Rebirth 76: Industrial Internet Empire

"Mr. Zhao, what you said makes sense! Let's do this. After the rare earth mining companies participating in this plan sign a secret rare earth purchase agreement with Zhiyuan Group, they will seal the mined rare earths in situ and are not allowed to expand their production capacity. In return, Zhiyuan Group will sign another supplementary agreement with you. The profits of these rare earths stored in situ due to future price increases will be redistributed tentatively at a [-]-[-] share!" Yang Mo said after pondering for a long time.

Zhao Hengbo smiled bitterly and said: "The 20-6 share is too little! In this way, even if it only rises by [-]%, we can only get [-]%!"

"It's quite a lot. Unless we don't need to pay advance payment for the rare earths sealed in situ, we can increase the secondary distribution of profits to [-]-[-]%!" Yang Mo said.

"This will definitely not work! You also know that the rare earth industry itself is an asset-heavy operation. So many workers have to eat, let alone the payment for the whole year. If the payment cannot be received in a quarter, I am afraid that the capital chain of some enterprises will be broken! This is also This is probably one of the reasons why foreign smelting companies can often join forces to lower prices!" Zhao Hengbo explained.

"Okay! Let's make a little more concession. After the purchase agreement is signed, we will send special personnel to deliver and seal the rough-processed rare earths every month, and pay 7% of the payment to ensure your normal production and operation!" Yang Mo thought for a while. Then he said.

"What about the secondary distribution of profits?" Zhao Hengbo asked.

"We will simply be good people and work hard to the end. I will give you another [-]% of the profit from the future premium! However, this condition is only for you Lucheng Rare Earth. The supplementary agreement is still signed at [-]%. The other [-]% needs Mr. Zhao to cooperate with us. This plan!" Yang Mo said in a deep voice.

"How to cooperate?"

"Lucheng Rare Earth Company is also a very important company in the industry. Can Mr. Zhao use your connections to cooperate with Zhiyuan to promote the entire plan?" Yang Mo asked.

Zhao Hengbo nodded: "This is also my responsibility. I will ask Mr. Yang for instructions on how to do it!"

Yang Mo took out the contract that he had prepared long ago and handed it to Zhao Hengbo.

After Zhao Hengbo looked at it carefully for a long time, he signed his name with a solemn expression.

"Mr. Zhao is so refreshing! Don't worry, Zhiyuan Group will never betray the trust of its partners! You'd better not tell anyone about this contract for the time being! Including your company's legal affairs and your assistant!" Yang Mo said in a deep voice.

"Can't other partners also disclose it?" Zhao Hengbo asked with some confusion.

Yang Mo pondered for a moment and then said: "The fewer people who know about the entire plan, the better. As for how much the partners can know, you can flexibly control it according to the specific situation..."

The non-ferrous metal industry meeting was held as scheduled in the auditorium of the Metallurgical Industry Bureau.

As usual, in this year-end industry meeting, the topics mainly focus on next year’s production capacity and output value targets.

Leaders of well-known domestic mining companies took to the stage one by one to express their opinions and promised that the output value will reach a higher level next year.

If Chen Jinhe, on behalf of Zhiyuan Mining Company, had not been invited to the stage to speak a few words, this would have been another united and successful industry conference.

Chen Jinhe should have talked about the results achieved this year and looked forward to the good expectations for next year, like other domestic companies.

But while chatting, Chen Jinhe actually expressed his bitterness: "The Asian financial crisis continues to spread, the demand for bulk commodities has further shrunk, and the entire non-ferrous metal industry is facing severe challenges, especially the rare earth industry. The growth in demand for rare earth compounds has slowed down, but Domestic rare earth mines are still being exploited without restraint. I suggest that the rare earth industry can learn from the practices of oil exporting countries in Asia, Africa and Latin America, and establish an organization similar to OPEC to eliminate backward production capacity, limit and reduce production, so that the rare earth industry can Healthy and orderly development!”

One stone caused a thousand waves!

"Mr. Chen, if I remember correctly, your Zhiyuan Mining Group's uncontrolled expansion overseas in recent years, and the reverse transportation of large amounts of non-ferrous metal ores and associated rare earth ores back to the country, has caused the price of domestic copper ores and rare earth ores to rise. Is it the culprit of the malaise?" A middle-aged man stood up and questioned.

"That is, the production of domestic rare earth mines is limited or reduced, but your Zhiyuan Mining Group continues to increase mining efforts. How can this be justified? Are you treating us as fools?"

"Mr. Chen, as far as I know, you have successively launched rare earth mining projects in South America and Africa in recent years. It is your Zhiyuan Mining Group that should limit production, right?"

…………

There were arguments in the venue, and Liao Tingxuan had to stand up and smooth things over: "Everyone, the rare earth industry has always been an important industry for export and foreign exchange earning in various places, and it is also a business card for China to integrate into the world! On behalf of the Metallurgical Industry Bureau, I would also like to express my position that the country does not It will suppress the rare earth industry. On the contrary, we will provide you with support in terms of financial and tax policies such as export tax rebates and special funds to help the rare earth industry develop rapidly!"

"Director Liao, this is likely to lead to an oversupply situation, and the direct consequence will be disorderly competition among various rare earth mining companies and price wars!" Chen Jinhe advised.

"We cannot give up development opportunities just because of the current difficulties. Only by making the entire industrial chain bigger and stronger can we incubate more high-quality rare earth companies!"

After a pause, Liao Tingxuan continued: "In order to develop the rare earth industry more rapidly, the Metallurgical Industry Bureau and the Donghai Futures Exchange will launch pilot trading of rare metal futures such as lanthanum, cerium, praseodymium, and neodymium at the Donghai Futures Exchange in the near future! "

There was another uproar in the audience!

"Rare metal futures trading pilot? Did I hear you correctly? Do we no longer need to set up a sales department in the future? Just sell our annual production capacity directly on the futures exchange?"

"Are you thinking too simplistically? It's better not to touch futures. If you're not careful, you can lose all your pants!"

"Don't you understand this? Futures can be a tool to hedge risks. If used properly, they can even reduce business risks!"

.........

An executive suite at Jianguo Hotel.

Wirtz, the president of Canadian AMR Company, stood in front of the floor-to-ceiling window, looking at the night view of Yanjing.

"Mr. Wirtz, Klein from Rhodia is here..." After a gentle knock on the door, assistant Corena walked in to report.

After a while, Klein was led by the hotel staff into Wirtz's executive suite.

"Miss Corena, you are getting more and more sexy..." Klein, like most of his French compatriots, is always very polite to women and said after giving Corena a French hug.

"Thank you!" Corena responded with a charming smile, closed the door and walked out.