After a joke, Huang Gang said seriously: "Zhenhua, tell me, what is the current situation of Mutong Iron Mine."

Lin Zhenhua also put away his joking expression and replied: "After repeated negotiations, the Bolivian authorities have agreed in principle that we will acquire 50% of the mining rights of Mutong Iron Ore, which is equivalent to a reserve of 22 billion tons. Our preliminary infrastructure work has been started, and a dedicated railway from Mutong Iron Ore to the Pacific has also started construction. Our plan is to achieve an annual production capacity of 20 million tons of iron ore this year."

"It's only 20 million tons..." Huang Gang was a little disappointed. Obviously, this number was quite different from the number he expected.

Lin Zhenhua said: "This is already the limit. You should know that Mutong Iron Mine has basically not been developed before. Although it is a large mine of more than 40 billion tons, the annual output is only a few million tons. It is very difficult for us to increase the production capacity to 20 million tons within one year. What's more, the construction of the railway will take some time. Before that, even if our ore can be dug out, it will be difficult to transport it out."

"That's true." Huang Gang accepted Lin Zhenhua's explanation. He also knew that the construction of the mine would take a certain amount of time. It would be difficult for Hanhua to do this. It would be a huge investment to start a mine and build a railway. Acquisition of mining rights also requires a price to pay. Hanhua raised 50 billion yuan in the past two years to invest in Mutong Iron Mine. If there were no such big investment, it would be difficult to reach a production capacity of 20 million tons in 10 years.

Lin Zhenhua continued: "Our goal is to increase production capacity to 50 million tons next year, and in three years, reach 200 million tons. By that time, BHP Billiton and Vale will only act according to our faces, which makes me angry. I will fight price wars with them and can break them into bankruptcy."

"Haha. Mr. Lin is indeed domineering. He can squeeze others to bankrupt when he is engaged in industry, and he has such a great courage to engage in mining." Huang Gang said, "I regret it now. If I had known this, the National Development and Reform Commission should give you more support and invest earlier."

"It's not too late now?" Lin Zhenhua said. "At most one year, we can reach a production capacity of 50 million tons. Although it is not enough to meet domestic demand, it is more than enough as a bargaining weight."

Huang Gang nodded and said, "Indeed, 50 million tons of production capacity can also become a bargaining weight in negotiations. But this year's hurdle is still not overcome. You can reach a production capacity of 20 million tons this year, and the actual output is estimated to be a little more than 10 million. Compared with our annual import volume of 200 million tons, it is still a drop in the bucket."

"Who said we can only provide 10 million tons of production?" Lin Zhenhua smiled, "Don't underestimate us?"

"What does it mean?" Huang Gang said in surprise, "Aren't you just said that this year can only reach a production capacity of 20 million tons? This level should not be reached until the end of the year. So I gave a discount. I guess you can only get 10 million tons this year."

Lin Zhenhua said: "This is just the situation of Mutong Iron Mine. Who told you that we only have one Mutong Iron Mine?"

Huang Gang's eyes lit up: "Yes. Why did I forget that Chairman Lin has mines in other places? How about it? How many mines do you have, and what is the scale?"

"Actually, it's not too many. There are only about twenty places around the world." Lin Zhenhua said proudly, "Our company's operation department has noticed the sharp rise in international iron ore prices and has notified mines in various places that have started production at full capacity."

"You actually controlled so many mines. When did this happen?" Huang Gang asked. He had always heard that Han Hua had mines overseas, but he didn't know much about the specific situation. Now, when Lin Zhenhua said that, he was shocked. How amazing it is for a company to have more than 20 mines overseas.

Lin Zhenhua said: "This has been happening for many years. The earliest ones were almost in the mid-1980s. At that time, we were engaged in engineering in Africa. Sometimes when the customers were short of funds, we asked the other party to use mining rights as compensation. After a while, we got more than a dozen iron ore and copper mines in Africa. In addition to Africa, we also got some iron ore in Mongolia, the Philippines, Peru and other countries, all of which are rich and high-grade mines."

This is the vision that only a time traveler has. Lin Zhenhua traveled through the past from later generations and was very clear about the history of the surge in global resource prices after entering the 21st century. It is precisely because of this foresight that he seized every opportunity to acquire mines around the world since the 1980s. Now, the benefits of this acquisition have finally emerged.

"Oh, I, an official of the Development and Reform Commission, have a real vision that is really not as good as you Zhenhua." Huang Gang said sincerely, "You were already planning the mining industry more than ten years ago. At that time, the entire world's mining industry was in a recession, and everyone was eager to sell the mines they were in."

"So we picked up a cheaper one." Lin Zhenhua said, "The mines we get are basically bargain prices. In recent years, we have paid a lot of money to maintain the low-level operation of these mines."

"It's worth it, it's worth it." Huang Gang said, "It's time to do it now. The cabbage has turned into jade. Your early investment is probably more than 10 times the profit now, right? You, Mr. Lin, are about to become a mining tycoon."

Lin Zhenhua laughed and said, "Mining tycoons are still early. If they don't make any profit, it doesn't matter. We will be very satisfied if we can share the country's worries and solve the country's resource bottleneck."

"That's right, I know Zhenhua, you have always put national interests first." Huang Gang hurriedly put a high hat on Lin Zhenhua, but what he said was indeed true. Hanhua has always spared no effort in sharing the country's worries. With this alone, it is not in vain that the National Development and Reform Commission went to the EU to stand up for Hanhua.

"We have made a preliminary calculation. Before the end of this year, our major mines around the world, the output of that year, plus the past accumulation, can provide at least 50 million tons of iron ore and 2 million tons of copper ore. All of these ores will be sold to the domestic market to solve domestic urgent needs." Lin Zhenhua said.

Huang Gang said excitedly: "This is really great, it's just a timely help. If you can provide 50 million tons of iron ore, we will import tens of millions of tons from other channels. This will reduce the dependence on BHP and Vale a lot. Without the means to threaten us, they may have to make concessions in terms of price."

"Director Huang, we must say the ugly things ahead. The iron ore and copper ore we provide. You cannot discriminate against prices. The fees we should give us cannot be reduced." Lin Zhenhua said. This kind of thing must be said first. Don't let Huanggang take advantage of the situation and drift away his profits.

"That's certain." Huang Gang agreed. As an official of the National Development and Reform Commission, he had never thought of taking advantage of Hanhua. "We need to use the ore you provide as a bargaining weight to suppress the prices of BHP Billiton and Vale. But in terms of the final price, we will definitely consider your interests. You have paid a lot of money over the years. If you don't give you some reasonable returns, we will be sorry."

"This is almost the same." Lin Zhenhua laughed.

Hanhua Heavy Industry Group was able to provide 50 million tons of iron ore this year and quickly reported to the Chinese delegation that was far away in Rio de Janeiro, Brazil, to participate in the iron ore negotiations. Officials of the Chinese delegation who were in trouble received this news, like a long drought and spring rain. The spirit was greatly boosted, and when they sat on the negotiating table again, their confidence was obviously different.

"Mr. Dobbins, Mr. Warak, I would like to reiterate our position again. We understand the difficulties faced by BHP and Vale in the cost increase, and are willing to accept the appropriate premium based on the price in 2003. But the price increase we can accept cannot exceed 10%, which is our bottom line." Zhang Yijin, chief negotiator of the China Iron and Steel Association, said to the negotiators of BHP and Vale without being humble and arrogant.

"Mr. Zhang, isn't the bottom line you mentioned two days 15%? Why did it suddenly become 10%?" Dobbins from BHP Billiton asked strangely. After so long negotiations, he always felt that China should be unable to hold on and should improve its bottom line. Who knew that the other party would do the opposite and lower the bottom line instead. This is too abnormal.

Zhang Yijin smiled faintly and said, "We recalculated our costs and believed that the 15% price increase was unacceptable, so we adjusted the bottom line and changed it to 10%.

"This is completely impossible." Vale negotiator Wallak said with a disdainful smile. "Our bottom line is also very clear, 58%, and there is no room for negotiation."

"This price has been accepted by Japan's New Nippon Iron and South Korea's Posco Iron Iron. There is no reason for Chinese steel companies to enjoy higher discounts," Dobbins added.

Zhang Yijin said: "Two, I think it is unnecessary for us to play this kind of text game again. Xin Nippon Steel and Posco Iron and Steel have equity in both companies. In the words of Chinese people, it is not worth mentioning when the iron ore prices rise or increase. The money is in their pockets. Therefore, if you use these two companies as an example, it is of no reference value at all."

Wallak sneered: "If this is the case, I think we don't need to continue to discuss. The conditions of our two sides have been communicated many times before, and any price increase below 58% is unacceptable. I think if you insist on not accepting our conditions, we can only stop providing iron ore to China very sorry."

"Is that so? That's indeed a very regrettable thing." Zhang Yijin smiled faintly, "If so, we have to turn to other mining companies to get the iron ore we need."

"Other mining companies?" Dobbins shrugged, "Are you sure you can get such a large amount of iron ore from other companies? Currently, there are only two mining companies in the world that can provide more than 200 million tons of iron ore. It is very coincidental that both companies are here."

This is the power of monopoly. Both companies are international mining giants. Once they join forces to raise prices, downstream manufacturers have no room for bargaining. Both Wallak and Dobbins believe that with China's current demand for iron ore, it is completely impossible to leave their two companies.

"Maybe it was like this in the past." Zhang Yijin said, "However, in the near future, there should be a third company that reaches this scale, that is, China's Hanhua Mining Company. By the way, Mr. Lin Zhenhua, chairman of Hanhua Mining Company, also asked me to bring a verbal invitation to both of you. He wanted to invite representatives of your two companies to go to Santa Cruz, Bolivia next month to attend the groundbreaking ceremony of the Mutong Iron Mine New Mining Area."

Muton! Warak and Dobbins both stared wide. As senior managers in the mining industry, they knew the reserves of Muton iron ore too well. If the iron ore could be fully put into production, its output would be able to defeat all existing iron ore in BHP and Vale.

Fortunately, this giant iron ore has been in a low-level development state since its discovery, with an annual output of only a few million tons and has no influence on the iron ore market. The reasons for this situation are, first, the Bolivian government lacks sufficient funds to develop, and second, it is limited by transportation conditions.

However, now the Chinese are eyeing this iron ore. If this is true, then the situation will change significantly. Who doesn’t know that the Chinese have money now, and throwing billions of dollars to develop an iron ore is just a drop in the bucket. As for transportation conditions, it is just a matter of investment. If the funds are in place, is it still a complicated matter to build a railway?

Oh my God, when did this happen! Those damn marketing managers in the company didn't even understand such important information.

"Sorry, Mr. Zhang, are you saying that China is interested in investing in Mutong Iron Mine?" Dobbins asked anxiously.

Zhang Yijin looked lazy and replied: "It's not that he was interested in investing, but that he was already investing. If I was not wrong, now, Mutong Iron Mine is already producing iron ore. China Hanhua Mining Company had obtained 50% of the mining rights of Mutong Iron Mine for US$1 billion last year, for 25 years."

"50% mining rights? Is this true?" Warak asked foolishly.

Zhang Yijin smiled and said, "Is that true? I think Mr. Warak can go and see it in person. Hanhua Mining Company has sent you an invitation. As for me, after the negotiations here, I will also switch to Bolivia to see the situation on the scene. How about it, sirs, do you think our negotiations can be over?"
Chapter completed!