Episode 81: Special Mine
Molybdenum is a rare metal with high thermal conductivity and thermal expansion rates. It is essential for the manufacture of special steels, such as those used in aircraft materials and stainless steel.
It is economically valuable, fetching millions of won per ton. Lee Chang-jin urgently asked,
“Then, is it economically viable?”
“We need to check further. From what I know, if the quality is over 0.3%, it is considered economically viable. Judging by the noticeable deposits here, it seems to have a high content… It might be profitable.”
Lee Chang-jin commissioned a research analysis through the Korea Resources Corporation.
The investigation revealed a shocking result: the ore sample contained a molybdenum content of 2%.
Professor Kim, who confirmed the content, could not hide his excitement.
“The economic viability evaluation is very positive. We took samples, and don’t be surprised. It appears that at least 5 million tons are deposited in the mine.”
After completing the analysis, Lee Chang-jin visited the mine owner again the next day.
“After careful consideration, I think it’s best to purchase the mine.”
“Haha, great, you’ve made a very wise decision.”
The mine owner, Ahn Jong-bok, seemed extremely pleased.
Lee Chang-jin added a condition.
“But please transfer everything, including the surface rights, mining rights, buildings and facilities installed in the mine, by-products, various business rights, profit rights, and sales rights. Do you agree with these terms?”
“Is that all? Let’s sign the contract today.”
Ahn Jong-bok hurried the contract, fearing Lee Chang-jin might change his mind.
Lee Chang-jin presented a purchase contract that had been pre-reviewed by a law firm, and Ahn Jong-bok signed it within just three hours.
After the down payment and final payment were made, Ahn Jong-bok extended his hand for a handshake.
“Thank you. I sincerely wish your business success. It may look like a closed mine now, but you’ll make a fortune once it’s developed.”
Whether it was well-wishing or just flattery was unclear, but his wrinkled face was unusually lively.
“Thank you. It was a good deal.”
From the mine owner’s perspective, it was quite a decent deal.
However, from Lee Chang-jin’s perspective, it was by no means a loss.
Consultant Hong In-young, who was informed belatedly about the purchase of the closed mine, gave a wry smile.
“So you ended up buying the mine. I expected it as soon as you mentioned it.”
Then Manager Seo nodded nonchalantly.
“Do you think President Lee would start something without a plan? There must be a strategy. So, tell us how you plan to develop it.”
“Yes, I already have a method in mind. It might be the first in our country.”
“Is it some special construction method? If you use the conventional blasting method, the labor costs will be high, and the mining volume will be low, making it hard to balance the books.”
“Yes, I’m well aware of that. So, I’m considering introducing TBM.”
Upon hearing this, Consultant Hong In-young looked surprised.
“TBM?”
“Yes, that’s right. There’s a limit to what you can achieve with manual labor. Spending a long time on mining would be a loss, so it’s better to finish quickly and effectively. With TBM, a project of this scale could be completed within 1-2 years.”
“TBM, yes, that would be possible. But the rental cost for the equipment is not cheap, and there are no companies in Korea that own TBM equipment. Moreover, there are few experts who know how to operate it.”
“Yes, fortunately, I have experience operating TBM equipment from my overseas training in Germany. In fact, I am currently looking into a used product from the neighboring area. As you know, the German company Herrenknecht is the world leader in this field. Even if it’s used, as long as we replace the cutter head, it should be fine.”
Manager Seo, who was listening, also chimed in.
“Hmm, that sounds plausible. If it’s from the neighboring area, it should be easy to find a shield TBM for tunnel excavation.”
“Wait a minute. What on earth are you talking about? And what is TBM anyway?”
“Ah, Manager Gu, it must be an unfamiliar term for you. TBM (Tunnel Boring Machine) is a special equipment for tunnel excavation. Simply put, it’s like a mechanical worm that digs through the ground.”
“Such a thing exists?”
“Of course, but it’s rare to see this equipment domestically. It’s 100% imported equipment, and there are no trained operators here. However, the situation is different overseas. Over 60% of mountain tunnels and 80% of urban tunnels are constructed using TBM methods. Many developed countries have been using it commercially for a long time. It was invented over 20 years ago.”
TBM was first developed in the United States. Later, Japan developed a safer and low-vibration shield TBM and was the first to commercialize it. In the 1970s, as urban infrastructure facilities were being renovated nationwide, the era of TBM began. Manager Gu nodded.
“I roughly understand. But is it really such a great piece of equipment?”
“Of course. TBM produces less noise and vibration compared to blasting methods and is safer. The construction speed is more than three times faster as it assembles concrete pieces to form the tunnel walls like fitting blocks.”
The broken rocks and excavated soil are automatically discharged outside the tunnel through pipes and pumps.
However, using TBM requires ordering and customizing a TBM suitable for the specific geological conditions, which is not an easy task.
Fortunately, through Deputy Manager Jeong Pil-joo in Mannheim, he was able to find a used TBM that had been used for urban underground road construction.
“It’s up for sale from Japan, a 4m-diameter mid-large slurry TBM. It was originally purchased for urban development, but the construction company went bankrupt due to overreaching. It’s currently abandoned in a warehouse but is available at a very low price.”
“Great, proceed with the purchase.”
After acquiring the equipment, Lee Chang-jin decided to contact the German TBM manufacturer. To operate TBM, a team including mechanical, electrical, and control (PLC) supervisors and TBM drilling technicians was required. Including personnel for assembly completion, test operation, and initial drilling management, at least 30 additional staff were needed. Consultant Hong In-young reported after the transaction.
“The response from Herrenknecht was positive. As this is their first entry into the Korean market, they seem quite interested. Thanks to that, we reached an agreement on very favorable terms. We should also be able to find the rest of the personnel domestically. However, it would be best to invite a Steiger from abroad. Preferably a Korean.”
“A Korean Steiger… That’s a bit tricky. If someone has reached Steiger level, they must have considerable trust from that side…”
Steiger, a mine executive akin to a work supervisor, is considered the flower of miners. However, it is not a position just anyone can hold, as it comes with executive treatment. There were very few Korean Steigers, even among the thousands of miners dispatched to Germany.
They not only needed to be skilled but also had to earn deep trust from Germans. Consultant Hong In-young also showed a negative expression at this.
“Steiger… That’s difficult. Such people have established themselves abroad with great difficulty. Would they easily choose to return to Korea?”
“Not everyone returns solely based on economic logic. Many people might want to return home but give up due to adverse conditions. If the conditions are right, why would they stay abroad?”
Lee Chang-jin decided to contact some volunteers he had met during his overseas trip. He also made a call to a personal acquaintance.
“Kang Jong-hee?”
“Ah, President Lee Chang-jin, isn’t it?”
“Haha, how have you been? I was wondering if your studies are going well. Any difficulties?”
“Thanks to your support, everything is going smoothly. But what brings you to call suddenly?”
“Well, I’ve recently acquired a mine. I’m wondering if you could introduce me to any miners among those dispatched to Germany who wish to return to Korea.”
“Miners, you say?”
“Yes, it would be great if you could recommend a Steiger if possible.”
After thinking for a moment, Kang Jong-hee seemed to recall someone suitable.
“Hmm. There is one person. His name is Park Hee-seung. He is a first-generation miner dispatched to Germany. He graduated from a mining school, earned a master’s degree in mining engineering from Berlin University of Technology, and served as a director at the Ruhr Mining Association in Germany. His contract period is almost over, and he seems to be looking into American companies like Robbins recently.”
“Oh, such a person exists? Where is he currently?”
“He should be in Korea. He is on a rare vacation. Your address is in Seodaemun-gu, right? He should be somewhere nearby.”
“Is that so? Could you provide me with his address?”
“Yes, I’ll check and get back to you.”
By a stroke of luck, Park Hee-seung was at his home in Mapo-gu.
Deeming there was no time to lose, Lee Chang-jin immediately went to him.
Inside a small pub in Mapo, Park Hee-seung, who had been pre-informed, greeted him.
“I am Park Hee-seung. You must be President Lee Chang-jin. It’s an honor to have you visit me.”
“Meeting a distinguished person like you, I had to come myself. I’m Lee Chang-jin from Daese Construction.”
“I was planning to leave for the U.S. tomorrow, but I’m glad we managed to meet. Do you like beer?”
“Yes, I do. I drink it whenever I can.”
“This place serves good beer. Let’s have a drink.”
They had a whole roast chicken as a side dish.
While having beer together and chatting about various things, something peculiar caught Lee Chang-jin’s eye.
“What is that?”
Noticing Lee Chang-jin’s interest in his rubber knee pads, Park Hee-seung laughed heartily.
“This is a Knieschoner. It’s essential when entering the coalface. It’s hard to work without protection in an environment with coal-cutting machines and falling stones. Setting up the iron pillars to support the ceiling requires putting all your strength into your knees. I’ve worn it for so long that it’s become second nature.”
“That’s impressive. It’s thanks to the sacrifices of dispatched miners like you that we can live as well as we do.”
“You’re too kind…”
“No, really. It’s thanks to the efforts of people like you that we’ve achieved economic development.”
The foreign currency remittances from the laborers dispatched to Germany played a crucial role in the economic development of Korea, which was then the poorest country. In fact, the only reason the government was able to borrow money from Germany was that the dispatched workers served as human collateral.
After reminiscing for a while, Lee Chang-jin broached the main topic.
“As you know, I came here to invite you, Director Park. But I can’t say that the working conditions in Korea are better than abroad. That’s why I’m asking you to work for your homeland.”
“My homeland?”
“Yes. Although I am a businessman pursuing profit, making money itself is not my goal. I wish for my country to prosper. If I build factories and run companies with the money I earn, thousands of people will be able to make a living, wouldn’t they? So, Director Park, how about using your precious skills and advanced knowledge for the development of the domestic mining industry?”
Park Hee-seung listened intently, and Lee Chang-jin spoke again.
“I don’t know what kind of treatment Robbins offered you, but I am prepared to offer you the same. If I were merely trying to hire a technician for money, I could have easily brought in a foreign technician. But that’s not what I want. If this meeting was just about monetary value, would you have even agreed to meet me?”
“That makes sense.”
Agreeing, Park Hee-seung accepted Lee Chang-jin’s business card.
“Yes, I believe you have some attachment to your homeland. I am appealing to your heart. Here is my business card and the address of the construction company. Please come if you have any interest. I’ll be waiting.”
After their brief conversation, several days passed without any contact from Park Hee-seung.
Lee Chang-jin couldn’t help but feel a bit bitter.
‘Was I not persuasive enough?’
At that moment, while presiding over a construction meeting for the access road, Park Hee-seung appeared before him.
Lee Chang-jin was so surprised that he jumped up.
“Director Park, how did you get here…?”
“I contacted the headquarters and inquired. I canceled my ticket to the U.S. I paid a broker 300 dollars, you know. I’m making this choice based on my trust in you, President Lee, so you must take responsibility for my life.”
“Haha, of course.”
If Lee Chang-jin had tried to persuade him only with conditions, Park Hee-seung might have considered various options. However, Lee Chang-jin did not do that. His earnest persuasion awakened the dormant patriotism in Park Hee-seung’s heart. As they shook hands firmly, Lee Chang-jin remembered.
‘Wasn’t it around 1978 that molybdenum prices soared?’
Molybdenum is a strategic material mainly used as an alloy steel material. If, by any chance, the U.S. stops exporting molybdenum, the current export price is sure to skyrocket by ten times.
‘That old man seemed quite greedy, but if he makes money with this, he might feel quite envious.’
However, Lee Chang-jin’s concern did not materialize. Excited by the sudden windfall, Ahn Jong-bok spent a few days drinking heavily and passed away from a sudden heart attack.
It was a futile end brought on by greed.
- Continued in Episode 82 -
