Export of copper banned for six months due to theft, shady scrap dealers

Government implemented a six-month ban on the export of copper and copper alloys, in an attempt to regulate trade and curb vandalism of public infrastructure and cable theft.

The policy applies to ferrous and non-ferrous metals waste, scrap and semi-finished ferrous, and non-ferrous metal products.

Copper trade and export ban

Minister of trade, industry and competition Ebrahim Patel – joined by Police minister Bheki Cele and Transport minister Fikile Mbalula – address the media on Wednesday on government’s new regulations to curb copper theft.

R47 billion lost to cable theft

It’s estimated that South Africa’s economy has lost stolen copper and other metals to the value of R47 billion, leading Patel to ask how does one “quantify households, communities and hospitals being without electricity because scrap merchants have stripped public infrastructure?”

He said the theft of copper and other scrap metals “has enormously serious consequences, not only for our economy but also for the livelihoods of our citizens”.

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Phase 1

The six-month ban on copper exports will be regulated through a permit system administered by the International Trade Administration Commission.

“For copper and copper alloys, exports of copper waste and copper scrap will be temporarily prohibited for a six-month period”.

Phase 2

Following the initial six-month period, Patel said in the second phase “a licensing system will be put in place on all copper trading in South Africa”.

During this phase, all sellers of copper waste and scrap metal in South Africa will need to register under the Second-Hand Goods Act (SHGA).

Applicants will be required to provide a tax-clearance certificate, while dealers must provide detailed purchase and sales information to a centralised database.

Phase 3

During the next phase, government will consider amendments to existing legislation in order to establish a dedicated metal trading licensing regime.

Patel said: “Prohibiting the use of cash in transactions involving waste and scrap and semi-finished metal products may also be introduced”.

“In this case, no buyer will be allowed to be in possession of waste and scrap or semi-finished metal products unless it is backed up by an EFT or similar electronic record”, he added.

Legitimate sellers protected

Government also considered a permanent ban but decided against it due to the impact it would have on legitimate traders.

“We chose [the six-month ban] because we recognise that there are legitimate traders. But at the same time, the level of theft in public infrastructure is so expensive to the economy and it needed to be addressed immediately,” he said.

The ban was implemented with immediate effect.

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Policy draft

The ban on scrap metals and copper follows the publication of the draft policy proposals, Gazette No. 47202, on 5 August 2022.

As per the trade policy directive issued in August, Patel said “ferrous and non-ferrous waste and scrap metal of any kind … may not be exported from South Africa for a period of six months from the date of publication”.

More than 2 800 comments from the public were received on the draft policy (included below).