Chapter 351: Pioneering a New Path to the Rise of a Mining Giant
Erwin stared blankly at Bill, his mind chaotic and momentarily forgetting he was still conducting an interview.
Before today, he had always viewed Li Tang primarily as an extraordinary scholar, secondly as an exceptional investor. But at this moment, he suddenly realized another dimension to the mysterious Chinese figure—he was a master strategist.
Clearly, he had vastly underestimated that Chinese man all along!
What went through that man's mind couldn't possibly resemble normal human thought; could he possess some sort of superhuman intellect?
In Erwin's eyes, the image of that Chinese man transformed instantly from a humble, low-key youth into a powerful beast lurking in darkness, his sharp fangs glinting menacingly as the spotlight slowly revealed him.
Now, he was preparing to strike.
All mining companies around the globe would tremble before him.
"Perhaps my current viewpoint seems somewhat ahead of market developments. In the short term, market dynamics won't shift dramatically, but within two or three years, reality will align with my predictions," Bill noticed Erwin's stunned silence, thinking perhaps the reporter found his words difficult to believe, and repeated: "Currently, international coking coal prices are high, but nowhere near their real peak."
"Mr. Bill, I believe you," Erwin snapped back to attention, "and your insights are profoundly thought-provoking. I realize now my previous reporting on Li Tang wasn't thorough enough, as if my vision had been clouded by fog. Your words have just guided me clearly through the mist."
Bill smiled gently. As a scholar, enlightening others was always satisfying.
"The Malu River Coal Mine's value is already high, but it will become even more crucial in the future."
He had basically concluded his remarks, having covered the significant points, deliberately omitting trivial technical details and instead emphasizing economic impacts. Clearly, this angle better demonstrated the true significance of the mining rights.
Bill remembered the second topic of their conversation, the Mali River Iron Mine, and thus smoothly shifted the dialogue: "Regarding Mali River Iron Mine, I've never visited Baffin Island; my health no longer permits journeys to such harsh, cold climates. But inspired by Li Tang's investment, I've researched the historical data extensively."
"What do you think makes this project noteworthy?" Erwin attentively continued his questioning.
"Given today's soaring iron ore prices, many sharp minds noticed Mali River Iron Mine's potential even before I did."
Bill took out a folded handwritten note from his pocket, glancing over it: "I don't know much about the project directly—my analysis comes solely from historical records. You should remain skeptical, as academic study demands skepticism."
"Please continue," Erwin was a liberal arts graduate, not overly strict about accuracy.
After carefully reviewing his notes again, Bill explained thoughtfully: "According to exploration data from the early 1970s, large deposits of magnetite and hematite were found exposed at the surface near Mali River, Baffin Island. The main orebody extends over three kilometers. Additionally, multiple iron ore deposits were identified in nearby regions, all shallowly buried."
Erwin nodded, clearly unaware of this detail previously.
"If not for the extremely harsh climate, large-scale surface-exposed iron ores like these could simply be excavated and transported directly to nearby ports for worldwide shipment."
Although Bill spoke softly, his words contained excitement: "The Mali River Iron Mine has extraordinarily high ore grades, averaging between 66% and 67%, among the highest-quality iron ores globally. Moreover, these ores are easily identifiable from surrounding rocks. Mining cost is primarily influenced by the stripping ratio, and here it's exceptionally favorable, surely less than one. This represents an ideal mining geological scenario!"
"So, you believe the mine will have significant economic value?"
"Ultimately, it depends on final exploration results. If Mali River Iron Mine proves large enough, they only need to build a railway less than a hundred miles long to export high-priced lump ore to global markets via sea transportation."
Bill sighed, "That would bring endless profits!"
"You sound a bit regretful," Erwin noticed Bill's emotional shift.
"Clearly, these mining rights were overlooked for too long. Now, a Chinese man has claimed them."
"Does this mean you're certain Mali River Iron Mine represents a missed opportunity for Canadian explorers? Does it imply substantial reserves?"
"The scale is unquestionably huge!" Bill confidently affirmed, "Given its excellent surface exposure, if ore deposits continue several hundred meters below ground level, it will surely become Canada's largest iron mine! Should the deposits reach depths exceeding a kilometer, its reserves could become unimaginably massive!"
"What's your estimate on reserves?" Erwin wanted concrete numbers.
"From surface observations alone, reserves exceeding a hundred million tons seem certain. If continuity persists down to two hundred meters, reserves of three to five hundred million tons are guaranteed. Beyond that depth and further areas, it's impossible to gauge accurately—it could range from one billion to even five billion tons!"
Bill never offered half-hearted opinions, stating decisively: "I lean towards believing it's a giant iron deposit, unprecedented in Canadian history. Even existing limited drilling data supports this."
"So, you're saying Li Tang has secured yet another world-class iron ore base?" Erwin posed a critical, widespread question.
"Exactly!" Bill folded away his notes, reflecting aloud: "Recently, media discussions about Lianying Mining's ambition to surpass BHP Billiton and become the world's largest mining enterprise have intensified."
"Indeed, earlier this seemed like an exaggerated joke or just a wild aspiration for Lianying Mining. Nobody believed it—it appeared impossible," Erwin sighed deeply. "Yet now, with Lianying Mining's mines operational and Li Tang's leadership, this once fantastical goal suddenly seems possible."
BHP Billiton had a market value close to 200 billion Australian dollars, compared to Lianying Mining's mere 30 billion. The gap equated to at least five Lianying Mining companies.
Previously dismissed as impossible when Lianying was smaller and unprofitable, the rapid increase in its share price, combined with Li Tang's unusual strategies, now made this notion less absurd.
"If Li Tang indeed integrates Malu River Coal Mine and Mali River Iron Mine into Lianying Mining, I firmly believe there's a high probability it could match or surpass BHP Billiton's scale!" Bill asserted confidently.
He genuinely hoped to witness this historical event.
Major global mining giants like BHP Billiton, Freeport-McMoRan, or Anglo American had traditionally grown through continuous mergers and acquisitions.
However, Lianying Mining's approach—expanding by developing its own mines—was quite rare.
Once a mining company reached a certain size, further expansion became increasingly difficult. Growth required securing new mining rights, most of which were tightly held by mining giants unwilling to relinquish core assets.
Yet, Li Tang repeatedly discovered new world-class mining assets through exploration.
His methods were unprecedented in mining history, pioneering a new growth path for future mining giants.
He had effectively taken a shortcut others could never replicate due to lacking his unique capabilities and vision.
Erwin pondered deeply, understanding much more clearly now.
"How far Li Tang or Lianying Mining can ultimately go—we'll wait and see."
The following day, Canada's Financial Post published this interview prominently.
Though presented in Bill's words, Li Tang and Lianying Mining featured even more prominently. The article explicitly outlined the extraordinary significance and future global industrial implications of Malu River Coal Mine and Mali River Iron Mine.
Malu River Coal Mine, already acknowledged as Canada's largest, was predicted possibly to surpass Talego Coal Mine, becoming the world's largest. The strategic importance of such rights was unquestionable.
International mining giants, especially global thermal coal leader Stranta, eagerly sought partnership opportunities but were rebuffed politely by Li Tang's Shengshi Holdings, though the door remained open for future discussions post-exploration.
Additionally, Mali River Iron Mine sparked significant external reactions. Bill practically guaranteed its status as Canada's largest iron mine, potentially one of the world's highest-quality, most valuable deposits, comparable only to Simandou Iron Mine—also under Li Tang's control.
Iron ore and coal represented industry lifelines; without them, industrial sectors starved. Talego Coal Mine, Malu River Coal Mine, Simandou Iron Mine, Mali River Iron Mine, Lianying Mining—all bore Li Tang's name, sending alarm signals through global industrial sectors.
The article boldly concluded that incorporating even one or two of these mines into Lianying Mining would powerfully propel its development, making surpassing the Big Three iron ore giants a real possibility, posing a direct challenge to BHP Billiton's top position.
Media worldwide quickly reprinted the sensational article, fueling fierce discussion across global mining industries.
Currently, at the annual Australian Mining Association conference in Sydney, reporters crowded around BHP Billiton CEO Gowries, hurling rapid-fire questions about Lianying Mining's challenge, new pricing strategies, and market impacts.
Gowries, usually cordial, remained cold-faced this time, dismissing the notion of Lianying Mining surpassing BHP Billiton as utterly absurd.
In his eyes, comparing a 30-billion-dollar Lianying Mining to his 200-billion-dollar titan was a foolish joke.
Perhaps becoming irritated by the persistent questioning from reporters, he suddenly stopped, sharply pointing out flaws in their inquiries: "First of all, the Simandou iron ore reserve of 2 billion or even 1 billion tons is merely speculation; that project has not completed all the exploration verification work. Secondly, the Mali River iron ore project has just begun exploration. I neither know nor care about its current progress or any results obtained. Thirdly, whatever Lianying Mining does has nothing to do with us. Mining is a serious industry with practical concerns, not celebrity gossip. Please remain rational; avoid excessive hero-worship or blind adoration as if dealing with international superstars!"
After speaking, he walked swiftly forward into the conference hall.
His statement actually contained deeper implications.
Some journalists were already planning mischievous headlines. Soon enough, articles would emerge claiming that BHP Billiton's CEO Gowries criticized Lianying Mining and Li Tang's business model, likening it to the superficial glamorization of an entertainment celebrity, among other similar distortions. Misleading excerpts combined with subjective interpretations would undoubtedly flood the news.
Inside the conference venue, representatives of mineral development and trading companies from various Australian states gathered.
Balmer had recently been spending a lot of time with Freit.
He had noticed how Freit gained enormous benefits by being close to Li Tang. Balmer's objective was to approach the influential Chinese businessman indirectly by befriending Freit.
"Earlier, when Simandou Iron Mine revealed its large-scale reserves, there was speculation about whether its rights might be incorporated into Lianying Mining, but until now, this matter remains undecided. Besides, exploration at Simandou Iron Mine has been progressing slowly," Balmer said, sitting next to Freit. "Now they're also talking about Malu River coal mine and Mali River iron ore—are these rumors reliable?"
"Absolutely reliable," Freit laughed.
"You never say anything truthful," Balmer shook his head with skepticism. They were both known as masters of hype; nobody could fool anyone here, as their tricks were nearly identical.
Freit glanced at Balmer, lowering his voice, "I heard you've recently contacted a Chinese enterprise interested in your 1-billion-ton magnetite deposit?"
Balmer raised his head proudly, "You've got ears like a dog, Freit! We're negotiating quietly, yet you still found out."
"I have many entrepreneurial friends in China," Freit chuckled.
"The partner I'm talking to is wealthy—a very big client," Balmer's eyes flashed with excitement. "Honestly, if this deal goes through, I'll soar straight to the top!"
In previous years, he had gained a somewhat negative reputation in mining and financial circles, just like Freit. Although their reputations weren't stellar, they still made money and became billionaires.
However, after Freit joined Li Tang's massive venture, acquiring a 10% equity option in Lianying Mining—which diluted slightly to 9% following fundraising—his net worth surged into billions of Australian dollars, significantly surpassing Balmer's.
The two old friends always argued playfully whenever they met, secretly competing inside their hearts.
Balmer believed the billion-ton magnetite ore rights he owned couldn't possibly be inferior to Freit's achievements, and he was unwilling to stay behind.
Recently, several Chinese enterprises had expressed interest in cooperating with Balmer to develop his magnetite project, and he selected the strongest among them.
"Congratulations! I hope you have a pleasant partnership," Freit remarked meaningfully.
"As long as there's money to be made, I don't care if it's pleasant or not!" Balmer's methods and thinking had always been sharp and pragmatic.
"No time to chat, I need to meet another old friend," Freit stood up, noticing Alba, CEO of Rio Tinto, had arrived.
As Alba took his seat, Freit quickly approached, "Freit, lately you've really been in the limelight—even more famous than pop stars! I heard your Lianying Mining wants to surpass BHP Billiton to become the world's number one?"
"It's a goal, achievable within a few years," Freit didn't deny the ambition. For a corporate manager, ambitious targets provided purpose and motivation.
"Will Malu River coal mine and Mali River iron mine really be integrated into Lianying Mining?" Alba probed further.
"It's possible," Freit admitted frankly, though unsure of Li Tang's real intentions.
After all, Lianying Mining, Malu River coal mine, and Mali River iron ore each belonged to separate companies—Simandou iron ore was similar. Each mine corresponded to an individual company, and each could potentially grow into a huge mining giant independently. Consolidating all these assets under one entity required Li Tang's explicit consent. Should it actually happen, an unprecedented giant mining conglomerate would emerge.
Alba remained silent for a moment, clearly troubled by envy over Li Tang holding numerous valuable mineral rights, along with feelings of frustration.
In particular, rights to Simandou iron ore Blocks 1 and 2 had been snatched directly from Rio Tinto's hands.
They had previously pursued arbitration, but lost because their exploration license had expired, and insufficient exploration expenses had been invested according to the stipulated requirements during the license period.
Thus, legally, Simandou Iron Mine rights were lost to Li Tang. Rio Tinto suffered silently without recourse—a bitter pill indeed.
Now, the Mali River iron ore was rumored to match or even surpass Simandou's quality and scale—potentially yet another world-class deposit. With numerous crucial mining rights controlled by Li Tang, Alba had legitimate concerns that someday the Chinese entrepreneur might truly overturn the international iron ore order.
These worries weren't exclusive to Rio Tinto; Vale and BHP Billiton shared the concern. Particularly Vale and Rio Tinto, who were overly reliant on iron ore. Should iron ore prices collapse, their corporate status and scale would rapidly deteriorate.
At that point, Alba feared becoming Rio Tinto's historical sinner.
"Your boss is really remarkable," Alba admitted sincerely.
Freit, hearing this praise, wasn't entirely pleased. His boss was indeed remarkable, but Freit himself was also highly capable. Everyone recognized Freit's significant contributions to Lianying Mining's current status.
However, he didn't come to bicker with Alba today; he had official business.
"Our iron ore operations at Chichester have officially started, and our crushing and beneficiation plants are running smoothly, handling the initial batch of ore."
Freit smiled at Alba, "According to our agreement, we are now ready to utilize your railway network and port facilities."
Alba's mood instantly deteriorated further. Having lost Simandou's rights to Li Tang, he still had to help Li Tang ship ore!
Had he foreseen this outcome, Alba would have refused Li Tang's demands when acquiring the Pebble Project—even if paying extra cash instead.
The transport agreement, involving a total of 60 million tons of iron ore, became ammunition for other iron ore firms, accusing Rio Tinto and Alba of making foolish decisions.
Some critics directly argued Lianying Mining's high share price, large-scale supply contracts, and ample funding were significantly influenced by Rio Tinto's transportation agreement—perhaps not the entire reason, but certainly a trigger!
Essentially, Rio Tinto had inadvertently nurtured Lianying Mining into their direct competitor—an absurd scenario!
Alba, unable to defend himself, had no choice but to honor the agreement due to hefty penalty clauses, potentially costing billions if breached.
Reluctantly, Alba swallowed his displeasure and nodded, "Our rail network has logged your demand; iron ore can be shipped anytime!"
"Thank you!" Freit enthusiastically grasped Alba's hand. If standing, he would have given Alba a warm embrace.
Unable to smile, Alba sternly reminded, "Tell your boss if he wants to sell Simandou Blocks 1 and 2 or Malu River coal mine, come negotiate directly with me anytime—cash or shares, both acceptable."
"I will definitely pass along your message! Our boss would also love continued cooperation," Freit's smile grew brighter. "Having you as a partner and friend is truly my privilege, and Lianying Mining's honor!"
Observers were surprised. Apparently, Alba and Freit enjoyed better relations than rumored; Rio Tinto and Lianying Mining weren't necessarily adversaries.
…
From Canada, Frando flew to Yanjing.
"Mali River iron ore has barely started exploration yet already attracted enormous attention!" Frando smoked a cigar, his horse-like face beaming proudly. "Several iron ore giants have contacted our Cold Iron Company. Richard from Alcan personally called, wanting involvement!"
Recently, Li Tang had seen extensive news coverage domestically, widely circulating reports from Canada's Financial Post.
Iron ore and coking coal, essential industrial resources, commanded great demand internationally. Current global market trends still suggested rising values. Premium mineral rights never lacked eager investors—they represented core assets for mining companies.
Skyscrapers required sturdy foundations; mining giants stood firmly upon high-quality mineral rights.
"Exploration has just started—why so popular?" Li Tang wondered aloud.
"Preliminary air-drilling reached 100 meters, confirming continuous and intact ore layers," Frando revealed confidently. He had strong faith now in Mali River iron ore's prospects as a massive, world-class deposit.
Given the harsh Arctic conditions at Baffin Island, Li Tang sympathized deeply with exploration teams enduring extreme conditions.
Currently, however, industry and media scrutiny intensified regarding Mali River iron ore. Results confirming large reserves would inevitably ignite another wave of excitement.
"Let them speculate—we'll do our own work without distraction," Li Tang remained calm and unaffected by external hype.
Sipping tea, he asked Frando, "Besides Mali River, is there something else you came for?"
"Yes," Frando handed over a file. "We previously agreed—before forming Cold Iron Company—to jointly explore Africa."
"What's this?" Li Tang studied the document closely.
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 40 Chapters In Advance: patreon.com/Johanssen