Chapter 340: High-Quality Iron Ore
Li Xingchao rushed over anxiously, visibly flustered.
Observing his state, Hu Zhenchi asked, "President Li, are you worried about the project or your daughter's safety? I can assure you, your daughter, Li Xinqi, is safe and happy in Canada."
"It's not about my daughter. I spoke with her yesterday to confirm she's fine," Li Xingchao dismissed with a wave. Having visited frequently, he was familiar enough with Niu Fu to forgo formalities. He took a sip of tea before directly asking, "What's really going on with the Maru River coal mine project?"
"Hasn't Xie Jiashu briefed you already?" Hu Zhenchi was puzzled.
"He did, but he wasn't very clear. He only mentioned that the Rocky Mountains have several coal exploration target areas with potential intact coal seams at deeper layers. He also said that according to Li Tang, the upcoming exploration area likely has well-preserved, thick coal seams, called the Gates Formation, correct?"
"Yes."
"This project seems vague and unclear. It's hard to justify to our board, so the funding approvals keep getting stuck," Li Xingchao sighed heavily.
"To be honest, what I know is about the same as you," Hu Zhenchi admitted, helplessly shrugging his shoulders. "Perhaps you should speak directly with Li Tang. He seemed quite confident."
"I have spoken to him," Li Xingchao said irritably. "He explained a lot about the local geology, emphasizing its exploration potential. But without concrete documentation or detailed reports, our board refuses to approve such a large investment based solely on his verbal assurances."
Li Xingchao sighed again, having anticipated this outcome. Foreign exploration projects were costly and risky. A private company could easily bear the consequences of a failure, but Shenxia Group was a state-owned enterprise. Those signing off on the funds would be held accountable if the project failed. Nobody wanted that responsibility. With the coal market already profitable domestically, why take unnecessary risks?
"You don't trust Li Tang?" Niu Fu interjected. He was an outsider but could understand Li Xingchao's dilemma. A leader's courage and vision significantly determined a company's growth trajectory, but decisions in state-owned enterprises often required balancing numerous factors, making decisive actions difficult.
"Of course I trust Li Tang!" Li Xingchao replied without hesitation.
"Then there's no problem." Niu Fu relaxed visibly. "I heard you already told Li Tang you'd join him and invest in this overseas coal project."
"It's 100 million yuan in exploration expenses!" Li Xingchao sighed again. "After talking with Li Tang, I discovered that's only the first-stage investment. His goal is to find multiple coal deposits, and there may be additional funding needed later."
"Hu Zhenchi just informed me that exploration on the coal project has already officially begun," Niu Fu added calmly.
"The total investment is 50 million USD, with Li Tang contributing 30 million upfront. He even agreed to give us more time to raise our share," Li Xingchao said with another sigh. "I must admit, Li Tang truly has great character and generosity, never fussing over minor details."
"Then you're fine. Just take your time gathering the funds. A mere 100 million yuan shouldn't be a big issue for Shenxia Group, considering your recent profits," Niu Fu reassured.
"The real issue now is accountability if the investment fails," Li Xingchao explained anxiously. "Our board said they'd allow the overseas coal investment in principle, but if anything goes wrong, I must personally bear all responsibility."
Niu Fu understood immediately: the Shenxia Group board members were distancing themselves from risk but would happily share any potential benefits. They wanted to pick the fruit without doing the hard work. Understanding the predicament, Niu Fu simply sipped his tea without commenting.
"Director Niu, isn't that outrageous?" Li Xingchao protested, visibly frustrated.
Niu Fu calmly advised, "Just relax and have some tea."
"I tried persuading Li Tang to carry out coal exploration domestically instead, but he insisted on doing it abroad!" Li Xingchao sighed again.
Mentioning Li Tang prompted Niu Fu to share more. "I've heard Li Tang plans to travel all the way to Baffin Island, an extremely cold place. When I first heard about it, I didn't even know exactly where it was. Later, I learned it's inside the Arctic Circle. Do you know why he's going there?"
"I heard about it. Probably just sightseeing. Young people love adventurous trips," Li Xingchao guessed.
"Are you sure?" Niu Fu remained skeptical. "Initially, I thought he was just tagging along to Canada for leisure, yet he suddenly invested in coal exploration there. Does he really just look for mines wherever he travels?"
"What could he possibly find in the Arctic Circle?" Li Xingchao was skeptical. "It's not even a habitable place."
…
Li Tang received detailed documentation about the Mary River iron ore project.
Only after Frando acquired the information did he realize the distant, frozen northeast harbored a sleeping beauty.
"The Mary River iron ore was first discovered and rumored in the 1930s," Frando explained as Li Tang carefully reviewed the materials. "In the 1960s, Canadian geologists followed up on these rumors, and after ten years, an exploration team was formally established. However, because of poor conditions—no roads, difficult supplies dependent entirely on aircraft and sparse local support—exploration halted after only two years."
"Mm-hmm," Li Tang nodded, carefully studying the data. "Is the exploration right for this area still available?"
"After that brief exploration decades ago, the Mary River exploration rights remained vacant. However, I've heard there are some investors currently planning to restart exploration, still in the funding stage," Frando replied. "With iron ore prices steadily climbing, even such a remote place with no infrastructure has become attractive. Additionally, there's a deep-water port less than 100 miles north of the Mary River area. It's crude and nearly abandoned, but minor refurbishments would make it usable. There's also a suitable location for another deep-water port on the southeast coast."
His meaning was clear.
"So, you also noticed this project's potential value?" Li Tang smiled knowingly.
"Currently, iron ore is among the easiest commodities to profit from," Frando eagerly confirmed his interest.
"Making money is never easy," Li Tang chuckled lightly. "Even Winning Mining hasn't turned profitable yet; it's still losing money."
"Once Winning Mining begins iron ore production, you'll truly become a top-tier global billionaire!" Frando admired openly but also understood the difficulty of such iron ore projects. The billions of dollars required upfront weren't something ordinary investors could handle. Few companies globally had both the financial capacity and courage to tackle projects of this scale.
"We could just perform the exploration, estimate the reserves, secure the mining rights, and then sell those rights," Frando suggested confidently. This was his usual approach.
"Magnetite or hematite?" Li Tang ignored Frando's suggestion momentarily, fully focused on examining a blurry aeromagnetic survey map. It clearly indicated magnetic anomalies near Mary River.
"Let's go visit the site first," Li Tang quickly concluded, putting away the documents. "We don't have time to waste. We must set up a company and secure the exploration rights before anyone else!"
They had already contacted a travel agency to arrange their trip to Baffin Island. The plane smoothly landed, and they stepped out into bright sunshine that reflected blindingly off the ice. Despite the bright sunlight, the air held no warmth—only a piercing cold.
"Is this place really suitable for tourism?" Li Xinqi looked around incredulously. "Are you sure it's safe?"
"Many tourists come annually to watch northern lights and polar bears," Frando reassured her with a smile. "They have specialized tourist routes here."
They didn't stay at the airstrip long, as it was merely an old, semi-abandoned research base with no accommodations. Soon, they boarded a helicopter, flying over an endless white landscape that could easily disorient travelers.
Finally, arriving at a small southern town with around ten thousand residents, they found warm lodgings and spent two days acclimating to the harsh climate. Then, another helicopter took them directly to the Mary River iron ore site.
Once landed, He Runqi immediately began scurrying about like a mouse with instruments, thoroughly scanning the ground. Observing this, Li Xinqi immediately realized they weren't here for tourism. She punched Li Tang lightly, complaining, "You said this was for sightseeing, but you're clearly here searching for minerals!"
"We'll finish quickly, then see polar bears and northern lights tonight!" Li Tang smiled warmly, his breath misting in the freezing air, hugging Li Xinqi tightly, bundled up like a penguin.
"Fine." Li Xinqi pretended annoyance but was secretly fascinated. "Honestly, I want to see how you find minerals. Last time, in the Rocky Mountains, you barely glanced around before deciding to invest millions. It was incredible."
"I'll teach you," Li Tang gently led her to follow He Runqi closely.
Nearby, others from their company were also busily scanning with various instruments.
"The magnetic field intensity here is very high—higher even than at our Nimba iron ore site!" a technician announced excitedly. Everyone quickly gathered around, noticing a large rock exposed through the melting snow, shining metallically under the sunlight.
"This is hematite-magnetite ore," Li Tang explained to Li Xinqi. "It's common worldwide, but concentrated, large-scale deposits are rare."
At that moment, He Runqi excitedly waved a metal-content analyzer, shouting, "Come quick! This area's iron oxide (Fe₂O₃) content is extremely high!"
"How high?" everyone asked eagerly.
"65%!" He Runqi showed the analyzer's screen to everyone. Fe₂O
₃ content was impressively high and dominant.
Li Tang stood confidently—confirming they had truly discovered the Mary River iron ore. Ahead stretched a dark, whale-back-shaped ridge, partly exposed through the snow.
Excitement surged through everyone at discovering such high-quality iron ore. Even Li Xinqi and Lin Xiaoshu, though not technical experts, shared the joy and fascination. Finding iron ore could indeed be more thrilling than sightseeing.
Their quick survey indicated a three-kilometer-long ore body outcropping, easily mined as lump ore requiring minimal processing. Lump ore prices often exceeded fines by 20-30%, making this discovery extraordinarily valuable.
This was an exceptionally good iron ore deposit!
"The surface exposure is astonishingly good; it's beyond my expectations!" exclaimed Frando, visibly astonished as he surveyed the area. "We just don't know how well the underground ore body has been preserved. If the underground ore layers are substantial, then this iron mine is truly extraordinary!"
Li Tang glanced at Frando and asked, "Are you interested in cooperating?"
Although it was summer, the climate here remained cold, yet most days were sunny, allowing the iron ore layers to be exposed visibly at the surface.
However, this was within the Arctic Circle, and winter dominated most of the year, with constant snowfall. Clearly, conducting exploration under such conditions would be challenging for ordinary people.
Moreover, when it came to acquiring mineral rights and managing exploration projects, Frando was evidently more professional than Li Tang. From the very beginning, Li Tang had involved Frando not only to help gather information but also with the intention of jointly developing the Mary River iron ore exploration project. He always adhered to one principle when doing business abroad: whether exploration or development, employ locals whenever possible!
"Of course! It'd be my pleasure to collaborate with you, sir!" Frando's eyes widened in excitement, and the shock on his long, horse-like face never subsided as he stared at the extensive surface-exposed ore.
He was astounded by Li Tang's global vision. What kind of foresight was needed to cross mountains and oceans, across tens of thousands of kilometers, to notice this iron mine deep within the Arctic Circle?
As a native Canadian, it had never occurred to Frando that such a valuable iron deposit could exist in this forgotten northern wilderness.
The most impressive part was that this iron ore was visibly high-quality. Apart from overcoming the harsh and frigid climate, other development challenges here were minimal. The only uncertainty was whether this iron ore was limited to surface exposure or extended significantly underground. More detailed exploration was required to determine the exact scale and continuity of the deposit.
"How did you know this iron deposit was here, including that previous exploration work was conducted?" Frando couldn't suppress his curiosity any longer.
"I heard about it," Li Tang responded casually.
"From whom?" Frando asked, still deeply puzzled. Having lived here for years, he had never heard of this particular deposit.
"That doesn't matter," Li Tang dismissed the question with a wave of his hand, becoming serious again. "Right now, we aren't the only ones interested. As you mentioned, others are actively raising funds and trying to acquire exploration rights here."
"With iron ore prices soaring, it's definitely profitable," Frando acknowledged, setting aside his confusion to focus on the pressing issue of mineral rights. "We need to establish a company quickly and secure the exploration rights!"
"How much funding do you estimate is required for the exploration here?" Li Tang inquired.
"It depends on how extensive the ore body is. The larger the scale, the higher the costs," Frando found it difficult to provide an accurate figure immediately. "However, one thing is certain: hiring exploration staff for this area will cost significantly more compared to other regions."
"Assuming we have a large deposit and need numerous drill holes, how much would that cost?"
"If extensive drilling is necessary, exploration costs could be astronomical—50 million USD, maybe even up to 100 million!" Frando pointed toward the vast white horizon. "You can see for yourself that drilling in such conditions could double the usual cost. Additionally, transporting drilling equipment here is challenging, especially during the harshest winter months when sea ice might require icebreakers."
"One hundred million USD?" Li Tang nodded thoughtfully, quickly making his decision. "Let's establish a company with a planned investment of 100 million USD."
"We don't necessarily need such high registered capital immediately," Frando briefly wondered if Li Tang was entirely unfamiliar with business procedures. "We can adjust the funding based on subsequent exploration findings."
"No, let's go with 100 million USD and start right away!" Li Tang insisted, confident because he knew precisely what lay beneath the surface.
This iron ore deposit was even better than the Simandou iron ore in terms of quality! Its scale was larger, its grade similar, and the ore quality outstanding. Most importantly, this deposit was situated in Canada, one of the world's most politically stable and mining-friendly jurisdictions, perfect for long-term projects.
"Actually, the 100 million USD figure I mentioned was a maximum estimate. Typically, even 50 million USD would be ample," Frando clarified. He wanted involvement in the project but preferred to limit his investment and risk.
As an experienced geologist, he had seen many promising surface deposits whose underground extensions turned out disappointing due to erosion and weathering over millions of years. Despite the three-kilometer surface exposure at Mary River, he remained cautiously optimistic.
"Since the ore is on the surface, the exploration won't be overly complex," Frando suggested carefully. "Even if the underground extension is promising, initial shallow drilling should suffice. One or two million USD would be enough for the first stage."
"One or two million certainly isn't enough!" Li Tang said decisively. "Let's start by investing 50 million USD to ensure steady exploration progress."
Li Tang quickly finalized the decision and asked Frando seriously, "It's just us two, and I prefer not involving others. How many shares would you like?"
This would depend on the amount invested. Frando was a wealthy adventurer who had made considerable profits from selling nickel exploration rights in the 1990s. However, after numerous subsequent investments around the world without major breakthroughs, his finances were steadily depleting. Though his investments were slow-paced, when successful, they usually paid off handsomely.
"I'd love to hold a larger stake, but I'm currently managing multiple exploration projects in Africa, Australia, and elsewhere," Frando hesitated but finally stated, "I can currently spare about 10 million USD."
"That's settled then. I'll invest 40 million USD for 80% of the shares, and you contribute 10 million USD for 20%!" Li Tang cut straight to the point, quickly establishing the cooperation framework. "Mr. Frando, I'll rely on you to quickly establish the company and secure these mineral rights as soon as possible!"
Frando left ahead by plane to the regional capital to expedite the paperwork, accompanied by representatives sent by Li Tang.
Li Tang only stayed on Baffin Island two more days before leaving due to the unbearable cold weather. Realizing Li Tang would be busy again, Li Xinqi thoughtfully offered to return to Yanjing, recognizing they'd already exceeded their originally planned time.
Most company employees returned home, leaving only a technical team and a financial officer. Alice flew urgently from Austria to Nunavut after hearing the news.
"What?" After listening to Li Tang's briefing, Alice stared in disbelief, convinced Li Tang had gone mad again. "You just invested 30 million USD in the coal exploration project in Columbia Province—Catherine is still finalizing things there—and now you're telling me you're investing another 40 million USD for iron ore exploration in Nunavut?"
Li Tang gave Alice a blank stare, completely unfazed by her mix of astonishment, confusion, and frustration.
"Are you sure you understand Canadian mining laws, investment regulations, and the environment on Baffin Island?" Alice sternly protested Li Tang's rapid consecutive investments.
"I've been to Baffin Island," Li Tang chuckled softly, inviting Alice to calm down. "Relax. You look so stressed—you're getting wrinkles around your eyes."
Hearing this, Alice instinctively touched her eyes worriedly. "Really, wrinkles?"
"Yes," Li Tang nodded gently. "You need to calm down; stress accelerates aging." He was confident about the Mary River iron deposit's potential, although others understandably saw investing tens of millions in such a harsh environment as insane.
"Are you absolutely sure about this decision?" Alice ultimately knew her role was to support Li Tang's decisions.
"Absolutely sure!" Li Tang laughed cheerfully. "Just waiting for your signature to approve the funds."
Alice stared intensely at Li Tang for a full minute, seeing nothing but determination in his eyes. "I agree with your investment plan, but I'll closely monitor how this money is used!"
"You still have Winning Mining to watch over. I'll handle things here; you just arrange the funds."
...
In the office of the Nunavut Minister of Mines and Resources, Minister Vatz stared in surprise at two exploration rights applications.
Typically, such applications didn't reach his desk unless significant. Yet here were two separate applications, both for Mary River iron ore on Baffin Island—an area long ignored and barely visited.
"Both are newly formed companies. Cold Iron Company, led by the notorious but famous Frando, plans to immediately invest 50 million USD for exploration. The other company, Baffin Island Iron Ore Ltd., plans to go public first and raise funds afterward," a department official briefed Minister Vatz. "The applications were submitted simultaneously, making selection difficult."
"50 million USD investment?" Vatz quickly glanced through the materials. "Who's Cold Iron's major shareholder?"
"The owner behind Winning Mining—Li Tang, who recently invested in coal projects in Columbia Province."
Vatz immediately understood, quickly deciding, "With 50 million USD already pledged, how could we refuse?"
His intentions clear, Minister Vatz handed Cold Iron Company's application back to his subordinate decisively. "Approve this one."
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