Chapter 270: A Wealthy Father
Following the press conference, the capital markets were thrown into excitement.
Regardless of whether this ambitious 2 billion Australian dollar investment plan could be smoothly executed in the future, at least for the moment, it had greatly boosted the previously sluggish market outlook for Lianying Mining.
Shareholders and potential investors now had a clearer understanding of this company.
It was a small listed firm, yet the management had a remarkably ambitious vision.
Clearly, the company had set a definitive development goal.
Everyone shared a common dream:
The day the dream was realized would be the moment their wealth exploded!
In the following days, Lianying Mining's stock price surged once more, climbing from 0.14 Australian dollars to around 0.16 Australian dollars.
Although the increase wasn't particularly dramatic, it demonstrated that many investors were willing to gamble on Lianying Mining's future.
At Rio Tinto's headquarters, Alba closely monitored every move of Lianying Mining.
It had to be admitted, this small company had truly become intriguing.
He couldn't help but wonder to what extent it could actually develop.
"Do you think Li Tang Prosperity Holdings can come up with 2 billion Australian dollars?" Alba asked, glancing at his trusted assistant opposite him.
"Absolutely not," Eric decisively shook his head. "The information Hu sent back from the seaport clearly shows Li Tang Prosperity Holdings' financial situation."
"What's the situation?" Alba was quite interested in this emerging company.
"It's basically confirmed that the company has no political backing. Almost all shares are held privately by that individual named Li Tang," Eric replied confidently, trusting Hu's investigation report. "It's purely a private enterprise, newly established, with limited capital. By the way, they recently pledged several mining licenses to banks and borrowed around 100 million Australian dollars, most of which has already gone into acquiring and exploring Lianying Mining."
"So, Li Tang definitely can't produce 2 billion Australian dollars for mine construction?" Alba breathed a sigh of relief.
"He can't," Eric was certain. "People from Lianying Mining have recently been contacting multiple capital groups, seeking investment. Undoubtedly, no one is interested in their mining project."
"Maybe they can find some adventurous souls in America," Alba joked.
"If you had ten billion dollars, would you invest in a Chinese businessman?" Eric retorted.
"Of course not," Alba shook his head. "Giving a blind man glasses won't let him see."
Eric laughed heartily, realizing they shared the same view. They didn't believe Lianying Mining, now controlled by Chinese capital, would attract much interest in the capital market.
"They have only one path: going back to China to raise funds."
"Then it's none of our business," Alba finally relaxed. "As things stand, Lianying Mining's operations won't disrupt the iron ore market, at least not for three to five years."
Their only concern regarding Li Tang Prosperity Holdings was the possibility that the company might successfully develop the Qiqie Iron Mine.
If production reached 50 million tons annually, or even expanded to 100 million tons, sold at a significantly lower price to the Chinese market, it would severely undermine their control over the iron ore market.
Even their pricing power would face a direct challenge.
Given that China's annual imports of iron ore were rapidly increasing, everyone recognized the strategic importance of that market.
Allowing Chinese companies control over iron ore production sources would be a heavy blow.
This was something they absolutely had to prevent.
Not only Rio Tinto, but even BHP Billiton shared these worries.
What if Li Tang Prosperity Holdings behaved recklessly, drastically expanding capacity and driving down iron ore prices?
Even from as far away as Brazil's Vale, they were keeping a close eye on Lianying Mining, ready to respond quickly to any market shifts.
…
Many Australian-listed companies had major shareholders backed by American or British capital.
Some cynically joked that Australia was essentially a backyard for American and British investments.
Thus, news from the Australian capital market quickly spread around the globe.
Lianying Mining's 2 billion Australian dollar investment plan, heavily reported by Australian financial media, also sparked astonishment worldwide.
This mysterious Chinese capital investment was truly astonishing for the global capital market.
Never before had they seen a Chinese mining company exhibit such courage and boldness.
They also wondered: did they truly possess such enormous financial resources?
Financial news outlets worldwide swiftly circulated relevant articles.
Phoenix, United States.
Joanna received a call from Alice early that morning, so she'd been waiting eagerly in front of the TV.
Hearing the sound of her father's car pulling into the driveway, she turned her head and called out, "Dad, come quickly, there's news to watch!"
Cristo loosened his tie, removed his shoes, and glanced suspiciously at his daughter, Joanna. "You only enjoy cartoons, and I have zero interest in cartoons."
"No, I'm serious! I've been waiting here for an hour just to watch this news!" Joanna leaned on the back of the sofa, earnestly staring at her father. "Alice called me this morning and told me specifically to watch tonight's news."
"You never watch news," Cristo knew his younger daughter's mischievous character. "You're definitely playing a trick on me, right? I won't fall for your little tricks anymore."
"I'm serious! Just come and watch, it's starting in five minutes!" Joanna ran barefoot across the carpet, grabbed Cristo by the arm, and dragged him onto the sofa.
Cristo, having no choice, gave in and collapsed onto the sofa, crossing his legs. The coffee table was laden with various fruits, and packages of snacks littered the sofa beside Joanna.
The snack-loving girl tore open a bag of chips, crunching loudly as she focused on the TV.
On the screen, a hamburger commercial played, but Cristo knew that right after the commercials would be the renowned financial news program he occasionally watched.
"Pass me some, I'm hungry," he gestured to his daughter.
"This is my favorite flavor; you only get two!" Joanna reluctantly handed over the open bag.
"Onion flavor?" Cristo ate two chips and lost interest, grabbing some fruit instead. "What's gotten into you today, wanting to watch the news?"
"Alice will be on TV—she told me herself! So, I want to see it," Joanna said, folding her legs onto the sofa, eyes filled with anticipation.
"Alice on TV?" Cristo looked surprised.
The two daughters had always been close, but since Alice started working abroad, she'd distanced herself from him, rarely sharing her work experiences.
The last time he saw Alice was months ago, in Beijing, China.
He'd asked Alice to return to America, even offering to financially support her if she didn't want to work. Knowing he couldn't change her mind, he'd angrily flown home that same day.
How could he not worry about his daughter working abroad, in a completely unfamiliar environment?
Now, hearing Alice would appear on TV, he felt both nervous and hopeful.
"It's starting!" Joanna screamed excitedly when she saw the news anchor.
"Australian Lianying Mining announces a 2-billion-dollar mining development plan—a massive investment project. Let's take a look," the anchor briefly introduced, switching to footage from Lianying Mining's press conference.
Alice stood elegantly at the podium.
The caption beneath read: Alice, Chairman and CEO of Lianying Mining!
"Alice is chairman and CEO of a listed company!"
Joanna jumped straight onto the sofa, standing to get a better view.
The family knew Alice was working for a Chinese company but hadn't realized she'd moved to Australia, let alone that she'd become the company's top executive.
Knowing her family didn't support her career choice, Alice rarely discussed her work. She mostly assured them she was safe and happy.
"Be careful!" Cristo warned Joanna, worried she might fall in her excitement.
"Alice looks stunning—just like a queen!" Joanna exclaimed. "She's literally my dream: a dominating female CEO!"
"It's just a small company," Cristo mumbled, though he was equally shocked inside.
He'd known Alice was in Australia working for Lianying Mining, but never imagined his daughter was chairman and CEO.
He couldn't help but feel deeply moved.
He had always thought Alice was working for a tiny startup.
Yet now, his daughter was the head of a publicly traded company!
His mind drifted to the young Chinese man he'd met briefly.
"It's a listed company—definitely not small!" Joanna disagreed strongly.
"Its market value is only around 200 million Australian dollars," Cristo said casually, having researched privately.
"That's still impressive!" Joanna looked at her sister on screen with deep admiration. "I knew Alice would fulfill her dream of becoming a powerful woman!"
Cristo laughed heartily, secretly feeling proud of Alice.
From that moment onward, deep in his heart, he no longer opposed Alice's career choice.
The TV coverage soon switched to expert commentary.
After the segment ended, Joanna sat back down, filled with excitement. "I want to quit school and join Alice right away!"
Cristo quickly restrained her. "No, you want to continue studying!"
"I don't want to study anymore—I need to help Alice! I want to earn money like her!" Joanna protested.
"Don't I give you enough money?" Cristo felt slightly hurt.
"I want to make my own money, just like Alice," Joanna insisted.
"She doesn't need your help!" Cristo firmly countered.
Just then, Joanna called Alice directly, exclaiming, "Alice, you're my idol! You were dazzling on TV! Can I be your deputy chairman?"
Laughing, Alice replied, "Enjoy university—it's the best time of your life!"
As Joanna reluctantly handed the phone to Cristo, he smiled warmly and said to Alice, "I saw you on the news. I'm so proud of you, Alice."
"I told you it's a great company," Alice replied proudly.
"You really have two billion dollars to build the mine?" Cristo asked, genuinely curious.
"We don't actually have that much funding," Alice sighed. Recently, she had been extremely busy dealing with this issue, but without any meaningful progress. "We did some market research and found that capital markets are not interested in this project. Raising funds is going to be very challenging for us."
"Are you the one responsible for this?" Cristo's heart ached for his daughter, knowing how difficult such a task could be.
"Dad, you know those big Wall Street capitalists. Could you help me get in touch with them and try to attract some investment for us?"
"I can't do that." Cristo felt he had rejected too quickly, so he added an explanation, "Capital investments have their own evaluation standards; knowing someone isn't enough. If it were our Freeport Company raising funds, getting two billion Australian dollars wouldn't be difficult."
"I knew it—the capital markets are biased against us."
"If you genuinely want to connect with investment banks here, I can introduce you to some people, but you'll have to negotiate on your own. Whether it succeeds or not, I can't guarantee. You know, I'm the Project Development Director of Freeport, and I have my own position."
"Thanks anyway, Dad."
After hanging up, Alice went straight to Li Tang and told him directly, "Whether through share issuance or bonds, it'll be very difficult to raise two billion Australian dollars here in Australia."
"No worries," Li Tang looked up calmly, clearly having anticipated this result without disappointment.
"My dad said if we need to seek investments in America, he can introduce us to some contacts there, but we'll have to negotiate ourselves," Alice felt this idea was worth trying. "Many large Australian companies have backing from Wall Street. Lots of firms go to America to raise capital. I think we should consider a trip to America."
"Do you think our chances of success are high?" Li Tang asked.
"It's hard to say. Maybe we'll find a fund or an investment bank interested in our project, and our funding problem will be solved."
"This is worth trying, but don't set your expectations too high."
Li Tang was new to the Western capital markets and had not yet gained the trust of investors, nor had he proven himself capable of generating high returns. Raising two billion at this stage would be incredibly challenging.
Why would anyone hand over such a large sum to him?
In his heart, he didn't count on Western capital at all. If anyone did agree to provide two billion Australian dollars, they would undoubtedly demand extremely harsh conditions.
What was the most valuable asset in his hands?
The mining rights of Talege Copper-Gold Mine!
But this mining right, while under his control, wasn't entirely within his discretion anymore.
Ultimately, he believed that to secure this level of funding, he would have to return to China. At least there, people trusted him and were willing to invest heavily. It just wasn't the right moment yet.
Building a mine couldn't be rushed. If necessary, they could delay the project two or three years until it became clear to everyone just how valuable it truly was.
He reassured Alice not to worry excessively about funding; the work would never end.
Leaving Lianying Mining's office building, Li Tang had his driver take him directly to the South Australia state government.
Finally, Governor Zachary made time to meet Li Tang. This time, the meeting was held in his office.
Zachary's office was impressively decorated in Western style, clean and polished.
"Please sit," Zachary, with his robust physique and dignified presence in a tailored suit, invited Li Tang warmly. Looking at Li Tang, Zachary's gaze carried deeper respect and appreciation compared to their first encounter.
During their previous meeting, Zachary had little understanding and trust in Li Tang or his Chinese-backed company. Back then, they worried that Lianying Mining might collapse or become a vehicle for speculation.
Now, reality had proven that this young man genuinely meant business—big business!
They had not only successfully raised 100 million Australian dollars and seriously invested it into exploration projects in Pilbara, but had also recently held a press conference to announce a two-billion-dollar mining development plan!
For the entire South Australian government, this was undoubtedly a lifesaver.
The greatest challenge for Governor Zachary had always been attracting investment, boosting the economy, and addressing unemployment. South Australia's economy relied heavily on mining development. With mineral and especially iron ore markets currently depressed, attracting any new investment had become extremely difficult.
Foreign investment in mining was virtually nonexistent. Now, someone was willing to invest two billion Australian dollars into building a mine!
For Zachary, Li Tang's status had suddenly become that of a wealthy father!
Zachary's attitude made it clear: "When we heard you were coming, we specially prepared tea, imported by air from China!"
He signaled for the tea ceremony to begin.
Though they usually preferred coffee, Zachary had specifically arranged premium tea to accommodate Li Tang's cultural background. A young woman dressed in traditional Han clothing, complete with ornate hairpins, conducted the ceremony, using elegant antique-style teapots. Accompanied by the soft melodies of a pipa, the elaborate tea ceremony added a refined touch to their meeting.
"Please!" Zachary politely said in Chinese, inviting Li Tang to try the tea.
Li Tang, surprised at the elaborate reception, sipped the tea—it tasted slightly bitter yet refreshing, indeed high-quality.
"Thank you very much for your hospitality, Governor," Li Tang smiled appreciatively.
"Your new discovery of a 1.2-billion-ton iron ore deposit, right?" Zachary laughed heartily, openly cheerful. "When I first heard the news, I couldn't believe you actually did it!"
Zachary's assistant described the moment: "When I personally reported it to the governor, he literally jumped with excitement."
"I told you before—we are serious about what we do. Please rest assured, Governor," Li Tang remained composed.
"I know that now, and I fully trust your plans," Zachary responded earnestly. "I must say, you're genuinely extraordinary. Not only are you among the world's top exploration experts, but you're also one of the sharpest businessmen I've met."
"You're too kind, Governor."
Given Zachary's attitude, Li Tang felt much relieved. Clearly, his actions had finally earned their trust. Trust was essential for deeper collaboration.
"The main reason I came today is to discuss our next steps with you," Li Tang cut straight to the point.
"You're serious about this two-billion-dollar mining development plan?" Zachary's eyes sparkled with hope.
Two billion dollars was enormous, especially in South Australia's sluggish economy—this project was vital!
"We're absolutely serious. We've already begun preparations," Li Tang looked directly at him and tested the waters. "But we will definitely need strong support and coordination from the South Australian government."
"What kind of coordination?" Zachary replied decisively.
"We need assistance with mining permit applications, approvals for building ports and railways, and coordination of land compensation."
Li Tang knew these were lengthy and complicated processes, and government assistance would significantly streamline things.
"I guarantee we'll arrange someone specifically to help you handle these processes and provide every convenience possible," Zachary pointed to his assistant. "He'll coordinate with your people directly. If there's something he can't decide, just come straight to me."
Seeing Zachary confidently promising this, Li Tang felt reassured. "Then I thank you in advance for your generous support, Governor."
"Regarding land planning and approvals, we can offer expedited processes within the scope of the law," Zachary eyed Li Tang cautiously. "But considering the scale of funding, I have to ask—how are you solving your financial issues?"
He knew Lianying Mining's market capitalization was just two hundred million dollars. Raising two billion seemed impossible without external funding.
"Rest assured about funding. We're already close to finalizing it," Li Tang confidently assured him. "You know, Nanyang Investment Company has several strong corporate shareholders besides just us. We have solid relationships with major banks and have already secured substantial credit limits. However, since it involves two billion dollars, formal procedures naturally require time."
"Really?" Zachary seemed half-convinced, but Li Tang's statement sounded plausible enough. Contrary to media portrayals of China as impoverished, Zachary, as governor, knew better. Many Chinese companies possessed immense financial power. With backing from major enterprises and banks, raising two billion dollars wasn't outlandish.
"While we work on funding, I hope the approval processes here can also proceed simultaneously, to avoid delays," Li Tang handed Zachary the detailed mine construction plan. "Our goal is to build a modern mine with an annual production of 55 million tons of iron ore before 2005."
Zachary was already familiar with the plan from the news, so he briefly glanced at it and set it down confidently. He had no doubt about its legitimacy. Li Tang had already invested heavily—he clearly wasn't a fraud.
"What about the contractor for the mine construction? Do you have someone in mind?"
Zachary smiled knowingly. "Australia's Mondi Engineering has significant experience building mines for Rio Tinto and BHP Billiton."
Li Tang wrote down the name, understanding Zachary's intent.
They exchanged knowing smiles. Each understood clearly—cooperation would depend on mutual benefits.
Zachary personally escorted Li Tang to his car and warmly sent him off, reflecting on the upcoming challenges and opportunities.
As the car departed, Li Tang sat deep in thought. Without local funding, perhaps he'd need to leverage domestic Chinese engineering companies' relationships, balancing local and international contractors.
The path ahead was becoming clearer.
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