Dark days ahead for local recyclers

POLOKWANE – Government believes that this intervention, that is to be rolled out in three phases, will cut down on the theft of copper cables.

“The theft of scrap metal and copper cables from public infrastructure hinders the performance of the economy by imposing enormous costs. Some of the disruptions include the lack of supply of energy and rail services due to vandalised rail tracks. They impose additional transport costs on commuters due to disrupted commuter transport. Vandalised and unsecured electricity cables pose safety risks to communities, especially children,” the motivation for the plan reads.

According to the research from TIPS and Genesis, copper theft from the country’s rail network and electricity grids imposed an annual economic cost exceeding R45b in 2020/21.

This is based on increased costs from metal replacement, infrastructure repair, lost service revenue, lost wages, increased commuter costs and forgone revenue suffered by mines.

This excludes the costs from copper theft outside the rail and electricity networks, including theft from telecommunication providers, construction sites, factories, mines, general businesses and residential properties.

The costs arising from the theft of steel and other metals is also serious. The damage from stolen steel lattices alone was R100m in 2020/21 and as with cable theft, the destruction of pylons and other supports for transmission can lead to widespread loss of electricity. Railway tracks, which can be turned to scrap and melted, are another major target.

“According to Business Leadership South Africa, heavy steel railway tracks are under constant attack, with more than 200km of tracks stolen in November 2021 alone. Other major targets include streetlights, traffic lights, manhole covers, balustrades and railings.

“Furthermore, the trade of steel and other metals often provides a cover for stolen copper in terms of storage, transport, local sales and exports,” government claims.

The draft policy proposal that was published on August 5, outlines the state’s plans to combat the trade in stolen scrap metal, which causes billions of Rand of damage to SA’s economy every year and it is awaiting public comment for 21 days from publication.

The key intervention in the first phase of the plan is a proposed six-month export prohibition on scrap and waste metal, including copper cables and includes the establishment of an inter-departmental task force and the tightening of permit requirements.

Phase two of the plan includes a new permit system for scrap metal exports. The export ban could also be extended and it envisages the introduction of additional reporting requirements, restrictions on who can sell copper scrap and restrictions on the ports and land borders to be used by exporters.

The third and final phase of the plan will consider banning the use of cash in scrap metal transactions altogether.

The chairperson of the Westenburg Second Hand Traders Association and owner of RGM Recyclers, Garth Warncke, is of the opinion that government’s plan will see the end of food on the table for especially the unemployed masses.

“There are more than 10 recyclers in the city and we source a lot of ferrous and non-ferrous metals from the streets,” Warncke says and adds that the tight restrictions planned will put many participants out of business. “Government is looking at the wrong place for a solution. The scrap metal industry is stigmatised because of a minority that are not compliant with the law. We run a tight ship and all our transactions are monitored and recorded. Any goods found on our premises are tagged and the origins can be traced to ensure that they were obtained from a reliable source,” Warncke assured.

In conclusion, government believes that it appears that a temporary prohibition on the export of waste and scrap metal would not have a significant negative impact on legitimate local upstream collectors and recyclers as the volumes of waste and scrap that are currently legally exported can be sold locally.

“It is also worth noting that the temporary (two-month) prohibition on the export of scrap metal which was introduced in 2020 in response to the Covid-19 pandemic and the resultant lockdown, did not cause serious harm,” the proclamation states.