The Fiji Sugar Corporation has decided to close the Penang Sugar Mill in Rakiraki but the FSC is confident it won't hurt the local economy.
The FSC's Chief Executive Graham Clark told FBC News that in his experience in these scenarios there will be more economic activity than before.
His remarks referred to concerns raised in parliament by the opposition's Prem Singh last week, who said the mill closure would lead to the death of the Ra economy.
The mill was damaged by Cyclone Winston last year and growers wanted it to be restored.
Mr Clark said the mill infrastructure would remain for now as the FSC begins work on securing the property to ensure it wasn't a safety hazard.