were usually allocated to state-owned enterprises. Consequently, despite China's abundant mineral resources, very few private individuals had ever risen to great wealth, let alone become billionaires, through mining.
Currently, Li Tang himself held the title of China's richest man, with his wealth mainly derived from Australia's Winning Mining. But in the future, one man would break that barrier, rising to become China's richest through the mining sector: Wang Wengen, the friendly, smiling businessman standing before Li Tang.
Even if Wang's reign as the richest man was short-lived, the achievement remained remarkable.
Strictly speaking, Zhengwei International mainly operated in copper products processing, with only a tiny fraction involved in actual mining. Some people didn't even consider Wang Wengen a heavyweight in resource extraction. Nevertheless, the smiling young entrepreneur in front of Li Tang was indeed China's undisputed "Copper King."
Even more impressive was that Wang Wengen had built his substantial empire from scratch, entirely through his own efforts.
"Chairman Wang has built copper wire factories across numerous cities nationwide, even establishing large industrial parks in major urban areas," Qin Jianshe interjected, explaining Wang's purpose for the visit. "They recently planned several large-scale, bright copper-wire projects in northern China, each with annual capacities around 100,000 tons. So their copper demand is enormous."
A factory with a capacity of 100,000 tons of copper was unquestionably large-scale. Such projects required investments amounting to billions, sometimes tens of billions of yuan.
Worldwide, copper mines producing over 100,000 tons annually were significant and well-known.
"We prefer establishing factories near copper-producing regions to save transportation costs," Wang explained cheerfully. "Your Zhongcheng Mining is listed highly among the most promising enterprises internationally. Also, I've spoken to President Qin, and I understand your Talege Copper-Gold Mine is expected to start production next year, at latest the year after. Our copper-wire projects also commence operation around that period. Our schedules match perfectly—almost as if fate arranged for us to come together!"
"Really?" Li Tang was amused by Wang's enthusiasm. "Well, if that's the case, let's cooperate. But I'm no longer managing Zhongcheng Mining directly, so my words aren't authoritative. President Qin here is the right person to speak with."
"Actually, my main reason for visiting today was to meet you personally," Wang smiled sincerely. "I've been hearing your name and your amazing stories everywhere—TV, newspapers, the internet. I've admired you for a long time, and today my dream finally came true."
"I greatly admire you as well, Chairman Wang!" Li Tang politely returned the compliment.
Wang Wengen smiled even more broadly. "Currently, copper supplies internationally are tight, especially in China. It's mainly because China's demand has emptied the global market. Processing enterprises like ours struggle to secure good-quality copper at reasonable prices. Zhongcheng Mining, backed by several strong state-owned shareholders, has both financial strength and technological advantages. If you agree, I'd love to reserve part of Talege's copper output."
Li Tang glanced at Qin Jianshe. "President Qin, what's your take?"
"Initially, Talege's first phase will produce around 120,000 to 150,000 tons annually, which might not fully satisfy Chairman Wang's large appetite unless we successfully complete the second and third phases, expanding production capacity to 500,000 tons," Qin explained candidly. Bringing Wang here implied Qin had already approved of such cooperation. "To be honest, we trust Chairman Wang."
"Well then, discuss it between yourselves. Any mutually beneficial collaboration shouldn't be hindered," Li Tang fully trusted Qin's judgment.
Having secured agreement on that matter, Wang continued smilingly, "I heard you discovered Kakula Copper Mine recently. What's your plan there? Actually, Zhengwei Group also owns some copper mines, although they're relatively small. Our group is considering increasing investments upstream."
"It's still early. There's no rush," Li Tang politely dismissed any immediate possibility of cooperating with Wang on Kakula. Both were private enterprises; investing heavily abroad could carry significant risks.
Wang nodded, understanding Li Tang's implication. "You previously sold the Pebble Project to Rio Tinto. Honestly, we heard about it back then but didn't have the courage to bid. Now looking back, it was an incredibly valuable project."
"I had other considerations when I sold Pebble to Rio Tinto," Li Tang briefly responded.
"Signing transportation agreements with Rio Tinto, I suppose?" Wang asked.
"That was one reason," Li Tang didn't elaborate.
Their conversation was largely symbolic; Qin would handle concrete details.
Hearing that the ship carrying Winning Mining's first ton of iron ore from Port Hedland would soon arrive, Li Tang took senior company executives to Haigang City.
Lu Chenyi personally received them.
"You're doing copper now?" Lu was amazed by Li Tang's shifting focus.
"No big projects earlier this year. The coal project in Canada is supervised by Shenxia Group and Liu Naishun, and Mary River Iron Mine is in Baffin Island, an extremely cold place. So I went to Africa. Apart from safety, the climate there is pretty comfortable," Li Tang joked casually.
They walked along the dockside, brightly decorated with banners welcoming the first shipment of iron ore.
Lu Chenyi, indifferent to copper news, cared deeply about iron ore: "What's the latest on Mary River? It's been almost a year since exploration began."
"Pretty good," Li Tang smiled mysteriously.
Lu sensed deeper significance behind Li's vague comment. Before he could inquire further, the dock manager approached hastily. "Everything's ready. CCTV will broadcast live; leaders from city government, steel associations, and heads of several steel companies will attend—including the chairman of CITIC Pacific."
"Many heavyweights today," Lu remarked to Li Tang quietly.
The event was meticulously prepared; Li Tang, wearing sunglasses and a cap, chose a discreet seat in the front row center.
When the massive cargo ship sounded its horn and docked, Lu Chenyi proudly announced, lifting iron ore powder: "Our national enterprise, developed by our own people, has delivered its first shipment of 200,000 tons of iron ore!"
Thunderous applause and celebratory ribbons filled the air, reflecting everyone's joyful excitement.
The welcoming ceremony lasted just thirty minutes due to the scorching heat, after which everyone moved indoors.
This historic occasion marked a milestone for China's overseas mining investment, proving Winning Mining's strategic foresight. Today's soaring iron ore prices underscored the wisdom behind their initial investment decision.
Chinese mining companies were increasingly venturing overseas, generally struggling due to high costs and limited success. Today, a similar venture would cost billions, not millions, of dollars.
CCTV exclusively broadcast the event, capturing the excitement of guests and industry leaders. The camera briefly swept past Li Tang, seated incognito, lingering instead on prominent government officials, Lu Chenyi, and Alice.
Afterward, Lu Chenyi introduced Li Tang to prominent figures from various steel giants—Tangshan Steel, Hualing Steel, Fengli Group—as well as Ron Yijian, chairman of CITIC Pacific.
Li Tang, meeting Ron Yijian, chairman of the influential Hong Kong-based CITIC Pacific, suddenly felt uneasy.
Of course, Li Tang had heard of Rong Yijian's fame, so he asked directly, "Does your CITIC Pacific also plan to invest in iron ore?"
Rong Yijian was in his sixties but appeared vigorous. He examined Li Tang carefully, then asked, "Have you heard about our plans?"
"You've already invested?" Li Tang felt a jolt inside.
He had always kept an eye on this matter and intended to caution them, or even stop them from investing in iron ore if necessary. In the first two decades of the 21st century, China's severe shortage of mineral resources led to numerous instances of being exploited and restricted by foreign entities. Many Chinese enterprises, stung by these experiences, boldly ventured overseas to invest in mineral resources. Some succeeded, but others failed spectacularly.
Among these painful failures, the most infamous—and the costliest—was CITIC Pacific's investment in iron ore in Western Australia. The billions of yuan invested vanished completely, leaving nothing behind but endless problems and humiliation. It became an unhealable wound in the nation's collective psyche, with many citizens bitterly accusing cunning Australian businessmen of deceit. Yet, despite the resentment, they were powerless to rectify the situation legally, because the individual at the center, Clive Palmer, had set up his legal trap meticulously, leaving them neither a way forward nor an easy retreat.
"We've finalized it—420 million USD for the mining rights of 2 billion tons of magnetite ore!" Rong Yijian's voice was filled with enthusiasm, his eyes gleaming as though he already envisioned the endless streams of iron ore and massive profits.
"Which mine?" Li Tang asked, though he already knew the answer.
"Sino Iron Project," Rong answered proudly, unable to conceal his satisfaction. "We're planning to invest around four billion USD to build a mine with an annual production of 30 to 50 million tons. Just like your Winning Mining, we'll gradually ramp up capacity afterward."
Seeing Li Tang's tense expression, Rong continued enthusiastically, "Sino Iron Project is located in northern Pilbara, even closer to Port Hedland, making rail construction cheaper and transportation faster. We'll also construct our own deepwater port—just like Winning Mining did!"
There was no doubt this was an enormous investment. Acquiring the full rights to 2 billion tons of magnetite for just 420 million USD seemed incredibly cheap given current iron ore prices.
"If the Sino Iron Project can smoothly enter production, it'll definitely encourage fairer competition in the global iron ore market and reduce the monopoly of the Big Three," Lu Chenyi interjected, clearly supportive of Chinese investment in overseas iron ore mines. Increasing global iron ore supply could alleviate current market chaos.
"I'm highly optimistic about Sino Iron. The reserves are huge, the grade is acceptable, and if production commences as scheduled, it will greatly benefit China's entire industrial sector," Lu continued sincerely.
"We'll rely on your support for iron ore sales, Chairman Lu," Rong smiled, clearly having discussed the matter previously with Lu Chenyi. When iron ore production began, a large portion would likely be sold directly to Haigang Steel or distributed nationally via Haigang Steel's port.
Rong turned towards Li Tang, his eyes showing a faint hint of challenge. "This year, we'll officially begin investing, finalize feasibility studies, and start plant construction and infrastructure immediately. We plan to start production by 2008, or 2009 at the latest."
Once in production, Sino Iron would inevitably compete directly with Winning Mining.
Li Tang fully understood Rong's intention and recognized that Lu Chenyi, Long Fuyuan, and the other steel giants similarly hoped Sino Iron would succeed—just as they had high hopes for Winning Mining and Li Tang himself. Both projects were expected to break the existing global iron ore oligopoly.
After hesitating briefly, Li Tang spoke frankly, "I personally believe investing in iron ore is promising and worth it. But there's something crucial I must remind you of: when signing a contract with Clive Palmer, you must be extremely careful. My sincere advice is to hire Australia's best-known law firm to thoroughly review the contract!"
Upon hearing this, both Rong and Lu looked startled. Li Tang's severe tone made it clear he wasn't joking.
"Why do you say that?" Lu Chenyi asked cautiously, knowing Li Tang wasn't the kind of person who made baseless claims.
"We heard vaguely that Palmer has a bad reputation in Australia, known as one of their top tricksters," Rong briefly looked surprised but quickly regained his composure. "But I think we can trust him—just like how you heavily hired Flett. Flett's reputation in capital markets was equally infamous. Yet, you paid him generously with equity options, making him a billionaire in Australia. Palmer isn't fundamentally different from Flett."
"No, they're totally different," Li Tang stressed.
"Our partnership with Palmer isn't even as close as yours with Flett. We're paying him 420 million USD for the full rights to the 2 billion tons of magnetite. After the deal closes, we'll have no further interaction," Rong explained confidently, clearly already imagining the mine as a money-printing machine.
He considered his relationship with Palmer effectively over.
"Palmer isn't that simple," Li Tang insisted. Having met Palmer, Li knew him to be superficially friendly but inwardly ruthless, deceitful, and volatile. Palmer epitomized the phrase "Don't judge a book by its cover."
"Li Tang, knowing you, I'm certain you're speaking from the heart," Lu Chenyi said seriously, realizing the gravity of Li's words. "Do you know something from Australia that we don't?"
Seeing Rong's dismissive expression, Li hesitated, then added, "Palmer is notoriously troublesome. Whoever partners with him inevitably ends up mired in lawsuits, suffering heavy losses. That's why I urge you to examine every contract clause repeatedly—making absolutely sure."
"The contract is already signed," Rong calmly announced, clearly signaling the matter was settled.
Rong perceived Li Tang's warning as having ulterior motives, possibly because Sino Iron's future success could threaten Winning Mining's position and market share in China. To Rong, Li Tang's warning seemed self-serving.
Nevertheless, Rong wasn't upset—after all, Li Tang was just a young man, barely older than his own grandson. He understood Li Tang's concern upon hearing about Sino Iron's investment.
Patting Li Tang on the shoulder reassuringly, Rong comforted, "Sino Iron won't impact Winning Mining's operations. Don't worry, the global iron ore market is vast enough to absorb production from every mine."
Li Tang nodded slightly, choosing to remain silent. He knew saying more might complicate matters further.
Lu Chenyi initially intended to introduce Rong to Li Tang, hoping Li's extensive network and successful experience in Australia could assist Rong. He hadn't anticipated the serious tone Li Tang took immediately upon meeting. Fortunately, Li remained diplomatic enough not to sour relations completely, though the conversation clearly wasn't harmonious.
"Let's put iron ore aside for now; we'll chat about it later. You're both distinguished guests, and since you're here in Haigang, I must host you well!"
Just then, Qu Yongan, Haigang Steel's exploration department head, ran over urgently, breathing heavily and sweating. He hesitated upon seeing the tense atmosphere, then nodded to Li Tang in greeting. "Boss Li, you're here too."
"Long time no see, Qu. How's Nihe Iron Mine progressing?" Li Tang asked casually.
"We've discovered 180 million tons of iron ore, but it's all deep underground—600 to 1,000 meters below the surface. We're discussing deep shaft mining. Annual production might reach around two million tons," Qu responded professionally.
"Two million tons annually is good enough—180 million tons could last decades," Li Tang laughed.
"It's all thanks to your help," Lu smiled at Li, then turned seriously to Qu. "Is something urgent?"
"Extremely urgent," Qu confirmed anxiously.
Lu glanced around openly, declaring, "It's alright, we're all friends here."
"This involves Li Tang," Qu said excitedly, eyes fixed on Li Tang.
"Oh?" Lu laughed in relief, sensing good news.
"Me?" Li Tang was confused.
Qu quickly took out a densely printed foreign newspaper, exclaiming, "Canada just released shocking news—the Mary River Iron Mine discovered a gigantic deposit! At shallow depths within 200 meters, the reserves already exceed 300 million tons of high-grade ore at around 67%! Additionally, geophysical surveys and limited deep drilling indicate the ore continues downward very consistently. According to Canada's Ivanhoe announcement, Mary River's estimated reserves are between 5 to 7 billion tons!"
Qu stared excitedly at Li Tang. "This is undoubtedly a world-class mega mine—probably the best undeveloped iron ore globally, even surpassing Simandou!"
Lu Chenyi and Rong Yijian turned in unison, staring incredulously at Li Tang.
Nearby steel industry figures, hearing snippets, immediately crowded around Li Tang excitedly, repeating and exaggerating details—transforming Mary River into something legendary.
Lu Chenyi, despite clearly hearing Qu's report, felt his heart racing with excitement.
Yet another world-class iron mine discovered!
And once again—Li Tang!
Li Tang had barely completed transporting iron ore from Pilbara to Haigang, and now he had discovered another mega deposit in Canada.
Excitedly, Lu finally asked Li Tang directly, "Is this news about Mary River true?"
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