It was a bit unexpected that Jiang Feng suddenly came to North Africa to seek iron ore cutting.

Although Jiangshi Mining took action in several iron ore powers in the Gulf of Guinea, it has obtained many iron ore projects, and occupied a blank area between Rio Tinto, BHP Billiton and Vale's three major mining companies, making Jiangshi Mining the fourth largest iron ore giant in just two years, Jiang Feng was not very at ease and always wanted to open more mining areas and have some confidence in it.

North Africa is a corner that is almost forgotten by the world, but it has a very rich iron ore resources, attracting Jiang Feng's attention. If the negotiation goes well this time, he plans to invest about 5 billion US dollars here to open an iron ore mining and transportation channel.

North African countries have abundant iron ore resources, and Jiang Feng remembers it very clearly. The iron ore reserves in Algeria, North Africa are as high as 15 billion tons, and more than 3 billion tons have been proven. What is more worth mentioning is that the iron ore here has iron content of up to 60 to 80%, and the ore bodies are shallow, rich ore and high grade.

Today's ore exploration technology has made great progress. After the scope of ore exploration is expanded, I believe that many new mining areas can be found. This situation from West Africa can be confirmed. Under the control of Satan, a magnet ore with a reserve of tens of billions of tons was found in the north of the Republic of Lion Mountain. The newly discovered iron ore reserves in other countries such as Gabon and Senegal are also very considerable and are worthy of attention.

By the 21st century, multinational corporations in the world have successfully deployed global minerals. The remaining West Africa is an uncultivated treasure. What’s more important is that Jiang Feng rushed out early this time. When no one else could react, he took the lead in controlling the main mineral countries here.

Under the influence of the world's iron ore monopoly group today, the asking prices of the three major mines continue to rise, accounting for more than 40% of China's imports. The price rose faster, and the price per ton was already five US dollars higher than the Indian ore, which was ten US dollars higher than the Brazilian mine with a farther distance.

Although Jiang Feng is one of the three major iron ore giants in Australia, Jiang's iron ore production in Australia has not met expectations at this time. In addition, Jiang Feng is worried that the Australian government will have a certain impact on its iron ore price strategy, so he feels that he cannot hang himself on a tree and develop minerals in other regions such as West Africa and North Africa to check and balance international mines, thereby enhancing the competitiveness and voice of Jiang's consortium in the iron ore industry.

To monopolize the iron ore industry in a region, it is obviously necessary to go through fierce competition. This is also common sense. The main reason is that a large mining area cannot be explored overnight. When this is confirmed, everyone will crowd into this ore meal. It is a suspense that who can eat a piece of meat is a surprise. New companies like Jiang's Consortium, which are not originally a giant in the iron ore industry, obviously have to overcome many obstacles if they want to participate in local mining development.

The reason why mining areas in West and North Africa have not been able to gain the attention of major ore giants is mainly because the infrastructure here is backward and the local infrastructure is poor, which seriously hinders mining development. When entering the mine here to mine ore, it is necessary to build infrastructure such as ports, roads and railways, which is a considerable expense. Of course, the biggest constraint is the unstable political environment here. If you want to develop the minerals here, you must also have corresponding military forces to ensure it.

Jiang Feng calculated the calculation that serious mining costs little money, but if he wants to transport iron ore, he will spend 4 billion to 5 billion US dollars to build mines, ports and railways in these places.

Jiang Feng plans to build several iron ore in Africa, including the Simandu iron ore in Guinea. Two years ago, after Satan controlled Guinea, the mine development rights here were not sold, and they happened to be taken over by Jiang Mining, which was driven over.

However, although Jiang's family has obtained the development rights of the Ximangdu mine, it has not been developed, because the project is inland and is 900 kilometers away from the coastal areas. The construction of railways and ports not only occupies a large amount of funds, but more importantly, time. Jiang Feng predicts that even if it goes well, the Ximangdu project will be officially put into production in two years.

Jiang Feng also considered that if the mainland government can be encouraged to implement a policy of exempting tariffs for most African countries from exporting to China, exchanges at the China-Africa country level will be smoother, creating good conditions for Jiang's consortium to develop West African mining.

It is true that the Chinese government cannot do anything that harms public and private affairs. The Jiang Consortium must have some rewards to facilitate this. However, Jiang Feng is also very clear that the trade volume between China and Africa is just that, but his importance to the Chinese government is self-evident, and the senior management will definitely sell this face.

With this idea in mind, Jiang Feng’s requirement for the expert group is to try to reduce the other party’s conditions and provide convenience for purchasing a mine. No matter what, as long as the other party’s conditions are not too outrageous, this matter can be negotiated.

In fact, Jiang Feng has a great advantage when he comes this time. The most important thing is that North African ore is currently unwilling to be concerned about, and they do not take this thing seriously. After all, mining is too easy and transportation is difficult, so they can only sell it at a low price, and there is no high hopes.

But what Jiang Feng thought was not to only buy some ready-made iron ore, his intention was to open the entire mining area.

Because of this, although Jiang Feng was watching lions and elephants with Lin Chiling and Lin Ruiyu, he always had many things in his heart.

Although Erlin didn't know much about these things, the girls' natural sensitivity made them feel that Jiang Feng was worried.

After walking outside for a day, the expert group contacted Jiang Feng and said that there were some big differences between the two sides. For example, they were not very concerned about the price. Instead, they hoped that the Jiang Consortium could invest in the construction of a processing plant shared by both parties, and they were responsible for the design, construction and operation, and increase the taste of iron ore from 60% to 70%. However, the investment of their processing plant is more than 100 times the investment of similar Chinese companies, which made the experts very puzzled.

After hearing the news, Jiang Feng was a little surprised. His intuition was that he thought the other party wanted to gain benefits from this processing plant, but when he thought about it carefully, he felt that it was not like that, because their mine was too cheap. They were business owners and not leaders of state-owned enterprises in mainland China. They could sell the mine more expensively. There was no need to spend more time building a high-priced processing plant to achieve it. This was actually a solution that made everyone uncomfortable.

So Jiang Feng found someone familiar with the local situation and asked what was going on.

Not long after, the matter was found out. It turned out that their iron ore had a high titanium content, which was more than 8%. If there was too much titanium, the boiler would explode when steelmaking. They explained that the newly built processing plant could just reduce the titanium content and make the ore reach the standard of safe smelting. And there was another important point. If it was not processed here, it would be difficult for the government to deal with, because here, the government restricted the export of primary products, and due to the high freight, it was extremely necessary for them to set up a processing plant to remove impurities in the ore.

After figuring out this matter, Jiang Feng's experts carefully calculated and found that even after the total price of the project was cheap, even if the processing plant was sky-high, it would still make a big profit after comprehensive calculations. Therefore, there was no complaint about the processing plant. After all, Jiang Feng knew very well that after obtaining the development rights, the reserves obtained in the mining area were very large, enough for mine for one hundred years.

So everyone reached an agreement and both sides were very happy.

Jiang Feng carefully calculated that even after processing, the iron content of the iron ore here was controlled at about 70%, and the offshore cost was less than 20 US dollars per ton, which should be the best iron ore he has seen so far. The imported Australian ore and Brazilian mines have not reached such a good level.

In fact, Africans also have another concern, which is also a problem encountered in negotiations with Chinese companies before. China is a country with foreign exchange control, and it is difficult for domestic companies to remit investments abroad. The government needs strict review procedures and is likely to not approve these overseas investments.

Moreover, now we are buying mines overseas, and it is not a state-supported investment, so the investment of mainland enterprises must be achieved through other methods. The main way to change is to replace investment with trade, which is very troublesome.

On the contrary, if you are a foreigner, it is very simple. Sometimes when Jiang Feng thinks of this policy, he really feels that the government is trying to force everyone to immigrate.

This common method is to go through trade channels. The final agreement between all parties is to use a circular long-term letter of credit. Such letters of credit are repeatedly issued and are not actually implemented. The other party uses a mainland joint venture company to borrow overseas to solve the problem of funds. The other party does not need to invest, but to lend to mainland enterprises, local banks can also communicate.

In this case, because the contract price is particularly low, it is less than 60% of the domestic iron ore price, and it reaches the metered price. Due to the shortage of iron ore, banks dare to issue certificates, and they are eager to avoid redeem orders. As long as one day later, the bank can sell your ore at a high price and earn a profit of 2% of your issuance fee in vain.
Chapter completed!