When acquiring rare earth mines, Galaxy Mining Group also purchased iron ore, copper ore, and other non-ferrous metal mines.
For example, the Bayan Obo iron ore mine, located on the WLCB grassland in central NMG, has become a modern large-scale open-pit mine with an annual output of 11 million tons of ore. It is a multi-genetic endogenous iron ore mine and a large-scale symbiotic mine of various useful minerals such as iron, rare earth, and niobium. Its proven iron ore reserves are 1.4 billion tons, and its rare earth resources rank first in the world.
Galaxy Mining Group primarily invests in rare minerals in China to protect them from being sold off cheaply.
After the industrial boom in the 21st century, my country faced a severe iron shortage, and the security of the iron ore supply chain became extremely serious.
Instead of competing with other steel companies at home, Galaxy Mining Group aims to expand overseas and seize large mines.
In this regard, Zhao Ye had read some reports about mineral distribution and discovery in his previous life, which could allow Galaxy Mining Group to take the lead and obtain mining rights in overseas mining areas.
The primary target is Africa.
African countries possess abundant mineral resources.
From a long-term perspective, Africa has excellent investment prospects. Its total resource value accounts for 23% of the global total, but its production value accounts for only 9% of the global total. Therefore, Africa is the region with the most potential for mineral resource development globally. Moreover, Africa has a dominant position in some minerals globally, including 91% of global platinum group metals, 72% of uranium, 47% of diamonds, and 18% of gold.
Guinea has iron ore reserves exceeding 30 billion tons and currently possesses two unexploited world-class iron ore mines: the Nimba Hill iron ore mine and the Simandou iron ore mine.
However, due to the significant challenges in transportation, these two world-class iron ore mines were not initially valued by Western countries. It wasn't until the beginning of the 21st century, with the increasing demand for steel from industrialization, that countries around the world began to fiercely compete for these mines.
Just because others look down on it doesn't mean Galaxy Mining Group looks down on it.
At this very moment, representatives from Galaxy Mining Group have arrived in Guinea and are negotiating with the local government about the development rights for the Nimba Hill and Simandou iron ore mines.
"Your Excellency, the biggest drawback of the Simandou iron ore mine is its location deep inland in Africa, making transportation extremely inconvenient. Foreign investment is necessary to bring the mine into production. Our Galaxy Mining Group, backed by its parent company Wujiang Group, is very powerful."
"This is our plan, which is expected to involve an investment of US$12 billion to build water plants, power plants, residential and commercial areas, and 620 kilometers of railway from the mine to the port, as well as 50 kilometers of railway within the mine, nearly half of which will be mountain railway. In addition, there will be three 250,000-ton port berths..."
"Once the Simandou iron ore mine is successfully put into production, it will bring substantial returns to your country, create a large number of local jobs, and boost the local economy."
"..."
When Guinean officials heard that the investment in the Simandou iron ore mine alone amounted to $12 billion, their eyes widened and their breathing quickened.
It's worth noting that Guinea's GDP was only $3.4 billion in 1994.
The Simandou iron ore project directly boosted GDP to over $12 billion, which truly shocked everyone present.
"If your country agrees to cooperate, we can establish a company specifically for the development of the Simandou iron ore mine. Guinea will acquire a 15% stake in this company without contributing a single penny!!!"
"Similarly, we can also cooperate in developing the Nimba iron ore mine and establish another company. Guinea will not need to invest any money; it can simply sit back and enjoy the benefits and acquire a 15% stake in this company!"
"However, we hope that the development rights for these two mining areas will be extended, given the large investment and long payback period. Generally speaking, the development rights for large mines are 30 years, medium-sized mines are 20 years, and small mines are 10 years. Due to the inconvenient transportation and large investment required for the Ningbashan and Ximandou iron mines, it would be best to extend the development rights to 40 years."
The high-ranking officials in Guinea, of course, had no objections.
This country is so poor that the mining areas are inconvenient to access, and Western countries are currently unwilling to invest here.
The fact that Galaxy Mining Group came to invest was like a windfall. The leaders of Guinea were afraid that if they made demands that Galaxy Mining Group would not be satisfied, they would run away.
As a result, the two sides had a very pleasant and smooth conversation.
Guinea has complied with all of Galaxy Mining Group's requests.
Anyway, as long as you invest, I'll agree to anything.
Global demand for steel is not that tight, and although Guinea has abundant mineral resources, it cannot become a major power.
With the industrial boom of the 21st century, the demand for steel surged, highlighting the increasing importance of iron ore. China would then need a large amount of steel. In the previous era, however, China imported much of its iron ore from Australia.
However, Zhao Ye was well aware of Australia's true colors.
Therefore, he planned ahead and began to lay out iron ore mines in Africa.
If construction proceeds smoothly in the 21st century, the Nimba Hill and Simandou iron ore projects in Guinea will be put into operation around the same time, which will be able to largely meet China's steel demand.
On the afternoon of November 25, 1994.
Galaxy Mining Group has reached a cooperation agreement with Guinea, signed an investment agreement, and obtained the development rights to the Nimba Mountain iron ore mine and the Simandou iron ore mine.
This news shocked countries like Australia and Brazil, causing them to feel a sense of unease.
At the same time, Galaxy Mining Group's investment plans in other African countries are also progressing very smoothly, including investing in the development of mines and the construction of steel plants in Zimbabwe. Iron ore from all over Africa is transported directly to the steel plant in Zimbabwe, processed into steel, and then transported back to China, saving the trouble of transporting large quantities of iron ore and saving huge transportation costs.
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