The rise of nanometers

Dalian Exchange Building.

In the general manager's office, Li Hongwen, Song Shijia, Steel Association Secretary-General Shan Zhonghua, Mining Association Secretary-General Li Changfu, United Recycling General Manager Luo Tuo and others were enjoying tea and chatting.

Li Hongwen picked up the tea cup and asked with a smile: "Have BHP Billiton come to see you?"

"I found it, and even Tu'ao came forward." Li Changfu replied enthusiastically, sweeping away the previous depression and aggrievedness.

Shan Zhonghua said with a hint of sneer: "Feng Shui is changing, Lao Li, you and the Mining Association must not let go of the chain. If you don't beat them down this time, it will be difficult to talk about it in the future."

"I know this well and will never let the tiger go back to the mountains." Li Changfu was very serious.

People from mining companies such as Song Shijia and Luo Tuo were discussing the recent situation of BHP Billiton, Rio Tinto, Vale and FMG, the four international mining companies.

At present, domestic mining groups have formed six large mining groups after a series of changes and integrations, namely Blue Star Mining, United Recycling, Beijing Enterprises Resources, Electricity and Mining Consortium, Minmetals Group, and Southern Rare Earth.

They all have representatives stationed in Dalian and maintain close contact with the ore exchange. At the same time, they control domestic and foreign ore trade through the Mining Association.

Luo Tuo put down his teacup: "BHP Billiton is on its last legs. Yesterday, the stock price of rice stock BHP Billiton plummeted. The current debt ratio is close to 75%. Closing the mining area can only delay the time of death."

"Several rare earth companies in the United States are very tenacious. They have lost more than one billion and are still carrying on." A representative of Minmetals Group talked about the international situation of the rare earth industry.

"It doesn't matter. We will raise the price of raw ore and lower the price of refined rare earths to see how long they can hold on." Song Shijia said with a smile.

"Ha ha……"

Faced with Chinese rare earth companies whose refining costs are very low, and due to improvements in mining technology, the overall domestic reserves have increased dozens of times. Those companies that need to refine rare earth elements will definitely want to purchase low-priced, high-quality Chinese rare earths. China’s rare earths.

Although several rare earth refining companies in the United States have received assistance from capital giants, the money of problematic capital giants does not come from strong winds.

Although the Fed can engage in quantitative easing and plunder the world's wealth through the crazy printing of rice dollars, the consequence of doing so is to continuously overdraw the credit and future of the rice dollar.

The emergence of the Dalian Exchange has already begun to play a role. By bundling Huayuan with ores, and adding a full range of industrial products from the world's factory, Huayuan's share of international trade settlement has continued to rise, from about 0.34% in 2009 to eight this year. About 1.4% of the month.

Just when everyone was discussing international mining.

The business representatives of the three major iron ore suppliers, BHP Billiton's Johnson Charles, Rio Tinto's Belia Mathison, and Vale's Ole Juan, were waiting anxiously outside the Dalian Exchange with their business negotiation teams.

But Song Shijia and others had no intention of meeting.

In a business hotel.

Charles, who had just had a phone call with the Melbourne headquarters, felt bad after putting down the phone.

Seeing that his expression was wrong, Juan asked worriedly: "Charles, what happened?"

Charles' expression was extremely ugly: "The miners in the Newman mining area were rioting, causing a lot of equipment to be occupied by the miners, and the layoffs became a big issue."

"..." Ma Dichen took a breath of cold air. Although what happened to BHP Billiton has no direct impact on Rio Tinto, the problem is that in the current situation, if BHP Billiton falls, it may trigger a chain reaction.

Juan and Ma Dichen looked at each other and became even more anxious. They hurriedly ordered their subordinates to make an appointment with Li Hongwen, Song Shijia and others.

The uneasy Charles walked back and forth in the room, thinking about how to negotiate with the Mining Association as soon as possible.

All three of them knew very well that the current situation of the three major iron ore suppliers was that they could enter bankruptcy at any time due to a break in the capital chain.

The only life-saving straw is to reach an iron ore price agreement with the Mining Association. Even if it is 200 yuan per ton, they are willing to accept it.

But the cruelty of business competition is not something to be said casually.

The Suiren Department had given them a chance before, but since they didn't seize it, they can't blame the Suiren Department for being ruthless.

More than two hours later.

Their subordinates came back dejected and said that Li Hongwen refused to meet.

"Damn it! Are they going to let BHP Billiton go bankrupt before they let it go?" Even the mature Charles couldn't help but jump to his feet.

Ma Tichen suggested in desperation: "Charles, why don't you ask the official to come forward?"

"It's useless." Juan shook his head. As Vale, which is relatively well-funded, they are in a better situation and are calmer.

As long as you don't get wet and wait a little longer, BHP Billiton, Rio Tinto and Vale will fall sooner or later. Whether it's acquisition or annexation, it's not Blue Star Mining and they who have the final say.

On one side is Blue Star Mining, who is chatting and laughing.

On one side is BHP Billiton, which is on the verge of bankruptcy.

The crushing of technology is indeed very scary sometimes, especially in the current iron ore market, this cruel technological crushing is vividly reflected.

Melbourne.

BHP Billiton headquarters.

"Mr. Carter, the July loan has expired, and we hope BHP Billiton will repay it as soon as possible." The business manager of the local Melbourne Bank reminded with some helplessness.

The heads of several other commercial banks are also worried and hope that BHP Billiton can guarantee on-time repayment.

James Carter held the loan repayment summary from various banks, his hands trembled slightly, and he took a deep breath:

"Everyone, BHP Billiton will definitely be able to get through this difficulty. I hope you can give me some time to deal with the Newman mining area."

The manager of one of the banks shook his head very directly: "Sorry! Mr. Carter, as far as I know, you have frozen 350 million in funds because of the compensation owed to the miners. Currently, your company's account only has 430 million left. , and the repayment required in July is 610 million."

The bank managers present had all communicated privately, and it had become an established fact that BHP Billiton's capital chain was broken.

Unless there is new capital injection, BHP Billiton will default on its July debt contract by 180 million yuan.

Given the current slump in the international ore industry, any bank or fund that dares to inject capital into BHP Billiton will definitely think their business is too good.

Even international capital giants don't want to inject capital into BHP Billiton and others, because injecting capital is useless.

The knife is in the hands of the Suiren Department, and the international ore price is controlled by Huaguo Mining, headed by the Suiren Department. No one can hold it back. After all, production is a loss, and no capital giant is willing to take over.

August 13th.

The default of BHP Billiton's first debt immediately triggered a chain reaction, and several banks immediately submitted relevant applications.

After holding on for less than a week, with the emergence of successive debt defaults, BHP Billiton's stock price fell below the bottom, and it became insolvent.

August 24th.

A desperate James Carter, representing BHP Billiton, filed for bankruptcy protection in a Melbourne court.

Once an avalanche is triggered, it can only fall downward.

BHP Billiton filed for bankruptcy protection, causing the share prices of three other iron ore suppliers to collapse, which in turn led to varying degrees of decline in share prices around the world.

Charles, who was in Dalian, collapsed when he heard the news.