Chapter 472: Fan Wu's Deep Solution
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To enter the Western Australia iron ore industry, we must at least open up these joints.
First, it is to obtain exploration rights from the government. This is the primary problem. Only with the right to explore minerals on a certain piece of land can one ensure that one’s rights and interests are not violated and that what he has paid can be rewarded.
The second is to have enough funds to maintain the operation of his mine. Fan Wubing has never been worried about this.
Third, it is necessary to have the right to build railways and ports. Without their own ports and railways, ores cannot go to sea, so it is impossible to achieve this wish. Although Rio Tinto and BHP have railways and ports, if they want to use their ready-made resources to compete with them, unless they are crazy, it is impossible to achieve this wish.
Of course, in addition to these three points, there is another more important condition, which is that you must know where to find rich mines. If you can't find the mine, everything will be useless.
In this case, few local companies in Western Australia have the courage and ability to compete with the two developments. This not only means that the initial investment will exceed tens of billions or even tens of billions of dollars, but it is also difficult to ensure that the later returns will definitely generate surpluses. The most important thing is that they may face the two developments at any time, which is what everyone is most worried about.
Rio Tinto's position in BHP in Western Australia and even the entire Australia is deeply rooted, with its intricacies and profound influence. Australians have become accustomed to living under their shadows. As for the sense of resistance, or some, few people will foolishly stand up and say to them that it is not the consequence of Australia's conservative style.
Therefore, when Hydesfan's disease-free problem with iron ore, he directly stated that even if the government permits and supports it, it is not easy to operate. It is because man, material, financial and luck are concentrated together to achieve this breakthrough. There is also a prerequisite, that is, the two-tao will not drag down.
Heides told Fan Wubing, "It is at least two or three hundred kilometers away from the development area to the port. How much money is needed to build such a long railway? Moreover, most of the nearby areas have been explored, so you can only go to deeper inland. As a result, various resources such as power supply are difficult, which require new investment. Generally, according to our inference, a new mining company will be established. Even if the mining area is explored from the beginning, it will take at least five years to officially launch and transport it out."
Fan Bing nodded, thinking that Hydes' words were quite pertinent. The ore industry is considered a relatively low-tech industry in Australia. It is far from comparing other high-tech industries except for the relatively dense capital investment.
Even if the land sales are huge, the annual income is just in Fan Wubing's opinion. If we had not seen the important role of steel in the national economy, and the huge steel gap in China needs to be solved after the deepening of reform and opening up, Fan Wubing would not have been too lazy to make this money. He would have made a relatively fresh thing and made a lot more money than doing so.
But as an outstanding businessman with a mind, vision and experience, Fan Wubing feels that sometimes he has to be politically conscious when making money. He can compete with Liangtuo after gaining a place in Western Australia. In the future, he will have a say in the world iron ore industry. This influence is quite far-reaching.
So Fan Wubing said to Hydes. "If our Fan Investment Group also wants to explore mineral resources in Western Australia, can the application procedures be approved soon?"
Heides said with a smile. "The current policy of our country is to welcome economic liberalization. If your company is willing to come to Western Australia to develop, we are of course very welcome. The greater the investment amount, the greater the contribution to our local economy. This is beyond refusal. I think Governor Skye also holds the same view."
Fan Wubing nodded and asked Hydes to continue drinking. As a senior economic expert in the state government, Hydes dialect can basically represent the attitude of the Western Australian government. There will basically be no big deviation.
Originally, the local environment is that Australia is undergoing economic reform. Fan Wubing has taken the express train. In addition, most workers and technicians will come to Australia from mainland China. This is also in line with the principle of building a strategic partnership with Australia. The state government cannot have any objections.
Heides said goodbye after the banquet and left, but Fan Wubing gave him two antique vases as a souvenir.
"It's just an ordinary handicraft, probably not an antique, but it needs to be identified by experts." Fan Wubing said.
There are few politicians in the world who do not accept bribes, let alone economic experts like Hydes who work in government staff. He accepted Fan Wubing's gift very happily and expressed his willingness to welcome Fan Wubing to the state government instead of Governor Skye, and he will promote Fan Wubing to the state government as soon as possible.
The long-term meeting was to promote Australia's economic development between the Western Australian Government and the Fan Investment Group.
Heides' words were also very impressive, but Fan Wubing knew very well in his heart that Australians also like to see beautiful, large-value US dollars. Although Australia is very beautiful, the flower world outside is also very attractive. Only by having money can you go abroad. This is also the wish of many Australians.
Things like money are a stepping stone that has been tried and done everywhere you go.
After sending Heides away, Fan Wubing held a short meeting of important cadres and learned about their work during their period 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. During this period, they had already figured out the power divisions of Rio Tinto and BHP Billiton in Western Australia, and clearly marked the developed and undeveloped mining areas on the map.
"It seems that only the northern inland has not been explored, but if you want to get there, the investment will be an astronomical number." Carter said helplessly after explaining the curve indicated by the lock on the map to Fan Wubing.
"I never thought it would be so far--" Fan Wubing shook his head and said.
In the eyes of everyone, he used a pencil to draw two lines on the large map and surrounded a area.
Although Rio Tinto and BHP occupy most of the mining areas and are rich mining areas, in order to avoid conflict, there are a series of blank areas between them, which are all unlimited. Moreover, when measured in the past, the ore content in these areas was also very high, but it was still lower than the rich mines that Rio Tinto and BHP were mining.
The ore developed is the principle that it can be used directly. Rio Tinto and BHP Billiton directly gave up the mining areas with slightly lower quality and went directly to those rich mines, which caused the current situation of no one developing in a large blank area between the two companies.
What Fan Wu wants to plan is this large area of uninhabited land.
Fan Wubing said to the surprised employees, "My goal is to take down such a large area. How much do you think it will cost? And what will the Western Australian government react?"
Carter has been studying this issue for a long time. He scratched his head, looked at the area marked on the map, and then said to Fan Wubing, "This is probably a area of less than 70,000 square kilometers, and it is an area that the Western Australian government has basically abandoned. No one has ever wanted to survive in the gap between Rio Tinto and BHP, so the valuation here would be very low. Probably, I guess we only need less than 10 million Australian dollars to take this place."
After hearing this, Fan Wubing couldn't help but sigh, "It's only 10 million Australian dollars, it's really cheap."
It is no wonder that before the commercial value of this land was highlighted, although there were iron ore in this wasteland, everyone thought that the quality was relatively low and not worth investing, so the land price was also very low. Carter gave an valuation of 10 million Australian dollars, which was already overestimated.
Fan Wubing thought for a while and then told Carter, "Well, I authorize you to make a decision if you can find a way to buy the exploration rights in this area within 20 million Australian dollars."
Card Feature Head assured, "Ten million Australian dollars, if it exceeds this number, even if my supervisor is too poor!"
"In addition, I arranged for me to meet with Governor Case in an appropriate place. I hope to solve everything at once. Although Hydeth said it would take at least five years to see the profit, I hope to get it done within two years, so our time is very tight." Fan Wubing then made his own request.
Carter assured Fan Wubing with confidence, "Boss, please rest assured, Australians are used to being lazy. The five years they said, in our opinion, two years are enough and will not delay your plan.
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"If this goal can be achieved within two years, I will promote you to the top management of the group." Fan Wubing also proposed his own reward measures to Carter.
The senior management of the group! After hearing this, Carter was as excited as if he was injected with chicken blood. This is not a height that anyone can reach. When he entered the senior management of the group, he received more than just money. As a result, the stock and option rewards given by the boss were also given by the boss. Although it may not be from the head office, it was enough to live a happy life with his family for several lifetimes.
After seeing Carter's expression, Fan Wubing felt very satisfied. People are heroes, money is courage. At the critical moment, the role of the US dollar is incomparable.
Today's third update is to be continued,)
Chapter completed!