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plantation division
had been charged to other expenses and reversal of revaluation
surplus of property, plant and equipment previously recognised,
respectively, in the Group’s Statements of Comprehensive
Income. However, future earnings may be affected.
MALAYSIA
Ladang Cendana, Kemaman, Terengganu
The planting program at Ladang Cendana has been completed
and approximately 786 hectares have been planted.
Unfortunately, as a consequence of elephant encroachment
at the estate during the year, over 17,000 young palms
planted between the years 2015-2016 on an area measuring
approximately 127 hectares have to be replaced. This will
inevitably result in delays before the new palms can be
harvested. Estate management is looking at ways to provide
a safe wildlife corridor for the elephants and other animals to
ensure that they do not wander off their intended course and
into neighbouring communal/estate areas.
Ladang Bunga Tanjong, Jeli, Kelantan
During the year we concluded the acquisition of Java
Plantations Sdn. Bhd. (now known as FCB Eastern Plantations
Sdn. Bhd.), an investment holding company having an 80%
interest in Ladang Bunga Tanjong Sdn Bhd which in turn has an
oil palm plantation in Jeli, Kelantan measuring approximately
1,331 hectares (or 3,290 acres). Ladang Bunga Tanjong is
located in close proximity with our Ladang Dabong and Ladang
Aring estates, enabling us to achieve economies of scale and
operational efficiencies.
Rehabilitation works on 566 hectares thereat have already
commenced. Field upkeep and maintenance as well as spraying
and manuring work are progressing well with more than 50%
completed as at the date of this Report.
Replanting works commenced soon after the takeover and
is expected to complete by the next financial year. To-date
approximately 150 hectares have been cleared and terraced.
Other infrastructure works such as roads and bridges,
upgrading and repair are also being carried out. GPS mapping
system was employed for pre planning, roads construction and
terrace positioning. This would enable estate management to
efficiently plan for and maximise the planting density of the
potential planting area as well as determining an efficient road
system for eventual harvesting. Planting of Mucuna Bracteate
a type of leguminous cover crop, will be undertaken soon
after the areas have been cleared in order to prevent erosion,
improve soil fertility and conserve soil moisture.
Consistent with the Group’s policy to work with and contribute
positively to the communities in which we have operations, most