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688, iron ore prices rise(1/2)

In the end, Xia Yang agreed to Lawson's second plan, which was to acquire 40% of the shares of Sper Titanium Mine for US$4 billion in cash, with the additional condition that there would be no layoffs.

Later, Li Ao Mining Manager Yake personally took action and completed the acquisition in three days.

After the acquisition of Sper Titanium Mine, it did not change its name and was directly transferred to Liao Mining. The difference is that before, it only held shares but had no management rights. Now it fully controls Sper Titanium Mine.

In this way, Xia Yang completely absorbed the largest titanium mine in Sper.

The Sper Titanium Mine, which was originally worth tens of billions of dollars, had no bids for such a large project and was almost considered an unofficial deal. Several mining giants such as Rio Tinto and Danshui River Valley were still a little dissatisfied. However, when they heard that Xia Yang had directly offered four billion U.S. dollars.

They made a cash acquisition and agreed not to lay off employees, so they immediately stopped talking.

Four billion US dollars in cash is a huge amount of money. Even if they drain the cash flow, they won't be able to get it out at once. If they borrow money from the bank, they will undoubtedly have to pay a large amount of interest, which will greatly increase the acquisition cost.

The most troublesome thing is that not laying off employees will make them uncomfortable.

Because usually mining giants like Rio Tinto and Danshui River Valley, after acquiring a mine, the first thing they do is to lay off employees. There is no way, private companies will not raise half an idle person.

The reason for the previous losses of Sper Titanium Mine was partly due to the invasion of fat insects, and partly due to bloated personnel and high operating costs.

However, after Xia Yang fully acquired the Sper Titanium Mine, Lawson helped him make arrangements, and arranged for the extra people to go to the Red Stone Iron Mine.

The Hongshi Iron Mine really needs to increase its production capacity and requires a large number of manpower.

Because Lawson was not lying, after the capital of Spur took back the iron ore pricing power, it raised the price of iron ore.

Taking into account iron ore mining costs and other factors, the price of iron ore has increased by five US dollars per ton.

According to market conditions, iron ore can now be sold for at least US$28 per ton.

This price doesn’t mean you’re making a lot of money, but you can finally get some meat.

You must know that the pricing power of iron ore was controlled behind the scenes by the United States through financial companies such as JPMorgan Chase and Vanguard.

Since the 1980s, international iron ore prices have been as stable as an old dog, maintaining around US$20 per ton.

At this price, excluding mining costs, taxes, etc., and as workers' salaries continue to increase, mine owners like Xia Yang can really only make some hard-earned money.

Now I'm fine, I can finally eat meat.

“Mr.

In the Siper Titanium Ore Factory, many employees along the road and in the workshop quietly watched, Yake drove Xia Yang around the factory in an open-top off-road vehicle.

There is no way, the Sper Titanium Mine is too big. Entering from the gate, reaching the mine or the smelting plant are all measured in kilometers.

In addition, the reason why the Sper Titanium Mine is worth tens of billions of dollars is that in addition to owning the largest titanium mine in Sper, it also has a titanium ore refining plant.

This titanium ore refining plant can not only refine pure titanium ingots, but also produce various titanium alloys, especially high-grade titanium alloys such as memory titanium.

In fact, titanium is not a rare metal and has abundant reserves. What is really expensive is smelting and purifying it.

Decades ago, Americans spent a lot of effort to extract less than 1 gram of titanium metal, so titanium was classified as a rare metal.

Although it was a joke, it also illustrates the difficulty of smelting and purifying titanium metal.

In addition, pure titanium metal is not very expensive, the more expensive ones are titanium alloys.

As the refining process matures, it will become cheaper. For example, the ex-factory price of glasses frames made of pure titanium is only more than 100 yuan, which is still Xia coins.

But titanium alloys are expensive. For example, memory titanium alloys are often mentioned. Using this memory titanium alloy to make a pair of spectacle frames is at least ten times or even dozens of times more valuable than pure titanium.

The smelting technology of advanced titanium alloys such as memory titanium is currently only in the hands of a few countries.

One can imagine the value of technology for smelting titanium alloy iron.

Therefore, part of the value of Sper Titanium Ore lies in this titanium smelting plant.

The Sper Titanium Smelting Plant is indeed very advanced, and the high-grade titanium alloys smelted can meet the needs of monster engines and fighter submarines.

Yak simply explained his next plan. Xia Yang nodded, "Implement it as soon as possible. All redundant personnel at the Sper Titanium Mine will be transferred. I will give you 100 million US dollars in funds. You can spend it as you should and replace the equipment."

Replace them all and increase production as soon as possible!"

"In addition, at the red stone mine, you must pay close attention to equipment such as mine trucks and excavators. You can add more equipment as needed. Take advantage of the increase in iron ore prices to increase production as soon as possible."

Xia Yang confessed that he was even more generous in giving 100 million U.S. dollars to Yak.

Investment in increasing production capacity is different from R&D. When funds are invested in expanding production capacity, the results will be seen quickly and the investment will be recovered.

It's not like R&D, where hundreds of millions of dollars are poured into it, and sometimes there's not even a splash.

"Okay, Mr. Xia, I will definitely achieve the goal of producing 200 million tons of iron ore per year as soon as possible."

With Xia Yang's support, Yakna dared not to give his all and made a solemn guarantee.

Because the red stone mine is a super large iron mine.

Therefore, Xia Yang has always kept a low profile, and the iron ore produced by the mine is basically digested internally.

Most of the mined iron ore is sold to Kujo Chika's steel mills, Fuso Steel Mills, 40 million tons, Spur Steel Mills, 40 million tons, and the remaining 20 million tons are sent to Cable Steel.

The factory digests it and uses it to produce some special steel specially prepared by Ed.

Therefore, the annual output of the red stone mine was 100 million tons before, and now it has been increased to 200 million tons, which is equivalent to doubling.

However, the funds provided by Xia Yang were sufficient, and Yake was not in any trouble and was full of confidence.

"Mr. Xia, I'll take you to the red stone mine again. You haven't been there for a long time."

After basically touring the Sper Titanium Mine, Yake graciously proposed to take Xia Yang to the Hongshi Iron Mine to have a look.

After working in Li Ao for several years, Yake is very grateful to Paul for introducing him to Li Ao. It is so comfortable to work in Li Ao, the salary is high enough, and the boss trusts him. There is no better job in the world, so he

Always try my best.

When Xia Yang heard Yake mentioning the Hongshi Iron Mine, he couldn't help shaking his head and laughing.

By the way, when was the last time he went to the red stone mine? Last year, or the year before that?

There are too many properties for Xia Yang to understand, but fortunately there are professional managers in charge, and its operating status can be clearly understood through monthly financial reports.

The Redstone Iron Mine is well managed by Yak.

There has never been an accident and the profits are stable.

"Okay, let's go take a look."

Xia Yang agreed to visit the Hongshi Iron Mine.

Yake was extremely happy. He could finally show off his performance in front of Boss Xia and see how well he managed the Hongshi Iron Mine.

The open-top jeep turned around and quickly left the titanium smelting workshop. Dingo and the others hurriedly drove to follow.

It was said that it was a stop by to see the Hongshi Iron Mine, but in fact it was not a stop by at all.

Because the Sper Titanium Mine is at least a hundred miles away from the Red Stone Iron Mine.

But this was not a problem for Yak, he had already prepared.

Driving an open-top jeep, turning east and west in the titanium ore factory area, we took Xia Yang to a small airport in the factory area.

A large helicopter is parked at the airport.

Apparently he flew directly to the red stone mine by helicopter.

But Xia Yang only took the wild dog on the helicopter.

Huya and the others still drove over with their eight-eyed trident.

The helicopter took off and headed straight for the Hongshi Iron Ore Plant.

Helicopters are naturally much faster than cars.

In less than twenty minutes, the huge and busy Hongshi Iron Mine came into view.

At the bottom of the huge mine, the huge and powerful shovel of the giant unicorn excavator can easily dig up dozens of tons of iron ore, and a few shovels can fill a giant worker ant truck.

In the huge mine pit that looked like it was smashed by a meteorite, there were hundreds of worker ant giant trucks filled with iron ore. They seemed to be lining up, following the spiral road, coming up from the bottom of the mine pit. At the same time, hundreds of worker ant trucks were filled with iron ore.

A giant worker truck followed the spiral road and went down to the bottom of the mine to continue loading iron ore.

Farther away, accompanied by the roar of the train, hundreds of carriages filled with iron ore slowly started to transport the iron ore to the dock hundreds of kilometers away.

It all seemed extremely busy, yet methodical and orderly.

Obviously, Yake does manage the red stone iron mine very well.

So when Xia Yang got off the helicopter, he had an undisguised smile of satisfaction on his face.

The financial report shows that Hongshi Iron Mine's profits are stable, which is obviously not an accident. It is precisely because it is managed in such an orderly manner by Yake that it can create stable profits.

The big boss was satisfied, and Yak was naturally even happier. He got off the helicopter and diligently led Xia Yang into an open-top jeep, taking Xia Yang to visit the Hongshi Iron Ore Plant.

There is no way, just like the Sper Titanium Mine, the Red Stone Mine is much larger. Not to mention the entire mining area, any mountain of iron ore piled there is a real big mountain, enough for people to climb for half a day.

And such mountains of iron ore are piled up one after another throughout the mining area, with no end in sight.

“Mr.

What's more, the number of train carriages transporting iron ore will have to be doubled. In addition, the burden on the railway will increase. Not only will the railway be reinforced in all aspects, but more money will be spent on subsequent inspection and maintenance."

"The railway is currently being reinforced, and equipment such as giant worker trucks ordered are also coming in one after another. The construction of crushing and mineral processing workshops is also being stepped up, and orders for the various mechanical equipment required have also been placed with Laisuo Factory. It is expected that

The goal of doubling production capacity will be achieved within two months."
To be continued...
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