Coconut Millers replace damaged boiler

May 13, 2024 7:52 am

The Fiji Coconut Miller’s Limited has successfully replaced the factory boiler which was damaged due to an explosion in February last year.

Acting Chief Executive Michael Lal says the replacement and the commissioning of the boiler cost around $335, 000, which was completed last October.

Lal told the Public Accounts Committee that during the period when the boiler was not functioning they ensured that the copra farmers are catered for.

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Due to the extent of the damaged, the boiler needed to be completely replaced and as a resulted the production of coconut crude oil stopped.

“The FCML is obliged to buy all whole nuts and copra from the farmers, we couldn’t stop buying from the farmers. So, what we had done is, the organization then sold those copra back to Punjas, because of the lifespan of the copra, if we had to keep it for long, it would have had fungus growth.”

Lal says they received partial financial assistance to replace the boiler.

“There was a loan on the purchase of the boiler from FDB. And we got $120,000 from the public enterprise for the installation, and there was a balance of the funds that was used operationally from the organization during the installation stage.”

Lal explains there was a delay in repairing the boiler as due to the COVID-19 pandemic they were unable to get the equipment shipped on time.

He adds the company has insured the boiler and any future consequential losses are also covered under the policy.