Chapter 288: The World's Largest Undeveloped Coal Mine
Li Tang wore a cold expression.
The approval process for developing the Talege Copper-Gold Mine had repeatedly encountered obstacles. All the resistance, without exception, originated from within Mongolia itself.
They aimed to pry some benefits away from Li Tang.
Facing Bayar, Li Tang found it difficult to put on a friendly face.
"I've heard you're investigating us for alleged bribery?" Li Tang sat boldly, crossing his legs, his face stern and uncompromising.
This was his stance.
"Indeed, there is such a case. The investigation is still ongoing. The final verdict will depend on the results of our further inquiries," Bayar replied, under considerable pressure himself.
His superiors had assigned him the task of negotiating with Li Tang to secure partial rights to the mine.
It was akin to snatching meat from a lion's jaws.
"I'm here now. How do you want me to cooperate with your investigation?" Li Tang showed no signs of anxiety.
"Southern Wilderness Resources has already provided recent financial transaction records, and your relevant financial personnel have cooperated with our inquiries," Bayar responded without indicating any intention of making things difficult using this case. His attitude was ambiguous, as if attempting to build a rapport but without being too forward.
"Please wait for a moment. We have others coming to discuss the approval process of the Talege Copper-Gold Mine."
"Very well," Li Tang replied calmly, sitting firmly in place.
Shortly afterward, Agula, Jirigala, and others hurried into the room. Upon seeing Li Tang, a similar expression flashed across their faces.
Recently, they'd all reviewed the project's feasibility study submitted by Southern Wilderness Resources. The aspects related to mine construction land, railway transport land, and potential environmental pollution had all undergone repeated scrutiny and discussion.
Technically speaking, the development proposal was undoubtedly sound. They knew this clearly in their hearts, yet it couldn't be openly stated.
"Hello, Mr. Li!" Agula had previously met Li Tang.
Li Tang glanced at the newcomers, who were essentially all from Mongolian mineral resource-related departments, with no representatives from the judiciary.
Instantly, he understood—they didn't genuinely care about the so-called bribery case.
What was Agula's position?
He was the chairman of Mongolia's Asset Management Committee, responsible for all state-owned enterprises!
His presence here made the objective clear:
They intended to interfere in Southern Wilderness Resources and participate directly in the Talege Copper-Gold Mine project.
"Have a seat!"
Li Tang did not rise to greet them, merely nodding to each person and indicating seats opposite, acting as if he were the host of this meeting.
His cold expression exuded an air of authority that inexplicably intimidated everyone present.
Agula didn't take offense and sat directly opposite Li Tang. "Your Chinese enterprises move incredibly swiftly! The Talege Copper-Gold Mine project has quickly entered the development approval stage."
"I came today to resolve the misunderstanding between us," Li Tang stated bluntly. "I'm prepared to grant you a portion of shares in Southern Wilderness Resources…"
"What?!" Agula gasped sharply, exchanging an incredulous glance with Bayar.
These two individuals, despite belonging to different parties and factions, shared the same stance when it came to foreign affairs.
From each other's eyes, they saw concealed excitement and joy.
This request was something they could never openly propose because their own laws didn't support such a move. Unexpectedly, Li Tang, who had been out of sight for some time, had voluntarily dropped such a massive bombshell!
Their minds buzzed, excitement surging uncontrollably.
This was truly an unexpected windfall!
A gift falling from the sky!
"All Mongolian people will appreciate your generosity!" Bayar stammered, overwhelmed with joy.
This had precisely been the task assigned by their superiors—a task they'd thought impossible to accomplish.
Li Tang's arrival had made this task incredibly easy to achieve. Bayar felt so grateful he considered hugging Li Tang and gifting him a few sheep!
"Of course, this is not without conditions," Li Tang continued calmly, legs still crossed, expression unwavering.
"Please state your conditions clearly. We will definitely try our utmost to accommodate your requests," Bayar quickly responded. He believed any conditions could be accepted if it meant securing a stake in the Talege Copper-Gold Mine.
Ever since the discovery of this world-class mine, Mongolia had experienced both excitement and resentment. After the development proposal was submitted for approval, the parliament erupted into arguments among its seventy-plus members.
Many members angrily accused Bayar and others of selling out the nation's resources. They loudly claimed that developing such a major mine on Mongolian soil, with all profits funneled to foreign companies, would leave Mongolia's people with negligible benefits and severe environmental damage.
Initially, some even proposed reclaiming the entire Talege Copper-Gold Mine, though that idea was impractical. Later discussions settled on reclaiming a portion of mining rights, becoming their minimal demand. Hence, the approval process stalled.
Li Tang and Qin Jianshe had anticipated these tactics.
"First, you must immediately dismiss the unfounded bribery investigation against Southern Wilderness Resources!" Li Tang raised one finger.
"From the current findings of our judicial authorities, the allegations against your company are essentially unfounded. Rest assured!" Agula immediately responded.
Li Tang's offer had fulfilled their primary goal, making further investigation pointless.
"Secondly, accelerate the project's approval process. Time is valuable!" Li Tang raised a second finger.
"As long as the development proposal technically meets all regulatory requirements and adheres to environmental protection laws, our departments will swiftly approve it!" Agula affirmed. He knew well that the decision was entirely up to them. Even minor issues could be overlooked if the benefits were sufficient.
"Third, we require the mining and operational rights to the Talege Coal Mine!" Li Tang raised his third finger.
"What?" Bayar, previously jubilant, looked up in shock.
The Talege Coal Mine was approximately 100 kilometers northwest of the copper-gold mine, very close geographically.
Unlike the copper-gold mine, Mongolia had completed extensive exploration of the coal mine, and mining rights were held domestically. This mine was globally recognized as the largest undeveloped coal deposit!
With reserves totaling 6.4 billion tons, including a remarkable 1.9 billion tons of high-quality coking coal, this coal deposit's value rivaled the Talege Copper-Gold Mine itself!
Its potential remained unexploited primarily due to logistical issues.
Mongolian minerals had only two viable export routes. One went north through thousands of kilometers of snowy terrain to Russia. However, Russia, itself a major mineral exporter, had limited demand. Only Erdenet Copper Mine, conveniently located near the Mongolian-Russian border, could successfully export minerals.
The second route was exporting to China. However, China was itself the world's largest producer and exporter of coal, with abundant domestic supplies and minimal import needs. Furthermore, transporting Mongolian coal through China incurred significant tariffs, making it economically nonviable.
Major industrial markets like the United States, Japan, South Korea, and Europe had high coal import demands but were geographically distant, making Mongolian coal prohibitively expensive once transport costs were included.
Despite these challenges, Mongolia had never abandoned the hope of attracting foreign investment to exploit this significant coal reserve. Recently, teams from Japan's Shin-Nippon Steel had already proposed several cooperation plans, though agreements had not yet been finalized.
Bayar hadn't anticipated Li Tang's request, leaving him entirely bewildered.
"Is there an issue?" Li Tang asked calmly upon noticing Bayar's stunned reaction.
"Why propose this?" Bayar struggled to understand, given that Chinese companies usually showed little interest in Mongolian coal due to their abundant domestic reserves.
Li Tang pointed at a map of Mongolian mineral resources hanging on the wall behind them. "The Talege Copper-Gold Mine and the coal mine are roughly 100 kilometers apart. Developing the copper-gold mine makes coal mine development logical and convenient."
Bayar, Agula, and the others turned simultaneously to look at the map behind them.
They had previously considered that developing the copper-gold mine could indirectly facilitate coal mine development by utilizing the infrastructure built by Southern Wilderness Resources, such as power plants, railways, and water facilities.
Previously, when discussing coal mine cooperation with Yoshida Yuki from Japan, Mongolia had enticingly suggested using infrastructure built by Chinese companies to lower mining costs significantly.
However, they had overlooked the fact that Southern Wilderness Resources might want both mines simultaneously.
If both major mines were developed together, considerable costs could be shared and reduced significantly. Building a railway connecting the coal mine to the copper-gold mine, and from there to China's border, would dramatically increase feasibility and reduce transportation costs.
Bayar frowned, visibly conflicted. "But we are currently negotiating coal mine development with Yoshida Yuki of Shin-Nippon Steel…"
"Without our approval, your coal will never reach Japan," Li Tang stated plainly but firmly.
He was right. Without China's transportation network, Mongolian coal would remain trapped inland.
Both Bayar and Agula believed Li Tang's warning, remembering how easily Li Tang had once halted mineral exports through border closures, crippling their economy.
"This matter is incredibly significant. We cannot decide without parliamentary approval," Agula cautioned, knowing it would be difficult to persuade parliament to hand over Mongolia's two most strategic mines exclusively to a Chinese enterprise.
"How much equity in Southern Wilderness Resources will you give us?" Bayar pressed, knowing that clear benefits were necessary to persuade parliament.
"The Talege Coal Mine has six mining areas," Li Tang calmly explained. "The percentage of equity we provide depends on how many mining areas you grant us. If you hand over all mining rights to us, we will grant Mongolia a 34% stake in Southern Wilderness Resources!"
"Thirty-four percent equity?" Agula was visibly taken aback by this number.
They had discussed this before: in many small countries, when foreign investors discovered local mineral resources, the government typically received a 15% to 20% free-carried stake. Directly offering 34% equity was indeed extremely generous.
"Of course," Li Tang clarified, "if the mining rights you give us for the coal mine are reduced or compromised in some way, then the percentage of Southern Wilderness Resources' equity we offer to you will also be reduced proportionally."
Li Tang was no philanthropist, nor would he yield easily to pressure from others.
Using 34% of Talege Copper-Gold Mine's equity to secure greater rights in the coal mine was hardly a loss!
The Talege Coal Mine itself was worth hundreds of billions of US dollars. Moreover, in the coming decade, the global coal market would inevitably boom, causing the value of these mining rights to skyrocket further.
Currently, the coal mine rights attracted little attention. But in a few years, as coal prices rose tenfold and the enormous profits became obvious, major global resource companies would flock to Mongolia, fiercely competing for this coal deposit. Eventually, however, nobody would secure the rights.
Due to Mongolia's hesitation, suspicion, and erratic behavior, this trillion-dollar resource would ultimately remain undeveloped. Even worse, the erratic policies would drive away foreign investors, plunging Mongolia's economy into deep recession, leading to widespread economic collapse and stagnation.
Of course, all this would be in the future.
Li Tang didn't know if his early intervention would alter history and successfully develop the coal mine. This investment involved significant risk.
But such was business—there was no guaranteed profit without risk.
"Do you mean to say," Agula asked carefully, "that you intend to inject the coal mining rights into Southern Wilderness Resources as well?"
"Yes," Li Tang nodded firmly. "Southern Wilderness Resources will possess both the Talege Copper-Gold Mine and the coal mine. Our side will hold 64%, and Mongolia will hold 34%."
"You're proposing to take away 64% of our coal mining rights all at once—that's far too much!" Bayar immediately protested, sensing they were losing out badly. "All the rights to this coal mine currently belong to us. If we suddenly transfer so much equity to you, our people will find it hard to accept."
"I'll be completely blunt with you," Li Tang straightened his back, his voice serious and authoritative. "Without our involvement, Mongolia will never see significant profits from the Talege Coal Mine. Do you really think that relying on Shin-Nippon Steel and Yoshida Yuki to build your mine is realistic? Don't dream about it—they won't dare invest heavily in your infrastructure!"
"Mr. Yoshida has been very sincere, and we've had productive discussions," Bayar argued weakly.
"You've been negotiating for a long time—have you seen any concrete progress?" Li Tang scoffed dismissively.
If Yoshida Yuki had genuinely finalized negotiations earlier, the later controversy and failed bidding process for the Talege Coal Mine would never have occurred. These Japanese teams merely sought cheap opportunities and profits without real commitment.
"Although there have been disagreements over cooperation methods, our talks are steadily moving forward," Bayar defended stubbornly.
"Did they suggest you build your own railway to connect with China's rail network?" Li Tang, well-informed by Qin Jianshe about details of Japan's discussions, pressed sharply.
"How did you know about this?" Bayar asked, surprised.
"Just a guess," Li Tang smiled faintly. "They weren't even willing to fund railway construction—how sincere can they really be?"
He fixed Bayar and Agula with a sharp gaze. "Can Mongolia afford to construct a two or three hundred kilometer railway?"
Agula and Bayar exchanged helpless looks, bitterly aware of the answer: their national treasury simply had no such funds.
"Technically, this mine's development might not necessarily require railway construction," Bayar still tried to argue.
"You plan to transport a few dozen tons of coal at a time by truck, selling it piecemeal at our border?" Li Tang immediately understood their thinking. "Small-scale operations won't earn you significant money, and road transportation is far costlier than rail!"
"We're still exploring options; anything is possible in the future," Bayar said vaguely.
"Our company is willing to finance the railway from Talege Coal Mine directly to China's border!" Li Tang's voice was firm, filled with unmistakable confidence. "That's our sincerity!"
Agula and Bayar fell silent for a long moment.
They had to admit that this Chinese businessman possessed extraordinary boldness—once committed, he moved decisively and ambitiously, unlike Yoshida Yuki's cautious, penny-pinching approach.
"We need to report this to our higher authorities," Agula finally said, acknowledging that such a significant decision exceeded his authority.
"Of course," Li Tang stood up confidently. "I look forward to your favorable reply."
He turned and left.
Qin Jianshe, Guo Fengchun, and the others—who had interacted frequently with Bayar and Agula—exchanged polite nods and quickly followed Li Tang out of the room.
Returning to Southern Wilderness Resources' local office, several people were anxiously waiting.
They knew the company's big boss had come personally to solve the recent impasse.
A man quickly approached. "Are you President Li?"
Li Tang didn't recognize him. "And you are?"
"This is Liu Yanyun from Huaye Group," Qin Jianshe introduced hastily. "Mr. Liu is leading the design and construction team responsible for the Talege Copper-Gold Mine."
"Mr. Liu, nice to meet you!" Li Tang greeted him warmly.
He was well aware of the collaboration between Zhongcheng Mining and Huaye Group. Huaye, or China Metallurgical Engineering Construction Group, was the leading firm in domestic mine construction.
Liu Yanyun was eager to know the negotiation results. After all, this construction project, worth at least 15 billion yuan, was the largest mining project Huaye had ever undertaken. Their mood mirrored Zhongcheng Mining's—they urgently wanted Mongolian approval to begin construction.
But Mongolia had stonewalled them. Huaye Group had also approached Mongolian officials directly, but with little success.
"President Li has offered Mongolia a 34% free-carried stake in Southern Wilderness Resources," Qin Jianshe informed everyone.
"That much?" Liu Yanyun exclaimed softly in surprise.
Though the distribution of equity in Southern Wilderness Resources didn't directly affect their construction unit, such a large concession still surprised him.
"Mongolia's demands are outrageous!" another person nearby complained bitterly.
"This is Zeng Dekai from Huatie Group, in charge of railway construction," Qin quickly introduced, explaining further, "But we aren't actually handing over shares freely. Mongolia must exchange coal mining rights for such a significant stake."
"The coal mine to the northwest?" Liu Yanyun had visited the area himself. Huaye Group's team had already surveyed all key project sites, including the nearby coal deposit, and everyone knew the mine's significance.
"Yes," Qin nodded.
"I thought the Japanese were already negotiating with Mongolia?"
"They've made no real progress. I suspect the Japanese are merely urging Mongolia to finance infrastructure themselves, hoping to buy cheap coking coal later," Qin Jianshe explained. "I doubt their deal will go through—Mongolia simply lacks the money."
"The coal market isn't great right now; is our approach profitable or risky?" Liu Yanyun asked doubtfully, unable to clearly understand Li Tang's strategy.
Indeed, this exchange was like a bold gamble. Only someone as daring as Li Tang would make such a decision.
Qin Jianshe, often bewildered by Li Tang's thinking, sighed inwardly. Sometimes, he felt Li Tang was the seasoned executive while he himself was the inexperienced young man.
"President Li's approach is truly bold," Qin simply concluded.
Li Tang remained relaxed, smiling calmly. "We've thrown out the bait. Let's see if Mongolia bites."
…
Upon hearing the news, Yoshida Yuki immediately rushed with his team to Mongolia's Mineral and Petroleum Management Bureau.
Jirigala, tasked by Bayar, spoke frankly about Li Tang's recent conversation with them.
"Someone else wants to get involved in the Talege Coal Mine," Jirigala declared.
Yoshida Yuki initially suspected a bluff, designed to pressure him into concessions.
"Who?" he demanded urgently.
"Li Tang, from China," Jirigala didn't hide the fact.
"They don't lack coal resources and have never shown interest before," Yoshida Yuki remained skeptical.
"But he explicitly requested the rights to all six coal mining zones!" Jirigala explained. "And his offer is extremely tempting."
"What offer?"
"He's willing to exchange 34% equity in Southern Wilderness Resources!" Jirigala bluntly stated.
"Impossible!" Yoshida Yuki rejected instinctively. Such an offer was completely beyond their capability.
"This is absolutely true," Jirigala insisted solemnly. "Minister Bayar and Chairman Agula haven't officially responded yet, but I observed they are very interested."
Yoshida Yuki fell into stunned silence. What else could he say?
"You know, Southern Wilderness Resources is submitting a massive two-billion-dollar investment proposal," Jirigala continued carefully. "They've promised to finance railway construction directly linking the coal mine to the copper-gold mine, then extending to China's railway network."
Yoshida knew immediately he couldn't match such commitments.
While Shin-Nippon Steel was still a global steel giant capable of large investments, they hesitated to risk significant money in Mongolia, far riskier than for Chinese enterprises.
"Your only chance is investing in railway infrastructure," Jirigala earnestly advised. "If you match China's offer, our leaders will prioritize cooperation with you—but you must also secure coordination with China's railway authorities."
Financing railways? Coordinating with China?
After careful evaluation, Shin-Nippon Steel had previously rejected these options as economically unsustainable. Yet, facing Li Tang's sudden bold move, Yoshida felt angered and threatened.
"This is outrageous! It's commercial warfare!" he protested strongly.
But beyond verbal protests, he knew he could do little else.
Still, Yoshida Yuki declared fiercely, "This is a declaration of war against Shin-Nippon Steel—we will respond strongly!"
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