Chapter 383: It's Time to Counterattack
Li Tang didn't meet with Alba; instead, he encountered Eric, Rio Tinto's chief financial officer.
"Our Rio Tinto has extensive business operations here in Canada. With the new year, our workload has resumed in earnest," Eric said smoothly, careful not to reveal the urgency of his visit to Li Tang.
"You've worked hard," Li Tang responded politely, fully aware of why Eric had rushed over. If this were Austria, Alba himself would likely have shown up.
"I heard from Congressman Layton that you're considering selling the mining rights to the Mali River iron ore project?" Eric had met Li Tang on several previous occasions, though they hadn't developed much of a relationship. After a quick exchange of pleasantries, he wasted no time getting to the point.
In truth, Li Tang had never actively contacted Rio Tinto about selling the mine rights. It was Rio Tinto that had learned of Li Tang's intentions through other channels. It was now crystal clear that the widespread opposition Layton had stirred up against the Mali River iron ore project had been instigated by Rio Tinto.
Following Li Tang's meeting with Layton, he had never explicitly indicated a willingness to sell the mining rights. Layton's claim was entirely presumptive—yet Li Tang chose not to deny it outright.
"Our Mali River project has encountered huge obstacles," Li Tang stated plainly. "We're facing an impenetrable wall of opposition."
"I heard about it," Eric replied with feigned regret. "As someone working in the mining sector, I truly understand your frustration. It's always disheartening when local authorities refuse to approve a project."
"Indeed, very frustrating," Li Tang said neutrally, showing no particular emotion. "Initially, everything went smoothly. Prime Minister Martin openly supported our project, and the Nutte regional mineral department was also very helpful. But overnight, opposition emerged. Suddenly, Layton, along with numerous citizens and politicians, all began strongly opposing the Mali River project. It seemed orchestrated."
"Don't be so pessimistic; conspiracies aren't so common," Eric replied innocently.
"True, perhaps it's just coincidental," Li Tang conceded ironically.
"A project with a nearly three-billion-dollar investment naturally attracts significant public attention. Support and opposition are both normal," Eric justified smoothly.
"If this is normal, it's something I've certainly never seen before," Li Tang said, sensing Eric would reveal no useful information. He changed tack, continuing, "After speaking with Layton, I've realized that our project has only two possible outcomes: either we avoid Chinese state-owned enterprises by attracting investors from Wall Street, or as you suggested earlier, simply sell the rights and rid ourselves of this troublesome matter."
Eric's face immediately lit up at these words. His trip today wasn't in vain.
"The iron ore market is strong now. Selling the mining rights would be profitable for you," Eric encouraged.
"Precisely why I agreed to meet you," Li Tang said calmly. "The Mali River project has already uncovered nine ore bodies, all close to the surface, covered at most by thin ice. We've completed a preliminary survey of the first ore body up to 300 meters deep, confirming reserves of 380 million tons with grades between 66% and 67%. It's a remarkably high-quality deposit on a global scale."
"Yes, indeed," Eric responded, already familiar with these details. Understanding your counterpart thoroughly was simply good business practice.
"Aside from the reserves we've already identified, preliminary aeromagnetic surveys and exploratory drilling indicate the total high-quality ore reserves within our licensed area likely exceed six billion tons," Li Tang continued, promoting the mine's merits. Such self-promotion hinted strongly at his readiness to negotiate a sale.
Eric was unfazed by exaggerated claims; he was only afraid Li Tang wouldn't engage at all.
"It's an exceptional asset; everyone knows that," Eric agreed warmly.
"Yes, I'm reluctant to let it go, but circumstances leave me with few options," Li Tang said with a hint of internal conflict.
"By selling these rights, you'll gain substantial funds to invest in new exploration projects. With your talent for exploration, you'll easily find other major deposits," Eric flattered, before becoming more direct. "Are you genuinely willing to sell, specifically to Rio Tinto?"
Li Tang didn't deny it outright. "We collaborated very successfully on the Pebble project. If I sell, Rio Tinto would naturally be my preferred buyer."
"You're making a wise decision!" Eric said, smiling subtly. "You currently hold 80% of Cold Iron's shares. Are you planning to sell all your shares, or just a portion? What's your asking price?"
"Before discussing price, I'd like to know Rio Tinto's plans for the Mali River project," Li Tang replied calmly. In truth, he had no intention of selling; his curiosity was in why Rio Tinto was so eager to acquire it.
"The Mali River project is like a beautiful woman—who wouldn't be interested?" Eric joked smoothly.
"Would you begin development quickly after acquiring the rights?" Li Tang asked again.
"Is that important?"
"It's crucial," Li Tang became serious. "Your answer determines how I handle the mining rights. If Rio Tinto intends rapid development and investment, I'd willingly sell Cold Iron's shares—but I'd insist on retaining a small stake."
"I understand your desire to retain some shares," Eric said carefully after a long pause. "But in fact, you wouldn't need to. Selling us all your shares would get you a much higher price."
"No, I'll definitely keep a portion," Li Tang replied firmly. "The Mali River mine will generate huge profits. I can't remain indifferent to such potential."
Realizing Li Tang's stance was firm, Eric spoke candidly, "We don't intend to develop the mine immediately—at least not in the short term. According to your project plan, it's a nearly three-billion-dollar investment!"
"Rio Tinto has plenty of money!" Li Tang laughed. "You earned over five billion dollars in net profits last year. Financing the Mali River project shouldn't be difficult for you."
Eric acknowledged that Rio Tinto was wealthy and could certainly afford the project—but their current funds were tied up elsewhere. They were raising thirty billion dollars to launch a takeover bid for Alcan Group, aiming to become the world's largest aluminum producer. Rio Tinto couldn't divert their attention or funds to the Mali River project at this moment.
Li Tang understood Rio Tinto's real intentions clearly. They weren't interested in developing Mali River. Rather, their aim was to control global iron ore reserves, maintaining their dominance in pricing. Not just Rio Tinto, but also BHP Billiton and Vale feared the development of Mali River—not because of the mine itself, but because it was controlled by Li Tang, a Chinese national.
If Li Tang successfully expanded his iron ore production globally to hundreds of millions of tons annually, China would entirely escape the control of the major iron ore giants. Increasingly, they suspected Li Tang was backed by the Chinese government. They believed China provided funds and technology, crafting Li Tang's image as a global mining magnate, concealing their goal of securing essential industrial resources without foreign dependence.
Stopping Li Tang—and thus China—had become their collective objective.
Eric represented Rio Tinto at this meeting primarily because Li Tang had rejected requests from BHP and Vale. Li Tang's meeting with Eric was intended merely to identify who was orchestrating the opposition. Now he knew: Rio Tinto.
Since Rio Tinto had caused him trouble, Li Tang certainly wouldn't let them walk away unscathed.
Outsiders saw Rio Tinto and Li Tang cooperating closely: the Pebble project deal, and Rio Tinto's railroad transporting Li Tang's iron ore from Chichester. Many credited Rio Tinto's logistical support as crucial to Winning Mining's success last year.
Yet Li Tang understood the true nature of Rio Tinto. If given the opportunity, they would crush Winning Mining without hesitation, eliminating Li Tang completely. These large international corporations had reached their positions by trampling countless smaller rivals.
"Since your current financial circumstances mean you can't develop the Mali River project, we have nothing further to discuss," Li Tang suddenly said, concluding their conversation abruptly.
"Don't rush!" Eric hurriedly pleaded. "Tell me your conditions. How much do you want, and how much equity would you retain?"
Li Tang shook his head silently.
"How about 300 million dollars?" Eric pressed on, clearly anxious not to lose the deal.
Eric was quite generous, offering a substantial price right away: "If you're willing to transfer all your 80% shares in Cold Iron Company to us, you'll receive three hundred million dollars in cash!"
"That's indeed generous!" Li Tang remarked with apparent surprise.
"Just think of how much help the $330 million from the Pebble Project gave you back then!"
"But I don't intend to transfer the mining rights," Li Tang said bluntly, having achieved his goal for today's meeting. He was becoming impatient and no longer bothered to maintain politeness.
"Congressman Layton said you'd definitely sell the rights!"
"Perhaps Layton misheard," Li Tang stood up abruptly, brushing himself off casually, waved dismissively, and walked away.
Gao Jingjing, his assistant, was taken by surprise at the abrupt ending. She quickly grabbed her small bag from the side, hurriedly catching up in her high heels. She still couldn't quite grasp Li Tang's negotiating style—everything seemed to be going smoothly, with the other party even offering a high price, but her boss simply turned and left.
Eric sat there, utterly dumbfounded, watching Li Tang disappear from sight. Anger quickly welled up inside him. He stood up furiously, pointing at Li Tang's departing figure, yelling, "Without our help, you'll never develop the Mali River mine!"
"You'll pay dearly for your arrogance, just wait and see!"
No matter how loud he shouted, Li Tang ignored him and didn't look back.
Eric then moved to the adjacent room, where Alba had been sitting all along, listening in from next door—not because he specifically wanted to eavesdrop, but because Rio Tinto's acquisition of Alcan was reaching a critical phase. Alba was visiting Canada for on-site inspections and to gauge local sentiment about Alcan.
"He's incredibly arrogant!" Eric complained angrily.
"I heard," Alba calmly sipped his coffee. "Li Tang never intended to sell the Mali River mining rights. Layton gave us inaccurate information or doesn't understand Li Tang at all."
"What now?"
"Keep pushing Layton to emphasize the risks of the Mali River mine project," Alba stated firmly, slamming his coffee cup on the glass table, making a sharp clang. "We absolutely cannot allow Mali River to start production! Preventing Li Tang from disrupting the iron ore market is critical!"
"Layton's appetite keeps growing—we've already spent more than ten million dollars," Eric sighed bitterly as CFO. "Buying media coverage and lobbying politicians and officials is incredibly costly. This project generates no returns yet costs us heavily!"
"Not every return shows up on financial statements, but that doesn't make it worthless," Alba's tone left no room for argument. "Our mission is to save the iron ore industry, and by extension, Rio Tinto itself! Any investment here is justified."
"Alright, understood," Eric conceded.
"Also, Alcoa is preparing a formal takeover offer for Alcan."
"If Alcan's board accepts, won't we miss our opportunity?"
"We'll have to see. It would indeed be unfortunate to miss out due to timing issues," Alba sighed regretfully. "Our preparation time was too limited."
"Speaking of Alcan, Li Tang has been quietly acquiring their shares and now holds about 8%," Eric reminded.
This had briefly attracted media attention when Mitsui & Co. transferred a 5% stake to Li Tang, but interest soon faded as these shares seemed to have little operational impact. The common speculation was that Alcan CEO Richard Evans had invited investment from Li Tang to expand the Chinese market.
"What are you implying?" Alba was unsure of Li Tang's true intentions.
"I can't say for certain," Eric frowned. "But Li Tang doesn't invest randomly—he always has an ulterior motive."
…
Li Tang returned to the hotel and immediately asked Gao Jingjing to call Alice to his room. Now that it was clear Rio Tinto was behind the sabotage, Li Tang was preparing his response.
He wasn't the same as before. While not yet entirely formidable, he certainly wasn't someone to push around anymore. Rio Tinto's repeated bullying had crossed the line—it was time to strike back!
"Miss Gao, wait outside. I need to speak privately with Mr. Li," Alice ordered upon entering. She stood at the door, waiting for Gao Jingjing to leave.
Seeing Gao Jingjing rise from her seat, Li Tang interjected quickly: "No need, stay here. Alice and I need someone to take minutes for this short meeting. Listen carefully and circulate the key points internally afterward."
Gao Jingjing glanced awkwardly at Alice, frozen halfway out of her chair.
Alice shot Li Tang an annoyed glare before reluctantly sitting down, "What is it?"
Li Tang caught a faint scent of Alice's perfume. He suspected it was intoxicating; his back still ached slightly from earlier. Switching to work quickly erased any discomfort.
"When will the hundred million dollars from Barrick Gold arrive?" he asked.
"Soon—within a month, it'll reach our foreign currency account," Alice responded formally.
"Good," Li Tang nodded thoughtfully.
"You met with Layton and Rio Tinto. Any progress?"
"Not really. Mali River won't get approval anytime soon," Li Tang replied, then added, "But at least we confirmed it's Rio Tinto sabotaging us."
"Rio Tinto?" Alice looked perplexed. "Why? Our Mali River mine doesn't directly compete with their business. It shouldn't significantly impact their iron ore operations."
"Perhaps they're just bullies who feel threatened by our growth," Li Tang smiled confidently, completely fearless. "We'll teach Rio Tinto we're not to be trifled with!"
"Rio Tinto's major shareholders are Wall Street giants. Fighting Rio Tinto directly is futile—we have no leverage," Alice cautioned.
"We do!" Li Tang's bright smile radiated confidence.
Alice didn't understand Li Tang's exact plan, but trusted him implicitly. "What should I do?"
"We currently hold just 8% of Alcan, plus some convertible bonds. If converted, that's only about 9.5%. Not enough. Contact Li Feiqun at Jiangda Securities. Tell her we need more capital urgently!"
Initially, Li Tang had intended to profit quickly from Alcan's takeover saga and nothing more. But Rio Tinto had forced his hand, crossing ethical boundaries repeatedly. Now, if he didn't fight back, he wouldn't feel like a man. He'd seize this Alcan acquisition to deliver Rio Tinto a sharp sting.
"How much more capital?" Alice sensed the urgency.
"At least another billion dollars!" Li Tang said resolutely.
"That much?" Alice was shocked. They had already borrowed a billion from Jiangda Securities, fully invested in Alcan stock. If Alcan's shares fell to their stop-loss point, Jiangda had the right to liquidate immediately. Borrowing another billion would further narrow their margin for error—a minor fluctuation could wipe them out completely.
"Just do it—don't ask questions," Li Tang said firmly, unwilling to elaborate further.
"Oh, and contact Lü Caiqing from Chinalco and Rong Yiren from CITIC Pacific," Li Tang added. "I'll inform them beforehand, but you should personally explain our plan in detail."
Alice felt uneasy but chose to trust Li Tang. Believing in him had never led her astray before.
"Should we also invest the hundred million from Barrick Gold into this?"
"No, I have other plans for that money," Li Tang shook his head.
"What plans?"
"I'm investing in Batista's GX Petroleum," Li Tang disclosed. Alice was always the first to know his investment moves.
"Eike Batista from Brazil?" Alice was bewildered.
"Yes."
"Batista is famously wealthy in Brazil, worth over a billion dollars, with extensive political connections," Alice said, puzzled. "But you once called him Brazil's biggest fraud, a master conman known worldwide. You've frequently met Batista privately, which is odd enough. But knowing his nature, you still choose to invest in him?"
"He is indeed a master conman," Li Tang laughed, recalling the nickname he'd jokingly given Batista in a previous private conversation with Alice. It wasn't malicious, but apt.
"Everyone has strengths," Li Tang explained casually. "Batista built a huge business empire and is extremely influential across Brazil. His bold, aggressive style can make us big money."
Alice couldn't fathom Li Tang's logic.
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