Chapter 472 Fan Wubing’s In-Depth Solution
If you want to enter the iron ore industry in Western Australia, you must at least open up these links.
The first is to obtain exploration rights from the government. This is a problem that needs to be solved. Only with mineral exploration rights on a certain piece of land can we ensure that our own rights and interests are not infringed, and we can be rewarded for our efforts.
The second is to have enough funds to maintain the operation of his mine, which Fan Wubing has never worried about.
The third is to have the right to build railways and ports. Without its own ports and railways, ore cannot be shipped to the sea, which is impossible. Although Rio Tinto and BHP Billiton have railways and ports, they want to take advantage of their ready-made To compete with them for resources, unless they are crazy, it is impossible to achieve this wish.
Of course, in addition to these three conditions, there is another more important condition, that is, you must know where to find rich ores. If you cannot find the ores, everything is in vain.
Under this situation, few local companies in Western Australia have the courage and ability to compete with the two expansions. This not only means that the initial investment will exceed billions or even tens of billions of dollars, but it is also difficult to guarantee a certain return in the future. It can generate a surplus, but the most important thing is that it may face the incline of the two expansions at any time. This is what everyone is most worried about.
The status of Rio Tinto and BHP Billiton is deep-rooted in Western Australia and even Australia as a whole. Their influence is extremely far-reaching. Australians have become accustomed to living in their shadow. As for the sense of resistance, there may be some, but The fact that few people would foolishly stand up and say no to them is also a consequence of Australia's long-standing conservative style.
Therefore, when Haide Sifan asked the question about iron ore, he said very directly that even with the permission and support of the government, this matter would not be easy to implement. In fact, it is possible to achieve it only when manpower, material resources, financial resources and luck are gathered together. This breakthrough also has a prerequisite, that is, the two expansions will not hold us back.
Haidesi said to Fan Wubing, "The distance from the opening area to the port is at least two to three hundred kilometers. How much money and time is needed to build such a long railway? And most of the nearby areas have already been explored by the two expansions. , the only way to explore is to go deeper into the interior. 6 In this case, it will be more difficult to secure various resources such as power supply, which require new investments. Generally, according to our inference, setting up a new mining company will Even if the mining area is discovered at the beginning, it will take at least five years before the mine is officially mined and shipped out. How many companies can afford such a large investment."
Fan Bing nodded, thinking that what Heidis said was quite pertinent. The ore industry is considered a relatively low-tech industry in Australia. In addition to the relatively intensive capital investment, it is far from being comparable to other high-tech industries.
Even though the turnover of Tuodi is huge. But the annual income was meager in Fan Wubing's opinion. If we hadn't seen the important role of steel in the national economy.
As well as the huge steel gap that China needs to solve after the deepening of reform and opening up. Fan Wubing was too lazy to earn this money. He randomly picked up something relatively new. The money you make is much more than this.
But as an outstanding businessman with brains, vision and life experience. Fan Wubing feels that sometimes you have to be political when making money. If you gain a place in Western Australia, you can compete with the two countries. In the future, it will have a voice in the world's iron ore industry. This influence is quite profound.
So Fan Wubing told Haidesi. "If our Fan Investment Group also wants to explore mineral resources in Western Australia. Can the application procedures be approved quickly?"
Hydeth said with a smile. "Our current local policy is to welcome economic liberalization. If your company is willing to come to Western Australia to exhibit, of course we are very welcome. The larger the investment, the greater the contribution to our local economy. This is unquestionable. I think Governor Skye holds the same view."
Fan Wubing nodded. Please keep drinking. As a senior economic expert in the state government. The dialect of Haidesi basically represents the attitude of the Western Australian government. Basically there won't be any big deviation.
It turns out that the current environment is like this. Australia is undergoing economic reform. Fan Wubing got on this express train. In addition, most workers and technicians will come to Australia from mainland China. This is also in line with the principles of building a strategic partnership between China and Australia. There is unlikely to be any objection on the part of the state government.
Haidesi said goodbye after the banquet, but Fan Wubing still gave him two antique vases as a souvenir.
"It's just an ordinary handicraft. It's probably not an antique, but it needs experts to identify it." Fan Wubing said.
There are very few politicians in the world who do not accept bribes, not to mention economic experts like Heideth who work in the government staff. He happily accepted Fan Wubing's gift and expressed his willingness to welcome it on behalf of Governor Skye. Fan Wubing will visit the state government. He will facilitate Fan Wubing and the state government as soon as possible.
A long meeting was held to facilitate exchanges between the Western Australian government and Fan Investment Group to promote Australia's economic construction.
Haidsi's words were also high-sounding, but Fan Wubing knew very well in his heart that Australians also like to see beautiful large-denomination US dollar bills. Although Australia has a very beautiful scenery, the colorful world outside is also very beautiful. It is very attractive. Only when you have money can you go abroad. This is also the wish of many Australians.
Money is a tried and tested stepping stone no matter where you go.
After sending Haidesi away, Fan Wubing held a short meeting with important cadres to learn about their work during their time in Western Australia.
Carter, the head of the Western Australia branch, immediately reported the information obtained by the company's Western Australia branch to Fan Wubing. Within this period of time, they had figured out the relationship between Rio Tinto and BHP Billiton in Western Australia. The distribution of forces is clearly marked on the map, and the two mined areas and unmined areas are clearly marked.
"Now it seems that only the northern mainland has not been explored, but if you want to get there, the investment will be an astronomical figure." Carter explained to Fan Wubing the curve indicated by the lock on the map, feeling a little helpless. said.
"I never thought about going that far -" Fan Wubing shook his head.
Under the gaze of everyone, he used a pencil to draw two lines on the large map, enclosing an area.
Although Rio Tinto and BHP Billiton have occupied most of the mining areas, and they are rich mining areas, in order to avoid conflicts, there are a series of blank areas between them. These places are unclaimed lands and were previously measured. At that time, although the iron content of the ores in these areas was also very high, it was still lower than the rich ores being mined by Rio Tinto and BHP Billiton.
According to the principle that the ore that was originally mined can be used directly, Rio Tinto and BHP Billiton directly gave up the mining areas with slightly lower quality and went directly to the rich ores. This resulted in a large blank area between the two companies with no one in it. open status.
It is this large tract of unclaimed land that Fan Wu wants to plot.
Fan Wubing said to the astonished employees, "My goal is to capture such a large area. How much do you think it will cost? And what will be the response from the Western Australian government?"
Carter had studied this issue for a long time. He scratched his head, visually inspected the area marked on the map, and then said to Fan Wubing, "This is probably an area of less than 70,000 square kilometers, and it is The area that the Western Australian government basically abandoned, no one has ever wanted to survive in the cracks between Rio Tinto and BHP Billiton, so the valuation here will be very low. Probably, I guess we only need less than a thousand You can win this place for 10,000 Australian dollars."
After hearing this, Fan Wubing couldn't help but sigh and said, "It's only 10 million Australian dollars. It's really cheap."
It’s no wonder. Before the commercial value of this land was highlighted, although there was iron ore in this wasteland, everyone thought that the quality was relatively low and not worth investing in, so the land price was also very low. Carter gave a The valuation of tens of millions of Australian dollars is already overestimated.
Fan Wubing thought for a while and then told Carter, "Okay then, I authorize you to make your own decision within 20 million Australian dollars and find a way to buy the exploration rights in this area."
Carter nodded and assured, "Ten million Australian dollars, if it exceeds this number, I will be considered a poor manager!"
"In addition, arrange for me to meet with Governor Case at an appropriate place. I hope to resolve all matters at once. Although Haiders said it will take at least five years to see profits, I hope that within two years To get all this done, our time is very tight." Fan Wubing then put forward his request.
Carter confidently assured Fan Wubing, "Don't worry, boss, Australians are used to being lazy. The five years they mentioned, in our opinion, two years is enough and will not delay your plan."
"If this goal can be achieved within two years, I will promote you to the top of the group." Fan Wubing also proposed his own incentives for Carter.
The top management of the group! After Carter heard this, he was as excited as if he had been given a shot of chicken blood. This is not a height that just anyone can reach. Once he enters the top management of the group, he will gain more than just money. There are also stock and option awards given by the boss. Although they may not be from the head office, they are enough to live a happy life for myself and my family for several lifetimes.
After seeing Carter's expression, Fan Wubing felt very satisfied. People are heroes and money is courage. At the critical moment, the role of the dollar is incomparable.
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