Chapter 183: No Longer Poor
"If you're willing to let it go for 50 million, of course we're interested," Cheng Muyie replied frankly.
"That mining license is worth at least two to three hundred million now," Niu Fu interjected on Li Tang's behalf. "Fifty million? That's robbery."
"If you insist on two to three hundred million, I'm afraid no domestic company could afford that kind of money all at once," Cheng replied honestly. "Some foreign mining companies have asked about it. If you convert it to USD, that price is around thirty million. There have even been foreign offers made."
Li Tang did have some connections with large international mining firms and had a rough idea of its worth. But he didn't want to sell it abroad — he knew that in one or two years, the value of the mining rights would easily double.
Even if he did want to sell to a foreign company, approval would be nearly impossible.
A million-ton copper mine, a hundred tons of gold — such large resources were rare in China. There was no way the government would allow them to fall into foreign hands easily.
"If you try to transfer it to a foreign company, the approval process will be a nightmare," Cheng said seriously.
After a moment's thought, he continued, "I understand you need funds for the Zhongcheng Mining investment. You're short by 50 million, right? Here's the deal: we'll help you solve the funding problem. Buying the mining license outright — I doubt you'd agree to that. So, we'll give you the 50 million as a loan. In return, you pledge your shares in Zhenguan Exploration Company as collateral. The interest rate will be based on commercial loan rates, for one year. How does that sound?"
"That works," Niu Fu said approvingly. "Cheng is being generous — he's not taking advantage of you."
Li Tang understood Cheng's true intention — he genuinely wanted to help.
Still, 50 million wasn't a small sum. This was a sincere gesture of support.
Of course, it wasn't entirely altruistic.
If Li Tang couldn't repay the loan in a year, the mining license would fall into Cheng's hands at a bargain — and legally.
Cheng must've calculated that Li Tang would likely fail to repay it.
Even Li Tang himself wasn't entirely confident. After all, 50 million was a lot of money.
"Alright. Thank you, President Cheng!" Li Tang accepted gratefully.
"Come, I'll take you to meet someone."
Cheng warmly invited Li Tang to follow him, explaining as they walked: "That 50 million loan won't come entirely from Huajin. Thirty million of it will come from Shenxia Group."
Li Tang was surprised.
Just earlier, Shenxia's general manager Li Xingchao had publicly pledged 20 million to the Mengguo project — despite them never having collaborated or even spoken.
Now he was contributing another 30 million?
Sensing Li Tang's surprise, Cheng smiled. "Since the beginning of the year, coal prices have risen significantly. Shenxia's profits this year are expected to reach two or three billion yuan. President Li has capital — and he's looking for opportunities to invest."
"The coal industry is improving?" Li Tang thought things had only just begun to recover. Real prosperity in the coal sector wouldn't come for another three or four years — when coal prices would nearly double.
"Shenxia owns excellent coking coal resources. As you know, steel and copper smelting both need coking coal. Their annual sales reach tens of billions," Cheng added.
As they spoke, they arrived at Li Xingchao's side. "President Li, here's Li Tang!"
This was Li Xingchao's second time seeing Li Tang. He studied the young man for a moment, then offered a firm handshake and a single sentence: "Do your best!"
…
The loan was processed through a commercial bank acting as an agent, and a formal contract was signed.
Soon, the 50 million yuan was transferred to Li Tang's designated account.
Because the pledged shares belonged to Zhenguan Exploration, a new holding company — Li Tang Shengshi Holdings — had to be established to hold 34% of Zhongcheng Mining.
The structuring of the loan contract and the shareholder framework for Zhongcheng Mining were all handled with the help of Wukuang Group's financial department.
Li Tang, the mastermind of the entire operation, was essentially a one-man team. His few assistants were still stationed in Tibet.
Thankfully, Wukuang Group had treated him like family and offered full support.
Every time he returned to the mostly empty office in Yunding Tower, he felt a greater sense of urgency.
It was time to recruit real talent.
Especially capable executives who could handle things independently. If he could gather experts from various fields, he could build up finance, HR, and PR teams.
Given the company's current direction, exploration technology would remain its core competitive edge — and with Li Tang himself at the helm, that aspect was already secure.
After the investment agreements for Zhongcheng Mining were signed, the bosses of the investing mining companies all came to visit Li Tang's company.
But when they arrived, they found an office completely empty — not even someone to serve tea.
Some offered to send him staff — even saying they'd continue paying their salaries.
Li Tang declined. Having other companies' people around would feel like being watched.
Once all the arrangements were complete, the original negotiation team, along with Alice's financial advisory group, departed for the capital city of Mengguo.
As their plane landed, the commercial attaché from the consulate, Ma Shuyuan, arrived personally with several cars to receive them.
The ride from the airport to the city of Kulun passed through endless grasslands, with cows and sheep dotting the landscape.
Upon entering the city, they saw rows of white yurts and houses made of wood and stone. Children ran behind the cars, curious.
The air was tinged with the scent of mutton fat.
The cityscape featured low buildings and wide streets — with barely any traffic.
"Mengguo has been working on improving its business environment. In recent years, they've attracted a lot of foreign investment, so accommodation and dining here are decent," Ma Shuyuan explained while helping everyone settle in. "To be honest, while our countries have good relations, Mengguo isn't particularly friendly toward us Chinese. But they're not hostile either."
"What about mining approvals here?" Hu Zhenchi asked — clearly focused on business.
"To be frank, Mengguo's bureaucratic efficiency is... not great," Ma replied candidly. "But the higher-ups care a lot about foreign-funded projects. So they'll give you preferential treatment on approvals. Since you're here to apply for an exploration license transfer, as long as the documents are in order, you might get approval in a week — or a month — or more. It's unpredictable."
"Which department handles it?"
"The Ministry of Industry and Trade oversees mineral and petroleum resources. I'll take you there tomorrow."
The next morning, Ma Shuyuan personally led the Chinese delegation to the Mineral and Petroleum Bureau.
Director Jirigela reviewed their application and asked the team a few brief questions.
Zhongcheng Mining's transaction with BHB Tuo appeared to be an acquisition of South Wild Resources — a Mengguo subsidiary. Technically, it was an M&A deal.
But the real asset was the exploration license for the Taluge copper-gold project, making it the Mineral and Petroleum Bureau's responsibility.
Jirigela accepted the application but said he couldn't make a final decision immediately. He brought the documents to the minister of the parent department — Minister Bayar of the Ministry of Industry and Trade.
"Why would BHB Tuo just give up?" Bayar was puzzled. "Is this real?"
"Miles, their exploration director, is here too. The deal is legitimate," Jirigela responded.
"Are these Chinese from the government or private sector?"
"The paperwork says they're a private company, but with Chinese state-owned shareholders," Jirigela explained.
"Nothing wrong with the paperwork," Bayar said, frowning in thought.
"Minister, to be honest, I'd rather see Austrian or Canadian companies explore our resources. They have real money and are willing to invest here. The Chinese are poor — maybe even poorer than us. What kind of mining can they do? Running restaurants or selling wool, maybe. But mining? I don't believe they have the capital."
"China isn't poor anymore," Bayar said, flipping through the documents.
After a long pause, he finally waved, "My concern is that they're state-backed and might have other agendas. Call them in — I'll speak to them personally."
Soon, Li Tang, Hu Zhenchi, and the others met with Minister Bayar.
"Our mining law states that exploration rights are valid for three years. The larger the area, the greater the minimum investment. Since you're Chinese, I welcome you to develop our resources. But for us to approve this transfer, we need certain guarantees."
"Please state them," Hu Zhenchi said steadily.
"You must sign an agreement promising to invest a minimum of 6 million USD in exploration within three years."
This condition acted like a filter — weeding out opportunists.
Ma Shuyuan whispered, "Every country has these kinds of rules. You can't just claim land and sit on it forever. Investment standards are based on the license area."
"Our country has similar regulations," Hu said without surprise.
Ma Shuyuan explained further in Chinese, "Since their mining law was revised in 1997, Mengguo's resource development has been very loose. Many small companies — even individuals — have applied for huge plots but barely invested anything. They're just waiting to resell the licenses. A lot of them are from our country."
"So they're wary of Chinese investors?"
"There's definitely concern."
"This kind of speculation does mess with the market," Hu admitted. "But isn't 6 million USD a bit high?"
"It is," Li Tang agreed. But based on his own project estimates, they were planning to invest even more — so he said, "We're planning to invest more than that anyway. No problem."
"If you're confident, then we're fine with it," Hu confirmed.
"We'll comply fully with your laws and respect your people. We accept your terms without condition," he said solemnly.
"If you fail to meet that target, we won't renew your license in three years," Bayar warned.
He was impressed by their financial commitment.
If they really invested 6 million USD, that proved they were serious — not here to play games.
The two sides signed a supplemental agreement, and with Minister Bayar personally overseeing the matter, the transfer of South Wild Resources was quickly approved.
Everything was ready.
Friends, if you enjoyed the novel, you can subscribe to my Patreon channel.
Until November 30th, get 40% off your subscription and the purchase of the novel.
Read 40 Chapters In Advance: patreon.com/Johanssen