Chapter 420 Steel
Although Goa was ruled by the Portuguese, the chaos here was no different from that in other states.
Inland mining areas are severely affected by illegal mining, and almost every household is involved.
By the way, Goa is very small and is divided into only two districts: South Goa and North Goa.
In terms of area, it is not even as big as Mirzapur in Uttar Pradesh. You can drive across the entire state in an hour.
It’s too small, not even as big as a county of Dongda University.
Although it is said to be inland, it is actually only a 20-minute drive along the coastline.
Accompanying them were members of the Reddy family and a person in charge of the mine.
They passed through several small towns, each with a Catholic church painted bright white.
Later we passed some small villages. On both sides of the road, we could see the villagers' neat single-story houses. Outside many of the houses were large, brightly colored dump trucks.
The Reddy family explained that when times were good a few years ago, the economy was booming and there was strong demand for iron ore in the international market.
The whole state of Goa fell into a frenzy, and even ordinary villagers dared to spend all their money out of their own pockets.
Normally, it takes several years to open a new mine, but suddenly the issuance of new licenses has become chaotic.
In a short time, speculators and scammers were everywhere, offering everything from mining equipment to black market funds.
Millions of tons of iron ore have been illegally mined, leaving the land devastated.
When talking about the madness of the past two years, the Reddy family seemed a little embarrassed.
"The people who got mining permits were politicians, their relatives, their friends. It was a mixed bag. There were new faces, businessmen, truck contractors. It was a terrible time."
"Those big trucks in the village?" Ron asked.
"Many villagers took out loans to buy dump trucks, waiting for us to hire them to haul ore. It was very busy. But in the past year, business has slowed, and those hundreds of trucks have been sitting idle all day."
"Overseas trade has a huge impact on Goa." Ron nodded.
"Yes, otherwise we wouldn't think of selling the mine." Gary Reddy sighed.
His family had practically turned the mining operation into a private estate, a state within a state, replete with heavily guarded compounds and imported luxury cars.
Rather than being a medium-sized town in Goa, it would be more like a hideout for a gang boss.
According to Gary Reddy, at its busiest time, hundreds of mining companies emerged and the iron ore mined every day could fill thousands of trucks.
Once the iron ore is loaded onto the truck, it is taken to a nearby port and then shipped overseas.
"This town depends on the iron mine for its existence. As long as you buy it, Mr. Sur, the town will belong to you." Gary Reddy tempted.
"How much iron ore is produced here?"
"The market is currently depressed, and less than one million tons of iron ore are mined each year. But if we run at full capacity, two million tons would be easily mined."
“Is all the mined iron ore exported?”
“Mostly, but there are also local steel mills. Goa’s iron ore is of very high grade, with an iron content of up to 64%, making it an excellent choice for steelmaking.”
Gali Reddy took Ron to visit the mine. The scene here was similar to that in Uttar Pradesh and Bihar.
In terms of the degree of mechanization alone, it is not as good as Ron's coal fields in Dhanbad.
But it is not without its advantages, that is, he can eat ready-made food without having to go through the trouble of starting from scratch.
"How do you want to negotiate this deal?" Ron asked.
"Let's go there and talk in detail." Gary Reddy pointed to the courtyard not far away, his eyes bright.
It was a two-story concrete building, one of the most beautiful and luxurious in town.
Ron and his friends were standing on the second floor, and they could clearly see the situation in the mine not far away. Scattered workers appeared and disappeared at the mine entrance from time to time.
"When we invested in this mine, it cost us $200 million, not rupees," he emphasized.
The rupee has been depreciating continuously in recent years and no longer represents its original value.
"That's not the crux of the matter. The fact is that international iron ore and steel prices have plummeted." Ron responded bluntly.
"But the equipment is almost new. If we weren't in urgent need of money, we would never consider selling the mine here."
"Name your price." Ron said straight to the point.
"One hundred and fifty million US dollars." Gary Reddy gestured with his finger.
"I can rebuild a mine like this in Goa. It's newer and cheaper than here."
"We have skilled workers, and we won't take any of them with us. You can start work almost immediately without any delay."
"Eighty million dollars."
"Mr. Sur, this price is too low." Gary Reddy shook his head and refused.
"Let me ask you this: how much do you still owe the bank?"
"What?"
"Dude, I know what's going on. You've been in big trouble lately, but this isn't a threat. I just want to figure out your funding shortfall."
"The Reddy family can handle it. It has nothing to do with this transaction." Gary Reddy was very wary.
"Well, I heard you also have a steel mill and things aren't going well, are they?"
"I understand. You really came prepared this time." Gary Reddy looked at him deeply.
"Sul Mining is engaged in industrial chain business." Ron smiled and did not deny it.
Limestone mines and cement plants go hand in hand, and coal powers power plants.
Now that we are planning to develop the iron ore, the steel plant will be a natural step.
Otherwise, Ron wouldn't have needed to personally go to a small iron ore mine. Only heavy industry like the steel mill would be worth a trip to Goa.
"Mr. Soul, this is beyond my jurisdiction. I need to go back to the family and discuss it in person."
"Of course. Before that, can I visit your steel mill?"
"You are welcome to do as you please. I will arrange for someone to follow you."
The Reddy family wants to sell iron ore, not steel mills. The former is raw material, while the latter is raw material processing, with different added value.
Anyone can mine iron ore, but not everyone can run a steel plant. That is the Reddy family's foundation.
But there are exceptions to everything. No matter whether it can be successful or not, let’s talk about it first.
Ron plans to stay in Goa for a while, as the steel and heavy industry are worth it.
…
Goa's two main industries have attracted a large number of migrant workers, some of whom come from Uttar Pradesh, Bihar and Madhya Pradesh, or from eastern India including West Bengal, Orissa and Assam.
They travel long distances by train or car to the village of Kusur in Goa, hoping to find a job in the factory here.
In this area, far from the highway, farmland appears to be very sparse, but there are about 100 factories of various sizes, large and small, producing chemicals, pharmaceuticals, steel bars and steel pipes.
The factories, visible only after leaving the highway, are not clustered together but appear to be scattered randomly among the farmland.
Some are close to the village market, while others are adjacent to old roads that have been replaced by highways.
For people, the first thing that catches their eyes is not the factories, but what they create on this land:
The smoke billowed from the distant chimneys, and the women and children impatiently rummaged through the black slag piled on the ground, trying to find some fragments of steel;
Inside the walled factory, the machines made a hellish metallic clanging sound, and the occasional nauseating smell of chemicals wafted in the breeze.
The area around Kusir was developed into an industrial zone in the 1980s, and the name "Kusir", meaning "new village", replaced the original name "Patel", meaning "old village", which well reflects the transformation at that time.
The district received subsidies and tax breaks from the Indian government as industrialization began, as Kusur was considered one of Goa's poorer and more backward districts.
It is filled with people from the lower classes of society who want to escape their peasant status, as well as Lambada gypsies, a group of people who live in extreme poverty and often sell their children to unreputable adoption agencies and pimps.
What is strange is that after nearly 20 years of industrialization, the locals have all gone to Mumbai or Bangalore in search of opportunities, mostly as construction workers.
Instead, people from more remote areas flocked to Goa, hoping to find a job in the nearby factories to make a living.
The large influx of foreign population has given rise to another business: intermediaries.
For every worker brought to a construction site or project, the middleman can get a kickback of 4,500 rupees, but the workers only receive cash and food worth about 1,200 rupees per month.
These workers, most of whom come from the lower classes, are often deeply in debt because they have to pay a significant amount of money upfront to move to their new location.
Their children are often forced to work, women are often abused, and workers are highly vulnerable, as India has the highest accident injury rate among construction workers in the world, with 265 out of every 1,000 workers injured on the job.
This is why local residents would rather leave their homes and go to Mumbai or Bangalore than stay there.
It is too hard and tiring, even normal cattle and horses cannot endure it.
Only the real lower class, the tribal people and the untouchables, would get used to the dark life in the factory.
Despite this, the so-called industrial park continues to attract thousands of people from other parts of India.
Local bosses and middlemen love to hire them because there is a golden rule hidden in it.
That is, workers are unable to launch organized protests demanding better working conditions and higher wages due to insecurity and displacement.
They come from far away, making them unattractive to local politicians seeking votes, and they are alienated from local residents because of language and cultural differences.
This is equivalent to social isolation, making them perfect cattle, horses, and coolies.
A few miles from the iron ore mines, diagonally across the highway from them, were several steel mills.
Some are Reddy’s family businesses, and some are factories of other companies, with varying sizes.
Led by Reddy's guide, Ron and his men began to visit the industrial park.
(End of this chapter)
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