Chapter 293： Australian iron ore

Soon the car arrived at the Heiyun Australia branch, where Bao Zixuan really came here for the first time. However, he will be reported to him when the site is selected. The entire Australian branch is located on a bustling street in Melbourne.

On the first floor is Heiyun's showroom and store, where all Heiyun products can be purchased. The second floor is the game experience area, where everyone can come and experience it for 30 minutes for free. It doesn't matter whether you buy it or not, so many children like to come here. Due to too many people, they can only experience it for 30 minutes a week to relieve the work pressure caused by the dense crowd.

The third floor is the company's leisure area, and the fourth floor is the office area for ordinary employees. The fifth floor is the conference room and the management office. The sixth floor and above are all empty, which makes the 16-story office building look a bit empty.

Seeing Bao Zixuan come in, all the employees stood up and applauded spontaneously. And there are cheers at the same time, after all, this is the first time the boss has come here, and it is the first time for these many employees recruited from Australia to see this legendary character.

Bao Zixuan walked to the staff and said, "Thank you for joining Heiyun, trusting Heiyun, trusting me Bao Zixuan. I don't have any mandarin, clichés or polite words. I can only say that every effort in Heiyun will be rewarded. Finally, I wish you all a happy work.”

In fact, Bao Zixuan really doesn't like giving so-called speeches in the crowd, but sometimes he really can't do anything about it. Now that the company has achieved this scale, it is sometimes impossible for the branch to come over once a year. If you don't say anything, no one will remember the boss.

After inspecting the Australian company, I checked the financial statement, and rewarded several employees with excellent work. Bao Zixuan and Wu Guangzheng returned to the hotel.

They need to recharge their batteries and prepare for the investigation, acquisition, and purchase of iron ore starting tomorrow. However, if we want to make a difference in iron ore, we cannot do without the support of several giants. The next step is to play games in negotiations.

The three iron ore giants refer to the three iron ore production, development and marketing groups of Brazil's Vale, Australia's BHP Billiton, and Britain's Rio Tinto. The cold snap in the steel market caused the price of iron ore, which had been rising since 2002, to plummet. The China Iron and Steel Association and various steel companies, who are determined to make a comeback in the 2009 international iron ore negotiation, have stated that the price of iron ore should be reduced. However, the bottom line was touched by the three iron ore giants, and the negotiations were temporarily deadlocked, so that the spot mines of the three giants could not be bought.

BHP Billiton, formed from the merger of two giant mining companies, is now the world's largest mining company. Among them, BHP was established in 1885 and is headquartered in Melbourne. It is one of the oldest and largest companies in Australia. Billyton was a pioneer in the international mining industry and was once known for its innovative and intensive approach to operations.

Now the whole world knows that Xiangjiang Baohuodong Mining Company is coming to negotiate iron ore procurement, and many companies want to participate. After all, this is definitely a stable long-term customer in terms of the construction scale of the current steel plant, and the black cloud itself can consume a lot of products. There is no problem in the sales. The key is who can win the order. At present, the steel market in the entire market is not good. The purchases of major steel companies such as the shipping industry, the construction industry, and the automobile industry are shrinking, making the price of iron ore more stable. not tall.

Bao Zixuan has asked Blackstone Fund to buy many bankrupt steel companies in advance, but the scale is very small. It can be used by myself in the future, but it can be said that it is difficult to supply the entire Chinese market. Now most of the resources are in the hands of the three giants. This time I came to Australia to negotiate with BHP Billiton and Rio Tinto.

When he arrived at BHP Billiton's headquarters in Melbourne, Bao Zixuan was warmly welcomed. After all, this is the existence of the God of Wealth, and no one can resist the charm of money.

Stevenson, president of BHP Billiton, personally came to receive Bao Zixuan and his party, which is enough to show the importance he attaches to this negotiation. Stevenson, 50, has been with BHP Billiton for 25 years. It can be said that in addition to the family relationship, his own ability has also been recognized by the whole company.

Stevenson said, "Welcome Mr. Bao and Mr. Wu to BHP Billiton. Let's get used to the weather in Australia!"

Bao Zixuan: "It's very good here. I'm going to buy some farms here, and I can come over for vacation at any time. I found that you are really happy. You can live here for at least 5 years."

Stevenson: "As long as you like it, I have some farms in the west, and we can be neighbors at that time."

Bao Zixuan: "That's good. It's a good choice to be your neighbor."

Seeing that Wu Guangzheng didn't say a word, Stevenson knew that as long as he managed Bao Zixuan this time, there should be no problem. He smiled and said: "The Black Cloud Company has explained your intention in advance, and we BHP Billiton also hope to cooperate with entrepreneurs with strength and ideas like you. However, we need to discuss the quantity and price your company wants to buy. After all, the price is too low, we can reduce the price appropriately, but it is a little hard for me to accept so much at once."

"The cooperation price provided by Heiyun's staff to BHP Billiton is 20% off the market price, which basically will not make money for mining companies. However, the current iron ore price is low, if you really bite the bullet, you can continue, but this way Basically, it’s just losing money to earn money and shouting, and it will definitely not last for a long time.”

Bao Zixuan: "This is only our first offer, but the steel industry is not in a slump now. We are also facing a lot of risks. I hope the two sides can reach a consensus on a reasonable price. But what I can express to you is that we can Signing a long-term and stable supply agreement, BHP Billiton's coal, iron, aluminum, copper and other metal minerals are the long-term purchase targets of Baohuodong Mining Company. And we can pay the deposit in advance, 30 years, I think it is not a short contract ."

Hearing that a 30-year stable supply agreement could be signed, the senior management of BHP Billiton were very excited. After all, no company in the market dares to do this. In fact, Bao Zixuan never thought that he would make a deal at this price. BHP Billiton would not agree as long as he was not stupid.

Stevenson: "Mr. Bao is so optimistic about his steel company. After all, this is a long contract."

Bao Zixuan: "I am a business man who looks at long-term interests. As long as our offspring are not prodigal, it is very difficult for a company to go bankrupt The most important thing is that I am not yet 23 years old. Surprisingly, I think 30 years later, I can still work together.”

"I can pay the deposit in advance at the beginning of the cooperation, and settle the payment every quarter. I will never default. You should understand that I do not like to owe money when I am in business."

Stevenson: "How much security deposit do you have to pay, and we can only supply you with a 9.5% discount on the market price at most. The mining business is different from the technology industry, and it does not have such high profits. I hope you can understand."

Bao Zixuan: "US$200 million will be kept in BHP Billiton's account for a long time. However, after our calculation, a 30% discount is a price that you can accept. And we will transport all the goods by ourselves, but you will be required to pay for the pre-rail transportation and terminal storage costs. In addition, our company has the priority to renew the contract for 20 years when the contract expires in the future, and the security deposit can be increased to 500 million US dollars at that time.”

The current negotiation is done by the staff in advance, and Bao Zixuan's coming here is only for signing. It won't be like going into battle naked before, which would be too passive.

In this way, lawyers from both sides began to draft the contract, witnessed by local officials; Bao Zixuan and Stevenson signed their names. This contract, which at the time made Stevenson's prestige at BHP Billiton at an all-time high, almost had BHP Billiton's management dug up and whipped him a few years later.

It's still such a long time, not to mention the discount of the total annual mineral supply of 50 million tons. The most important thing is that whoever breaches the contract will have to pay the security deposit multiplied by the number of years. There is also the priority to renew the contract when the contract expires. This is a contract that no one dares to breach. With this contract, Bao Huodong can earn hundreds of millions of dollars every year by reselling it, and it is still increasing year by year.

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