Chapter 1508 Baoshan Is Made of Money!

Since Charles has no objection, the matter is half settled.

Naturally, it was impossible for Weili to stay in Wickham Town, slowly grinding the skin with him, and slowly discuss the details.

Westerners all know that after the boss and senior management have negotiated the general framework and conditions, they can just leave the negotiation to their professionals, who will be responsible for the final improvement work.

As the president of Qilin Mining Company, Weili has more important things to do.

That is prospecting!

Find large reserves of rich iron ore!

Yin Jun had already circled 100,000 square kilometers of land and paid tens of millions in exploration rights fees, so Weili didn't want to delay even a day.

If the mineral veins and mines are found one day earlier, the pressure on Yin Jun will be less, and the contribution to Wei Li will be greater.

It's not like he has no clue.

Yin Jun has already told him that within the delineated prospecting area, there is a small town called Christmas Creek. If we focus on exploring the small town and the creek within a hundred miles, there will definitely be results.

Wei Li didn't know where Yin Jun got the news, but he certainly wouldn't believe it was Yin Jun's guess.

I thought someone had discovered something before, and Yin Jun knew about it secretly, so he dared to come prospecting in such a big way.

This also very reasonably explains why Yin Jun is so confident.

Although Waverly knew that it was a bit unreliable, in order to strengthen his own belief, he was still willing to choose to believe it.

In the past two months, Wei Li has actually been preparing for this matter.

Now everything is in place. Prospecting experts from Brazil, Germany, Australia and other countries, as well as more than a dozen prospecting engineering teams, have been assembled. All kinds of prospecting equipment and facilities are also in place, so Weili I want to go back and take charge of the prospecting work.

If the scope of prospecting is reduced to 100 kilometers, the difficulty of detection will be much smaller.

Whether it is mountains or underground mines, there are so many modern tools and so many experts, working on the land one by one, like cultivated land, even digging three hundred meters, Wei Li does not believe that something has not been found earlier - if If there really is one.

In fact, what attracts the most attention in Western Australia, and even Australia, is the 100,000 square kilometers exploration area of ​​Qilin Mining Company.

Australia has a large area, with more than 9 million square kilometers of land, and only a population of more than 30 million. This is truly a vast land with sparsely populated areas.

Moreover, many companies have previously applied for land larger than this for prospecting.

Therefore, the prospecting rights of 100,000 square kilometers are not an exaggeration at all to them.

But Yin Jun, a newbie, was so generous when he first came up, which made people look a little suspicious.

Not to mention these 100,000 square kilometers of land, in fact, in the past ten years, 50,000 square kilometers have been sold for exploration rights, but those companies got nothing and finally had to give up.

These companies also include super large companies such as BHP Billiton and Rio Tinto, which are among the top giants in the iron ore industry.

The giants who have countless experienced prospecting experts and countless advanced prospecting equipment have nothing to gain. How can you, a ragtag team of startups, find it?

You know, prospecting is not that simple. It involves too much professional knowledge and a lot of hard work.

Usually, the exploration of a mining area takes one to two years, three to five years, or even seven to eight years to finally determine it.

Many companies have been exploring a place for more than ten years but found nothing. This kind of thing is simply too common in various prospecting activities.

If you get nothing from prospecting, it will consume not only the daily human resources and equipment costs, but also the accumulated exploration rights fees.

Many companies collapsed after one, two, or three prospecting failures.

Only super giants like BHP Billiton, Vale, and Rio Tinto have the strength to withstand two or three or five failures.

But even they have become cautious about prospecting, and it is impossible for them to have any large-scale exploration rights of 100,000 square kilometers.

Therefore, these giants only held meetings and discussed it two or three times before completely giving up on caring about Qilin Mining Company.

In their eyes, you are a project destined to fail. What’s the use of me caring?

yes.

You, Yin Jun, are rich, with a net worth of several billion dollars. If you go public, you can easily reach tens of billions.

But 100,000 square kilometers of prospecting is completely a black hole swallowing gold!

If you throw hundreds of millions or billions of dollars into it casually, water may not splash out.

What's more, several giants have also explored this 100,000 square kilometers of land, and concluded that it is impossible to have large-scale mine veins, let alone more than 50% rich iron ore.

Nowadays, the mining areas in the Pilbara contain at least about 55% of the ore, usually 60%-65% of the super-rich ore. Those with less than 55% do not bother to mine, and they directly store it and skip it, waiting for the rich ore to be mined. Let’s talk after that.

In the view of these giants, less than 50% of the iron ore costs are too high. Even if it is available, it is not cost-effective to mine it now.

After all, the price of iron ore is very cheap now. For every additional dollar of cost, they will make a lot less money.

If Yin Jun goes to mine this kind of iron ore, he should not think about making money for ten or eight years, just barely maintaining his capital would be considered good.

In Yin Jun's opinion, the idea of ​​these nouveau riche is simply that a well-fed man does not know a hungry man is hungry.

Give a simple example.

At present, the dividing line between rich iron ore and poor iron ore in the world is 50% content.

This means that for the iron ore in the entire mining area, the iron ore powder analyzed has a content of more than 50%, which is rich iron ore, and a content of less than 50% is poor iron ore.

The standards in Western Australia are still different now. No one is willing to mine iron ore with less than 55% or even less than 60% because it contains too little iron. ——The Mutonda iron ore mines in Brazil and Bolivia, the largest in the world, are even more exaggerated. Iron ore veins with a quality lower than 63% are not counted at all and are temporarily stored as waste.

God is pitiful.

In China, as long as the mine veins have an iron content of 30%, they can be called rich iron ores. Usually, the iron ore in China is about 15%-25%, which is very poor.

Therefore, later on, when China began large-scale development and construction, there was such an urgent need for Western Australia's iron ore, and it continued to push up the price of iron ore, and was constantly being ripped off.

no way.

95% of the metals consumed in industrial production are steel.

For a country as big as China, if it wants to develop, iron ore is absolutely indispensable.

Therefore, not to mention the 65% super-rich iron ore, even about 50% of the iron ore is extremely valuable in Yin Jun's opinion and is completely worth mining.

Even if you will lose money for three to five years in the beginning, in the long run, it will definitely be a gold mine!

Moreover, Yin Jun remembers the iron ore on the Christmas Creek side very clearly. It is a very high-quality, low-phosphorus iron ore, with an iron content of generally as high as 58%-62%. After several visits to the world, no one can exceed it. 10 mine veins.

There are also the Duanyun Mining Area, which also belongs to the Chichester Mining Area, and the King Mining Area and the Fire Tailing Mining Area, which are part of the Solomon Mining Area 200 kilometers away to the west, have an iron content of no less than 58%!

Such a rich iron ore totaling no less than 8 billion tons is enough for Yin Jun to mine at full capacity for 50 years!

Once the situation is opened from Christmas Creek, what comes out is not iron ore, it is gold!

However, if you want to turn iron ore into gold, it will definitely cost a lot of money.

The construction of Wickham Port alone will take at least three years and will likely cost more than $300 million.

Then, the total length of the railways and roads between Yin Jun's two major mining areas, Chichester Mining Area and Solomon Mining Area, and between them and Wickham, is about 600 kilometers.

After 1997, with the continuous development and construction of railways, the price quoted to build one kilometer of railway in China, with China's cheap labor, is about 100 million yuan.

Western Australia has a vast area, sparsely populated areas, and no mountainous areas, so construction is not difficult.

The current price is not what it will be 20 years ago. Without calculating profits, if the highway and railway are calculated on average, about 3 million US dollars will be enough.

But even if it costs 3 million US dollars per kilometer, the overall road and railway investment will reach 1.8 billion US dollars!

$1.8 billion is just for road transportation.

The construction, safety and equipment processing of the mining area, as well as the power plants and water plants necessary for the mining area, are short of US$500 million and cannot be obtained at all.

In addition, let’s not talk about the exploration rights. After the exploration rights have discovered the iron ore, the annual mining rights fees and taxes will be a huge expense.

Taking the pieces together, spending US$3 billion on Qilin Mining Company in five years is not much at all.

The ore industry is not yet an industry that produces money quickly. It takes at least another three years from the initial trial production to reaching the profit and loss point and finally starting to make stable profits.

This is still the case when Yin Jun mainly supplies steel factories in Japan and South Korea, and can later open up the sky-earth line in the mainland.

With huge demand, we can say that we will start making profits in three years.

This means that it will take at least six or seven years for Qilin Mining Company to start making profits.

Profit does not mean that the $3 billion invested will come back.

The profit mentioned here means that the daily output is greater than the daily investment. It is just that for now, all the previous investments have not been taken into account!

If you want to earn back 3 billion US dollars, there is not much opportunity. Generally speaking, let's see if it takes 5 years.

Fortunately, this is still a rich ore with low phosphorus. If it were replaced by the high-phosphorus iron ore in China, which would be 30% high-phosphorus iron ore at most, it might not be able to meet expectations in 10 years.

Yin Jun entered this industry in 1983, which is a very good time.

It is not that China has never participated in Western Australia's iron ore investment in its previous life. The famous Naqia Iron Mine has half of the shares of China Metallurgical Corporation, and they came in in 1988.

Unfortunately, due to various conditions and expenditures, it can only provide 3 to 5 million tons of high-precision iron ore to the country every year.

Compared with the frighteningly huge demand in the country, a mere few million tons is not even a wave.

China's import volume reached 150 million tons in 2003, and since then, the volume has continued to soar.

By 2016, China's iron ore imports had exceeded 1 billion tons!

If the four mining areas owned by Yin Jun are fully exploited, they may be exhausted by 2030.

But the young man won't panic too much.

If a business can last for about 50 years, what do you have to regret?

Take online shopping for example. Even though Alibaba and JD.com are so powerful now, it is still a question whether they will be defeated by another more advanced shopping method in 10 or 20 years!

Therefore, you can consider the future well, but you cannot lose the courage to move forward because you look too far ahead.

The right thing to do is to do your best now, do what you should do well, and then think about other things!