Moreover, domestic industrial and agricultural development has not slowed down at all this year, but has also developed at a higher speed. It would be good to keep the prices of imported mineral raw materials from rising. It is basically impossible to reduce prices.
In order to force international mineral suppliers not to raise prices, domestic state-owned oil companies have increased the exploitation of many offshore oil fields in our waters.
At the same time, Tianxing Mining Company announced early on the mining of 1 billion tons of seabed iron ore on the high seas, and in the middle of the year, it began to supply iron ore to the country on a large scale.
To be honest, when international ore and oil suppliers saw that my country's demand has suddenly increased a lot this year, they have already proposed price increases and even sent delegations to negotiate prices.
In fact, the rapid development of my country's economy in the past few years has made international mineral suppliers want to increase prices significantly, but Zhao Yihe and the government have prevented them from succeeding.
Although prices have not increased significantly, small increases are inevitable. As long as they are within our acceptable range and do not affect the overall stable development of our country's economy, we can only tolerate this situation.
In the past, there was a small increase every year, which did not have much impact on my country's economic development. This time, when the economic development is confirmed to be accelerating, we have already foreseen that international suppliers will take the opportunity to significantly increase prices.
This is why when Zhao Yi established Tianxing Mining Company, he applied for preferential policies and the government basically accepted them all. This is because everyone knows that some means of containment must be put in place, otherwise he will be at the mercy of others.
Before the international supplier group came to negotiate prices, Tianxing Mining Company announced its plan to mine seabed minerals and also listed a detailed timetable.
However, this news did not attract the attention of international suppliers, because in their view, it is simply a fantasy to carry out large-scale seabed mining on the high seas. Regardless of whether this technology is available, the cost is higher than theirs. Take out a lot.
The disbelief of these international suppliers is very detrimental to my country's import of bulk minerals. The country can only try its best to procrastinate and hope that Tianxing Mining Company can be completed and put into production as soon as possible.
It can be said that during this period, Tianxing Mining Company invested a lot of energy in order to put into production as soon as possible, and the construction team was working hard to catch up with the progress.
It is precisely because of the united efforts of all employees that they built an iron ore collection point on the high seas with a daily output of 100,000 tons and an annual output of more than 36 million tons in just over two months.
When this news came out, it attracted great attention around the world, especially those large international suppliers. They changed from being dismissive before to being anxious now, and the change was very fast.
Although the annual output of this mining site does not seem to be high, compared with our country's annual consumption, it is simply not worth mentioning, but the deterrent effect it brings is not weak at all.
Being able to successfully build a seabed mineral mining site means that Star Mining Company has mastered mature seabed mining technology, and it also shows that Star Mining Company has mastered seabed mineral exploration technology.
With these two technologies in hand, it is very easy to expand production. Offshore mining does not require the construction of a large number of ore transportation channels like land mining, which requires large investment and long time.
This means that Tianxing Mining Company wants to expand production very quickly. The only thing limiting the development of Tianxing Mining Company now is cost.
As long as the price of these ores is set below the seabed mining costs of Tianxing Mining Company, Tianxing Mining Company will not be able to develop, and the more it mines, the more it will lose money, which no one can bear.
It's just that they don't know the true mining costs of Tianxing Mining Company, but seeing that Tianxing Mining Company has begun to supply domestic steel companies at the same price as theirs, it shows that at this price, Tianxing Mining Company can make a profit.
You must know that the seabed iron ore announced by Tianxing Mining Company has reserves of 3 billion tons. It can be ranked high in the world's iron ore family and is a super-large iron ore.
Moreover, after Tianxing Mining Company built its first seabed mining site, it immediately announced the construction of a second mining site and announced that it would expand its production capacity to more than 100 million tons of iron ore per year.
As for whether it will continue to increase production, no one is sure. If iron ore prices continue to rise, Tianxing Mining Company will definitely continue to increase the construction of mining sites, that is for sure.
Moreover, if Tianxing Mining Company can explore the first seabed iron mine with such large reserves, it is natural that it may also explore a second and third mine. In this case, it is really possible for Tianxing Mining Company to become bigger.
By then, international iron ore suppliers like them will suffer. Their international influence will be significantly reduced, and it will also affect the economy of the country where they are located, causing their relationship with the local government to be less harmonious.
Of course, it is not that they have not thought of using the United Nations to restrict the expansion of Tianxing Mining Company's mining industry on the high seas. After all, if you want to mine on the high seas, you must purchase a high seas exploration license from the United Nations.
It’s just that our country is one of the five permanent members after all. It is not one of those small countries and cannot be manipulated by others. In addition, our country’s economic scale has exceeded that of Yingjiang. It has economic interests with many countries and has a lot of support.
What's more, our country's naval military equipment was like dumplings in the first half of the year. A large number of naval warships were launched into service every month, and the naval strength was greatly strengthened.
Especially after our country's long-range strategic bombers were photographed by satellites, our country's voice in the United Nations became even greater. It would be impossible to rely on this method to deal with Tianxing Mining Company.
So after going round and round, we returned to the price war strategy. Since we couldn't figure out the mining costs of Tianxing Mining Company, we could only stay put and maintain the agreed price last year.
Because if they cut the price too low, although it is possible to kill Tianxing Mining Company, they will also suffer huge losses, and may even suffer losses. This is a trick that kills one thousand enemies and damages eight hundred.
Therefore, this degree is difficult to grasp. It is very difficult to make a profit for yourself and to make Tianxing Mining Company suffer losses. It cannot be decided in a short time.
If we are unable to find out clearly the mining costs of Tianxing Mining Company, and if their mining costs are lower than our own and a price war begins, then we will kill ourselves first before we kill the other party.
Seeing that Tianxing Mining Company is still continuing to build the second seabed mining site despite maintaining the original price, these international iron ore giants know that at least at this price, Tianxing Mining Company is profitable.
In order to prevent Tianxing Mining Company from continuing to build more mining sites after building the second mining site, causing damage to their business, they have to plan to lower the price of iron ore in the coming year.
You know, under the same price conditions, our country will definitely give priority to purchasing iron ore from Tianxing Mining Company. After all, this is our own mining company. There is no reason to take advantage of others without taking care of our own people.
Therefore, they are very afraid that Tianxing Mining Company will continue to expand production. By then, Tianxing Mining Company will be able to live happily by relying on the domestic market, and even become the mining company with the largest sales revenue in the world, becoming a mining giant in one fell swoop.
More importantly, they don't know how many seabed mineral deposits Tianxing Mining Company has in its hands. If it's just this one, they are not particularly worried.
Although the total amount is 3 billion tons, there is still a big gap compared with the reserves they have. my country's annual iron ore consumption is expected to reach 300 million tons this year, an increase of 30% from last year. .
According to the demand trend in the second half of the year, by next year, my country's iron ore demand will reach more than 500 million tons. Of course, they want to occupy such a huge market.
In the first half of this year, although domestic demand for iron ore increased, it was not so obvious because at this stage, only the domestic industrial sector was expanding, and it did not achieve the maximum effect.
After the second half of the year, not only the demand for steel materials in the domestic industrial sector increased significantly, but also the urbanization construction of China Housing Corporation across the country was gradually launched. Although it was still in its initial stages, the demand for steel increased significantly.
If Chinese housing companies go all out next year, it is very likely that the 500 million tons of demand estimated by these international iron ore giants will not be enough, and it is not impossible to increase it to 600 million tons.
This is because my country's steel production capacity is basically focused on domestic sales. If the steel export business develops well, the demand for iron ore will be higher.
If the strategy is not changed, it is very likely that all the extra production capacity will be taken away by Tianxing Mining Company, and by then it will not be able to dominate China's iron ore prices.
According to the cycle of Tianxing Mining Company to build its first mining site, two months is too short. If it is willing to invest, it can expand its production capacity to an annual mining volume of 300 million tons this year.
It only needs to build 10 such large-scale mining sites to achieve an annual iron ore production capacity of more than 300 million tons, and this will not bring additional costs and expenditures, and there will be no obvious incremental marginal cost effect.
If no measures are taken, when Tianxing Mining Company actually builds 10 mining sites, they will have nothing to do later, and all of China's new iron ore demand will be occupied by Tianxing Mining Company.
Therefore, before the international iron ore giants have negotiated next year's price, they have begun to negotiate with my country for next year's iron ore price agreement, and they are still adopting a price reduction strategy.
However, after Tianxing Mining Company heard the news, they did not stop the construction of their mining sites, and continued the construction in an orderly manner.
Because according to their declared price after price reduction, Tianxing Mining Company is still profitable. As mentioned earlier, Tianxing Mining Company seems to have higher mining costs than these international iron ore suppliers.
This is because the price of the seabed mining equipment they purchased from Tianshu Machinery Company is too high, but Tianshu Machinery Company also belongs to Zhao Yi's industry, and their interests are all in the same pot.
If Tianshu Machinery Company is allowed to lower the price of seabed mining equipment, or even sell it at a small profit, then Tianxing Mining Company's mining costs will actually be much lower than those of these international iron ore suppliers.
This is determined by several aspects. The first aspect, as mentioned before, is that they do not need to spend huge sums of money to build transportation channels from mining sites to coastal ports. They only need to build a docking platform for ore ships on the sea surface platform.
This construction cost is much cheaper than land mining. Although the materials and construction standards required are very high in order to withstand strong winds and waves at sea, the overall transportation cost is much lower than that of land mining.
The second aspect is that the high seas are places without sovereignty. Apart from paying a license fee to the United Nations, there are no other additional fees and there is no need to maintain relationships. The costs in this area will also be reduced a lot.
Just paying taxes to the local government will increase the cost a lot. Tianxing Mining Company can save this cost. Even if it wants to pay taxes, there is no place to pay. Even import duties have been waived by the government.
These two factors determine that Tianxing Mining Company's mining costs are much lower than those of land mining, so it is not afraid of price wars between these international iron ore giants.
Therefore, it is understandable that when the international iron ore giants jointly announced that the price of iron ore exports to my country would be reduced by 10% next year, they remained unmoved and started building new mining sites in an orderly manner.
The current price of iron ore is US$55 per ton. Even if it is reduced by 10%, the price per ton is still more than US$50. Such a price will not affect the plans of Tianxing Mining Company at all.
If it were not for the influence of Tianxing Mining Company's low-profit operation on the outside world, most of the profits were transferred to Tianshu Machinery Company, and the equipment was purchased at normal prices, the seabed mining cost of Tianxing Mining Company could reach US$15 per ton.
The main reason why Tianxing Mining Company wants to transfer most of its profits to Tianshu Machinery Company is to reduce other people's coveting of the high seas mining field.
This is not to say that they are afraid of others entering this industry. After all, not everyone has the ability to enter this field. Even if they invest huge amounts of money to develop related technologies, they don’t know how many years it will take to succeed.
Even if it succeeds, Tianshu Machinery Company's equipment costs are much lower than theirs. In addition, the previous investment has been earned back. In the field of seabed mining equipment, it is simply impossible to compete with Tianshu Machinery Company.
In addition, the cost of seabed mineral exploration is much higher than that of land exploration. Their cost of entering this seabed mining is not lower than the cost of land mining, or even much higher.
What Tianxing Mining Company is afraid of is that all countries in the world will unite to deal with Tianxing Mining after seeing that high seas resources are huge profits. If this situation really happens, no matter how powerful Tianxing Mining Company is, it will not be able to fight against the whole world.
It doesn’t even require other actions, just joint promotion to prohibit companies from mining on the high seas. It can be said that the name is to protect the seabed environment of the high seas and avoid irreparable impacts on marine life.
Although 3 billion tons of iron ore sounds huge, it is not. Compared with the area of the ocean, it is just a drop in the ocean and not worth mentioning. However, if it cannot withstand the collective jealousy of others, it will really be in trouble.
Of course, Zhao Yi's previous statement about the higher cost was not very authentic, but only in this way can he deceive everyone. If he can't even deceive his own people, how can he deceive others.
The power of international mining giants is underestimated, and their domestic interests are also complicated. The best way to keep it secret is to not disclose any information to the outside world.
Not to mention the outside world, it is the employees of Tianxing Mining Company. From the series of expensive equipment purchase lists, it is clear that the cost of seabed mining is definitely not low. This is the significance of asking Tianshu Machinery Company to significantly increase the price.
But the difference is that Zhao Yi originally decided not to mine on a large scale, but now he has changed his mind and plans to let Tianxing Mining Company's iron ore output reach a certain proportion in the country, with a minimum of 30% and a maximum of 50%.
In this case, even if an emergency occurs in the future and the supply of these ore raw materials is not available, it will not have a particularly large impact on our country's industrial production.
As long as it lasts more than two months, Tianxing Mining Company can unlimitedly increase its production capacity. With Tianxing Mining Company, it will be enough to ensure the supply of domestic iron ore.
In order to ensure the stability of my country's industrial development, Tianxing Mining Company also plans to reserve about two months of iron ore reserves in the country to prepare for emergencies.
However, this reserve cycle will be very long. At least for now, there is no need to worry too much about the lack of international iron ore supply. The international situation has not yet reached that point. You only need to reserve a little bit every month.
In fact, in addition to the surge in demand for iron ore in our country, the demand for other metal ores is also continuing to rise. However, compared with the overall procurement scale of iron ore, other metal ores are much smaller.
After Tianxing Mining Company solves the problem of iron ore, it will not be too late to slowly mine other metal deposits on the high seas, and the proportion needs to reach about 50% of my country's demand to avoid being kidnapped by international ore prices.
In order to develop the U.S. economy and find cheap sources of resources, Eagle Sauce resorted to war, while our country's consistent foreign policy is peaceful coexistence and common development.
However, Zhao Yi also kept the experience of his previous life in mind, which is why Tianxing Mining Company was born. Only if he has sufficient production capacity and can determine the supply price of international mineral resources can he ensure the smooth progress of our country's economic development and avoid being overwhelmed. controlled by other countries.
To protect the country's economic interests is to protect its interests, because its share of the country's economic output is too high, and the two are already interdependent and irrespective of each other.
Even if he doesn't care about these financial interests, after all, he doesn't need much money personally, but as a responsible person, it is impossible to just focus on personal interests. The greater the ability, the greater the responsibility.
Especially for a person like him, if he only has this attitude, it shows a serious lack of moral integrity, which will not only bring disaster to the country, but also to himself.
If ordinary people do not act, they will only receive a mediocre evaluation. The greater their ability and the more social resources they occupy, the inaction is a crime. It is an unforgivable mistake and will inevitably be abandoned by society and history.
It is precisely because of this deep understanding that when he considers things, he not only starts from his own interests, but also needs to think about problems from a larger pattern.
It is said that the more and deeper you think, the more mature and stable you will be. Because of this, as young as him, he lives a very self-disciplined life and does not show off his personality like other young people.
Of course, it is precisely because of his maturity and prudent attitude, and his comprehensive and profound consideration of issues, that others do not treat him as an ordinary young man, and he is able to thrive among the top management in the country.
If you are a person with unstable personality and work, no matter how talented he is, if you want to entrust him with important tasks, you must think carefully and think of the consequences.
Over the years, Zhao Yi has done a lot of big things, and each one of them has been done beautifully. Coupled with his talent, he has become the most special being in the country, with a unique status.
Closer to home, although Tianxing Mining Company and the international mining giants are currently in the game stage, the international mining giants are still in the exploratory stage and want to explore the seabed mining costs of Tianxing Mining Company.
Once the cost is clear, there are only two options. The first one is to further pursue and kill Tianxing Mining Company completely, so that they can dominate the market and operate as a monopoly.
This choice naturally maximizes profits. There has never been anything easier to do and more profitable than monopoly business. As long as Tianxing Mining Company is driven out of the market, the carnival will begin.
However, they may never wait until this day, because the overall cost of Tianxing Mining Company is much lower than theirs. Even if Tianxing Mining Company operates at a loss, Zhao Yi will still make an overall profit.
This method can only be used against independent companies. In a conglomerate economy like this, you have no idea how the benefits are distributed behind the scenes, let alone their overall ability to withstand risks.
The second option is naturally to have a good discussion with Tianxing Mining Company and reach a consensus on ore price negotiation and market allocation. In this way, although huge profits cannot be obtained, both parties will not suffer.
It's just that the international mining giants will not make such a choice at the beginning. Without a head-on collision, they don't know how hard the wall is, and they don't know the lesson without a few bags on their heads.
Therefore, Tianxing Mining Company simply ignored their provocative behavior and just did its own thing and followed its own plan without being affected by them at all.
If they lower the price, Tianxing Mining Company will just follow suit. Anyway, no matter what move you make, Tianxing Mining Company will stick with you until the end. When the other party can't stand it anymore, it's time for negotiations between the two parties.
As long as they start thinking about negotiations, it means that Tianxing Mining Company will take the initiative. At that time, many things will be very easy to handle.
In addition, Sunflower Investment Company itself is the major shareholder of these international mining giants. When they are anxious to negotiate, Sunflower Investment Company can exert a very great influence.
Moreover, there is also a United Mining Company that is beating the drums on the side. By working together internally and externally, Tianxing Mining Company is basically in an invincible position in the subsequent negotiations.
Moreover, Tianxing Mining Company is not trying to kill them all, it is just telling them to abide by the rules and not rely on its monopoly position to increase prices unscrupulously, thus damaging the interests of our country's economic development.
As long as this goal is achieved, everything else will be easy to negotiate, and the market occupied by Tianxing Mining Company will not be able to spit it out by then. At most, the proportion at that time will be maintained.
This is also what Zhao Yi hopes to achieve. After all, if we can only enter but not exit, international trade will not be possible, and it will ultimately harm our country's economy.
What we need to do is to ensure our own interests, try our best to share the interests, and ensure that there are exchanges and exchanges. Only then can we drive the development of the entire world economy and form a good international trade environment. (End of chapter)