The Industrial Giant Reborn

"Merger and acquire other companies?" Tom was stunned for a moment, and then said: "Mr. Chen, according to Rio Tinto's normal development plan, we do have a strategy in this regard, but we also need to wait for the right time, not which company we want to acquire. We can acquire any company, and besides, we may not like ordinary mining companies. If they cannot strategically support each other, the acquisition will only cause greater losses."

"I won't interfere with you. I just suggest that as long as Rio Tinto's share capital is large enough, I can invest more without affecting the company's daily operations. Wouldn't this kill two birds with one stone?" Chen Zhiwen said with a smile.

Although the mining industry is not as sensitive as oil and gas, it is one of the foundations of national development. It may not matter if you participate in a small way, but if you participate too much, it may be very troublesome. For example, in the past, the mainland's state-owned or Private capital has participated in many acquisitions of international mining companies, but it always encounters many problems. Either it is rejected during the merger or acquisition, or it is rejected again after a few years of operation after the acquisition.

Although state-owned capital finally succeeded in controlling some mines or some mining companies, behind the scenes was the outcome of the compromise of various interests at the national level.

If you really want to break in, it doesn't mean that you will definitely not succeed, but it will be too laborious. Through indirect investment, both energy and efficiency will have the highest rate of return. If you can also let your bank participate in it, Yes, it's even more cost-effective.

"We are very grateful for Mr. Chen's support, but we also want to ask clearly, what do you want?" Tom thought for a while and asked again. He did not believe that the person in front of him would really help Rio Tinto like this, even if he was Shareholders are unlikely. Most companies have many shareholders, and I have never seen a few shareholders provide a lot of support. It would be good if they don’t hold back. Unless this shareholder controls the company, he will naturally invest enough resource.

"My request is very simple. At some time in the future, I need to exercise my rights as a major shareholder and have the sales distribution rights of some mines." Chen Zhiwen said.

Different from general industries, in the mining industry or oil and gas industry, in some cases, shareholders have the right to allocate terminal sales. For example, if an iron mine has an annual production capacity of 100 million tons, which one holds 10% of the shares? Shareholders can have the right to sell 10 million tons, but this is not certain. It still depends on the game between the management and the shareholders. Shareholders have distribution rights, which are usually discussed early when they join the stock. For example, later generations of mainland China spent huge sums to acquire shares in many iron ore mines, aluminum ores and copper mines, both to allocate rights and save money on the one hand, and to ensure the stability of supply and avoid serious ore shortages in the country. , otherwise, there are too many things to invest in, and few people will invest in mining. After all, the return rate of this thing is far lower than that of many industries. If Chen Zhiwen did not know that Rio Tinto would become the world's three major mining giants in the future. , it is impossible for him to invest in the mining industry. The rate of return is higher than investing in real estate in Mainland China, Hong Kong or even Bay. And since he has invested, he will naturally have to fight for sales distribution rights. This is a real huge influence.

"All mineral deposits?" Tom asked. This is actually expected. Many investors around the world invest in the mining industry for this purpose. However, for mining companies, terminal sales are the source of their influence, unless they are Mineral deposits that don’t sell well, otherwise they wouldn’t be willing to allocate the rights. Of course, investors are not fools. Everyone wants those who don’t have to worry about selling. This is a huge resource, and everyone is interested in it. scramble.

"Yes, but it will mainly be iron ore, some small types, I am not very interested in it." Chen Zhiwen said.

"I understand what Mr. Chen means, but such matters require the approval of the board of directors. I can't make the decision," Tom said.

"Okay, then I'll wait for your news. However, my acquisitions in the stock market are still going on. I can't say what changes will happen in the future." Chen Zhiwen said with a smile. He was not planning to actually acquire Rio Tinto. , but you can use this as a pressure method.

"Understood, I will give this answer as soon as possible." Tom nodded and replied. As management or some small shareholders of Rio Tinto, they dare not gamble. Rio Tinto is not a bank and is not subject to the restrictions of banking laws. Chen Zhiwen's industries have nothing to do with them. They only need to comply with the laws of listed companies. As long as the stipulated share is within 34.9%, and if it really reaches this ratio, maybe after the shareholders' meeting is held, Rio Tinto may become Chinese. As for whether the government will interfere, it is possible, but recently the United Kingdom is also busy de-state-owned enterprises and promotes the name of free market. If the policy is reversed because of Rio Tinto, then even if the government steps in to save Rio Tinto, They, the management, can also leave.

"One more thing, how many lithium mines does Rio Tinto have?" Chen Zhiwen asked again.

"Lithium mines? There are some, but the market for these mineral deposits is very small, so most of them are not mined, and the profits are not high, and some are still losing money." Tom replied, this is not an absolute secret, don't say that Chen Zhiwen is the major shareholder , even an ordinary person can find out if he really wants to know.

"You also know that Hutchison Whampoa, which is owned by me, has a mining company. Over the years, it has only operated half of Australia's iron ore mines. Traditional minerals have little chance for new players, and we have internally decided to invest in lithium Mine, so I can offer a price to buy all the lithium mines owned by Rio Tinto, what do you think?" Chen Zhiwen said again.

As a future traveler, Chen Zhiwen naturally knows how important lithium will be in the future. Starting from the 1990s, when laptops appeared, the demand for lithium has been rising. Then in the late 1990s, the sales of feature phones increased. Not only is it dozens of times more than a laptop computer, but in another ten years, when smartphones appear, the battery power requirements of a smartphone will be 5-10 times that of a feature phone. Not to mention, after the 21st century, the global Economic development has resulted in almost everyone needing a mobile phone. Coupled with the popularity of power banks and portable appliances, lithium has become one of the most important elements in the electrification process. The emergence of electric vehicles later led to the miracle of lithium prices rising nearly tenfold in one year. All countries and capital in the world became keen on looking for lithium ores, and even the whimsical South American countries were preparing to establish an organization like OPEC for lithium. Organization of lithium mines.

In the 1980s, there were very few uses for lithium. Nowadays, even though many mining companies do not specifically look for lithium mines, the existing lithium mine production capacity due to accidental discoveries or associated mines is oversupplied. It is basically worthless. Chen Zhiwen will definitely not let go of such an opportunity. This is not just a question of money, nor how many times it can be doubled in the future, but the influence of important resources and his own In the future, we will also invest in the lithium battery industry, which will inevitably involve production. Only by having our own mines and integrating the entire industry can we gain the greatest advantage.

Of course, if you hold too much in your hands, you may be targeted in the future, but as long as you properly introduce other multi-party capital and share the benefits, there won't be much of a problem. Or even worse, if you sell some parts that are difficult to deal with at a high price, you can It’s also profitable.

"Lithium mine? Is Mr. Chen optimistic about the battery technology recently developed by Japanese laboratories?" Tom asked after thinking for a moment. These mining executives are not fools. On a daily basis, they will also keep an eye on the world's cutting-edge technologies, especially those involving When it comes to basic materials, once there is a breakthrough, it may have a very big impact on many mineral deposits. In recent years, Japan's lithium battery technology has made breakthroughs, but it seems to be a bit far away from commercial use.

"Yes." Chen Zhiwen didn't say much. There are always many smart people in this world. When the lithium battery in the Japanese laboratory made a breakthrough, many people actually thought that lithium might appreciate in value. However, Vision is all about vision, and it can only determine one direction. It may double in two years, or it may double in 20 years. Who really dares to invest heavily? Out of 10,000 discerning people who think they are right, only 100 may dare to invest, and only 1 person dares to invest heavily. Only such people can succeed, but the risks are very high. For example, in 2006, someone saw this Due to the possibility of a credit crisis, only a very small number of people can truly profit from large-scale short selling, and most of these very few people have lost their money because they blocked the market at the wrong time, and only a few of them have truly succeeded in the end.

Let's talk about lithium mines. If Chen Zhiwen didn't have enough money, he would definitely not touch this. It would be more practical than Hong Kong real estate.

"I also need to mention this matter on the board of directors, but as long as the price is right, it shouldn't be a problem." Tom nodded and said, although Japan has developed new lithium battery technology, they also know some inside information. , extremely immature and highly dangerous. The battery capacity is indeed not low, but the safety is terrible. There was even a fire in the laboratory in Japan because of it. Who knows when such a product will be mature and put on the market, maybe seven or eight In another year or ten or twenty years, no matter how high the achievements are in the future, it will have little to do with people like them. Furthermore, laboratories around the world have a lot of new technologies that may affect the price of raw materials every year. Some of them proved useless in the end. Who knows whether lithium might be one of them?

For such a small-scale thing with uncertain prospects, there is really no need to hold on to it. It is better to sell it to Chen Zhiwen to save face. If he wants it, just give it to him. The board of directors should not refuse.

"Okay." Chen Zhiwen nodded and said, "During this period in Hong Kong, if you need anything, you can always contact me. The Cultural Oriental Hotel where you stay is mine."

"OK, thank you Mr. Chen." Tom said politely.

After a while, Tom and others left the conference room, leaving only Chen Zhiwen, Zhou Jiayang and others.

Chen Zhiwen took a sip of tea and said: "Lao Zhou, our demands are not too much on Rio Tinto's side. I think it shouldn't be a problem on their side. You can just follow up. But for the lithium mine, in addition to the acquisition of Rio Tinto Under its subsidiaries, you also need to arrange for Hutchison Mining to go to mining companies in other countries and find ways to acquire some. Although there are not many lithium mines now, there are still some that can be discovered early."

Mining groups have been played by other companies around the world for hundreds of years. The places around the world where ores can be easily found have basically been discovered. Those that have not yet been discovered are basically deep mountains and wild forests and other places with inconvenient transportation and high costs. Hutchison and Huang Mining has no advantages. In fact, it can exist only because Chen Zhiwen knows about the Christmas Creek Iron Mine. But after all, he was not engaged in mining in his previous life, and neither is he.

"I understand, but will the future demand for this lithium mine really be that big?" Zhou Jiayang would naturally not object to the boss's order, but if he understood it clearly, it would be more suitable for him to carry out his work. Only by knowing The future value, or expected value, can only be acquired when he encounters something that can be acquired. Otherwise, it will be easy to spend more money, or he may need to ask the boss for everything, which will be too troublesome.

"I can only say that this will be a huge gold mine." Chen Zhiwen smiled and said: "The current power capacity of lithium batteries is 3-5 times that of current lead-acid batteries, and the weight is also much lower. Once If it can really be used maturely, it will have a very big impact on our society. The only problem is the safety issue, which is indeed difficult to solve, but as long as the market is big enough, there will always be countless companies that will find ways to solve this problem. Yes, that is Midea. I am also arranging for them to start research and development in this direction in the mainland using a large number of talents there.

In fact, there is no need to solve all security problems, as long as the probability is low enough. Open the market first, and then slowly iterate and update. However, no one knows the technical route, but no matter what technology, lithium is needed. Lithium metal is the foundation of everything, so at this early stage, let alone control, but at least we must own part of it, and we will be invincible in the future. "

The future ternary lithium, lithium iron phosphate, or the nickel-metal hydride batteries of the 1990s. As a time traveler, he only knows the names and nothing else. It is impossible to turn them into actual products. Therefore, Although Midea will also invest in technology, in this case, it is not much different from other capital. The only advantage may be to use domestic cheap human resources. However, in terms of cutting-edge technology, it may not be as good as the United States and Japan. Europe has its pros and cons. There is no harm in getting the lithium resources first.

"Understood, I will do my best to lay out the lithium mining industry." Zhou Jiayang nodded and said. (End of chapter)