Black Gold 1983

Renye couldn't imagine that if the geology department had taken his father's speculation seriously back then, and if the mine leaders had allocated more exploration funds to drill another hole deeper into the West Second Mining Area, then this layer of coking coal would have been mined three years ago.

Looking at Ren Shouyi, Ren Ye suddenly realized that this taciturn man was far more capable than he had imagined.

He had heard that the older generation of experts could determine the direction and thickness of underground coal seams by looking at stones, mountain shapes, water colors, and even listening to sounds.

He still considered it a legend, a story made up by those old miners when they were drunk.

But today, he believed it.

"Dad, you're amazing!" Renye couldn't help but praise, his tone tinged with childlike admiration. "Is this your coal mining skill or your fortune-telling skill? If you had gone to the geology department, you'd be at least a section-level cadre by now, instead of staying at home putting up with Mom's temper!"

Ren Shouyi snorted coldly, but the wrinkles on his face quietly smoothed out a bit.

"I'd be happy to." He placed the enamel mug on the table. "Even if there really is a layer of coking coal underneath, and even if the government really does loosen its policies to support joint ventures in mining, funding, manpower, and equipment are all problems. How do you plan to solve these?"

Renye pulled up a chair and sat down.

He knew that this was the truly crucial part.

"Dad, let me do some calculations for you first, and you can give me your opinion."

He picked up a pencil from the table and began to scribble and draw on the old newspaper.

"Our goal is to produce 10,000 tons per year. At the current unified purchase price of coking coal, that's 30 yuan per ton. 10,000 tons of coal would generate 300,000 yuan in revenue. After deducting costs, the net profit would be around 100,000 to 200,000 yuan."

"This is calculated according to national standards. But if we can get a direct sales channel, even if it's just a small portion, and sell it for sixty yuan a ton, the profit will double."

Ren Shouyi didn't speak, his eyes fixed on the numbers in the newspaper.

"To achieve an annual production of 10,000 tons, nearly 30 tons of coal need to be produced every day. According to the three-shift operation system underground, each shift requires about 15 to 20 people. That is to say, the entire mine needs at least 60 to 70 people."

Ren Shouyi understood immediately and, without realizing it, had already devoted himself wholeheartedly to the planning of the mine.

Renye nodded slightly: "Sixty or seventy people, each earning sixty yuan a month, that's four thousand yuan a month just in wages, nearly fifty thousand a year. Add in equipment depreciation, material consumption, electricity, and management fees, and the fixed costs for the year are at least one hundred thousand yuan."

Ren Shouyi nodded. The fact that he could calculate this showed that he wasn't acting on impulse.

"People are easy to manage." Ren Shouyi pondered, "Shigou Village has more than two hundred households and about a hundred able-bodied men. Many of them worked as temporary workers in the West Second Mining Area and went down the mines back then, so they have experience."

"But what about the equipment?" He changed the subject: "Even a small mine with an annual output of 10,000 tons, no matter how rudimentary, can't lack the most basic equipment: winches, water pumps, fans, mine cars, tracks, pneumatic picks, and drilling rigs. Have you done the math?"

Renye put down his pen and smiled, "This problem was indeed a bit difficult before, but now, there's a ready-made solution."

"What kind of approach?"

Renye explained, "Dad, didn't the mine just recently introduce a batch of drum coal mining machines? I heard they're going to streamline and reorganize, cutting one coal mining team."

Ren Shouyi immediately understood and said, "You little rascal, you're eyeing those discarded pieces of equipment from the mine?"

"That's right!" Renye said clearly, "I remember that the State Economic Commission issued a document last year, 'Notice on the Organized and Planned Utilization and Allocation of Existing Equipment'."

"The document clearly requires all industrial and mining enterprises, including the coal industry, to conduct a thorough inventory check of their inventory and idle equipment, register them uniformly, and allocate and circulate them among themselves."

"We can buy those old equipment that have been used for five or six years, as well as the mining carts that have been phased out, from the mine at a discount. Public equipment that is left idle for a long time will incur 'equipment storage and maintenance fees,' so it's better to sell it to us at a low price. It's a win-win situation for both sides."

Moreover, Renye recalls that the policy in April clearly stated that state-owned mines should support small coal mines in terms of technology, equipment, and personnel.

This included allowing state-owned mines to transfer their idle old equipment to small coal mines at low prices, while requiring large mines to send technical personnel to rural areas to guide underground safety production and to train key personnel in coal mining, electromechanical, and other front-line tasks.

This was actually a mutual aid model implemented at the time to rapidly increase coal production.

"Windlocks, water pumps, fans, mine cars, the kind with a one-ton capacity, each one costs 300 yuan, and we need at least ten. Then there's the track, which costs 8 yuan per meter. If we plan to dig 300 meters of underground tunnel, the track alone will cost 2,400 yuan."

"The pneumatic picks, drills, and other miscellaneous tools add up to around two thousand."

He finished calculating the costs one by one, then looked up at Ren Shouyi: "These are the prices of second-hand equipment. Adding them all up, it's about 15,000 to 20,000. Adding installation, debugging, cables, and lighting equipment, it should be around 25,000."

Ren Shouyi stared at the number on the newspaper and remained silent for a long while.

"You've never been interested in anything related to mining since you were little, so where did you find out all this?"

Renye was stunned for a moment.

He thought to himself, "I almost gave myself away."

This wasn't something he heard about; it was experience he gained from mining in his previous life.

He knew the market for secondhand equipment like the back of his hand in the early 1980s.

"I... asked Uncle Han about it a while ago." Renye made up a lie on the spot.

Upon hearing the words "Uncle Han," Ren Shouyi's brows furrowed slightly.

The "Uncle Han" that Ren Ye mentioned was actually named Han Changhe. He was the deputy captain of the No. 2 coal mining team back then, and he and Ren Shouyi were old comrades who had climbed out of the mine together.

Three years after the roof collapse accident, the West No. 2 mining area was sealed off, and personnel were reassigned. Han Changhe was transferred to the electromechanical department, where he was in charge of the procurement, maintenance, and allocation of equipment for the entire mine.

This person is quick-witted and diligent. He became a deputy section chief in just over a year, and was promoted to section chief last year. He is considered one of the fastest climbers among that group of older colleagues.

Ren Shouyi didn't reply, but picked up the enamel mug and took another sip. He then said, "Even if all of what you've said can be solved, there's still one major problem."

Renye raised his head.

"It's safe," Ren Shouyi reminded him.

"In coal mining, safety is always the top priority."

"You only calculated the cost of the winch, blower, and water pump. But have you considered how much timber is needed for underground support? Roof supports are needed where the roof is broken, and supports are needed at tunnel intersections—all of these require timber."

"Underground safety relies not only on people and equipment, but also on rules. Before going down the mine, the roof must be inspected and gas detected. It is strictly forbidden to bring smoke or open flames into the mine. Before each shift, a strict pre-shift safety briefing must be conducted. These rules, on a small scale, ensure production, and on a larger scale, protect lives. You also need to have several professional team leaders."

"Regarding ventilation, the main ventilation fan must be kept running continuously and must not be shut down arbitrarily. If the ventilation at the tunneling face is poor, gas will accumulate, and if it encounters a source of ignition, it will be a disaster. If you want to run a mine, you must have a complete safety management system, and every worker must be properly trained before going down the mine."

"And then there's drainage," Ren Shouyi continued. "The West Second Mining Area is low-lying and has abundant groundwater. If the pumps break down or there's a power outage, the drainage won't keep up, and the tunnels will be flooded. At best, production will stop; at worst, people will die. You must have backup pumps, dual-circuit power supply, or an emergency plan."

"Roof management goes without saying. The roof collapse three years ago was caused by a sudden increase in roof pressure, which caused the timber stacks to collapse. If you really want to operate a mine, you must have a complete roof support plan and a daily monitoring system."

Of course, Renye had considered these issues.

Unlike equipment procurement, where you can cut corners or make do with what you can, safety investment is not like equipment procurement.

Safety in production is paramount and cannot be compromised in the slightest. Moreover, safety permits are essential for the operation of a coal mine.

Therefore, he did not interrupt Ren Shouyi.

He knew his father too well. He was usually quiet at home and could barely argue with his mother for more than three sentences. But once the topic turned to the mine, he would talk like a dam had burst, explaining everything in detail more clearly than anyone else.

With his more than 20 years of experience working underground, the old man could always find some blind spots that he might have missed. Some things cannot be seen by drawing two lines on a blueprint. You have to actually stay underground, experience it, and even suffer losses to know where accidents are likely to happen.