Price drop challenges group

 NEWCREST’S Lihir Gold Mine’s cutbacks and the sharp fall in gold prices this year has been challenging for a nationally owned group of companies – Anitua Group.

However, executive director Colin Vale said Anitua was seeking a few exciting opportunities at the present time which were not reliant on the mining sector.

The group’s impressive portfolio of businesses include construction, hardware, mining services, radial drilling services, a supermarket and NCS Holdings, among others.

Vale was quoted in the group’s newsletter saying: “Anitua Radial Drilling Services is our business which has been most savagely hit by both Newcrest cutbacks and the general downturn in mining. 

“ARDS may have downsized significantly but still exists as a business when other drilling companies in PNG have shut down altogether.

“Anitua will remember 2014 as a year of change and challenge largely due to the downturn in the mining economy but more specifically the sharp decrease in gold prices and the resultant cost cutting and scaling back of operations at Newcrest’s Lihir Gold Mine.”

He added despite their considerable reliance on Newcrest, “the Anitua Group has not stood still waiting for things to change for us and having to wait until the gold price improves again”.

“NCS, which operates in many locations in PNG, has suffered as it is heavily reliant on other mining sites as well. 

“Anitua Mining Services now operates in Manus as well as in Bougainville, taking not only equipment excess to its Lihir operations offshore but its training expertise to the benefit of the local workforces in these communities.

“Retail has branched out from Lihir with two new hardware stores operating in Port Moresby and Lae.

“Anitua Constructions has opened up in Port Moresby and has several contracts already under its belt.

“Anitua Security Services, now rebranded as Anitua Protective Services, is finally showing signs of maximising its long held potential.

“An exciting new venture for our security company is that it will soon be exploiting the considerable gap in vocational training services with an off-shoot training business in Kokopo – Anitua Vocational Training Education Centre.

“With the LNG winding down, so has the TAG business. Anitua can be proud of the success of this business since buying out our international partner. We have a ‘can do’ attitude and the TAG business is indicative of this,” Vale said.

“We opened a purchasing and Logistics business in Brisbane, Australia, with the view to improving our purchasing and procurement for the Anitua Group. We will market our services to other PNG centres and the Pacific in the new year.”

“There is no doubt that 2015 will be a very tough year, especially for those businesses that still rely heavily on the mining sector. We will continue to closely examine how and where we can cut our own costs and maximise income as well as pursue off-shore and non-mining dependent business opportunities, including the purchase of other businesses.”