Huaguo is the world's largest steel producer, producing more than half of the world's crude steel every year, and steel production cannot be separated from iron ore.

Every year, three-quarters of the world's high-quality iron ore are bought by Huaguo, of which 80% are imported from Kangaroo and Samba, and most of the iron ore is exported to Huaguo.

This accounts for more than 60% of all iron ore imports in Huaguo.

In the past two years, with the rise in global commodity prices, iron ore prices have also been rising, from 126 magnesium per ton last year to 135 magnesium per ton, an increase of about 7%.

The 7% price increase has increased the cost of Huaguo Steel Enterprise by about 100 billion yuan, while the total profit of member companies of Huaguo Steel Association is only more than 150 billion yuan per year.

After rough calculation, Huaguo Steel's profit margin has dropped to a single-digit low.

As the country with the largest demand for iron ore in the world, Huaguo has almost no say in iron ore pricing.

Iron ore prices are a typical system determined by supply and demand relationship. More than 200 steel enterprises in Huaguo use imported iron ore, but the purchasing entities are quite scattered and lack the awareness of grouping in procurement negotiations, which leads Huaguo to iron ore in iron ore.

There is no sufficient voice in price games.

Especially the small and medium-sized steel enterprises that account for about 40% of Huaguo Steel's production are Huaguo's weaknesses in iron ore price negotiations.

Rio Tinto, the three major oligarchs, Kangaroo countries, BHP Billiton and Samba countries, Vale, have almost mastered the demand of the country. They will tacitly adjust the supply strategy according to demand, control the right to speak for iron ore prices, and pass it every time.

The price increase has made Xia Guo "injure money".

Although Huaguo has also taken various measures to get rid of this situation of being sucked by blood, since 99% of Huaguo's iron ore reserves are poor ore, there are very few truly high-quality iron ore rich, and there are existing iron ore

There are technical difficulties in overcoming underground mining of resources, so it is always difficult to get rid of the dependence on imported iron ore.

In 2009, Huaguo tried to fight back. Huaguo Steel Association organized steel companies across the country and the three giants to negotiate iron ore prices.

As a result, the three giants took punitive measures against Huaguo enterprises. Some ordered two ships and sent one ship, while others did not give a single stone. Therefore, when the demand for enterprises was the most intense, they could not buy ore. The collapsed steel mills fell apart, and they all

If you seek a separate mining company, you will have to buy any price as long as you are willing to sell it.

The efforts of the Iron and Steel Association collapsed instantly, and all companies fought on their own, and until today they were no longer able to resist the monopoly and oppression of the three giants.

Li Rui knew very well that this situation would become more and more intense over time, and even became an important means for some forces to suppress the rise of Xiaguo.

If he had the opportunity, he would be willing to contribute to Huaguo's new work on the important mineral resource project of iron ore.

Huang Dexuan, the mining tycoon, had a deep understanding of Li Rui's words, nodded and said, "Although I made money by reselling iron ore, I also couldn't stand what the three giants did. I just felt that we were so sanitary.

It’s easy to bully Chinese people! If you have anything to help, just speak up!”

Li Rui said: "I really have one thing to ask Mr. Huang. Do you know the Simandu iron ore in Guinea?"

Huang Dexuan was surprised: "What, are you interested in investing in Ximangdu? That's a big project!"

Although Gong Jiansen did not do iron ore, he knew Ximangdu and said in surprise: "Ximangdu has been a project for many years. The situation there is very complicated. The mining rights have been destroyed several times.

No one can develop it, why do you have to take such a big risk?”

When Simandu was discovered in 1997, he was nicknamed "Kangaroo Iron Mine Killer". This mine is located in the southeastern hinterland of Guinea, between a mountain range of 110 kilometers.

You can see high-grade hematite with an average quality of up to 65%. The total potential reserves of iron ore here are as high as 10 billion tons, second only to Kangaroo Kingdom and Samba, and are the largest unexploited reserves in the world.

, the iron ore deposit with the highest ore taste!

Since the discovery of this mine, global mining giants and financial investors have believed that it will be a dragon that can affect the global steel industry structure in the future, with annual output reaching 100 million to 150 million tons after production.

Accounting for 5% to 7% of global iron ore production will become a huge factor that affects the price and attack direction of iron ore.

Such a large deposit can never be developed.

Guinea has a population of only 15 million and its GDP is only a pitiful seven billion magnesium, so it is impossible to develop this project alone. So in the past decade, Simandu has welcomed countless gold diggers, all of whom want to

This iron ore has a share of the pie, but the project development has been shelved for various reasons.

Simandu is divided into four mining areas: one, two, three and four.

In 1997, Rio Tinto obtained the exploration rights of four mining areas from the Guinea government and obtained the mining rights in 2006. The mining rights are 25 years and can be renewed for a paid period, which is equivalent to

Permanent.

After Rio Tinto obtained the mining rights, he was afraid of affecting the price of iron ore, so he deliberately refused to develop it. Until the Guinea regime changed in 2008, the new government asked Rio Tinto to give up No. 1 and 2 on the grounds that it had not been developed.

The mining rights of the mining area were transferred to the Hebrew BSGR Group.

After the new Guinea leader was elected last year, someone reported that the BSGR Group obtained the mining rights through bribery, so this year Guinea decided to take back the mining rights and re-bidge it.

What Li Rui is targeting is the mining rights of the No. 1 and No. 2 mining area.

If the people of Hua Guo really get the mining rights, Ximangdu will become an important weight for Hua Guo to compete with the three giants of iron ore. The iron ore pricing power will no longer be up to them, and Hua Guo Guo enterprises will not

I need to see their winks again.

However, Ximangdu has not been developed for so many years. It is not just a matter of iron ore price, but also many other real problems. So when Huang Dexuan and Gong Jiansen heard that Li Rui was interested in Ximangdu, they were very good.

Surprised.

Huang Dexuan pondered: "I have learned about the Simandu project. The mineral reserves and quality are indeed very rare and have great economic value. However, that place is located in the hinterland of Guinea, and transportation is a very big problem. Guinea requires construction related

The infrastructure, including a railway of more than 600 kilometers, more than 160 bridges and four tunnels, alone costs more than 15 billion magnesium investment. You also need to consider that

The turbulent political situation in the border... In short, the risk of this project is too great!"

Liu Heng didn't know much about mining, and he also said, "Li Rui, Lao Huang is an expert in this field. He said so, I advise you to be more cautious. We stock traders also know that if a stock looks
Chapter completed!