Chapter 362: Competing for the World's Number One
Li Tang had not expected the exploration data from the Mary River Iron Mine to arrive domestically at precisely this moment and to be picked up by Qu Yongan.
Facing the eager gazes of representatives from steel companies and other mining enterprises, he realized that unless he made things clear, he probably wouldn't be able to leave.
He cleared his throat and said, "I did indeed receive exploration data regarding Mary River Iron Mine from Frando a few days ago, and we have confirmed the discovery of iron ore."
Boom—
Everyone was immediately excited upon hearing these words.
Rong Yijian, who earlier had a minor verbal disagreement with Li Tang, had just spent $420 million to secure the rights to 2 billion tons of magnetite. However, he knew very well why he had been able to get such seemingly cheap pricing at this high point in the market.
The Sino Iron Mine, despite having large reserves, had relatively low average grades—only about 30%. More importantly, the ore contained high levels of impurities, making beneficiation complex and expensive.
But if iron ore prices remained high, even such ore could produce significant profits once developed.
Yet, upon hearing news about Mary River, Rong's earlier pride immediately transformed into envy.
If Mary River truly had tens of billions of tons of reserves at 67% grade—ore that required no beneficiation and could be directly sold as lump ore at premium prices—any business or entrepreneur would drool at the thought.
He swallowed hard and said regretfully, "Does the Mary River Iron Mine really have such vast reserves? If you'd informed us earlier, our CITIC Pacific would've invested in Mary River instead."
Li Tang glanced at Rong Yijian. This elderly man was still determined to elevate CITIC Pacific to greater heights. Even in his sixties, he remained ambitious.
"Some of you may not have clearly heard Minister Qu's words just now. In that case, let me clearly summarize the current exploration status of Mary River Iron Mine for everyone."
Scanning the audience, Li Tang spoke calmly: "Mary River Iron Mine has indeed found iron ore. To date, along the orebody strike, we've identified nine separate ore deposits of varying sizes. Deposit No. 1 is the largest, approximately four kilometers in length, and constitutes the majority of confirmed reserves. I personally visited the site—the iron ore is exposed directly on the surface. Other smaller deposits are similar—either exposed or shallowly covered by ice."
"How large are the reserves exactly?" someone asked, confused by earlier exaggerated claims of 70 billion tons.
"For the shallow part suitable for open-pit mining, we've currently confirmed reserves of about 300 million tons, mostly high-grade ore. And these 300 million tons come solely from exploration at deposit No. 1."
Li Tang was factual, avoiding exaggeration: "Exploration work is ongoing, particularly on the remaining eight shallow deposits. We expect to confirm several hundred million more tons upon completion."
Adding several hundred million tons to the current 300 million was already astonishing. Moreover, the ore quality was exceptionally high.
Hearing these numbers, excitement gripped everyone. Acquiring mining rights like these meant securing a goldmine.
"Earlier, some mentioned 5 billion tons, others 7 billion, even 70 billion. What's the truth?" someone asked curiously.
"That refers to inferred resource potential—it's an estimated figure. Actually, it's neither 5 billion nor 7 billion, but accurately around 6 billion tons."
"Where does this figure come from?" Non-technical personnel found it hard to grasp the differences.
"Regarding the data source, I need to correct Minister Qu's earlier comments. It's not his fault; media reports had inaccuracies."
Li Tang had reviewed detailed project documents and knew Mary River better than anyone present. "Mary River is primarily magnetite-hematite ore, with deposits extremely shallow, making magnetic surveys highly effective. The currently confirmed deposits perfectly align with our magnetic survey anomalies."
Most attendees were corporate executives, unfamiliar with detailed technical terms, so they listened in confusion.
Noticing their confusion, Li Tang clarified: "Our magnetic surveys identified anomalous areas extending up to 60 kilometers. It's basically certain that magnetite-hematite ore exists throughout these magnetic anomaly zones. The inferred shallow reserve figure of 6 billion tons refers exactly to these areas."
He glanced at Qu Yongan and explained further: "Minister Qu was right; deeper exploratory drilling has indeed confirmed ore presence locally. But we can't yet confirm deep ore continuity across the whole area. If the shallow ore extends to significant depths across the full 60-kilometer anomaly, the overall resource potential at Mary River is very hard to estimate. Possibly 10 billion tons, or even, as some jokingly suggested earlier, up to 70 billion tons—though that's overly exaggerated."
At this point, many grasped the general idea.
In short, the 300 million tons discovered thus far came only from approximately four kilometers of the surveyed magnetic anomaly. The remaining 56 kilometers could contain much more ore at shallow levels. Deep resources might be even more abundant.
"How good is it exactly?" Lu Chenyi asked Minister Qu, trusting his technical judgment.
"Absolutely outstanding!" Qu whispered excitedly to Lu. "Without doubt, it's currently the largest undeveloped iron ore deposit discovered globally. Confirmed reserves may only be 300 million tons now, but further exploration could easily increase that tenfold."
Lu raised an eyebrow, suddenly realizing the gravity of the situation.
This news shouldn't have been publicly announced here. Ideally, he'd have pulled Li Tang aside privately to discuss future collaboration at Mary River.
Now, numerous competitors had joined the conversation.
"Sigh…" Lu sighed quietly.
"It definitely can become the world's third-largest iron ore base!" Qu explained, justifying his eagerness to inform Lu earlier.
"Li Tang, what's your next step at Mary River?" someone called out.
"We've already invested about $50 million in exploration but only finished shallow exploration at deposit No. 1. The harsh environment there severely tests equipment and personnel—extreme cold leads to frequent injuries and equipment failures, making logistics extremely difficult."
Li Tang typically preferred fully completing exploration before considering development plans. But Mary River required another strategy: combined exploration and mining.
Clearly, deposit No. 1, already confirmed, was right on the surface, less than 100 miles from a port. Despite severe weather, mining it would be straightforward.
It was ideal for immediate development. Funds generated could support further exploration efforts.
After quickly exhausting the initial $50 million investment in just one year, Li Tang currently had little cash to spare, especially since Kakula copper mine still required ongoing exploration investment.
Thus, the next step was undoubtedly to attract investment and start actual development—mining surface iron ore directly to generate cash flow.
"Our next plan is certainly…"
"Li Tang, you've been standing here long enough. Besides you, everyone else here is older and probably tired. Let's sit down somewhere comfortable and discuss business matters later."
Lu Chenyi suddenly interrupted, stopping Li Tang from elaborating further on future plans for Mary River. Clearly, Lu had great interest in the project himself.
"Well, alright." Li Tang felt he'd said enough, so he complied.
"What…?"
"Who's old?"
"Who's tired?"
"Ridiculous! We're having such an interesting conversation with Li Tang. Not tired at all!"
"Li Tang, please continue!"
"You're now the leader of China's mining industry. Hearing you speak is an extraordinary opportunity—I've already learned so much!"
"What was Li Tang saying again?"
"Was it about immediately investing and developing Mary River?"
Seeing Li Tang leaving, everyone pleaded for him to stay and share more insights. Apart from Lu Chenyi, they all eagerly wanted a stake in Mary River. Meeting Li Tang was already challenging, sometimes requiring months of waiting due to his international travels.
"Honored guests and friends, please let us at Haigang Steel fulfill our duties as hosts!"
Smiling warmly, Lu Chenyi invited everyone to dinner at a reserved restaurant. Despite their reluctance, the crowd followed him, still passionately discussing Mary River, heading toward their cars.
Ignoring city officials and even giving Rong Yijian no special attention, Lu specifically invited Li Tang into his personal vehicle. Onlookers quickly understood Lu's intentions and whispered critically about his transparent favoritism.
"I haven't studied detailed project documents yet, but I firmly believe Mary River is an extraordinary mine—likely to become the world's third-largest iron ore center, after Pilbara and Carajás," Qu explained from the passenger seat.
Fully comprehending the significance, Lu Chenyi silently resolved to place even greater emphasis on the Mary River project. This was precisely why he'd singled out Li Tang for special attention today.
"I heard your conversation with Rong Yijian about the Sino Iron project earlier. You sounded pretty serious, even quite harsh," Lu Chenyi remarked, deliberately avoiding direct discussion about the Mary River iron mine to avoid irritating Li Tang. "Do you really not have faith in the Sino Iron project?"
"That's correct," Li Tang nodded without hesitation. "Chairman Rong probably interpreted my words differently, but I genuinely wanted to help. After all, we share the same roots. If there's a chance I can lend a hand, I wouldn't just stand aside."
"I understand your sentiments, and I want to thank you on behalf of Rong Yijian and other domestic enterprises," Lu Chenyi sincerely expressed his gratitude, adding praise for good measure. "You have a noble heart and lofty ideals. I've heard countless times from leadership that you are a driving force for our nation's revival, spearheading major contributions to economic growth..."
"No, please!" Li Tang hurriedly interrupted Lu, fully aware of his intentions, and directly addressed the topic. "Chairman Lu, you want to know my next plans for the Mary River iron mine, correct?"
"If you're willing to discuss it, I'd be happy to listen patiently," Lu Chenyi smiled.
"Exploration work will soon be complete, and we'll directly apply for the mining license," Li Tang straightforwardly replied. "Next year, we'll launch the feasibility study for Mary River."
"Even though Mary River isn't far from the old abandoned port, to improve transportation efficiency, a railway must still be built. Additionally, the port likely needs upgrades to accommodate bulk carriers of hundreds of thousands of tons," Lu briefly summarized the major construction projects, estimating roughly the amount of funding required. "This would cost between $1 billion to $3 billion."
"That's right," Li Tang acknowledged with a nod.
"There's speculation overseas that you plan to inject various large mining assets into Winning Mining, aiming to build the world's largest mining company," Lu Chenyi mentioned. "Winning Mining has finally started generating profit and undoubtedly has an increasingly brighter future. Utilizing its profits to develop other mining projects is indeed a sound strategy."
International media and analysts frequently speculated when this emerging company, Winning Mining, would surpass all traditional giants to claim the top spot globally.
Winning Mining couldn't fulfill such grand ambitions solely by relying on iron mines in the Pilbara region. It would never surpass BHP or even Rio Tinto by itself.
However, behind Winning Mining stood Li Tang, its visionary boss—a man known for creating miracles, sparking limitless imagination and possibilities worldwide.
If Li Tang truly injected the numerous large-scale mining rights he held into Winning Mining, this enterprise could undeniably soar to unimaginable heights. The recent major discovery at Mary River further raised Winning Mining's growth potential.
Even if he didn't incorporate coal or copper assets, merely adding Mary River would significantly boost Winning Mining's capabilities, as iron mining was precisely its specialty, where it had already accumulated extensive expertise.
Everyone believed Li Tang would undoubtedly take this route.
Every mining giant's ultimate ambition was to become number one in the world.
Global mining resembled a martial arts arena. Companies with substantial capital were all striving to become its supreme leaders.
Freeport-McMoRan's recent acquisition of Douglas aimed precisely at becoming the largest global copper miner;
Stranta's purchase of Falconbridge was a diversified pursuit to chase BHP's dominance;
Rusal this year bought Glencore's global aluminum division and was eyeing the acquisition of Russia's second-largest aluminum producer, intent on becoming the world's largest aluminum conglomerate;
Rumors were swirling that Alcoa was preparing to acquire Alcan, directly challenging Rusal's supremacy...
Numerous major mergers and acquisitions all pursued that elusive "world's number one" title.
Li Tang certainly desired Winning Mining to achieve global supremacy, but he had his strategic plans. He wasn't inclined to put all his eggs in one basket—and had no problem openly admitting this.
"Injecting all major mining assets into Winning Mining was just an idea exaggerated by Fred. I've never explicitly agreed," Li Tang clarified directly to Lu Chenyi. "Mary River will not be incorporated into Winning Mining."
Hearing these words, Lu Chenyi secretly felt relief and immediately responded generously, "Regarding the Mary River development, I can offer full financial support! Whether you prefer direct investments or large-scale loans, you can come to me anytime. Without exaggeration, I still carry considerable influence across various levels."
"I'm relieved hearing your assurance, Chairman Lu!" Li Tang laughed heartily.
Frankly, he genuinely preferred partnering with domestic steel enterprises to jointly develop Mary River. At the very least, they could first exploit the confirmed resources, generating cash flow that could fund ongoing exploration and further capacity expansions.
The banquet was filled with joy as everyone toasted happily. Numerous guests actively approached Li Tang to propose toasts, particularly representatives from steel companies like Long Fuyuan and Zhu Youxin, determined to get him thoroughly drunk.
"Our domestic steel companies importing iron ore are completely strangled by the three iron ore giants—there's no way to resist!"
"A great nation, yet helplessly lacking countermeasures—it's frustrating!"
"Li Tang, we're counting on you!"
"Lead us all onto the road to prosperity!"
Surrounding Li Tang, they raised their glasses one after another.
Alice watched with a frown from the sidelines, hesitant to intervene openly. Observing Li Tang swaying as he stood, she finally stepped forward to drink several glasses on his behalf.
Li Tang, unable to decline such warm hospitality and already feeling dizzy, spoke with slurred speech, "I deeply appreciate everyone's kindness and enthusiasm about our iron ore projects. I'll mention just this: Winning Mining will soon launch the second-phase expansion, requiring significant funding. A financing plan is in the works. If you're interested, please pay attention!"
After these words, Li Tang slumped back into his chair, falling asleep instantly.
With his meager alcohol tolerance, he was no match for these seasoned drinking veterans, let alone surrounded by an army of drinking experts.
Noticing his state, Alice quickly gathered their staff to support Li Tang out of the banquet hall and back to their hotel.
Ring ring ring...
Li Tang's phone rang from his pocket.
Sleeping like a log, he didn't react at all.
Alice glanced at the phone, saw the caller ID "Dad," and answered.
"Li Tang, what are you doing?" came Li Zaiqiang's voice from the other end.
"He must be at a celebratory banquet."
"Such a big achievement! If it were our geology bureau, we'd feast for three days straight, unlimited drinks."
"Ask Li Tang when he's coming back to Zhucheng; we haven't shared drinks in ages."
"Tea would also be fine."
The background noise was loud and lively.
Alice paused momentarily, replying nervously, "Li Tang is drunk; he's already asleep."
On the other end, Li Zaiqiang's darkened face showed evident surprise as he quickly stepped out onto the balcony, away from the crowd, and lowered his voice, "Are you that foreign colleague of Li Tang's?"
He had noticed the unusual accent immediately.
"I'm Alice," she replied.
"Uh..." Li Zaiqiang paced anxiously before asking bluntly, "This late at night, isn't Qiqi supposed to be with Li Tang? Why are you there instead?"
"We're on a business trip to Haigang City. He drank tonight and got very drunk, just vomited. I'm only watching over him briefly; there are others here too, please don't misunderstand," Alice explained hastily.
"No misunderstanding at all," Li Zaiqiang relaxed, laughing softly. "How much did he drink?"
"Not sure, probably a bottle of baijiu."
"A whole bottle? He must be completely knocked out," Li Zaiqiang sighed sympathetically. "Alice, sorry for the trouble. He looks impressive, but he's truly working hard alone with no one taking care of him. Please look after him carefully."
"Rest assured," Alice replied softly.
After hanging up, Alice glanced mischievously at Li Tang sprawled across the bed, smiling playfully in the quiet hotel room.
Back home, Li Zaiqiang tucked his phone away, returning to the living room, looking at Han Dexun, Zhang Zhenxing, Pan Yuexing, and others. He frowned, saying, "Li Tang drank too much."
"He's alright, isn't he?" Tang Chuqiu asked worriedly.
"He's fine; colleagues are with him."
Li Zaiqiang returned to the table, raising his glass. "Come on, if that kid got drunk, we should drink more too!"
Han Dexun, Zhang Zhenxing, and others had come over specifically to drink with him, watching the news report celebrating Winning Mining's first iron ore shipment to Haigang City.
Tonight's news was brief, highlighting the milestone of domestic companies' overseas resource investments benefiting the entire national industrial system.
"Let's raise our glasses again in celebration of Li Tang and Winning Mining!" Han Dexun toasted enthusiastically.
Everyone raised their glasses, smiling broadly, genuinely happy for Li Tang's success.
Simple, pure joy filled the room.
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