Chapter 264: They're Like Pandas
The last time Li Tang had come to the Pilbara region, he visited the small town of Karansa, which was even closer to Rio Tinto's world-class single-body mine—Hamersley Iron Mine.
Newman, like Karansa, was built because of iron mining.
Not far from the town lay the globally renowned Newman Iron Mine, a core asset of BHP.
Besides the Newman Iron Mine, the area also included the Yandi Mine, Area C Mine, and more.
Rumbling heavy-duty trucks and clattering trains were transporting iron ore to Port Hedland in the north, where it would be loaded onto cargo ships and sent to ports around the world.
Some of Lianying Mining's staff had already driven over 1,000 kilometers across the desert to arrive in advance.
Their exploration project application documents were also ready beforehand.
Their target area was to the north of Newman.
There was no paved road leading to their destination, but although the land was barren, the terrain was very flat.
Off-road vehicles could easily speed across the landscape.
"This land beneath our feet is one of the prospecting targets we previously identified," Kent said, pointing to a concrete marker on the ground. "This was one of our drill holes—less than 100 meters deep. The results weren't very promising."
"Did you hit any ore?" Li Tang asked, carefully examining the marked location on the map.
If his memory served him correctly, this area was where Fortescue would later establish a significant iron ore production base.
This land would eventually be filled with all kinds of heavy machinery operating day and night, buzzing with activity.
A steady stream of iron ore would be shipped—most of it heading to ports in China.
And all the profits came from Chinese demand.
At its peak, it would generate more than 10 billion USD per year in revenue!
In other words, they weren't standing on desert soil—they were standing on stacks of money!
Kent didn't share Li Tang's boundless optimism or borderline crazy enthusiasm. He looked a bit disheartened. "Based on the mineralization from this drill hole, the average grade is around 40%."
"The grade's a bit low," Li Tang nodded.
Even by Chinese exploration standards, the industrial grade for limonite is usually above 40%.
For hematite or pseudo-hematite, the industrial standard typically starts at 45% or higher.
"The Newman Iron Mine we passed earlier is a typical high-grade deposit here in Pilbara. Iron content is over 60%, sometimes even reaching above 75%," Kent said, gazing south with some envy. "Some of the ore they extract is so high in grade, they actually have to mix in lower-grade ore to meet the market-standard 62% blend. And the stuff BHP digs up doesn't even need beneficiation—it can go straight onto trucks and be sold to steel plants."
In the iron ore trade, there's a difference between lump ore and fines.
The ore produced by Rio Tinto and BHP is highly regarded by Chinese steel companies.
Li Tang knew this well and wasn't jealous. Instead, he focused on technical details. "So you're saying this area does have mineralization, it's just that the grade isn't particularly high."
In Pilbara, 40% iron ore was considered low-grade and generally dismissed.
In the last century, this area belonged to BHP, but because they deemed the ore too poor, they returned the land to the Western Australian government.
However, that same grade—40%—would be considered rich ore in China!
Most domestic ore deposits are low-grade, averaging about 30% and often containing high levels of phosphorus, sulfur, and silica, which are detrimental to sintering.
"That's right," Kent replied. He had been troubled by this exact dilemma.
While he believed in the region's potential, the low grade made it hard to attract investment. Most investors weren't interested in such ore.
They wanted ore that could be extracted and sold immediately.
After all, iron ore had thin profit margins. Only companies like BHP and Rio Tinto could make money because they had infrastructure and high-grade ore.
So, he had never been able to secure funds for deeper exploration.
Now, however, a wealthy investor had arrived, determined to explore iron ore during the market's lowest point.
As the company's vice general manager and second-largest shareholder, Kent was excited about the possibility of discovering a large iron deposit.
He even hoped to one day extract and sell it.
"What's the geology like here?" Li Tang asked. He knew iron ore was here, but not much about the local stratigraphy.
Unlike back home, where he could propose targeted exploration strategies, he was less sure here.
"The Pilbara region is dominated by sedimentary formations," Kent said.
He was a geologist by trade and had founded Lianying Mining because he believed in the area's potential. "We're standing on the Hamersley Group."
As he spoke, he unfolded a geological map and pointed things out to Li Tang. "The major geological groups in Pilbara are the Fortescue Group, Hamersley Group, Turee Creek Group, and Weeli Wolli Group. All of the well-known high-grade iron ore deposits come from the Hamersley Group."
Li Tang scratched his head at the technical jargon. It was hard to follow.
Every region had different geological names for different formations.
That was true worldwide.
He knew a lot about Chinese geology, but even within China, going to a different province often meant consulting local experts to understand the specifics.
Kent continued explaining. "The Hamersley Group is over 2,400 meters thick and contains three main iron-bearing formations: the Marra Mamba, Brockman, and Boolgeeda formations. Most of the iron ore comes from the Brockman Formation. Famous mines like Newman and Hamersley are based there."
"Mm-hmm." Li Tang nodded repeatedly, even though he could barely follow the technical details.
They were speaking in English, and the terminology was taxing.
Seeing how attentive Li Tang was, Kent went on. "Within the Brockman Formation, the most important iron-bearing unit is the Dales Gorge Member. It's about 150 meters thick and primarily consists of banded formations. We even saw some exposed bedding along the roadside earlier."
Li Tang remembered the neatly layered, erosion-resistant outcrops they had seen on the way—rows of rock that looked like they had been stacked.
"Was that an exposed ore body we saw?" he asked.
"Almost all of the mineralized layers contain iron. The average iron content in the Hamersley Group is about 30%," Kent explained patiently. "Our job is to find the zones where iron is concentrated."
"You're absolutely right," Li Tang agreed.
"This land under our feet, and more than half of the 100,000 square kilometers around us, are part of the Hamersley Group!" Kent had deep respect for the natural conditions here. "You could say the entire Pilbara region has mineral potential."
"Vast land, sparse population," Li Tang remarked.
He was envious—they had a massive area with confirmed super-large high-grade ore bodies.
If this were in China, it would've been surveyed over and over again by geological teams.
But here, much remained unexplored.
"Only about 10% of the Pilbara has been explored in depth," Kent added.
He was driven by a spirit of discovery—one of the reasons he got into this field.
There were surely many major deposits waiting to be found in this desert.
"We're here to find them—and mine them!" Li Tang declared.
He had big dreams, but they were grounded in reality. He was here to make money.
He looked out over the desert, feeling the dry, scorching air.
Honestly, if not for the mineral wealth, no one would want to be in this godforsaken place.
"Let's do it—start drilling!" he said with a wave.
"We've leased three truck-mounted drilling rigs. Each rig has a trained driller, but it's hard to find laborers," Kent said, airing a grievance. "It's hot out here. Even with high wages, few are willing to come."
"How much do you pay?" Li Tang asked. He hadn't been involved in the operational details.
"1,000 AUD per week. No education required—just young and healthy workers," Kent said, a bit frustrated. "Even our junior engineers only make about that much."
"That high?" Li Tang was shocked.
In China, a monthly salary might be just over 1,000 yuan. Here, a laborer could earn 20,000 yuan per month!
"And still, it's hard to find people."
"For the current holes, figure something out," Li Tang said. "But if we need more drilling soon, I'll take care of it."
Having worked on so many projects, he knew that drilling was mostly physical labor.
Carrying drill rods, collecting core samples—there was no real technical skill involved.
At most, the driller needed to be experienced enough to lead a small team.
He immediately made up his mind: he'd contact his company in Yanjing and recruit strong, able-bodied workers to come help.
Pay each worker 20,000 yuan a month, and in a year they could make enough to buy a home back in China—and even marry a beautiful wife!
Good opportunities like this never lack willing hands.
Li Tang and Kent, along with Lianying Mining's technical team, selected precise drilling locations within the main prospecting targets.
Initial drill holes were planned at depths of just 100 to 200 meters.
In the Pilbara region, iron ore deposits are shallow—many are near the surface.
Ore-bearing strata cover vast expanses of land. The key is to locate where iron is concentrated.
By evening, they drove back to Newman.
Just like the town of Karansa, Newman owed its existence to iron mines.
Not far from the town stood the world-famous Newman Iron Mine—one of BHP's core assets.
Besides Newman, there were other mines in the vicinity, including the Yandi Mine and Area C.
Heavy-duty haul trucks rumbled by, and iron ore trains clattered toward Port Hedland in the north, where ore would be loaded onto ships bound for the world.
Some of Lianying Mining's staff had already driven over a thousand kilometers through the desert and arrived early.
The application paperwork for the exploration project was also prepared in advance.
Their targeted drilling area lay north of Newman.
There were no paved roads to the site, but despite the barren environment, the terrain was flat.
Off-road vehicles could speed across the landscape freely.
"This spot we're standing on is one of the target areas we previously mapped," Kent explained, pointing to a concrete marker on the ground. "This is one of the boreholes we drilled—less than 100 meters deep. The results weren't too encouraging."
"Was any ore found?" Li Tang asked, checking the coordinates on the map.
If memory served him right, this was the very location where Fortescue would later establish a significant iron ore base.
A future home to countless massive machines, bustling day and night.
A river of iron ore would flow continuously from here—mostly bound for Chinese ports.
The profits? All from China.
At peak, this mine would generate over 10 billion USD a year!
They weren't standing on empty desert, but on money.
Kent, however, wasn't as optimistic—he lacked Li Tang's near-fanatical conviction. "Based on this drill hole, the average grade is around 40%."
"That's a bit low," Li Tang nodded.
Even by Chinese standards, industrial-grade limonite must exceed 40%. For hematite and pseudo-hematite, the requirement is often 45% or more.
"The Newman Iron Mine we passed earlier is a classic high-grade mine in Pilbara. Its iron content averages above 60%, and sometimes even hits 75%," Kent said, glancing south with clear envy. "Some of the ore there is too pure—they have to mix in low-grade ore to get the market-favored 62%. What's more, BHP's ore doesn't need any processing—straight from the ground to the truck, then to the steel plant."
There's a distinction in the iron ore trade between lumps and fines.
Rio Tinto's and BHP's ore was widely praised by Chinese steel mills.
Li Tang already knew this. Instead of getting envious, he focused on technical details. "So this area does have iron, just lower grade?"
In Pilbara, 40% grade ore was considered junk.
In the last century, this land was owned by BHP, who returned it to the WA government because it lacked commercial value.
Yet back in China, 40% iron content was considered rich ore!
Most Chinese ore is poor—around 30%—and full of impurities like phosphorus, sulfur, and silica. Terrible for smelting.
"Exactly." Kent had long been troubled by this dilemma.
He believed the ore was there, but low grade meant no investors. No one wanted it.
Most investors expected direct-sale iron ore. After all, margins were thin.
Only companies like BHP and Rio Tinto had the infrastructure and ore quality to make it profitable.
So Kent had never been able to raise the money for deeper exploration.
Now things were different. A bold investor was backing him, ready to develop iron ore at the market's lowest ebb.
As the vice GM and second-largest shareholder, Kent held hope they'd strike big.
"What's the geology here?" Li Tang asked. He knew there was ore—but little about the formations.
He couldn't recommend specific methods like he would in China.
"Pilbara's mostly sedimentary formations," Kent replied.
He had a background in geology and founded Lianying because he believed in this land. "This patch of ground we're on now is part of the Hamersley Group."
He opened up a geological map. "The major groups in Pilbara are the Fortescue, Hamersley, Turee Creek, and Weeli Wolli groups. All high-grade ore comes from the Hamersley."
The technical terms were overwhelming.
Every region had unique names for its formations.
This was true worldwide.
Li Tang knew Chinese geology well, but even within China, every province had its own set of names that often required consulting locals.
Kent kept explaining, "The Hamersley is over 2,400 meters thick and has three iron-rich formations: Marra Mamba, Brockman, and Boolgeeda. Most iron ore is found in the Brockman Formation—Newman and Hamersley mines are both from it."
Li Tang could only nod repeatedly. He barely followed.
Foreign terms in a foreign language made it worse.
Kent, seeing how focused Li Tang seemed, continued: "In the Brockman, the key ore-bearing unit is the Dales Gorge Member, about 150 meters thick. The lithology is banded, and we saw some of it exposed earlier—those neatly layered, dark shale-looking rocks."
Li Tang remembered the stacked, erosion-resistant rocks they passed earlier—lined up like books on a shelf.
"Did we see an ore outcrop earlier?" he asked.
"Yes. The whole formation contains iron. The Hamersley Group's average iron content is around 30%," Kent said. "Our job is to find where it's enriched."
"You're right." Li Tang nodded with admiration.
"This entire area—and about half of Pilbara—has Hamersley strata exposed!"
Kent respected the land deeply. "You could say the whole Pilbara has ore potential."
"So much land, so few people."
Li Tang was envious. A region this size with proven world-class deposits—if it were in China, geologists would've combed it a hundred times.
But here, much was untouched.
"Less than 10% of Pilbara has been thoroughly surveyed," Kent added.
He was drawn to the adventure—part of why he got into geology.
There were still massive deposits waiting to be found in this desert.
"We're here to find them—and mine them!"
Li Tang dreamed big—but always with profit in mind.
Looking out over the barren land, feeling the scorching heat, he knew: if not for the ore, no one would be here.
"Let's do it. Start drilling!" he said.
"We've leased three truck-mounted rigs. Each has a skilled operator—but labor's scarce," Kent said. "It's hot here. Even with high wages, few want the job."
"How much do you pay?" Li Tang asked.
"1,000 AUD per week. No degree needed. Just healthy young workers," Kent replied. "Our junior engineers don't earn much more."
"That high?" Li Tang was stunned.
Back home, a monthly wage was just over 1,000 yuan. Here, a laborer earned 20,000 yuan per month!
"And still, no one wants to do it."
"For now, find a way to staff these few holes," Li Tang said. "But when we scale up, I'll bring people."
Having done many projects, he knew drilling was all brute labor.
Carrying rods, collecting cores—it required no skill.
Only the rig operator needed experience to lead a team.
He had already decided: he would contact his Yanjing office and gather strong young men to come help.
Pay them 20,000 yuan per month. In a year, they could buy a house—and marry a beautiful wife.
"Welcome to ABC News. I'm your host, and joining me today is Webster, a well-known securities analyst. Webster, regarding the very hot topic of Lianying Mining that everyone's been discussing recently, do you have any thoughts to share?"
"Lianying Mining is a junior exploration company. At the time of its IPO, its market value once exceeded 50 million AUD, but in recent years, its performance has been lackluster, and its valuation has remained below 20 million."
"Yes, but recently that situation seems to have changed drastically."
"A Chinese company, Li Tang Shengshi Holdings—an enigmatic enterprise, well-known to the public thanks to recent media coverage—has stepped in. I'd like to offer a word of caution, especially to retail investors: Chinese companies often operate with outdated management models. Their success in discovering a copper-gold mine abroad, I believe, was nothing more than luck. Their acquisition of Lianying will not fundamentally change the company's fate, in my view."
"So you're saying...?"
"Lianying Mining's stock price has been climbing steadily for quite some time now, and that simply doesn't make sense. It's a result of media hype and a herd mentality among investors."
"You don't believe in the company's future?"
"I'm not saying what the future holds, but its stock price has already doubled. That's not rational. It's inevitable that, after a period of correction, it will fall back to a more reasonable level."
"So you think people should sell their shares now?"
"For most retail investors, yes—this is a good time to exit. This kind of market frenzy is a classic bubble. Sooner or later, it will burst. The current stock price of Lianying is behaving more like an internet company—completely out of touch with reality."
"And what about institutional investors or wealthier retail investors?"
"If they have money to burn and don't mind potential losses, then sure, ignore what I'm saying. After all, even a lottery ticket can win you millions."
"But everyone's been talking lately—Lianying Mining recently announced detailed results from their exploration drill holes, confirming ore discoveries. That pushed the stock price even higher."
"That's just a party. Some people are blindly following the trend."
"So you still believe the current price surge is irrational?"
"Absolutely. I even suspect someone's intentionally pumping the stock—likely the Chinese investors behind the scenes. They're probably looking for the right moment to cash out big and leave quickly..."
Bang! Bang! Bang!
Just as Li Tang was listening intently, loud banging interrupted the broadcast. The radio suddenly cut off.
The taxi driver had apparently had enough of the analyst's remarks and smacked the radio so hard it died completely.
"These analysts are full of crap. Always talking nonsense, never doing anything useful!"
"Agreed," Li Tang nodded.
"Mister, we've arrived. Please close the door when you get out," the driver said, now with a somewhat calmer tone.
But then he noticed the sign in front of the building: Lianying Mining Co.
And he watched as Li Tang pushed open the modest, house-like office door and stepped inside.
"What are the odds?" the driver muttered, a bit intrigued.
For a moment, he suspected this Chinese-looking man might actually be the mysterious owner of Lianying Mining.
But then he thought, Nah, a big boss like that wouldn't ride in a regular taxi, and sped off grumbling.
"This is Catherine. She used to work with me at Gaosheng Investment Bank," Alice introduced a slightly older white woman. "She was actually my boss, but she recently left the firm."
"Hello," Li Tang greeted her with a light handshake.
"I got divorced and have no kids. I just wanted a change of scenery," Catherine said. "I reached out to Alice to ask about traveling to Yanjing, and she invited me to come work with her. I figured a new work environment could be good too. So you're the mysterious boss everyone's been talking about?"
"I'm Li Tang. Welcome aboard," he replied, glancing at Alice, clearly wondering when she made that decision.
"We really needed someone experienced. Catherine's very familiar with capital operations in both the U.S. and Australia, so I brought her in to help," Alice admitted. "Of course, I need your approval."
"No need. You're the chairwoman and CEO of Lianying Mining now—you have the authority," Li Tang said, giving her full support.
"Thank you." Alice's eyes sparkled with gratitude. She immediately continued, "We plan to split Lianying Mining's stock. The total number of shares is too small right now, which is a disadvantage for future funding."
"Okay, I'll go with your plan."
Li Tang didn't have strong opinions, and he didn't have anyone else he could trust anyway. He placed full faith in Alice.
When it comes to choosing people, you can't doubt them.
"While we split the shares, we'll also follow through on your original proposal to raise capital. Catherine and I have agreed to issue new shares to raise funds. We're planning a total capital raise of 100 million AUD. Based on our current holdings, we can subscribe to 75% of the new shares."
Alice explained everything clearly: "The 100 million AUD will be entirely allocated to the exploration project."
"So we'd need to invest 75 million AUD to maintain our share ratio?" Li Tang quickly calculated in his head.
"Yes. You mentioned that the new loans we secured are intended for this," Alice replied. She knew Li Tang Shengshi Holdings still had a lot of money sitting in its accounts.
Although Li Tang trusted Alice, the idea of moving such a large sum still made him a little nervous.
After all, this wasn't China. If something went wrong, he'd regret it forever.
It was a massive risk.
A huge investment.
"I personally think investing so much into exploration is extremely risky," Alice admitted.
But she had drafted this entire funding plan based on what Li Tang had previously told her.
Logically speaking, she wasn't in favor of such a gamble.
Spending over 100 million AUD on iron ore was indeed a bold move.
Not just in Australia—even in the U.S., industry insiders had started to take notice of Lianying Mining.
No one in the sector could understand what they were doing.
While other mining companies were cutting back and tightening their belts, these people were suddenly throwing down with a massive initiative.
It was perplexing.
Some even described them as "like pandas"—very cute.
Though the words seemed flattering, there was clearly a hint of sarcasm.
Noticing that Li Tang had gone quiet, Alice added, "If you really think the risk is too high, we can cut the capital raise in half. Raise only 50 million AUD. That way, we keep our current share ratio and only need to spend under 40 million."
She often couldn't understand Li Tang's decisions.
Judging by market trends and external analysis, his choices looked reckless and dangerous.
But after working together for this long, she had personally witnessed Li Tang's sharp judgment and prophetic insight more than once.
If he insisted on moving forward, she would follow—without hesitation.
"No. Stick to the original plan. Raise the full 100 million," Li Tang said firmly. "Keep operating on that basis."
"Alright. That will be no problem." Alice had already prepared for this and didn't seem fazed. "The company just released news about the drilling results, and the stock price jumped again. This is the perfect time to raise funds."
After they discussed the funding, Li Tang stepped out of Alice's office. Just then, Land Department Director Sylvester stopped him.
"Boss, we submitted the land purchase application to the Western Australian government. It has already passed several layers of approval—just one step left," Sylvester said. "The governor wants you to explain the reason for buying such a large area. You are, after all, a foreigner, and land purchases of this scale go through extra scrutiny."
"No problem." Li Tang had returned not just to handle funding but also to deal with exactly this issue.
Nearly 50,000 square kilometers of land—bigger than some entire countries.
He had long planned this. Better to be prepared.
After his time exploring the Pilbara region with Kent, he was increasingly convinced: the area's mineral potential had not yet been fully realized.
Now, while iron ore prices were in a downturn and everyone thought the land was worthless, was the best time to acquire it.
If he waited, competition would be fierce.
It wasn't expensive. He'd buy the land now and apply for exploration rights step by step.
"I've scheduled an appointment with the governor's secretary and will let you know the meeting time," Sylvester said. A PhD holder, he was methodical and meticulous.
Whether it's a master's or PhD, academic knowledge might not always apply directly to work—but high-level qualifications say something about a person's thinking and discipline.
The next afternoon, Li Tang met the governor of Western Australia.
In front of him stretched a lush, rolling green field that extended as far as the eye could see.
They were at a golf course.
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