"Because of your breakthroughs in deep sea mining, iron, copper, gold, manganese, and other ores futures markets have significantly declined. In order to maintain the stability of the market, we, the mining giants, have made some efforts. Of course, the key to solving the problem lies with you. "
How many minerals were there under the sea? If Future Mining made a breakthrough in this area, investors' expectations of deep sea mining would undoubtedly increase. How many resources were there under the sea? Other than Jiang Chen, who obtained the global mineral distribution map, no one knew.
However, investors themselves were creatures of imagination.
Luke looked at Jiang Chen with a smile.
"If I didn't guess wrong, Future Mining's cost for deep sea mining shouldn't be high, and the production should be quite impressive."
Luke's expression didn't look like he didn't know anything. There was no point in hiding it, so Jiang Chen didn't hide it.
"You guessed correctly."
The labor cost was only the salary of the employees stationed on the offshore platform. The underwater equipment was powered by the ocean current generator, so the maintenance cost was almost negligible. The only equipment cost was also covered by crystals. Jiang Chen, who couldn't calculate the exchange rate between crystals and modern world currency, couldn't calculate the cost of the equipment.
But one thing was certain, the cost of deep sea mining was very low, at least before the emergence of space mining.
"Similar to my analyst's conclusion." Luke nodded with a smile.
"Currently, the global iron, aluminum, and copper ore market is in danger. Without exaggeration, if the iron ore price maintains its current downward trend, there will be 47 mining companies facing bankruptcy by the end of this year. In the short term, it may be beneficial to us, but in the long term, it's dangerous for us. So, I hope we can both take a step back to solve this problem. "
"So your suggestion is?" Jiang Chen looked at the smiling Luke as he was intrigued.
"If I remember correctly, you can influence Xin's government's decision. We hope you can influence the Presidential Palace's decision to raise the mineral export tax by 50% in the next five years to limit the export of domestic mineral resources, "Luke said softly.
To Jiang Chen's surprise, he originally thought Luke would propose to acquire Future Mining's technology, but he didn't mention this and only proposed a proposal that wouldn't hurt Future Mining.
"Limit Future Mining's entry into the international market to cool down investors? But what good does it do for me? "Jiang Chen smiled.
"Of course, we won't let you work for free. We're willing to provide you with an order for iron, aluminum, copper, and other ores valid for five years at 80% of the current market price of mineral resources."
For BHP, this was a huge step back. With a 20% discount, it was almost equivalent to supplying the ore at cost price, which meant they would work for Future Group for free for five years in exchange for Future Group's concession to delay the entry of low-cost ores into the global market.
"Use the power of capital to delay the introduction of new technology?" Jiang Chen said meaningfully.
"You can understand it as giving enough benefits in the hope that you can delay the development of this technology. In an environment where demand is low, introducing such technology is not good for the market as a whole, "Luke said seriously.
Luke had already made BHP's attitude very clear.
For an international mining giant like this, Jiang Chen would not naively believe that they would solve their problems through market competition. To be able to own so many minerals in more than ten different countries, their political investments must not be underestimated.
The reason why they brought it up was because they didn't want to have a direct conflict with Future Group. They didn't even explain the underlying meaning of the threat. Since Future Group was no longer the small shrimp it used to be, the core business was mainly in the internet field and not in resource extraction, the two sides could still avoid unnecessary conflict.
On the other hand, it was not only BHP that would suffer losses. The Vale mining company controlled by Rothschild was the largest ore supplier in the world. It would be hard to say that his "coincidental" meeting with Luke had nothing to do with Carmen.
Jiang Chen's mind spun quickly as he weighed the pros and cons of this proposal.
If possible, Jiang Chen didn't want to have a direct conflict with the mining giants. Future Technology's expansion required a relatively stable development environment. It was unwise to make enemies for himself at this time …
Especially since the surplus of resources was only for the current situation, the agreement was a compromise, but it was hard to say who would lose out …
Luke patiently waited for Jiang Chen's response.
Jiang Chen didn't make him wait long. After a moment of silence, he asked.
"Five years? Can I ask about the supply quota? "
"It's up to you," Luke elegantly took a sip of his champagne as he said generously.
When Jiang Chen heard this, an almost undetectable smile appeared on his face.
"80 million tons."
When Luke heard the number, he almost spat out the champagne he just drank.
"80 million tons, does Mr. Jiang have an idea of the number you gave? I'm not joking. Even if all the steel plants in Xin continuously operated for 50 years, the iron wouldn't be able to be processed. "
In 2015, Hua's annual iron ore import was around 950 million tons, and Xin's land area was less than half a province. Not to mention five years, even in 15 years, it would be impossible for them to not be able to consume this amount of iron ore!
From an outsider's perspective.
"You don't have to worry about that. Future Group naturally has projects to digest these resources. Also, the 80 million tons is the total amount of iron, aluminum, copper, nickel, and other ores, not just iron ore. Of course, iron ore would make up the majority of the 80 million tons, at least 75%. "Jiang Chen smiled.
With a frown, Luke hesitated for a moment before he nodded.
"At most 50 million tons, and you must guarantee that I will provide you with the ore at cost price. You can't release the iron ore into the international market. This will be written into the contract."
"No problem. But I have to warn you, the ore may be processed in the neighboring Papua New Guinea before being shipped back to Xin, "Jiang Chen reminded him.
Xin's labor resources were limited. Jiang Chen planned to transfer the high pollution and high labor demand industries to neighboring countries as much as possible. As the home of China's development, New Guinea was without a doubt a good choice, as well as the budding Moro.
After thinking for a moment, Luke finally nodded.
"No problem."
"Also, molybdenum, uranium, and rare earths are not within the scope of the agreement," Jiang Chen continued to suggest.
"No problem, molybdenum and rare earths markets are controlled by Hua, it has nothing to do with us … By the way, is it technically feasible to mine uranium from the seabed?" An interested expression appeared on Luke's face.
"Not now, but that doesn't mean it won't be possible in the future. Maybe we can achieve a breakthrough in technology in five years, but it's hard to say." Jiang Chen was ambiguous.
"Is that so? That's surprising. If you don't have any other objections, I'm glad we reached an agreement. "Luke smiled and raised his glass.
"I wish us a happy partnership." Jiang Chen also raised his glass with a mysterious smile on his face.
Accompanied by the crisp sound of glasses clinking, this business deal worth a total of ten billion US dollars was finally settled. Both parties had a satisfied smile on their faces as they both achieved the result they wanted.
Luke received the promise that Future Mining wouldn't bring deep sea mining technology into the global mining market. Although the 50 million tons of ore wouldn't make a profit, it wouldn't make BHP suffer a loss. With the current market, it would be impressive if they could maintain a profit without reducing production. On the surface, it looked like BHP was "working for free" for Future Group, but from another perspective, it also solved BHP's excess production.
As to Jiang Chen, the benefits were obvious. Obtaining 50 million tons of ore at a low price was crucial to Future Group's construction of floating cities, space elevator base stations, and large habitable space stations.
In less than five years, Luke would regret the contract he had made tonight.
The overcapacity of resources was always relative to the present.
The only thing that Jiang Chen didn't understand was how Luke could so confidently determine Future Mining's cost and production. Also, when faced with deep sea mining technology, he didn't show the slightest intention of purchasing.
Staring at the glass in his hand, Jiang Chen fell into deep thought.
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