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Text Chapter 1019 Xiling Iron Mine

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    After the Spring Festival, the Eastern Ring Expressway, Nanwan Lake Expo Park, Nanwan Lake Convention and Exhibition Center, Nanwan Lake University Town Huaiyong University, and Huaihai invested by Ronshine Construction, Ronshine Real Estate, and University Town Holdings, a subsidiary of Huaihai State-owned Assets  A number of development and construction projects such as Science and Engineering, the new campus of Huaihai Normal University, the first phase of Nanwan Lake Software Industrial Park, and Youth Apartments in University Town have started to be built one after another; led by the Xucheng City Government and invested by the Xucheng City Urban Construction Investment Group, it aims to improve  The "Three Horizontal and Three Vertical" infrastructure projects in Nanwan Lake New Area, including road transportation, power supply and communication, and water supply and drainage infrastructure projects, have been put into construction one after another a year ago.

    This marks the beginning of the construction of Nanwan Lake New District.

    The International Industrial Park and Electric Power Equipment Industrial Park that were originally affiliated to Qinjiang District have also been assigned to the Nanwan Lake Coastal Industrial Zone. The province and Xucheng City have also actively promoted the Nanwan Lake Coastal Industrial Park, University Town Science and Technology Park and Nanwan Lake  Together with the new districts, we will apply for national-level new districts.

    Major industrial projects such as the Huaihai State-owned Assets-led Huaihai Electric Heavy Industry Manufacturing Base and the Dongshi Group¡¯s 50,000-car assembly line have also started construction after the Spring Festival.

    In the first half of the year, Provincial Steel Group also launched a comprehensive restructuring work. Rongxin Group also made no secret of its desire to obtain a controlling stake in Provincial Steel and integrate the steel assets of Provincial Steel and Ronshine to establish a company that is truly capable of following  A large-scale steel conglomerate that Meishan Steel and other large steel companies compete in the country.

    As a wholly state-owned central enterprise, Ronshine Group will not touch sensitive issues even if it thinks of acquiring the entire Provincial Steel Group.

    The Hu clan made concessions in the fight for the leadership in the construction of Nanwan Lake. Not to mention that Cui Weiping, Chen Baoqi, Dai Lesheng and others had decision-making power at the Provincial Standing Committee meeting. Provincial Party Committee Secretary Zhong Limin also insisted on the comprehensive restructuring of the Provincial Steel Group.  In terms of supporting attitude, Xu Pei cannot be too aggressive.

    The question of how Provincial Steel should be restructured is left to the Provincial State-owned Assets Office, Provincial Steel and Rongxin Group to jointly negotiate.

    Shen Huai is no longer in charge of the Enterprise Department, Property Rights Department and other departments of the Provincial State-owned Assets Office, and will focus on Huaihai State-owned Assets. Due to the comprehensive restructuring of the Provincial Iron and Steel Group, which involves sensitive issues of competition with Meishan Iron and Steel, he himself  It should be avoided, but in fact it cannot be avoided.

    Ronxin Group mainly wants to acquire the steelmaking assets of Provincial Steel Group, while assets including Xiling Iron Mine hope to be taken over by Huaihai State-owned Assets.

    The domestic steel market and steelmaking production capacity have greatly increased, which naturally stimulates the demand for iron ore.

    Xiling Iron Mine, with an annual output of 1.6 million tons of concentrate and reserves of tens of millions of tons, is not a high-quality resource from this perspective.

    However, the biggest problems of Xiling Iron Mine are backward equipment and redundant personnel; this has a great relationship with the development history of Provincial Steel and can be regarded as a historical burden.

    Although it has been streamlined many times, the total number of employees of the Xiling Iron Mine, which has an annual output of 1.6 million tons, will still be as high as 20,000 in 2000. If it were not for the drag on the Xiling Iron Mine, the Provincial Steel Group's annual profits would be even higher.  An additional two to three hundred million were added.

    Xiling Iron Mine has limited reserves and limited production capacity. After the completion of Xinjin Iron and Steel, Provincial Steel will have to import nearly four million tons of high-quality iron ore from overseas every year. If it wants to further expand production in the future, it will only be at Xinjin Port.  Construction of a larger second-phase steelmaking project would make Xiling Iron Mine useless to Rongxin.

    It is precisely because of the drag on the Xiling Iron Mine that the profitability of the Provincial Steel Group has declined in recent years. It is far from being comparable to gold-absorbing machines like Meishan Iron and Steel, and its aura is not as dazzling as that of provincial state-owned groups such as Huai Coal and Huaihai Financial Investment.  Therefore, Provincial Steel has become useless in the province. In addition to the operation of Rongxin and the Hu clan, the province also tends to support the comprehensive restructuring of Provincial Steel Group.

    Throughout May, Shen Huai took Sun Fujing with him and went to Xiling two or three times.

    Xucheng has developed rapidly in the past two years. It is hard to imagine that there is a poor county like Xiling below Xucheng.

    Xiling is located northeast of Xucheng and southwest of Yuling, surrounded by mountains. In its early years, it was prosperous due to iron ore and there were several small steel plants. Apart from that, there are no decent industrial enterprises. Although it has been proposed to develop in recent years  Tourism industry, but due to the continuous mining of iron ore and other minerals for 60 to 70 years, the vegetation has been reduced, the mountains have been exposed, and the environment is very poor. The county seat is just below the mining area, and the sky seems to be covered with a layer of gray.

    Thanks to the municipal financial subsidies, the streets in Xiling County are relatively well-maintained.

    If Xucheng wants to develop, Xiling¡¯s environment needs to be renovated, and environmental debts need to be repaid, which will become a big burden for Xiling Iron Mine.

    Rongxin regards Xiling Iron Mine as useless and should not be included in Rongxin¡¯s steel industry system. It is not difficult to understand after a trip to Xiling.

    "Rongxin may be throwing away Xiling as useless, or it may be retreating in order to advance, but no matter what their intentions are, we will not give up the initiative; how about Huaimei taking over too?" Shen  Huai pulled Sun Fujing and stood on the mine, looking at the county town below the mountain, smoking and talking.The future of Xiling Iron Mine.

    Huai Coal also had severe redundancy in the past, and it was extremely difficult to streamline its workforce. As a state-owned enterprise, it has certain social responsibilities. In the past few years, Huai Coal has doubled its coal mining capacity;  On the other hand, more coal washing, coking and other related factories were built to divert the original employees, which made the per capita coal mining volume increase to the international average level. In the process, the mining equipment was updated and replaced, and profitability was enhanced.

    According to the development plans and environmental requirements of the province and Xucheng City, Xiling will not only be unable to expand production capacity in the future, but will also have to eliminate and close down some small mines that have a great impact on the environment. Xiling Iron Mine needs to update equipment and almost streamline it.  Only nine out of ten employees can be transformed.

    ???????????????????????????????????????? Rong Xin uses retreat to make progress, Sun Fujing believes that this is possible.

    The outdated and outdated mining equipment of Xiling Iron Mine is not a big problem. Investment can be increased to replace the equipment. With the increase in iron ore prices in the future, profits are still expected. What is even more troublesome is the redundant staff.

    If so many employees cannot be laid off and given something to do, and if they cannot make a living in vain, we cannot update mining equipment with a higher degree of automation. The production efficiency of Xiling Iron Mine will always fall behind the level of its peers. Where else can there be more?  Profit opportunities.

    The restructuring plan led by Rongxin seems to be to take over the steelmaking assets of Provincial Steel and leave the burden of Xiling Iron Mine to the province. If the province does not have the confidence to deal with the problem of Xiling Iron Mine, it will  If the mine is packaged with the steel-making assets of Provincial Steel, then it will inevitably have to accept Ronshine¡¯s strict decommissioning plan for the Xiling Iron Mine. The province, city, and Xiling County will have to bear responsibility for the unrest that may result from the decommissioning plan.

    There are no factories in Xiling. Nearly 20,000 mining workers are to be laid off at once. Isn¡¯t this small county going to cause uproar?

    If it is not withdrawn, even if there is a prospect of a sharp increase in iron ore prices in the future, Xiling Iron Mine will still be a huge burden, burdened with too many employees, outdated mining equipment that cannot be updated, and no development prospects in sight.

    ¡°This looks like an insurmountable knot in the provincial steel restructuring process.

    Sun Fujing didn¡¯t know how Shen Huai could seize the initiative from Rongxin Group, and why things that Rongxin Group regarded as useless would no longer be a problem in Shen Huai¡¯s hands.

    "Changqing Group is optimistic about the good growth prospects of the iron ore market in the future. It has acquired several iron ore companies overseas. Xiling can set up a labor service company to export excess employees overseas," Shen Huai saw Sun Fujing's eyes filled with excitement.  Looking forward to it, he continued, "Sooner or later, Huaimei will leave Huaixi. It is better to leave early than to leave late."

    Shen Huai has no intention of blocking the comprehensive restructuring plan of the provincial steel industry led by Rongxin. Even without Rongxin, Meishan Iron and Steel still faces competition from several other major domestic steel companies, and there are not many Rongxin companies.

    Ronxin wants to control Provincial Steel, but its current vision is still on the expansion of steelmaking scale, so it also regards Xiling Iron Mine as a tasteless one - Shen Huai wants to eat this tasteless Xiling Iron Mine with gusto.

    Since 1997, Evergreen Group has acquired iron ore companies in Thailand. In recent years, it has set its sights on Australia and Africa, which have richer iron ore resources.

    Although Australia has more abundant iron ore resources, Shen Huai advocates that Evergreen Group should be placed in Africa, especially East Africa.  Australia has extremely strict restrictions on the import of labor services. Africa is a paradise for Chinese companies to export labor services - and China's high-quality and low-cost labor resources are the real gold mines for now.

    Meishan Iron and Steel Co., Ltd. was listed as a whole in London. It raised 3 billion in funds and some bank loans, which was enough for the construction of the second phase of Xinpu Iron and Steel Project. And with nearly 2 billion in profits accumulated every year, it is not in a hurry to distribute dividends. Now it has  Ability to work with Evergreen Group to enter the overseas iron ore market.

    Although Huaixi City currently has proven coal reserves of more than 30 billion tons, mining is difficult and easy, and costs are high and low. According to the plans of the province and Huaixi City, the total annual coal mining volume in Huaixi City will reach one in the future.  About 200 million tons will limit further growth.

    The orderly exploitation of resources is necessary to avoid premature depletion of regional resources.

    After several years of development, the annual coal mining volume in Huaixi City has exceeded 60 million tons, with Huaixi Coal accounting for nearly half.  Even if the proportion of Huai Coal in Huaixi coal mining industry does not decrease in the future, the actual development potential is limited.

    ¡°If Huai Coal is to achieve greater development, it will have to move out of Huaixi sooner or later.

    ? ? Going to other provinces and overseas to mine coal and other mineral resources is a suitable path for Huaihe Coal to take advantage of.

    Therefore, in this provincial steel reform, Shen Huai still hopes that Xiling Iron Mine is a useless thing, and Huai Coal Group will take over it together with Meishan Iron and Steel and Changqing Group so that it can take full advantage of it; Huai Coal Group will develop into a comprehensive large-scale mining group in the future.  And not just limited to coal.

    In this way, regardless of Rongxin¡¯s side,Regardless of whether they regard the Xiling Iron Mine as useless, they still have a plan to retreat in order to advance. Shen Huai does not bother to play any charades with them, and directly lets Huai Coal, Meishan Iron and Steel, and Changqing Group take over the Xiling Iron Mine.  In the future, even if there are still various problems in Xiling Iron Mine, they can be resolved in the development process.
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