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Chapter 78 Dead End
If Ding Jian were to offer excessive concessions in order to secure cooperation, Qin Rui would not only be unhappy, but would also doubt Ding Jian's sincerity.
Ding Jian's way of doing business seems a bit foolish.
But for those who truly want to get things done, Ding Jian is the best partner.
Qin Rui knew very well that Ding Jian was actively seeking cooperation because he hoped to do something through Qin Rui that Ding Jian couldn't do himself.
Qin Rui is a civilized person, and there are some things he cannot do.
So Yuri brought in Mobil as well.
"The situation in Guinea is very complicated. Unless we stage another coup and install a president who is completely aligned with us, it will be difficult for us to achieve our goals."
Payne was well aware that the farce at the Simandou iron ore mine had been going on for over a decade.
"That's why I came to find you."
Yuri spoke his mind.
"You sent a 'yes' message, what do you take me for?!"
Payne felt humiliated.
"As partners, we need to do what we do best to achieve the best results."
Yuri was perfectly justified.
According to Ding Jian's proposal, transporting the iron ore from Simandou would require building a railway of approximately 600 kilometers.
Yuri's plan was for Mobil to provide policy support and for East Asian companies to be responsible for railway construction.
"What are your responsibilities?"
Payne was indignant. So you do nothing but use the two most powerful countries in the world as long-term laborers, waiting to collect your money.
How dare you!
"Can you cooperate without me?"
Yuri was smug.
Payne thought about it and realized that was indeed the case.
However, Payne was unwilling to accept being so thoroughly dealt with by Yuri.
"ExxonMobil is only responsible for providing policy guarantees; the funding will be shared by both of you."
Payne tried to secure more benefits for ExxonMobil.
"If you're unwilling, I can seek cooperation from the French."
Yuri was emboldened.
As Guinea is a traditional sphere of influence for France, Paris has long coveted the Simandou iron ore mines. Even if the coup in Guinea was not orchestrated by Paris, Paris must have been aware of it.
It's just that the French are too stingy to invest in building railways; otherwise, no other country would have had a chance to operate the Simandou iron ore mine.
The railway supporting the Simandou iron ore mine will require an investment of approximately US$200 billion.
"This plan is not reasonable enough. If the railway does not pass through Guinea but instead goes around Liberia, the length can be reduced by half."
Payne was nitpicking.
Ding Jian sneered.
Liberia was established with the support of the United States, and its political system was completely copied from the United States. The United States' original intention in establishing Liberia was to resettle African Americans and, incidentally, to gain a strategic foothold for intervening in West African affairs.
The railway runs entirely through Guinea and requires 600 kilometers to be built.
The journey from Liberia to Monrovia is only 300 kilometers, and there is no need to build a port.
The initial plan for the Simandou railway was to go through Liberia.
It was precisely because of the interference of the Americans that this plan had to be abandoned.
The Americans will definitely try to take advantage of the railway's passage through Liberia and raise prices exorbitantly.
If the railway is built entirely within Guinea without passing through Liberia, and a coup occurs one day and the railway is nationalized, the entire investment will be lost.
Dead end!
When it comes to railways, Guinea's attitude is classic.
As early as the French colonial period, the French built a 660-kilometer-long railway in Guinea.
After Guinea gained independence, the railways remained in disrepair for a long period of time.
By 2000, Guinea had completely dismantled the railway, selling off the rails, sleepers, and even the bridges built by the French.
The dismantling of the railway occurred during the reign of Lansana Condé.
This isn't actually a problem with Lansana Condé.
Regarding the situation in Guinea, Lansana Condé frankly stated: "If I had to execute every Guinean who steals from Guinea, then soon there would be no one left to kill."
Another dead end!
"The past is the past, the present is the present."
Payne's words perfectly illustrate the significance of Libya's participation.
Without the involvement of the interested parties, Payne and Ding Jian, despite having common interests in the Sirte oil field, would never have anything to do with each other.
Such a collaborative project involving hundreds of billions of dollars is out of the question.
"Simfer will also benefit from the railway's completion, so why should we fund its construction ourselves?"
Payne was frugal wherever possible, demonstrating the capitalist's thrifty mentality to the fullest extent.
Simfer, which holds the mining rights for sections 3 and 4 in the southern section, has two major shareholders: Rio Tinto and Chinalco.
"If you can convince Simfer to provide the funding, I have no objection."
Yuri was not optimistic.
If Rio Tinto were willing to pay for the railway, it wouldn't have sought cooperation with Chinalco at all; it would have been much better to monopolize the profits from the southern section.
The key issue is that the risk is too high.
Rio Tinto is seeking to sell its shares.
Ding Jian provided some new information.
Last year, Rio Tinto sold a 47% stake in Simfer to Chinalco for $13.5 billion, bringing Chinalco into the picture to take over.
Earlier this year, Rio Tinto proposed selling its remaining shares in Simfer for $15 billion, but no one took over.
While reclaiming the mining rights from BSGR, the Guinean military government also turned its axe on Rio Tinto.
Rio Tinto spent $7 million to retain the mining rights in the southern section.
Guinea is not only targeting honest people, but also treating these international mining giants the same way.
Rio Tinto is now clearly looking to cash out and exit, and apart from East Asian steel companies that are determined to acquire the Simandou iron ore mine, no one is willing to take over.
Are you interested?
Yuri asked Payne.
"This isn't up to me to decide."
Payne admitted that he was merely an executor, not a decision-maker.
Qin Rui was interested.
It's just 15 billion, a matter of ten days or so.
But it's not like you can just give NexTorch whatever amount they ask for. If you think you can just take the money and leave comfortably, there's no such thing as a free lunch.
Vale, the first to be eliminated, is embroiled in a legal battle with Rio Tinto and BSGR, seeking to recover its initial investment of $12 billion.
BSGR spent $1.6 million to obtain the mining rights for the northern section, plus $1 million for bribes, bringing the total cost to only $2.6 million. However, it sold the rights to Vale for a whopping $25 billion, seemingly making a huge profit.
The owner of BSGR is Israeli billionaire Steinmetz, whose net worth is $90 billion.
After the bribery scandal broke, Steinmetz was embroiled in legal troubles, his wife went into exile in the United States, and in addition to Guinea, the United States, Switzerland, and even Romania launched anti-corruption and organized crime investigations against Steinmetz.
Thus, the world has come to a conclusion where all parties involved in the Simandou iron ore mine have suffered losses, and no one has benefited from it.
This is also why Rio Tinto shirked responsibility and withdrew from the scene.
Qin Rui instructed Christopher to contact Rio Tinto and attempt to acquire the remaining shares of Simfer.
Rio Tinto not only did not lower its price, but instead raised it to $20 billion.
This is insane!
Qin Rui had nothing to say.
The Guinean government is tendering for mining rights in the northern section of the mine, and several international companies have expressed interest, giving Rio Tinto hope that the project will start.
Since they're unwilling to lower the price, then let's just wait it out.