Chapter 369: If We Reveal Our Strength
The exploration project was currently at the stage of blindly feeling around, essentially starting everything from scratch.
However, thanks to Li Tang's confident guidance, the team only had to focus their work within a radius of several dozen kilometers around Chapleau Township, significantly reducing their workload.
If the gold deposit was sedimentary, there would most likely be surface exposures. The mineral-bearing strata tended to be consistent globally, and referencing the local stratigraphy could lead to very targeted prospecting efforts.
If the deposit was structurally controlled, they simply needed to focus on geologic structures, methodically exploring and testing one approach after another.
If gold indeed existed, clues would inevitably emerge.
When the team began systematic investigations, Li Tang deliberately withdrew, entrusting He Runqi to lead entirely based on his expertise.
Honestly, there wasn't much more Li Tang could do at this point. Available exploration techniques were quite conventional anyway.
Upon hearing that Mark planned to fly back to Toronto, Li Tang decided to join him on the same flight, leaving the project site behind. The assistant, legal team, translators, and other non-technical staff also accompanied Li Tang on board.
"That elderly white-haired man seemed reluctant to see you go," observed Gao Jingjing, Li Tang's assistant, whose perceptive nature didn't miss the expressions among the farewell crowd.
As an overseas-educated master's graduate, Gao Jingjing had been highly sought after in the job market and could have easily secured positions at joint ventures or multinational corporations. Yet, she ultimately chose to become Li Tang's assistant.
Even before returning to China, she had heard about Li Tang's domestically founded company, renowned internationally for its achievements in both mining and financial circles. It was frequently praised as a formidable, globally recognized Chinese enterprise—a rare reputation abroad, where many still viewed major Chinese companies with suspicion, assuming hidden hands rather than true free-market dynamics.
However, Li Tang's Shengshi Holdings earned genuine international respect. Naturally, there were also those who, motivated by jealousy or other reasons, resorted to slander or criticism, but overall, it was undeniably successful.
Upon receiving her offer from Shengshi Holdings, Gao had promptly declined all other job invitations and rushed directly to Yunding Tower. However, she didn't meet the legendary, mysterious, and low-profile young boss immediately. Several months passed, and only recently, at mid-year, had she finally encountered the enigmatic Li Tang.
After several interactions, her initial anxiety dissipated; Li Tang appeared humble, spoke sparingly, and showed none of the arrogance she'd secretly feared.
"You mean Bill?" Li Tang smiled lightly. He'd noticed for some time that Bill, behaving almost like a spy, had carefully observed and scrutinized him from close proximity.
It wasn't difficult for Li Tang to guess Bill's intentions. As one of Canada's most esteemed and experienced geologists—a veritable titan in his field—Bill certainly possessed profound expertise in exploration techniques and needed no further improvement. Yet, whenever near Li Tang, the elderly man displayed an unusual hunger for knowledge.
The reason was straightforward: Bill hoped to discover unique brilliance or cutting-edge techniques in Li Tang's methods—perhaps some groundbreaking, exclusive innovation in exploration technology.
Unfortunately for Bill, he'd watched Li Tang casually wave goodbye and board the plane without any further involvement in the project, undoubtedly leaving the old man feeling empty-handed and disappointed.
His subtle scheme had utterly failed.
"He seems highly respected," Gao Jingjing remarked thoughtfully.
"At his age, he should enjoy a peaceful retirement instead of exposing himself to wind and sun," Li Tang responded with a gentle smile. "He had a hidden agenda, but he was destined to fail."
"He wanted to secretly learn your special methods, didn't he?" Gao Jingjing joked.
"You noticed that too?" Li Tang chuckled softly. "Bill's intentions were obvious."
"Mr. Li, should we continue staying at the hotel arranged by Barrick Gold, or would you prefer the company to arrange our accommodation from now on?"
"Thanks for reminding me," Li Tang replied, nodding appreciatively. "Our next task doesn't involve Barrick Gold directly, so there's no need to keep burdening them. Could you rearrange accommodations for our entire team, or inform Mark he doesn't need to pay for our stay anymore?"
"Understood," Gao Jingjing immediately took note.
Afterward, they remained at the same hotel but ceased contact with Mark, as they had accepted an invitation to visit the headquarters of Alcan Group in Toronto.
At Alcan's headquarters, Richard, the CEO, and Evans, the CFO, awaited their arrival. Surprisingly, Frando was also there, lounging casually with legs crossed, smoking a cigar as if comfortably at home.
"You've finally arrived!" Frando eagerly stood up to greet Li Tang. After collaborating on two projects, he felt his relationship with Li Tang had deepened considerably.
"I heard earlier you'd arrived in Toronto and were busy discussing cooperation with Mark, so I didn't disturb you," Richard greeted politely.
After previously speaking out in Li Tang's defense, Alcan's investment project in Guanggui Province, China—a 120,000-ton hot-rolled medium plate production line—had successfully solved its raw material issues and begun operation as planned. Alcan had thus benefited significantly in China, their projects moving ahead faster due to their friendly relationship with Li Tang.
This had provided a rare boost to morale within Alcan, as revenues from their China operations were now approaching $500 million annually, with even greater profits projected once subsequent Chinese investments commenced operation.
In the future, profits from China might very well become Alcan's primary revenue source.
"What urgent matter brings me here today?" Li Tang asked straightforwardly, noticing the contrasting expressions around him. While Frando wore a carefree grin, Richard and Evans appeared deeply concerned.
"Nothing urgent," Richard forced a smile, yet the anxiety beneath was unmistakable. "Primarily, I wanted to express our gratitude personally. Our projects in Guanggui Province are progressing smoothly, and we hadn't had a chance to thank you directly."
Richard continued with seriousness, "Regarding your major projects here—Malouhe Coal Mine and Malihe Iron Mine—I heard from Frando earlier that you're planning to invest significantly in their development."
"Yes, market conditions look promising," Li Tang readily admitted.
These two massive projects, once active, would inevitably cause dramatic reactions in Canada. Such projects simply couldn't remain discreet.
"If you ever need assistance during these projects, please don't hesitate to ask. Cooperation among businesses benefits both our countries," Richard offered politely.
"Frando and I will soon meet with your Minister of Industry," Li Tang responded amicably. "If we encounter issues later, we might indeed trouble you. By the way, has Alcan recently encountered any difficulties?"
As the world's third-largest bauxite mining group, behind only Rusal and Alcoa, Alcan held a substantial market value approaching $30 billion. Their half-year revenue exceeded $10 billion, indicating a giant corporation. Particularly in aluminum packaging and high-tech aluminum processing, Alcan nearly monopolized markets in Europe and America.
Yet, despite their impressive revenues, profits were worryingly slim, and they faced potential losses.
Richard sighed deeply. Evans, his trusted aide, admitted wearily, "Our situation is indeed complicated. Over the past two years, we've repeatedly shut down factories and laid off numerous employees. It's heartbreaking, but essential for sustainable growth. Unfortunately, these measures haven't achieved the desired results yet."
Li Tang noted gently, "I've consistently seen Alcan's name on the Dow Jones Sustainability World Index. It seemed you were doing well."
He already understood Alcan's current struggles and eventual fate, though he carefully chose diplomatic phrasing. Privately, Li Tang had strategic interests regarding Alcan's future.
Richard, encouraged by Li Tang's attentiveness, elaborated further: "We have over 300 subsidiaries worldwide and more than 60,000 employees. Between 2000 and 2003, we heavily invested in acquiring two aluminum giants in Europe, dominating the European market, particularly high-end sectors like aviation and automotive. We believed Europe would become the primary market, but in reality, it stagnated, even contracted. Conversely, we underestimated China, which rapidly emerged as the main global market, driving commodity markets forward."
Li Tang agreed knowingly, "Indeed, that's precisely the case."
"Our European investments appear successful on the surface—dominating market share—but the integration process exposed numerous problems," Richard admitted painfully. "We've gained market share, yet little else. Europe remains a drain, demanding endless resources without yielding returns. We're considering more closures, layoffs, even possibly selling off our high-end European aluminum operations."
Evans looked intently at Li Tang, finally revealing why maintaining strong relations with him was so critical: "We were late investing in China. That market is already crowded and fiercely competitive. But we believe opportunities remain. We're planning multi-billion-dollar investments in Chinese factories in coming years. Li, we genuinely need your help!"
Alcan was a corporate whale burdened with heavy barnacles, dragging it into deeper waters. Despite cutting off numerous loss-making segments, the global scale and thousands of employees made full recovery challenging.
"Since last year, Alcoa's Alan has approached Richard repeatedly about acquiring Alcan entirely," Frando interjected, extinguishing his cigar. "Such a merger would shake the global mining industry! However, regulatory approval seems doubtful, as both companies dominate aluminum packaging—too much overlap."
"We've consistently refused Alan's proposals," Richard confirmed, aware the matter had already reached the media. As acquisition targets, they vehemently resisted any such developments.
"Yet after news leaked, international giants now see us as prey," Evans added anxiously. "Rio Tinto and BHP Billiton recently approached us about possible mergers—not casual inquiries, but serious considerations."
"Our surroundings are truly fraught with danger."
Richard was deeply troubled—not only by Alcan Group's troubling financial statements, which left him struggling to justify matters to the board and shareholders, but also by the aggressive international merger hunters. Given even the slightest opportunity, these hunters wouldn't hesitate to act decisively.
"We believe that Alcan still has some room to maneuver. If given enough time, I'm confident I can reorganize our internal business structures and gradually return us to a sustainable profit model," Richard declared with confidence in his abilities and certainty about Alcan's future prospects.
However, the market was unlikely to grant them the luxury of time.
The hunters who had their eyes fixed on Alcan wouldn't miss this once-in-a-lifetime chance. After all, the opportunity to acquire an enterprise of equal or greater stature was irresistible to any mining CEO—a chance to immortalize oneself in mining history.
"You can always keep rejecting the offers," Li Tang suggested casually, believing the matter was rather straightforward.
"Alcan Group is an old enterprise, over a century old. Originally, we were a subsidiary of Alcoa here in Canada. In 1902, we separated from Alcoa to avoid monopoly investigations," Richard briefly recounted Alcan's proud heritage. "For years, we've been consistently ranked second in the aluminum industry, just behind Alcoa. Such a long history has shaped Alcan into the entity it is today. We're publicly listed in Toronto, New York, London, and France, with a widely dispersed shareholder base exceeding a million investors. If someone is determined enough and offers sufficiently high returns, most shareholders are likely to vote in favor of a merger. If that happens, we as management would have no choice but to comply."
"We truly envy you," Evans chimed in, looking directly at Li Tang. "Your company isn't publicly listed, yet you possess enough capital to independently develop projects. Your profit or loss remains your own concern—you don't have to answer to external shareholders."
"Our Lianying Mining Company is publicly listed," Li Tang reminded him.
"But you own a very substantial stake. Moreover, combined with holdings from Wukuang Group and Shenxia Group, along with the unanimous action agreements they've granted you, you effectively control Lianying Mining," Evans sighed bitterly. "We, on the other hand, are mere managers at Alcan. When it comes to critical decisions like mergers and acquisitions, we have virtually no authority."
Every household had its own troubles.
Though Li Tang couldn't entirely relate to their frustrations, internally he began rapidly calculating his next move.
Evidently, his acceptance of the invitation to meet Richard today wasn't merely to pass the time. He wasn't some retired gentleman killing time over casual conversation.
"You aim to enter the Chinese market, expand investments significantly, and then reap substantial returns over the coming years to overcome Alcan's current operational challenges," Li Tang began.
"We're already doing just that," Richard nodded, uncertain why Li Tang reiterated this point.
"I have a proposal," Li Tang sat upright, expression serious.
"Please share," Richard immediately straightened as well, now fully attentive.
Currently, they paid close attention to any voice coming from China.
"You intend to secure substantial market share in an already crowded Chinese market by leveraging your aluminum packaging and aluminum materials. To truly penetrate this market, you'll need more extensive assistance from Chinese enterprises," Li Tang stated bluntly. "As you already know, forming joint ventures with local Chinese companies is a mainstream and necessary business strategy."
"We've been doing exactly that," Richard responded, not finding this idea particularly novel.
"But wouldn't it be even more beneficial if a Chinese enterprise acquired a stake in Alcan's parent company, directly assisting your expansion within China?" Li Tang suddenly suggested, presenting a startling idea.
"Acquiring a stake in Alcan?" Richard had never entertained such a thought.
Evans similarly found the idea absurd. After brief consideration, he concluded it was unrealistic. "Though our financials over the past two years have been lackluster, Alcan remains a corporation with a market value exceeding twenty billion US dollars. I don't intend any disrespect, but as of now, I honestly can't identify any Chinese enterprise capable of participating in our management or cooperation at that scale."
Although Evans claimed no disrespect, his tone clearly suggested skepticism.
Unpleasant as it was, his point was truthful. Currently, no Chinese mining enterprise could match Alcan's global stature unless backed by state resources, which Western companies typically avoided associating with openly.
"You shouldn't underestimate the strength of Chinese enterprises!" Li Tang's voice resonated strongly and unequivocally, countering Evans's implication directly. "Your perception of Chinese companies as lacking strength stems solely from our low-profile demeanor. Humility is deeply embedded in our culture. But rest assured, if we chose to reveal our true capabilities, there's virtually nothing we couldn't achieve!"
His statement carried undeniable force, directly rebuking Evans.
Richard, sensing Li Tang's possible irritation, hurriedly intervened. "You personally represent Chinese enterprises and entrepreneurs on the global stage. People worldwide have already witnessed your immense capabilities and wealth! No one doubts your strength, nor should you feel offended. It's common knowledge that Lianying Mining is already among the world's most valuable mining corporations."
"I meant no disrespect," Evans hastily apologized.
Li Tang wasn't genuinely angry, just asserting his position clearly. "Mr. Richard, I'm seriously proposing that if any major shareholder is willing to sell their shares in Alcan, I'm prepared to purchase all available Alcan shares."
"What?"
"What did you just say?"
"You're not joking, are you?"
Richard, Evans, and even Frando widened their eyes in shock, staring at Li Tang.
Throughout their conversation, they believed they were merely chatting casually. Li Tang had seemed detached, indifferent to Alcan's internal problems.
Never did they anticipate Li Tang harboring such ambitions!
"You're also interested in acquiring Alcan?" Richard, cautious against various external threats, had never imagined needing to guard against Li Tang or threats originating from China.
But now, seated before them was possibly the most dangerous predator of all, viewing Alcan as prey while calmly declaring his intentions directly.
He appeared refined, calm, and harmless, masking his intentions exceptionally well. If Li Tang hadn't explicitly voiced his plans, they'd never have believed his interest in acquiring Alcan, especially given his company's lack of involvement in aluminum industries and numerous ongoing projects demanding substantial investment—such as Maluhe Coal Mine and Malihe Iron Mine, both requiring billions in capital for development.
Frando, visibly anxious, immediately pulled Li Tang aside, whispering urgently, "Are you insane?"
"No, I'm fully aware of what I'm doing," Li Tang replied, maintaining his confident smile.
"You also mentioned investing further in Congo, expanding explorations along the Kamoa Copper Belt. You'll need massive capital later for developing those high-grade copper deposits!" Frando fretted, thinking about his own future interests.
Relying on Li Tang's prominence, Frando saw a rare opportunity to transition Ivanhoe Mines from an exploration-focused company into a major, asset-heavy enterprise with significant mining operations—an undeniably lucrative prospect.
If Li Tang indeed poured twenty or thirty billion dollars into acquiring Alcan, he'd likely have to assume substantial debt, severely limiting available capital for developing future projects. Such a major acquisition also carried considerable risk, especially for a newly risen billionaire like Li Tang, whose business empire still lacked deep-rooted foundations.
World business history was filled with ambitious entrepreneurs who rose rapidly only to swiftly vanish amidst fierce market upheavals. Sustainable success usually favored those cautious, prudent individuals.
"There's no conflict," Li Tang reassured Frando, patting his shoulder gently. "Regarding Congo's copper project, I've already secured my share of the necessary funds. You should focus more on your share—can you guarantee your funds will arrive on time?"
"I have no problem with that," Frando answered confidently.
"Good," Li Tang smiled without disclosing further details.
Truthfully, completely acquiring Alcan was unrealistic—far beyond Li Tang's current capabilities. Even if numerous Chinese enterprises pooled resources and secured various loans, they might not outperform Richard or Evans in successfully rescuing Alcan from its predicaments. They risked instead being dragged down together.
Li Tang's intention was simply to capitalize on this massive, globally sensational merger opportunity to secure substantial benefits. Fishing in troubled waters was indeed exhilarating.
Meanwhile, Evans leaned toward Richard, whispering anxiously, "Did we accidentally disclose too much earlier?"
Richard shook his head reassuringly, "We didn't reveal anything sensitive, just matters already exposed by the media."
Evans sighed, relieved, then suddenly queried further, "Do you genuinely think Li Tang possesses sufficient financial resources to acquire us?"
"Li Tang's foundations aren't deep. Despite Lianying Mining's impressive valuation, its mines just commenced operations. Profits and dividends this year will be modest at best," Richard acknowledged thoughtfully. "His true strengths lie in exploration technology and investment foresight in mining projects, not large-scale mergers or capital maneuvers. Previously, he's had no record of success in such massive acquisitions, excluding Lianying Mining, which started small—quite unlike Alcan's massive scale today."
"True," Evans nodded in agreement.
"But let's not forget the critical point—his name is Li Tang!" Richard emphasized solemnly.
Because of that name, Richard realized Li Tang's intentions might indeed be serious, not mere idle talk. Countless miracles had already occurred around Li Tang. Though he seemed solitary, no global mining enterprise underestimated his influence.
Numerous commentators speculated wildly, claiming they discerned the shadow of an entire nation behind Li Tang. Such statements seemed absurd, utterly ridiculous. Yet, in moments of inexplicable miracles, one desperately searched for plausible explanations.
"If Li Tang truly intends to acquire Alcan with backing from Chinese giants like Chalco, Wukuang Group, or Shenxia Group, that force becomes formidable," Evans mused nervously.
Richard glanced up as Li Tang and Frando approached, whispering cautiously, "Let's observe carefully what Li Tang says next, and more importantly, how he acts."
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 40 Chapters In Advance: patreon.com/Johanssen