Cape Town - As South Africa’s economy was losing at least R130 million daily owing to metal and copper cable theft, calls have been made for new proposed regulations to be implemented without delay.
The government announced policy implementation measures during a media briefing on Wednesday, that would assist in the fight against the theft and selling of scrap metal and copper cables, that were crippling public infrastructure and the country's economy.
The changes would restrict and regulate trade in ferrous and non-ferrous metals waste, scrap and semi-finished ferrous and non-ferrous metal products.
It would also put prohibitions on cash transactions when purchasing waste and scrap, to only allow transactions to take place through electronic transfers.
Measures will require traders to show where they bought the copper and metal and who they were selling it to.
Sellers of copper waste and scrap will need to register under the Second Hand Goods Act, and applicants must present tax clearances, purchase and sales information.
Registered buyers will only be able to purchase scrap metal from registered sellers and there will also be a limit in the number of ports that can be used in efforts to tighten borders.
The export of waste and scrap will be banned for six months, after which a licensing system will be put in place for all copper trading.
According to Trade, Industry and Competition Minister, Ebrahim Patel, two independent research agencies were contracted to quantify the damage, identify options that could address the challenges, and to review global practices on scrap metal.
“The research confirmed that the theft of metal, particularly copper cable, imposes costs far beyond the actual value of the material taken. It’s not just the physical value of copper or metal, the enormous damage in the disruption of rail transportation and electricity in effectively cutting production in the economy.
“The researchers estimated that the cost of theft exceeded R47 billion annually. The estimation was done by looking at the economic costs to Transnet, Eskom, the Passenger Rail Agency of SA (Prasa), as well as the reduced output of the mining industry.
“All other parts of the economy weren’t taken into account meaning the damage from theft cost the economy more than R130 million every day,” said Patel.
Police Minister Bheki Cele said intelligence showed that the bulk of stolen goods of scrap metal and copper cable had to do with illegal exports and syndicates.
According to the Copper Development Association Africa (CDAA), a fewer number of ports will improve the inspection of containers.
“We believe the changes are long overdue and we urge the government to include copper blocks or billets, ingots under the scrap control measures as stolen cables are melted into these forms to be illegally exported.
There hasn’t been one export permit applied for the export of copper, only brass. Cash for scrap is a catalyst for the theft of copper and improved control and EFT payments will improve the situation.”
CDAA’s Evert Swanepoel said the export of copper in any form fuelled the theft of copper and copper cable, due to the global demand for copper, which was escalating.
“This copper scrap demands high international prices, which our copper manufacturing companies can’t afford. Many of our copper producing companies use recycled (scrap) copper in their manufacturing processes and the prices offered by international buyers are difficult to meet by local companies.
“This increases the material input cost and prevents expansion, employment of additional labour and product export opportunities,” said Swanepoel.
Good Party MP Brett Herron said while the steps had to be welcomed, the regulatory changes had to be implemented.
“We have the Critical Infrastructure Protection Act which was passed by Parliament in March 2019, assented to by the president in April 2019 but only came into effect in April 2022 three years later. We have good legislation but we must implement and use it.
“This will require human resources in the enforcement services including the police and the prosecuting authority,” Herron added.
Premier Alan Winde said they supported initiatives that had the possibility to stop crime.
He said in their experience in the Western Cape, regulations weren’t the problem, but the enforcement.
“What we would like is a focus on enforcing the laws already in existence,” he said.
Police Oversight and Community Safety Mec Reagen Allen said the plans were cautiously supported.
Cape Times