Chapter 267: 1.2 Billion Tons of Iron Ore
In addition to recruiting workers domestically, Li Tang also coordinated with the Guizhou Provincial Geological Bureau to temporarily assign over a dozen highly skilled drill rig technicians to serve as the backbone of the exploration team.
With personnel arrangements completed, Wukuang Group and Shenxia Group both signed funding agreements with Li Tang.
Wukuang Group contributed 150 million AUD and Shenxia Group invested 50 million, securing 30% and 10% stakes in Nanyang Investment Company, respectively.
The remaining nearly 200 million AUD was filled in by Li Tang Shengshi Holdings.
Lianying Mining's 100-million-AUD fundraising plan was executed quickly.
With funds in place, Kent—who had never fought such a well-funded "war"—was full of confidence and ambition, determined to make something big happen.
For the iron ore project, there was only one thing that truly needed to be done at this stage: drilling. Outline the ore body, calculate the reserves.
Western Australia, famous for its iron ore, had never lacked for exploration and mining equipment.
They mobilized dozens of drill rigs—various types—bringing them all to the site at once.
Some of the rigs were leased by Lianying Mining and operated by its own staff; others were outsourced to equipment rental companies, which provided both machines and technicians.
Across the sun-scorched ground of the Chiche Mountain Range in the Pilbara region, the desolate land dotted with patches of dry grass was now filled with the towering frameworks of drill rigs.
As this massive operation roared to life, media outlets in Perth and national broadcasters in Australia couldn't help but turn their attention to Lianying Mining.
After years of stagnation in the iron ore market, the sudden announcement of a 100-million-AUD investment in pure exploration shocked many and stirred the public's emotions.
Li Tang also traveled to Pilbara and stayed in Newman.
Kent had just called him with something to report, so someone was sent to drive him out to the project camp.
The driver was a young white guy who liked to listen to energetic music while driving.
He was flipping through radio channels, trying to find a program he liked.
"Go back—put on the news," Li Tang said when he caught the mention of "Lianying Mining" on one channel. He wanted to hear what the outside world was saying about them.
"Got it, boss," the young man said quickly and tuned to the news channel.
"…An investment of 100 million AUD. According to the Ministry of Mines and Petroleum, Lianying Mining is indeed conducting iron ore exploration…"
"Do you think this is a wise investment or a questionable one?"
"Those Chinese have no clue how the iron ore business works. They're like children with money—don't know how to spend it—so they come to Pilbara to start iron ore projects."
"We heard they brought a group of nearly a hundred Chinese people to Pilbara. As far as I know, they're all farmers!"
"Hahaha…"
"Recently, the Western Australia government posted a notice: a massive area in central and northern Pilbara was sold to Lianying Mining—almost 50,000 square kilometers!"
"What are they trying to do?"
"I think they're trying to grow rice in Pilbara! You know, Chinese people eat rice."
"Pilbara has no water."
"They'll draw seawater from 400 kilometers away to irrigate the fields."
"Rice can be irrigated with seawater?"
"Scientists and farmers all over the world agree—using seawater to grow rice is unrealistic and unscientific. But maybe the Chinese can do it?"
"If life really is this magical, I'd gladly sell the entire central desert to the Chinese—they'll turn it into an oasis."
"We all know most Chinese still go hungry and haven't achieved basic subsistence. If they really manage to use this land, that would be great."
"It sounds like a joke, but the more you think about it, the sadder it gets. In times like these, there are still people who can't eat enough."
"They really must be starving."
…
The radio buzzed with layered discussions—clearly mocking in tone.
Laughter echoed over the airwaves. You could tell they enjoyed this kind of humor: mocking others to entertain themselves.
Maybe they didn't mean any harm, but to someone paying attention, the ridicule stung.
Li Tang's face stiffened. He remained silent.
Whether it was misunderstanding or mockery, it all came down to slander.
"Change the channel. I've heard enough," he said from the backseat.
"But it's funny…" the driver chuckled.
"Music," Li Tang barked.
"Sorry, boss." The young man glanced back, saw Li Tang's expression, and quickly switched stations.
After some static, music finally played, and the atmosphere inside the car lightened.
At the camp, Kent had been waiting and hurried over to open Li Tang's door.
"Boss, we've identified two major ore bodies in the Chiche Mountain Range exploration zone."
Walking beside him, Kent explained, "Previously, we spent 5 million AUD drilling to depths of 100–200 meters. The ore grades weren't great. But now we've gone deeper—300 to 400 meters—and the grades have significantly improved."
"Hmm," Li Tang said as he entered the temporary meeting room and took a central seat.
"At shallow levels—surface to 100 meters—the average iron grade is around 40%. But deeper down, it's consistently around 50%."
Kent took a geological map from Tracy and pointed to the center of one ore body. "In the core zones, the iron grade exceeds 60%, even reaching 70% in some areas!"
"Have we calculated the reserves yet?" That was what Li Tang cared about most.
"We're still collecting and analyzing drilling data. Accurate reserves need lab confirmation," Tracy, the technical lead, replied.
"But based on the data we have so far, I did a rough estimate. The two main ore bodies in the Chiche Mountains should contain over one billion tons in total."
"One billion tons…" Kent muttered, stunned.
There weren't many deposits of that size in all of Australia.
Most were controlled by Rio Tinto and BHP. Only a few giants existed outside of them.
A deposit of one billion tons—once production starts—could cause the company's stock price to multiply several times over!
As a founder and former leader of the company, Kent understood deeply: in capital markets, hope is priceless to investors.
A super deposit like this is more than a project—it's a dream.
If developed, it would become a money-printing machine.
Stock price increases. Fat dividends. These were what shareholders lived for.
"I've been following our announcements. We've been releasing exploration updates regularly, right?" Li Tang asked.
"Yes, as required. We must keep investors informed," Kent replied.
"Get the reserve estimates finalized ASAP," Li Tang instructed.
"We're already working on that," Tracy confirmed.
"What are you calling the two ore bodies?" Li Tang asked.
"We haven't given them names. Just East and West Chiche deposits," Tracy said.
One was on the eastern side, the other on the west. Everyone on the team was used to those names.
But Li Tang knew—if Fortret had taken over the project, he would have named them Christmas and Cloudbreak. These would later become Fortescue's most iconic mines.
Still, Li Tang had no intention of calling them that.
"Let's name the eastern deposit 'Rice' and the western one 'Corn.' What do you think?"
The company didn't operate like a dictatorship. Australians loved to share their opinions.
Li Tang proposed the idea, as usual, open to discussion.
"Rice?" Kent looked confused. "It's all desert and sun here. Why 'Rice'?"
"In autumn, rice symbolizes a harvest," Li Tang smiled. "All Chinese, no matter who they are, come from farmers. We cherish the joy of a harvest."
"I don't understand the joy, but I think it's a meaningful name," Kent said approvingly.
"Experiencing the harvest season in Pilbara—'Rice' is quite poetic," Tracy agreed.
"Then it's settled," Li Tang said. "From today onward, internally and in official announcements, we'll refer to them as 'Rice' and 'Corn.'"
Everyone repeated the names aloud. Easy to remember. Full of symbolism.
Kent pulled out another map and pointed to two other areas. "This area—northwest of the Hamersley Range—is near the range's end. Based on your earlier proposal, we've begun drilling there."
"We're not drilling more here?" Li Tang asked. He hadn't been closely involved in the execution.
"We've got a solid understanding of Rice and Corn now. We're only doing infill drilling to refine the thickness and grade data for more accurate reserve calculations and future mining plans."
Kent was well-versed. "The two deposits should hold just over a billion tons. Not much deviation. If we want to find more, we need new targets."
"Okay. Once this area is wrapped up, shift the equipment and crew to Hamersley," Li Tang instructed.
He knew better than anyone: Chiche and Hamersley held immense potential.
Chiche was where Fortescue first developed iron ore.
But from a geological perspective, the northwestern corner of the Hamersley Range had even greater potential.
Chiche's deposits were sedimentary.
Hamersley held not only vast sedimentary iron ore but also alluvial sedimentary layers—wide-ranging and rich.
"Alright, we'll begin the transition," Kent said.
When the final batch of drill assay data came in, the Chiche reserves were officially calculated.
Final total: 1.2 billion tons.
This shocking news was immediately announced to the public.
As a listed company, it was their duty—required by law.
But it was also a reason to celebrate with shareholders.
The simple announcement caused a stir.
The most immediate impact: the stock price.
After a stock split, shares of Lianying were trading at 0.1 AUD.
For weeks, the price had hovered at that level.
But after the announcement of 1.2 billion tons of high-grade iron ore, the price surged to 0.14 AUD in just a few days.
A 40% increase.
Shareholders rejoiced.
Those who had bought new shares during the offering were especially thrilled.
Not only had the stock rebounded since the acquisition, but now it had taken off again.
A 40% gain in such a short time—astounding.
Most investors would consider 20% in a year a blessing.
Media outlets that had cooled on Lianying Mining were suddenly boiling again.
"Editor! Editor!" Yuna once again barged into the chief editor's office.
Now the head of the Lianying Mining news desk, Yuna no longer worked alone—she had a small team under her.
Their goal: uncover the mysterious backers behind Lianying.
Unfortunately, the company from Yanjing—Li Tang Shengshi Holdings—was too low-profile.
And its owner? Not a single public photo.
For media people, it was maddening.
They loved loud, talkative subjects.
"What is it?" Marianne asked wearily.
"Lianying just released its exploration results! They found a 1.2-billion-ton deposit!"
"1.2 billion tons?" Marianne blinked, confused.
"A massive mine!" Yuna had been cramming iron ore knowledge and knew just enough. "This is a new major player—besides Rio Tinto and BHP!"
In her mind, 1.2 billion tons = mountains of money.
She had no idea that the announcement was just about reserves.
Mining, profits—those were still far away.
"Lianying really keeps surprising us!" Marianne, exhausted, suddenly lit up.
News like this awakened a reporter's instincts.
This was the instinct of media people—etched into their very blood.
"I've been collecting data on Lianying Mining and tracking the details of their project, and I've uncovered a critical piece of information!" Yuna said, clearly showing off as she proudly declared her contribution. "The 1.2 billion-ton iron ore deposit Lianying Mining discovered is located in a place called the Chiche Mountains."
"Is that a small local area?" Marianne asked, unfamiliar with the name.
"Yes, a minor locality," Yuna nodded and continued, "The land where the Chiche Mountains are located used to be owned by BHP."
"BHP sold the mining rights to Lianying
This is a trait ingrained in the very blood of journalists.
"I was digging into Lianying Mining's records and project details and discovered an important piece of intel!"
Yuna, proud and satisfied, was clearly showing off her work. "The 1.2 billion-ton iron ore deposit Lianying discovered is located in the Chiche Mountain Range."
"Is that a local name?" Marianne asked, unfamiliar with the place.
"Yes, it's a minor locality," Yuna nodded, continuing, "The land where the Chiche Mountains are located used to be owned by BHP."
"BHP sold the mineral rights to Lianying Mining?" Marianne exclaimed, excitement in her voice. "Did they transfer the rights to Lianying again?"
"No, they returned the land to the state government three or four decades ago. Lianying bought it from the government later on."
"Oh, I see," Marianne sounded disappointed.
If BHP had directly sold the mining rights to Lianying, that would have been explosive news—just like the Tallego copper-gold mine incident that once made global headlines.
That would have stirred massive international debate.
Some people mocked BHP. Some expressed understanding. Some just watched coldly from the sidelines.
Though disappointed, Marianne quickly recovered her composure.
Who cares if BHP directly sold the land to Lianying?
The only thing that matters to the public is this: the 1.2 billion-ton iron ore deposit once belonged to BHP and is now Lianying Mining's most valuable asset.
That alone would ignite national conversation once again.
The role of the media is to stir up such discussions.
"Write up a story immediately. Focus on this new 1.2 billion-ton discovery and highlight the fact that what once belonged to BHP now belongs to Lianying," Marianne said as she quickly worked with Yuna on the article's main points. "People only care about the outcome. No need to dive too deep into the process."
"Got it," Yuna nodded.
News should always cater to what readers are interested in. That's best for both publishers and consumers.
The Australian Financial Review, a widely influential publication, printed the story the next morning. It landed in the hands of commuters, retirees, and anyone with time for a fresh headline. And that headline—"BHP Gives Away 1.2 Billion Tons of Iron Ore Rights for Free"—grabbed attention instantly.
"Again with BHP, and that Chinese company, Li Tang Shengshi Holdings!"
"What on earth is Gareth thinking? Could he be the real man behind Li Tang Shengshi Holdings? Otherwise, how could he make the same mistake twice and give away top-tier mineral rights to the same foreign company?"
"At least the Tallego copper-gold mine rights were sold for 8 million USD. This Chiche iron ore deposit? Just handed over for free!"
"BHP must be the world's most generous philanthropist!"
"1.2 billion tons of iron ore! At current market prices, that's worth hundreds of billions of AUD—and they just gave it away!"
"I feel bad for BHP's shareholders. If these two mineral rights still belonged to them, their stock price would've skyrocketed."
"So is this confirmation that Li Tang Shengshi Holdings entered Australia's iron ore sector to challenge BHP and Rio Tinto?"
"I'm becoming more and more fascinated by this Chinese company—and especially its owner. He's like a superhero!"
"In China, privately owned mining companies like this are rare. Believe me, I've been there. Most sizable companies are state-owned."
"This company has completely redefined our impression of Chinese private enterprises!"
"They invested 100 million AUD into a Pilbara iron ore project, and everyone laughed at them for not knowing the market or understanding the iron ore business. They were mocked endlessly. Now look at them—they're slapping those so-called experts in the face!"
"Those experts actually dared to mock them, saying they'd grow rice in Pilbara! If you've got the guts, go discover your own 1.2 billion-ton deposit instead of laughing at others!"
"Real doers don't talk much."
"Forget the insults—what matters now is Lianying's stock price. It's going to soar again!"
"Shame I don't hold any shares in Lianying. Otherwise I'd be raking it in—and using cash to smack that tramp Beverly's snow-white ass!"
...
In a local tavern, this was the heated conversation. And not just there—other bars, cafés, and restaurants were all buzzing about the same thing.
People loved stories like this. They loved to discuss, share opinions, and feel part of something exciting.
Newspapers, radio stations, and TV networks all jumped on the trend and covered the hot topic extensively.
Most of those outlets were subscription-based—the only way they could make money was by airing content people wanted to hear.
This event happened in Western Australia.
The region holds most of the country's iron ore, accounting for over 70% of Australia's mineral exports.
BHP and Rio Tinto both have headquarters here.
Naturally, anything related to mining is bound to draw intense public attention.
Lianying Mining's announcement of a 1.2 billion-ton iron ore discovery in Pilbara caused an immediate public uproar. People everywhere were talking about it.
At BHP headquarters—
Gareth had already heard plenty about the Chiche Mountain discovery. Whether at home, at work, or on the street—everyone seemed to be discussing it.
It clung to him like a curse, buzzing in his ears, impossible to ignore.
He summoned Miles.
"Lianying's back in the news again. It's everywhere. Everyone's talking," Gareth said.
"I've seen it too," Miles replied. He understood Gareth's mood. "The media is twisting facts and intentionally guiding public opinion to blame us."
"It's outrageous. Which media outlet started this?" Gareth growled. He felt like kicking the editor responsible down a flight of stairs.
"Hard to say which outlet broke it first. But now everyone's following suit."
Miles knew Gareth had the connections to speak directly with the owners of the Australian Financial Review, or even have misleading reporters fired.
Still, they typically avoided such extreme measures.
"Media loves to bring us into the conversation. But really, the Chiche iron deposit was abandoned decades ago. The decision to return that land to the government wasn't even ours—it was made by a previous generation."
They had become scapegoats, victims of misinformation.
"The press didn't report the full story—just bits and pieces that led readers to think we gave Lianying the rights for free."
"Is it true then? Is there really 1.2 billion tons of ore in Chiche?" Gareth asked, angry but still reasonable.
"Yes. I've visited the site. They've definitely struck ore. And the grade is decent," Miles confirmed.
"Why did we give it up back then?"
"Surface and shallow deposits had very low grades," Miles sighed. "Compared to our Newman ore body, Lianying's Chiche deposit is lower quality—mostly 40–50% grade."
"But it's still a 1.2 billion-ton super deposit," Gareth muttered.
"A discovery like that is good for the country and for Western Australia," Miles said with a complicated expression. "It has nothing to do with us. Honestly, we should congratulate them. But the media coverage is damaging our reputation."
"The board just called me to ask about it. I explained everything," Gareth said.
He knew this wasn't as explosive as the Tallego mine debacle. That one was sold for 8 million USD, and he had signed off personally.
He was heavily criticized by the board for that.
Fortunately, the company was going through a strong consolidation phase and was performing well financially. So the board still trusted him.
Still, this was an annoyance.
"Should we hold a press conference to clarify?" Miles suggested.
"That's probably our best option." Gareth had called Miles mainly to confirm the facts about Chiche.
Now that the 1.2 billion-ton figure was confirmed, there was no point arguing further.
Congratulate Lianying?
In his eyes, Lianying Mining was a small firm with a market cap under 200 million AUD. Not worth mentioning.
To a giant elephant, why care about an ant?
Even the Tallego mine's loss hadn't seriously hurt BHP's operations. They had global assets and endless opportunities.
But Gareth was growing increasingly curious about Li Tang, the man behind it all.
He'd met him before—a young man, quiet and unassuming.
"Miles, do you think Li Tang has magical powers?" he asked.
"Magical?" Miles laughed. "He's a technical guy, yes—but I never expected him to have such guts as well."
"People say Lianying's Pilbara project is a direct challenge to us. Do you think that's realistic?"
"Lianying challenging us?" Miles laughed again. "Impossible."
"But that young man has caused us a lot of trouble," Gareth said.
"Why don't we just acquire them?" Miles suggested.
It would be easy—Lianying was publicly listed, after all, and they had plenty of experience with takeovers.
Gareth thought about it. Acquiring a 200-million-dollar company? No challenge at all.
But then he shook his head.
"Lianying's stock has jumped significantly. It's already doubled. Investors are thrilled. The public in Western Australia is rooting for them to grow."
He looked up with a sneer. "I won't let that happen."
"Should we do something?" Miles asked.
"No. Just a few words will do."
Gareth smiled. "You know, no matter how high the grade or how big the deposit—if you can't mine it, it's just worthless rock."
Miles understood immediately.
"Lianying's stock… will crash to the bottom," Gareth said, smiling faintly.
BHP held a press conference and invited major media outlets.
Marketing Director Ron personally addressed the public—an unusually high-level appearance.
He sat straight in his chair. "First, congratulations to Lianying Mining on discovering a 1.2 billion-ton deposit. But let me state clearly—the Chiche Mountain deposit has absolutely no connection to BHP. I hope the media stops misleading the public."
After his statement, he pointed to a reporter raising their hand.
"There are rumors BHP plans to acquire Lianying. Is that true?"
"No," Ron said firmly. "That will never happen. We have higher-quality deposits than Chiche and ample reserves. A company like Lianying, with a market cap of 200 million, holds no appeal. Acquiring them would serve no purpose."
"We've heard your railway passes close to their deposit. Will you allow Lianying to use your rail network?"
"Our rail system is very busy. There's no capacity left for other companies. The courts have already ruled—we're legally allowed to deny third-party access."
"In your expert opinion, without rail, how can they develop the 1.2 billion tons?"
"They could invest billions to build rail and ports," Ron chuckled. "It would be an enormous investment—something only a few companies in the world could manage."
"So, are you saying Lianying's iron ore rights can't be developed?"
"I didn't say that."
"Then does that mean their rights are worthless?"
"Whether they're valuable or not isn't for you or me to decide," Ron smiled.
The press conference was clearly orchestrated, delivering its message:
BHP had no interest in acquiring Lianying.
And they would never allow Lianying to use their rail.
That stance alone was enough to sentence Lianying to death.
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