Chapter 291: Are the Reserves Really This High?
After the dilution of Li Tang's shares, Wukuang Group's shareholding in Zhongcheng Mining had reached nearly 20%, making it the largest shareholder. They placed enormous expectations on the success or failure of the Talege Copper-Gold Mine development project.
Now, news arrived that Zhongcheng Mining's subsidiary, Southern Wilderness Resources Company, was relinquishing 34% of its shares, leaving everyone deeply uneasy. They immediately surrounded Li Tang and Qin Jianshe, their gazes fierce and unyielding.
These two men had made a monumental and far-reaching decision with Mongolia!
Judging by their aggressive postures, if the two couldn't clearly explain themselves today, the shareholders looked ready to tear them apart!
"I've already informed representatives of all major shareholders. They'll be arriving at Zhongcheng Mining headquarters tomorrow for an official shareholders' meeting!"
Niu Fu's fierce eyes were sharp and threatening, his voice resonating with authority. "I'd really like to see how you're going to explain yourselves to the shareholders tomorrow!"
Qin Jianshe naturally feared Niu Fu, shrinking his neck slightly and remaining silent. Such a major decision certainly hadn't come from him—he simply didn't have that level of courage. Facing questions from shareholders, as well as bearing the possible massive losses that might result, wasn't something an ordinary person could handle.
Previously, Qin Jianshe's method had been slow and methodical, steadily working on improving relations with Mongolia. But the moment Li Tang arrived, he immediately created this earth-shattering event.
Only this young man possessed such daring courage to undertake tremendous risk.
"I believe everyone will ultimately support our decision." Li Tang's demeanor remained perfectly calm under the penetrating gazes of Niu Fu, Ou Pingguo, and Zhao Hepu.
After experiencing numerous significant events over recent years, his composure had grown steadily stronger.
"Before departing for Mongolia, we had a discussion here. At the time, we all agreed that the bribery investigation initiated by Mongolia was nothing more than an attempt to coerce us into surrendering part of the Talege copper-gold mine rights," Niu Fu recalled clearly. "Giving up 34% was your stated threshold. But personally, I always thought this number was too high. In my view, giving them 15% would have been far more reasonable."
"To get the approvals and support from Mongolia, the price we've paid is too high!" Ou Pingguo's voice was grim.
"Your decision came too suddenly," Zhao Hepu spoke up, intending to defend Li Tang, yet still unable to hide his criticism. "You should've first convened the shareholders and communicated clearly beforehand. This sudden agreement you've reached with Mongolia is too abrupt."
Everyone felt Li Tang had acted somewhat impulsively.
Although they hadn't personally participated in the Mongolian negotiations, they could generally guess the situation. It appeared Li Tang might have fallen into Mongolia's negotiating trap.
"Did they threaten you during the negotiations?" Niu Fu sternly asked. "If you were coerced into agreeing, we won't recognize this agreement!"
Everyone stared at Li Tang, awaiting his explanation.
But Li Tang remained quiet, gazing downward at the tea table. Nobody had poured tea for him; everyone was entirely absorbed in the business discussion. He casually lifted the teapot, flipped an overturned cup, poured himself tea, blew gently on it, and took a large sip to moisten his throat.
Rushing back from Mongolia without proper rest, he felt parched.
While everyone waited impatiently, Li Tang deliberately moved slowly.
"Stop stalling!" Niu Fu snapped.
Only then did Li Tang look up, smiling calmly. "We indeed gave up 34% of Southern Wilderness Resources Company's shares, but it wasn't without substantial returns."
"What kind of returns?"
"All land needed for construction will be provided by Mongolia free of charge. Moreover, the project's approval through Mongolia's top leaders and parliament is guaranteed smooth sailing without obstacles!"
"We've already heard that from Jianshe."
"In addition, during the first two years of mine construction, we will receive substantial tax breaks and preferential treatment, virtually tax-free!"
"That's all?" Niu Fu was obviously dissatisfied, turning to Qin Jianshe. "Is this the huge surprise you mentioned?"
Straightening his back slightly, Qin Jianshe hesitated briefly before pointing to Li Tang. "Let him explain. It was his decision."
"What surprise?" Zhao Hepu was also curious now.
"In reality, the crucial factor in sealing this agreement wasn't just these details, but Mongolia granting us operating rights for the Talege Coal Mine, valid for forty years!" Li Tang proudly announced, feeling this achievement particularly commendable.
However, after hearing this, everyone became slightly confused.
"Talege Coal Mine?"
"What's the relationship with the Talege Copper-Gold Mine? Sister mines?"
"We don't lack coal mines!"
Many among them had never even heard of this coal mine.
Niu Fu was indeed familiar with it. Previously, he had visited Mongolia to inspect the Talege Copper-Gold Mine and incidentally toured the coal mine site. Admittedly, it was massive. However, its mining conditions were extremely poor—no water, no electricity, and no transportation infrastructure whatsoever.
"Talege Coal Mine is Mongolia's largest coalfield, reportedly the largest undeveloped coal mine globally," Niu Fu explained to the others. "Its coal quality is extremely high. Some of our domestic enterprises sent expert teams for assessment, unanimously agreeing it has significant mining potential."
"But I haven't heard of any enterprise planning to invest in coal mines in Mongolia," Ou Pingguo said skeptically.
"Mining coal there would require constructing railways, power plants, and pipelines, needing enormous initial investments. Economically, the project doesn't appear very promising."
Niu Fu, who understood the situation clearly, added, "Everyone knows that, for the past decade or more, coal mining projects have generally lost money."
"The market conditions have changed since this year," Li Tang interjected.
Niu Fu turned sharply toward Li Tang. "Have you made some private agreement with Li Xingchao?"
"What agreement?" Li Tang felt misunderstood, quickly clarifying, "Regarding business, I've had absolutely no interactions with Shenxia Group."
Niu Fu remained doubtful but didn't press further, instead elaborating on the current coal market situation. "Thermal coal prices have reached 170 yuan per ton this year. Over recent years, coal prices have increased steadily at about 10% per year."
Discussing coal, Niu Fu glanced at Li Tang intentionally. "I spoke with Li Xingchao not long ago. He mentioned that current coal prices can generate considerable profits. Shenxia Group controls good coal resources and advanced mining techniques, maintaining their production costs around 120 yuan per ton."
"Making fifty yuan profit per ton is indeed impressive!" Zhao Hepu sighed.
Niu Fu nodded. "Li Xingchao conservatively estimated Shenxia Group's profit could surpass five billion yuan this year!"
An annual profit of five billion yuan was unimaginable two or three years ago.
When Li Tang first joined Wukuang Group, their annual profits had only been around two to three hundred million yuan. Now, due to booming copper trade and rising copper metal prices, Wukuang Group's profits this year would likely also significantly increase. In short, profits for state-owned enterprises with quality mineral resources had essentially doubled annually over recent years.
Zhao Hepu, deeply involved on the frontline, had a clear grasp of the industry's situation. Mine and Metallurgy Company's financial conditions had also steadily improved, no longer constantly strapped for cash.
"Everyone feels the same way. Indeed, economic conditions are improving year after year."
"Li Xingchao also spoke optimistically about coal's future, saying the industry is indeed reviving. Especially in eastern regions with rapidly developing industries and surging electricity demands, several places face severe power shortages. Government policies, such as West-East power transmission and the construction of new power plants, have increased significantly."
Niu Fu explained further, "According to Li Xingchao, coal industry growth will likely remain stable over the next three to five years. Shenxia Group has received substantial production targets, steadily increasing annually."
"This is an irreversible trend." Li Tang was profoundly aware that coal mining's prosperous period was approaching.
Niu Fu couldn't definitively judge whether Li Tang's decision to acquire the Talege Coal Mine operating rights was wise or not. His earlier statements only objectively described the market environment.
"Trading partial rights of Talege Copper-Gold Mine for coal mine operating rights—it's hard to say if it's beneficial or not."
Despite criticizing Li Tang, ultimately Niu Fu still trusted him. "Regardless of whether it's economically beneficial or a wise investment, such a transaction inevitably raises suspicions that your actions deliberately favor Shenxia Group!"
Among all Zhongcheng Mining shareholders, Shenxia Group was the only one primarily focused on coal mining. Trading copper-gold mine rights for coal mine rights obviously favored Shenxia Group, granting them potentially significant gains.
No company had more coal-mining expertise and management experience than Shenxia Group.
Upon hearing this, Li Tang realized it could indeed easily lead other shareholders to misunderstand his intentions. After all, he was dating Li Xinqi, a fact likely known by those familiar with him. Li Xinqi was Li Xingchao's daughter!
Such a relationship naturally invited suspicion.
"I genuinely didn't engage in any under-the-table dealings with Shenxia Group or Li Xingchao!"
Li Tang felt that regarding this matter, even jumping into the Yellow River wouldn't wash away the suspicions, yet he still earnestly defended himself, "The coal mining rights injected into Southern Wilderness Resources Company belong to all shareholders collectively!"
"We trust you; there's no need to get anxious!" Niu Fu comforted him, "I'm sure the other Zhongcheng Mining shareholders will trust you too."
"Anyway, I don't have any hidden intentions," Li Tang declared confidently.
"We're just giving you a heads-up. You should carefully consider how you'll explain this to the other shareholders."
Niu Fu finished speaking, proactively lifted the teapot, and poured a hot cup of tea for Li Tang. When he raised his head again, his furrowed brows relaxed considerably.
"Setting everything else aside, the Talege coal mine itself indeed has enormous value!"
"With reserves of 6.4 billion tons, including around 1.7 to 1.8 billion tons of premium coking coal!"
Qin Jianshe quickly seized the opportunity, recognizing Niu Fu's softer tone, and jumped in, "Given the current international coal market, the economic value of the Talege coal mine rights easily exceeds hundreds of billions of USD!"
"Are the reserves really that high?" Zhao Hepu, unfamiliar with the coal mining rights, asked in surprise.
Initially seeing Niu Fu's stern expression, Zhao Hepu assumed trading copper-gold mining rights for coal mining rights was a losing deal. But hearing Qin Jianshe's explanation, he was shocked beyond belief.
Mining rights with an economic value exceeding hundreds of billions of USD represented an astronomical figure!
The economic value of the Talege copper-gold mine, based on current copper reserves, was also in the hundreds of billions of USD range!
The value of both mining rights was practically equivalent!
Hearing this, the others couldn't help but gasp in astonishment.
"Is such a massive reserve genuinely accurate?" someone asked cautiously.
"The reserves definitely aren't an issue," Qin Jianshe confidently confirmed, thoroughly familiar with the geological conditions of the coal deposit.
"On paper, obtaining coal mining rights at this scale truly means we've gained tremendously!" Niu Fu's expression relaxed into a satisfied smile.
…
Li Tang never doubted the value of the Talege coal mine. Even if other shareholders questioned or opposed the decision, he'd firmly push forward. However, gaining Wukuang Group's support meant half the battle was already won.
With the gifts he'd prepared, Li Tang directly traveled from Wukuang Group headquarters to Li Xinqi's home.
Earlier, Niu Fu and others had invited him for dinner, but he politely declined. He found drinking parties uninteresting. With no family currently in Yanjing, he decided to visit Li Xinqi instead.
He'd been here many times before, familiar with the surroundings.
Li Tang had just set down the gifts when Li Xingchao appeared. Not having seen Li Tang in a long time and clearly having something to discuss, he immediately began a conversation: "I previously spoke to Jianshe about the lack of progress on the project in Mongolia. How did your negotiations go?"
"There aren't any significant issues now," Li Tang explained briefly, feeling the complexity of the matter was hard to clarify quickly. "Tomorrow's meeting will cover everything."
"Alright," Li Xingchao didn't pursue it further but instead put an arm around Li Tang's shoulders, changing the subject, "Our group's mines have been operating at full capacity lately. To gain better control over coal seams, new exploration efforts are needed to address safety hazards. If you're available, come help me handle a few exploration projects."
"Huh?" Li Tang hesitated, "Coal exploration is quite different from other minerals. Wouldn't it be better to hire a specialized team?"
It wasn't that he couldn't do the job; he was just extremely busy right now and had no extra time.
"Hiring outsiders isn't as good as relying on our own," Li Xingchao chuckled.
Who wasn't aware of Li Tang's exceptional exploration skills?
Li Xinqi had just returned from work, exchanging her formal wear for casual clothing. Coming downstairs, she saw her father discussing work with Li Tang, "It's after work hours, still talking about business?"
Noticing his daughter's casual attire, Li Xingchao asked curiously, "You two aren't eating dinner at home tonight?"
"We're eating out," Li Xinqi answered, quickly grabbing Li Tang's hand, eager to leave.
"How about taking me and your mom along?" Li Xingchao sounded slightly troubled lately.
Coal mining came with serious safety concerns. Although the company's financial performance continued to improve, he couldn't afford to let down his guard. Safety remained a constant concern, like a sword hanging overhead.
He wanted Li Tang's assistance in this matter, knowing Li Tang's superior geological expertise could manage these issues proficiently.
"We're dating. Would it be appropriate for you two to join?" Li Xinqi openly rejected her father's suggestion without hesitation.
"Your mom and I are dating too, why can't we join?"
"Forget it."
Li Xinqi swiftly pulled Li Tang away by the arm.
"See you tomorrow, Manager Li!" Li Tang waved goodbye.
Watching their retreating figures, Li Xingchao stood with his hands on his hips, annoyed, "Already siding with an outsider?"
…
Early the next morning, Li Xingchao arrived directly at Yunding Tower. Upon entering, he immediately spotted Li Xinqi sitting in the lounge.
His daughter had gone out to dinner last night and hadn't returned home!
As the liaison between Shenxia Group and Zhongcheng Mining, Li Xinqi indeed needed to accompany him for today's meeting to handle note-taking tasks.
But wasn't she here a bit too early?
Some things were better understood without openly addressing them. Sighing quietly to himself, Li Xingchao headed directly into the main conference room.
Since Li Tang purchased Yunding Tower, he dedicated an entire floor for Zhongcheng Mining's office. The spacious, brightly lit conference room appeared impressive.
Xiaoxi hurriedly entered the building holding an egg pancake in one hand and her purse in the other, glancing around anxiously. Spotting Li Xinqi seated in the lounge, she rushed over breathlessly.
"Qijie, why did you leave so early today?" She'd received advance notice about today's meeting and usually relied on Li Xinqi for a ride. Today was unusual.
Li Xinqi wouldn't tell Xiaoxi she'd stayed overnight at the nearby community behind Yunding Tower and walked less than ten minutes this morning.
"What's that delicious smell?" Li Xinqi asked, detecting a strong scallion aroma.
"Egg pancake. I bought it from a street vendor downstairs, specifically bringing you an extra one!" Xiaoxi cheerfully offered the pancake without hesitation.
"I've already eaten," Li Xinqi replied. Though it smelled enticing, she'd already had breakfast and wasn't hungry.
"You usually ask me to bring breakfast. Why did you eat early today?" Xiaoxi stared awkwardly at the extra pancake.
"I woke up earlier today and ate at the cafeteria downstairs." Li Xinqi pointed downwards, "The third-floor cafeteria offers breakfast."
"Oh." Xiaoxi didn't overthink it, sitting down to eat.
Midway through eating, she suddenly noticed Li Xinqi's casual clothes, "Qijie, why aren't you wearing formal attire today?"
Li Xinqi glanced down at her outfit, realizing she'd forgotten her formal wear last night after the hotpot dinner, as she'd gone directly home with Li Tang.
"I forgot," she laughed casually.
Though Xiaoxi sometimes appeared clueless, she quickly pieced things together, especially seeing Li Tang passing outside, and exclaimed knowingly, "Ohh—"
"What 'ohh'?" Li Xinqi looked at her, slightly embarrassed.
"You definitely stayed overnight with Li Tang!" Xiaoxi's mischievous grin widened, "Your relationship is progressing fast!"
"Quiet down," Li Xinqi quickly silenced Xiaoxi. With so many people around, it wasn't appropriate to discuss private matters publicly.
"I get it." Xiaoxi continued smiling slyly.
Outside the lounge, Chen Jinghe, Lai Xiangrong, Cui Mingyuan, and others, having arrived in Yanjing yesterday, stayed at a hotel next to Yunding Tower overnight.
Arriving early for today's meeting, they admired the renovated office space with curiosity.
"I must admit, since Li Tang bought this building and renovated it, the atmosphere has significantly improved!"
"Definitely better than before when over a hundred people were crammed into half a floor with stacks of files everywhere—completely unprofessional."
"I noticed several prominent signs downstairs: 'Li Tang Prosperity Holdings' and 'Zhongcheng Mining.' They clearly signal a powerful enterprise!"
"With so many valuable projects domestically, international acquisitions, and involvement in the Pebble project in America, our scale truly deserves such a professional environment. Looks impressive now!"
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