677 Ore Negotiation (2/2)

Jiang Chen's message expressed two layers of meaning. The first layer: we have deposits. If your price is higher than our development costs then we won't dance with you! The second layer: Future Group is no longer the Future Group from last year - don't expect us to compromise from external pressure. If I can handle the B City Consortium, I can easily handle you as well.

The silence persisted for a long time before Luke sighed.

”A ragged colt may make a good horse (1).”

”You know this Chinese proverb?” Jiang Chen laughed.

”I just learned it recently; I only know a little.” Luke dismissed the topic. ”Let's not get off track. I have a proposal that suits both of our interests.”

”Let's hear it.”

”We have advantages in extraction, transportation, and management, and you already mentioned your advantages which are the resources on MLL Island and the influence in Moro. We could easily invest in a mining company in Moro with a 50% equity split. We'll provide the manpower and technology while you'll supply the reserves and be responsible for public relations. What do you think?” Luke leaned forward and lowered his voice.

BHP could keep the price of ores low, but it was limited by import and export tariffs, tax collections, environmental protections, and so on. As a result, the gross profit of iron and aluminum ores had been stagnant. If Future Group could, by virtue of its influence, reduce taxes and fees for the production and export of minerals from MLL Island, BHP Mining had great room for profit even if it supplied cheap minerals to Future Group.

”This is a great proposal.” Jiang Chen's eyes lit up, intrigued by the idea.

The iron and aluminum deposits had been stagnated since Future Mining didn't have additional resources to extract. This proposal was basically contracting the development to BHP Group while the two parties split the profits.

But just as Luke thought they reached an agreement, Jiang Chen's tone took a huge turn: ”But do you think your equity is too high?”

[This bloodsucker!]

Luke cursed in his mind, but his expression still remained calm as he debated with Jiang Chen. Finally, both parties settled on the agreement with Jiang Chen to supply 70 million USD and the reserves while BHP would invest 150 million USD. The equity proportion was 55% and 45%.

That was Luke's bottom line.

Printing out the contract required time, so both parties agreed to officially sign the contract the next day. But based on the two parties' reputations, it was unlikely that one party would back out of the deal. Therefore, the partnership between Future Mining and BHP had been secured.

Jiang Chen sensed a vibration on his wrist.

When Luke left, Jiang Chen pressed his watch and Jean's hologram appeared beside the table.

”Is there something wrong?” Jiang Chen pleasantly spoke to Jean.

Because Jean was taking the minutes for the meeting, Jiang Chen opened the voice recording function so Jean could hear their conversation.

”I detected more advanced mining technology from the database; we could easily develop the resources by ourselves.”

Jiang Chen shook his head at Jean's question with a smile. He casually stuffed the document into the drawer.

”We can't make all the money in the world, and there's no purpose in doing that.”

”From an efficiency point of view, is there a problem with my proposal?” Jean asked.

”Considering things from only an efficiency point of view is a problem in itself. Compared to extracting the last bit of profits, we can proactively gift out the profits and use this to chain more people to us in exchange for greater profits.”

”Greater profits? What's that?”

”Regardless of what it is, it's definitely not the US dollar.”

(1) A ragged colt may make a good horse - A young person can still be impressive.