Chapter 293 (2/2)
Bao Zixuan: ”it's good here. I'm going to buy some farms here. I can come over for vacation at any time. I find you are really happy. You can talk more here for at least five years. ”
Stevenson: ”if you like, I have some farms in the West. We can be neighbors then.”
Bao Zixuan: ”that's good. It's a good choice to be a neighbor with you.”
Seeing that Wu Guangzheng didn't say a word, Stevenson knew that as long as he handled baozixuan this time, there should be no problem. With a smile, he said: ”blackcloud has explained your intention in advance, and we BHP Billiton also hope to cooperate with entrepreneurs with strength and ideas like you. However, we need to discuss the quantity and price you want to buy. After all, the price is too low. We can reduce the price appropriately, but I can't accept so much at once. ”
”The cooperation price provided by black cloud staff to BHP Billiton is 20% off the market price, which will not make money for mining enterprises. However, the current iron ore price is low. If you really harden your head, you can go on, but this is basically losing money and shouting. It won't last long. ”
Bao Zixuan: ”this is only our first quotation, but now the steel industry is not booming. We are also facing great risks. I hope both sides can reach a consensus at a reasonable price. However, what I can express to you is that we can sign a long-term and stable supply agreement. BHP Billiton's coal, iron, aluminum, copper and other metal minerals are the long-term procurement objects of baohuodong mining company. And we can pay the deposit in advance. It's 30 years. I think it's not a short contract. ”
The executives of BHP Billiton are very excited to hear that they can sign a 30-year stable supply agreement. After all, no company in the market dares to operate like this. In fact, baozixuan didn't expect to clinch a deal at this price. BHP Billiton wouldn't agree as long as it wasn't stupid.
Stevenson: ”Mr. Bao is so optimistic about his steel company. After all, this is not a short contract.”
Bao Zixuan: ”my business is based on long-term interests. As long as the future generations do not lose money, it is estimated that it will be difficult to close down. The most important thing is that I'm not 23 years old at present. As long as there are no accidents, I think I can cooperate in 30 years. ”
”I can pay the deposit in advance at the beginning of the cooperation and settle the payment every quarter. Never default. You should understand that I don't like to owe money in business. ”
Stevenson: ”how much deposit do you have to pay, and we can only supply goods at a maximum of 9.5% off the market price. The mineral business is different from the technology industry. It doesn't have such a high profit. I hope you can understand. ”
Bao Zixuan: ”200 million US dollars has been put in BHP Billiton's account for a long time. But after our calculation, 9.30% discount is a price you can accept. And we transport all the goods by ourselves, but you should bear the expenses of railway transportation and wharf storage in the early stage. In addition, when the contract expires in the future, our company has the priority to renew the contract for 20 years, and the deposit can be added to US $500 million. ”
Now the negotiations are conducted by staff members in advance, and Bao Zi Xuan is only playing a signatory role. It won't be naked like before. It's too passive.
In this way, the lawyers of both sides began to draft the contract in the presence of local officials; Bao Zixuan and Stevenson signed their names. The contract that made Stevenson's prestige in BHP Billiton unprecedented at that time almost let BHP Billiton's management dig him out and whip him to death several years later.
The annual total of 50 million tons of mineral supply is discounted, not to mention for such a long time. The most important thing is that anyone who breaches the contract should pay the deposit multiplied by the number of years. After 30 years, if he breaches the contract, he should pay $6 billion. There is also the priority to renew the contract when it expires. This is a contract that no one dares to breach. By virtue of this contract, baohuodong can resell hundreds of millions of dollars every year, and it is still increasing year by year.