Chapter 314: Then Crush Him Completely
The entire conference hall erupted into chaos.
A 2-billion-ton high-grade iron ore deposit originally belonging to Rio Tinto was suddenly abandoned, only to end up in the hands of a Chinese owner?
Was this another scenario similar to BHP Billiton selling the Talego copper-gold exploration rights for practically nothing, or was there more to it?
All eyes turned toward Alba, who sat motionless in the front row, frozen like a statue.
"Was the Simandou iron ore exploration right really Rio Tinto's?"
"I remember reading a small piece about it. Apparently, the exploration rights initially belonged to Rio Tinto but expired, and the Guinean government transferred them to a Chinese company."
"Yeah, there was a brief mention, but not much detail."
"The media reached out to Rio Tinto for confirmation, but they refused to comment."
"If Rio Tinto truly surrendered this iron ore deposit to a Chinese enterprise for free, that's an even bigger blunder than BHP Billiton selling Talego at such a low price!"
"I didn't realize Palmer had such guts—to confront Alba about this issue face-to-face."
"Let's see what they say."
Whispers and speculations filled the air. Everyone awaited a clear explanation, eager for the inside story.
Freit shrugged nonchalantly and laughed openly. "That's not a question for me. You should ask Alba directly. He knows the truth best."
With that, Freit set down the microphone and calmly walked off the stage to his seat.
Seeing the discussion spiral out of control, the host hurriedly stepped forward to maintain order. "The Mining Conference is a platform dedicated to sharing technology and information to promote industry-wide progress. According to our agenda, our next speaker is Mr. Alba from Rio Tinto, who will discuss diversified business strategies..."
Halfway through, the host paused awkwardly. What a coincidence! The next presenter was none other than Alba from Rio Tinto himself.
Holding his speech notes, Alba climbed onto the podium, his face visibly darkened.
When it came to diversified business development, no company was better at it than BHP Billiton. Already the largest global mining company, BHP excelled precisely because of its diversified business strategies. This approach allowed the company to navigate market fluctuations smoothly.
Rio Tinto, however, depended heavily on iron ore, making it vulnerable to market volatility. Diversification for Rio Tinto was thus crucial—not only to catch up with BHP but to reduce vulnerability to market risks.
After years of effort, Rio Tinto had achieved notable progress in sectors like coal and alumina. Alba was certainly qualified to speak on diversification.
Yet, today, the audience's interest was entirely absorbed by the controversy surrounding Simandou.
"Mr. Alba, if you don't mind, could you shed some light on the situation regarding the Simandou mining rights?"
"There are so many rumors floating around. Without your clarification, people won't stop talking."
"Did that mysterious Chinese businessman really take over Rio Tinto's 2-billion-ton iron ore deposit?"
"A hematite ore with 66% purity—probably the best iron ore grade in the world, isn't it?"
As Alba reached the podium, questions flooded toward him from the audience.
This conference encouraged open discussion; people were free to ask questions.
The audience showed little reverence toward Alba. Giants like Rio Tinto and BHP Billiton dominated global markets, often ignoring smaller domestic businesses. These major companies cared only about pleasing their boards and shareholders, frequently crushing competitors to maintain dominance.
Not just smaller companies—even Rio Tinto and BHP Billiton constantly sought ways to weaken each other.
This was simply the law of the jungle.
Alba steadied himself, adjusted his posture, and began reading stiffly from his prepared script: "Diversified business development..."
The Sydney Mining Club's annual event attracted significant media attention, and inevitably, controversial news quickly leaked.
One key issue emerged: The Simandou iron ore exploration rights, once owned by Rio Tinto, now belonged to a mysterious Chinese businessman.
Such controversial topics immediately captivated media outlets.
The technical presentations on mining innovations and metallurgy drew relatively little interest. Instead, the news that Rio Tinto had seemingly surrendered the Simandou iron ore rights to the hidden owner behind Lianying Mining dominated headlines.
Rio Tinto...
The mysterious boss behind Lianying Mining...
Iron ore rights valued at tens of billions of dollars...
Each of these keywords had recently been trending topics. Combined, they created an explosive news story.
The scandal was reminiscent of BHP's controversial sale of Talego's copper-gold exploration rights. The backlash then had been fierce, and now it was Rio Tinto's turn to be thrust into the spotlight.
At that very moment, Rio Tinto released its quarterly earnings, highlighting record profits due to skyrocketing iron ore prices. Yet, this attempt to soothe investors did nothing to silence criticism.
Despite impressive profits and rising share prices, the outrage continued unabated. After all, freely giving away a mining right potentially worth billions seemed ludicrous. Shareholders were furious.
Observers found it puzzling too. Why was this mysterious Chinese man—Li Tang—involved every single time?
Li Tang had now twice managed to snatch immense wealth and top-tier mining assets from industry giants Rio Tinto and BHP Billiton!
Some media outlets analyzed the massive gains and losses involved in the Talego and Simandou cases, humorously describing BHP and Rio Tinto as lions, and Li Tang as a ruthless hyena repeatedly striking from behind, causing substantial pain and embarrassment to both giants.
The vivid analogy went viral, quickly accepted by the public.
Grayson reached out to Alba for a private meeting.
He wasn't there representing BHP Billiton to criticize Alba or to gloat about Rio Tinto's troubles. Having experienced similar scrutiny after selling Talego's rights, Grayson empathized deeply with Alba's current predicament.
"That's the media—they love stirring up trouble," Grayson remarked quietly, sipping his coffee.
The meeting wasn't formal, more like a private conversation between acquaintances, without the usual entourage. Had they come with their full teams, it would signal a very different kind of discussion.
"You invited me here to comfort me, share experiences in handling crises, or simply to mock me?" Alba's voice carried suspicion. Though friendly privately, their companies remained fierce rivals.
"I've certainly got plenty of experience," Grayson chuckled bitterly. After selling the Talego exploration rights for just eight million dollars, he'd nearly been fired. Fortunately, his board hadn't lost all reason.
"Right now, I feel completely exhausted," Alba admitted, barely touching his coffee.
Grayson straightened his posture, "I didn't invite you to discuss corporate cooperation today. The circumstances and attendees aren't right for that. This is personal."
Before Alba could respond, Grayson leaned in, "Frankly, I despise Li Tang, this young Chinese upstart."
Alba nodded slightly, cautious of Grayson's motives.
"He's reckless, a barbarian," Grayson continued with controlled intensity. "He doesn't respect traditions, he has no manners. He's simply out of control."
"I haven't interacted much with Li Tang," Alba recalled briefly their prior meeting, long ago regarding an iron ore shipping agreement.
"We should unite," Grayson stated gravely.
"How?" Alba questioned cautiously.
"This isn't about corporate competition. This is personal. We need to bring that Chinese guy down." Grayson made a slashing motion across his throat. "He's too arrogant and must pay."
"It's just business; no need for bloodshed," Alba said, startled. Although angry, he'd never considered extreme measures.
"Of course, we won't resort to violence," Grayson quickly clarified. "We'll sabotage his business and bankrupt him."
"That's difficult," Alba admitted. He'd already considered such tactics but concluded it impossible. Li Tang's true backing remained unknown. Some said he was connected politically in China, others that he was the heir of a secret billionaire, and yet others jokingly said he was the reincarnation of God himself.
Without fully understanding their opponent, they couldn't easily strike.
"I had our Chinese office investigate Li Tang," Grayson confidently revealed. "According to them, he's just a self-made technician—a nobody. He deliberately maintains a mysterious facade to confuse us. But in reality, he has limited resources."
"What's your plan?" Alba asked skeptically. "His business is primarily based in China, a country that remains relatively closed to foreign capital manipulation."
"We have Lianying Mining here in Australia," Grayson responded confidently. "The mine they're building poses enormous risks to both our companies. Professionally and personally, we must intervene."
"You have a specific strategy?" Alba probed.
Grayson enumerated decisively, "Lianying Mining's 7-billion-dollar valuation relies on two things: secured iron ore contracts with Chinese steel companies, and a recent financing deal of 1.5 billion dollars. Yet most of that financing—especially the 1 billion-dollar loan—hasn't materialized."
Alba nodded. "True."
"Cut off these lifelines—investment and customers—and Lianying Mining collapses. Without financing or customers, they can't proceed. Li Tang's only choice would be to fund it personally. Do you really think this technician has 3 billion Australian dollars lying around?"
Alba contemplated briefly, then decisively agreed, his voice cold and resolute, "Then let's crush him completely!"
Li Tang initially planned to head straight to Haigang City to speak face-to-face with Lu Chenyi from Haigang Steel about the details of the loan offer.
However, just before departing, Xiao Yongyue unexpectedly called, saying the primary shareholders of Shazhai Molybdenum wanted a meeting. Xiao was merely acting as their representative to formally request that Li Tang, as chairman, convene a board meeting.
Work at Shazhai Molybdenum had basically stalled. Routine tasks mainly involved supplementary exploration around the periphery of the main ore body. Yet the most critical issue—applying for a mining license—still hadn't advanced at all.
The Shazhai molybdenum deposit was exceptional. It ranked second-largest globally, first in Asia, known for its high-grade molybdenum ore. Even more striking was that the deposit was densely concentrated, resembling a perfectly ripe apple—rarely seen and exceptionally convenient for mining operations.
In stark contrast, Luoyi Molybdenum's deposits—also totaling roughly two million tons—were scattered across several smaller ore bodies. Its primary deposit alone held just about half a million tons. Developing these reserves required constructing multiple mines, significantly increasing production costs.
But at Shazhai, a single mine could efficiently extract the entire resource, making the rights extraordinarily valuable.
This exceptional value explained why mining authorities in Yanjing remained extraordinarily cautious, continually delaying the approval process for the mining license. The core issue was simple: the majority shareholders were private enterprises.
In China, strategic or economically significant mineral rights, especially for major deposits like gold or molybdenum, typically required state-owned enterprises to lead extraction. Among nations globally, China's regulations governing mineral extraction were arguably the most stringent.
Li Tang understood this clearly. Nonetheless, he continuously submitted applications, holding onto a faint hope that bureaucratic oversight might slip and allow their license through.
Unfortunately, reality repeatedly proved this hope futile.
Before Xiao Yongyue, Yu Yong, and Liu Shanlong arrived in Huizhou Province for the board meeting at Shazhai Molybdenum's headquarters, Li Tang first visited the Mineral Resources Administration in Yanjing.
This agency wasn't large but held significant power. All critical mining license applications passed through this department first, requiring approval from Chen Aimin himself before proceeding higher up the administrative ladder.
"You're here?" Chen Aimin greeted Li Tang warmly.
In mining circles, Li Tang's reputation had become legendary. Chen had repeatedly heard senior officials praise this young geologist for making remarkable contributions to the industry.
"Director Chen, long time no see." Li Tang sat down in the solemn atmosphere of Chen's office.
"You're now famous, both at home and abroad," Chen said warmly, pouring Li Tang tea in a glass decorated with bright peony flowers before seating himself. "What's been keeping you busy lately?"
"I just returned from Guinea," Li Tang replied casually.
"I heard about that!" Chen gave a thumbs-up. "Our leadership has highly praised your Simandou iron ore discovery in Guinea, calling you a true pioneer. Securing the Talego coal mine rights in Mongolia has also significantly benefited our coal and electricity sectors. Top leaders are now deliberating on what rewards can adequately reflect your outstanding contributions."
"I'm honored," Li Tang waved modestly. "But today, I wanted to ask you specifically about the progress of our Shazhai Molybdenum mining license application."
He had rarely inquired about this issue before, not wanting to put Chen in a difficult position. But the molybdenum market was currently peaking. Even projected ten years ahead, prices wouldn't reach today's unprecedented highs again.
Next year alone, molybdenum prices would skyrocket to an all-time record—6,150 yuan per metric ton unit. For molybdenum concentrate with 45% purity, that would mean an astounding 276,750 yuan per ton—a price unimaginable at any other time!
Over the following years, molybdenum prices would steadily decline, sometimes dropping below 700 yuan per metric ton unit, never again reaching current highs.
Faced with this scenario, Li Tang had two options. One was to mine the deposit immediately and secure maximum profits, regardless of future price fluctuations. Given its tremendous scale, even modest development would yield vast returns.
Alternatively, he could sell the mining rights now when prices were highest. If he could secure a mining license first, the value would soar even higher.
Yet it was clear now: obtaining that license remained extremely difficult. Selling the deposit at this stage would merely mean transferring exploration rights, significantly less valuable than fully licensed mining rights.
"This matter..." Chen Aimin hesitated, clearly uncomfortable.
"No chance?" Li Tang asked bluntly.
Chen paused, refilling Li Tang's tea glass halfway. The gentle sound of the glass settling onto the desk broke the office silence.
"You're an exceptional geologist and a very successful entrepreneur!" Chen sighed, evading a direct answer.
Li Tang, long accustomed to compliments, felt little satisfaction from such words. Nor did he expect Chen to make promises or reveal sensitive internal information. Bureaucratic procedures existed for good reason.
"It seems the answer is no." Li Tang concluded regretfully.
Chen genuinely admired Li Tang's talent and ambitions, wishing he could help. But adhering to rules and superior orders was ultimately his primary responsibility.
Chen sighed again, advising cautiously, "Shazhai Molybdenum's impact is far-reaching. If a private enterprise leads its development, risks would be substantial."
"I understand." Li Tang drained his tea, standing up to leave. "You're busy, Director Chen, so I won't take more of your time."
Chen walked Li Tang out to the parking lot, urging gently, "Don't lose heart. Keep contributing your expertise to the industry!"
"I will give my all, burning like a candle until my last breath," Li Tang replied melodramatically, mostly for effect. Sometimes saying what others wanted to hear mattered more than truthfulness.
That same day, Li Tang flew directly to Huizhou Province.
Lin Feiming greeted him eagerly at the airport, swiftly grabbing the large sack Li Tang carried. "What's this?"
"Avocados—brought them for your family. Let's head straight to your place."
"Avocados?" Lin had never heard the word before. "Is it cattle feed or something people eat?"
"Does your family own cattle?" Li Tang laughed.
"Never seen these things before," Lin chuckled, carrying the sack to the car.
As they drove home through familiar streets, Lin chatted cheerfully, "Mom made two large spicy chickens and a fresh fish head, knowing you love spicy food. Tonight, we feast!"
Though Li Tang was now technically Lin's superior at Shazhai Molybdenum, their childhood bond made their interactions natural and easygoing.
Seeing familiar streets, Li Tang asked, "Still haven't bought a new house?"
"No rush. Prices seem inflated lately; we're hoping they'll drop."
"They won't drop," Li Tang insisted. "Buy soon. Your current home is too crowded, especially as your child grows."
"Mortgage loans stress me out—twenty years of repayments," Lin replied casually, preferring comfort over debt.
"You short on cash?" Li Tang asked directly.
"No, we're fine. Between my salary and my wife's, we're managing well," Lin smiled appreciatively. "Thanks for providing us such stable jobs."
"I'll transfer 500,000 yuan to you," Li Tang stated firmly. "Buy a house now, while Huizhou prices remain reasonable."
Lin protested weakly, but Li Tang insisted, "Consider it a loan. Your stable job ensures repayment."
Eventually, Lin gratefully accepted.
The next morning, Lin drove Li Tang to Shazhai Molybdenum's quiet office, where Xiao Yongyue, Liu Shanlong, and Yu Yong waited. Employees appeared slightly tense, intimidated by the gathering of influential directors and shareholders.
"Brother!" Xiao greeted Li Tang warmly. Yu Yong, now immensely wealthy due to Kunshang Group's successful investment in Luoyi Molybdenum, nodded confidently.
After exchanging brief pleasantries, Geng Feiran commented, breaking the ice, "Molybdenum concentrate prices have reached unbelievable highs lately!"
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