Chapter 1026

Although the development of the domestic steel industry in the 1990s was not as crazy as that after 2002, and the dependence on the iron ore resources in Western Australia was not high, it did not mean that the domestic steel industry had nothing to do with the iron ore resources in Western Australia.

As early as 1988, after the establishment of Hammersley iron ore company in Western Australia and Australia (global rare earth mining in China), China Zhijin import and Export Corporation designated MCC to jointly integrate the middle and upper reaches of the rare earth industry, and planned to form two rare earth industrial groups in the South and the North to complete the monopoly layout of the whole rare earth industry.

In terms of internal and external publicity, Jinhu should be deliberately ignored.

The domestic basic resources and energy industry are either completely closed and only state-owned capital is allowed to enter, or they are restricted to non-public capital. There is no reason to open only to one private capital - the process of Jinhu participating in the operation of Huaxi mining industry is very tortuous and the situation is very special. Of course, it can not be published to give the public an inappropriate illusion.

Huang Mingsheng also knew that the nature of Huaxi mining industry was unusual. He thought that Jinhu was both a sponsor and a shareholder, and the relationship behind it was really not ordinary. He habitually thought about his contacts and wondered whether he could do this with the ability of Minister Ye Zhenmin? But he didn't think about how much role Jinhu played in the establishment of Huaxi. In fact, although Jinhu only held shares With 12% equity of Huaxi, the influence of Huaxi is more than that of MCC, the nominal sponsor of Huaxi.

Zhang Shuhe, Consul General in Perth, is at the deputy bureau level. He is an official under the Ministry of foreign affairs. Although he knows more about Jinhu, he did not run to the gate of the Consulate General to pick up Zhang Ke, ye Jianbin and others.

In addition to the representatives of local Chinese and overseas Chinese, some representatives of Chinese funded institutions or traders in Perth were very enthusiastic when they saw Jia Zhiyi.

Although the domestic steel industry does not rely much on iron ore resources in Western Australia, domestic steel mills and iron ore traders with a little foresight have successively set up offices in Perth to engage in iron ore trading business. Chinese businessmen in Perth are not uncommon, but they can not be compared with the grand occasion that Perth is full of Chinese iron ore traders after 2003.

As the domestic iron ore imported from Western Australia mainly comes from Chana iron ore jointly operated by MCC Australia, these traders naturally regard Jia Zhiyi, general manager of MCC Australia, as their reborn parents.

When a large number of mining areas, railways, seaports and other logistics channels are controlled by BHP Billiton, Rio Tinto and Japanese chaebols, it is impossible to obtain excess profits and bear certain risks simply engaged in iron ore trade, but it is better than nothing. It is always a good thing that domestic iron ore procurement can be extended to Western Australia.

Although Zhang Ke and ye Jianbin were the guests of honor at the noon banquet, Jia Zhiyi became the protagonist when he stopped at the restaurant.

Zhang Ke and ye Jianbin also had a headache dealing with too many people, so they sat down with Zhang Shu and the consul general to talk about some business. Jia Zhiyi and Huang Mingsheng dealt with it for a while before they returned to the main table.

"Thank you, consul Zhang, for organizing such a luncheon, which gives us the opportunity to meet and talk with the overseas Chinese and representatives of Chinese funded institutions in Perth." Zhang Ke also introduced people from his side to Zhang Shuhe. In addition to Ye Jianbin, sun Jingxiang and Zhai Danqing, Jinhu commercial and Nanyang shipping have set up offices in Perth, and relevant principals attended the banquet. He directly told Zhang Shuhe, Jia Zhiyi and Huang Mingsheng their preliminary intention of this trip, "We have come to Western Australia for business investigation this time, mainly because after the technical transformation of Dongshan iron and steel plant controlled by Jinhu, we need to import 1.8 million tons of high-quality iron ore from Western Australia every year. After the completion of Xinting 10 million tons of iron and steel industry base and the complete integration of Dongshan iron and steel and Donghai iron and steel, the demand for high-quality iron ore raw materials will increase to 25 million tons. We I hope Western Australia can provide at least 10 million tons... "

Zhang Ke's ambition is certainly far more than 10 million tons, but in 1999, when the total annual iron ore output of Western Australia is less than 100 million tons, premature exposure of his ambitious ambition will not only question Chinese officials, but also prematurely lead to the resolute counterattack of BHP Billiton, Rio Tinto and the Japanese chaebol.

Even the target of 10 million tons is enough to open the eyes of Chinese officials on the table.

Jia Zhiyi's eyes only shine. MCC has been operating in Western Australia for 11 years, and the annual output of Chana iron mine is only 3 million tons. He tried his best to persuade the head office to expand its investment in Chana iron mine and increase the annual output to 10 million tons. The head office hesitated for more than a year and did not make a final decision happily. Jinhu reported the output of 10 million tons in Perth at the beginning of its visit It's amazing.

Jia Zhiyi knows the domestic iron and steel industry like the back of his hand. At least for now, the right to import raw materials from Donghai United Steel and the future ten million ton iron and steel industry base has not been assigned to Jinhu commercial; in fact, the iron ore import quota of Jinhu commercial is only 1.8 million tons of Dongshan iron and steel plant.

Jia Zhiyi asked, "Jinhu really wants to import 10 million tons of iron ore from Western Australia every year. It seems that it should talk to Rio Tinto or BHP Billiton... Even if the increase in production of Chana iron ore can reach 10 million tons, I don't think MCC can decide to provide this 10 million tons to Jinhu."

The traders sitting on the table next to them all stood up. The iron ore of Chana iron mine was going to be wrapped up for others. If they stayed in Perth, they could only drink the northwest wind and had to pat their buttocks back home.

Zhang Ke smiled and said, "the 10 million tons we need do not account for the amount of Chana iron ore, nor do we cooperate with Rio Tinto or BHP Billiton. We want to invest in building our own supply base..."

Zhang Ke's words were like a boulder thrown into the lake, which immediately aroused thousands of waves.

Consul General Zhang Shuhe, economic counsellor Huang Mingsheng, general manager of MCC Australia Jia Zhiyi and others did not speak, but turned their eyes elsewhere. People on the other table immediately talked about it. They were skeptical and distrustful, and some even laughed disdainfully. Zhang Ke was just bragging here.

Jia Zhiyi also doubts whether Zhang Ke is clear about the concept of independently investing in the construction of a 10 million ton iron ore supply base in Western Australia, but it is not easy to doubt it face to face. Even if Zhang Ke bragged here and put forward a grand and unrealistic goal, everyone should join in the heat. There are more people who like to talk empty words in China than Jinhu family.

Jia Zhiyi would never poke white in public, but not all the guests attending the banquet would take good care of others' face. Someone immediately stood up and said: "Do you know the annual handling capacity of the seaport in Western Australia? Do you know the annual railway transportation capacity from the mining area in Western Australia to the seaport? The iron ore production capacity of BHP Billiton and Rio Tinto's subsidiaries in Western Australia almost fills the seaport and railway transportation capacity in Western Australia. Except that your workers are Hercules and can throw ore across the sea from the mining area in Western Australia with their bare hands Go back to China, otherwise... "

"What he said is funny," Jia Zhiyi smiled, trying to help Zhang Ke solve his embarrassment, explained, "MCC has always wanted to increase the annual output of Chana iron mine from 3 million tons to 10 million tons, but this is not only a problem of increasing investment in the mining area, but also a problem of how to coordinate and solve the increased transportation capacity of 7 million tons. Even if there is 60% equity of Rio Tinto in Chana iron mine, it is still very difficult to increase the transportation capacity of 7 million tons. The existing mining area railway and iron ore in Western Australia Almost all of the deep water wharves are controlled by Rio Tinto, BHP Billiton and the chaebol forces behind these two mines. Unless Kumho's demand for these ten million tonnes of iron ore is to be purchased from them, it is difficult to transport them from the railway lines and terminals they control, awesome railways and ports in western Australia.

A middle-aged man with a more honest face also came up and explained: "We businessmen mainly rely on MCC - there are so many mining companies in Western and South Australia, why don't we go directly to the mining area and purchase directly? The main reason is that the transportation problem can't be solved. The two major miners have very strict control over the logistics system. As long as we just meet their transportation needs, we won't expand the railway network and port. Chana Iron Mine plans to increase production by 7 million tons, Another 10 million tons will exceed the current capacity load - the problem is not as simple as you think. We have also heard that Jinhu commercial has a large investment layout in China. Dongshan iron and steel company and Jinhu commercial have invested 200 million US dollars... But in Western Australia, 200 million US dollars can only be a big trader... Promise, " The middle-aged man pointed to the middle-aged man sitting in a corner of the restaurant. "He is the representative of Chenggang. Chenggang is also a large-scale private enterprise in China, with an asset scale of more than 10 billion. Last year, he sent a representative to Western Australia to build an iron ore supply base..."

Zhang Ke glanced at Ye Jianbin. When they came in, the people in the restaurant surrounded Jia Zhiyi. At this time, they thought they were just ordinary representatives sent by Jinhu commercial to Perth.

Of course, these iron ore traders, in addition to the trade representatives of state-owned steel mills, are rich, and there are a large number of billionaires. They speak and behave casually, and they will not scare the name of Jinhu - in fact, the name of Jinhu is not famous, and there is a lot of mystery in the eyes of some people who know the inside story.

Zhang Ke stood up and said to the middle-aged man who helped explain the inner quao: "We also know that it is very difficult to invest in the iron ore base. The Consulate General is also very enthusiastic to invite you here. We also hope that you can help give advice and even go further and work together to promote this matter - we plan to spend US $1 billion to US $1.5 billion to invest in this ten million ton iron ore supply base. Of course, it is said that the supply base has It's not accurate. It should be said that it's the supply... "

"Er..." the middle-aged man was slightly stunned. He had to organize some language to teach the representatives of Jinhu commercial company who didn't know the heaven and earth. Just now he just suspected that Jinhu commercial company didn't fully consider the difficulty of investing in iron ore. at this time, he looked at Zhang Ke wrongly and didn't know how to continue his words.

Jia Zhiyi listened, stood up happily and asked, "is Jinhu going to invest in building a port and railway line in Western Australia?"

"If we want to break through the blockade of Rio Tinto and BHP Billiton, we can only invest in the construction of ports and railway lines by ourselves. With an investment of US $1.0 billion to US $1.5 billion, it is difficult to build the main trunk line. We only invest in the construction of branch lines with a transportation capacity of 10 million tons, which is still not a big problem..." Zhang Ke sat down calmly at this time, "Of course, we must first find the mining area before we can determine the construction location of the port and railway branch line. Many things need everyone's help."

There were also a few people with a fortune of more than 100 million, but even MCC had no extravagant hopes to build a complete supply.

Ten million tons of high-quality iron ore can only supply the raw material consumption of a steel plant with a capacity of six million tons. Investing in a steel plant with a capacity of six million tons can save some money, and it can be built as long as two billion US dollars. However, Jinhu commercial is so extravagant that it has to spend one to one-half billion US dollars to build the raw iron ore supply?

The benefits of investing in steel mills in China are also very high. It is not their own territory to come to Western Australia. Besides, those plutocrats are easy to be eaten by crocodiles. According to ordinary people, if Jinhu really has such financial resources, it is better to invest in building steel mills in China.

Zhang Ke's words surprised and confused the people present, but there was no previous contempt and doubt about Jinhu.

Zhang Ke is not clear about the number of awesome land left behind by ribald and BHP Billiton after the separation of Rio Tinto and BHP Billiton in the most important iron ore producing area in Western Australia. The public information shows that the two major miners roughly roughly ploughed the land in the area, but four years later, FMG company can just be under the eye of Rio Tinto and BHP Billiton. In the two Bali mining enterprises, the awesome exploration of the iron ore resources and the rapid growth of the third largest iron ore producers in Australia have shown that there are still a lot of iron ore resources in the Barbara region, which has been wrong for Rio Tinto and BHP Billiton. The re exploration of geological resources in the same area is the norm in the industry.

What Jinhu needs to do is to publicly acquire Australian iron ore companies and apply for exploration rights in Pilbara area for iron ore exploration to the greatest extent.

Investment in exploration in areas initially explored and abandoned by Rio Tinto and BHP Billiton will also encounter relatively less resistance. First, Rio Tinto and BHP Billiton will relax their vigilance; second, local governments will hope that companies can conduct more in-depth exploration in these areas, and exploration rights in large areas are easy to be issued.

Once the iron ore resources are explored, it is necessary to quickly invest a huge amount of money in the infrastructure construction of mines, railways and ports. MCC Australia has invested in Chana iron mine in Western Australia for ten years. It has rich experience in mine construction and operation and will be a good partner.

Even if the Australian iron ore company is acquired, the actual exploration work in the mining area still needs the cooperation of the exploration company in the metallurgical system, and even the whole project can be disassembled into multiple parts to cooperate with domestic enterprises in the form of joint venture. In this way, since we can solve the problems existing in engineering technology, we can also alleviate the pressure on funds. After all, the current stock capital of Jinhu commercial lake is less than US $1 billion, but it will spend more than US $2 billion in the next few years. Although it can further raise funds, the pressure of funds is still great.

Behind the iron ore traders attending the banquet today are almost all steel mills of different sizes in China. Even if they can't provide much help in infrastructure construction, the capital power behind them is enormous.

It is these capital forces that have pushed China's annual iron and steel output from 100 million tons to 200 million tons, 300 million tons, 400 million tons, 500 million tons, and even to the peak of 600 million tons, so that China's iron and steel output is more than that of the second to eighth countries combined.

A capacity of 10 million tons represents an investment of 25 billion to 31.5 billion, and a capacity of 600 million tons means a total capital of more than 150 billion. Even a small part of these capital outflow can greatly alleviate the financial pressure of Jinhu in the future.

After the luncheon, there was a fellowship activity. Zhang Ke's speech at the table really shocked the people present today.

As of 1999, the largest overseas resource investment project of the state was the Chana iron mine in Western Australia. The total investment of the project was only US $420 million. MCC undertook 40% of it, about less than US $170 million. It can be imagined that Jinhu will soon launch a large stall of us $1 billion to US $1.5 billion in Western Australia.

Before, they just suspected that Jinhu did not consider the difficulty of investing in iron ore in Western Australia. After Zhang Ke reported the investment budget, they no longer suspected - Jia Zhiyi also introduced Ye Jianbin as the president of Jinhu commercial, not an ordinary business representative - they are all insiders and have heard a little about Jinhu commercial's participation in the construction of Xinting Dongshan port, As a comprehensive super large port, Dongshan port has invested more than $2.5 billion in infrastructure. Naturally, there is no doubt about the ability of Jinhu to organize $1 billion to $1.5 billion. Jia Zhiyi also couldn't figure out Zhang Ke's specific identity and introduced the past vaguely. Zhang Ke and ye Jianbin took this opportunity to formally introduce Zhai Danqing as the chief representative of Jinhu commercial in Australia to the Chinese businessmen in Perth.

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