SA government imposes ban on copper, ferrous scrap export in theft clampdown

EFFECTIVE yesterday (Wednesday, 30 November), Cabinet has placed a temporary ban on the export of copper and copper-alloy scrap in a bid to clamp down on the theft of metals used in public infrastructure.

The economic damage of ongoing theft and vandalism has been estimated at R47-billion and has amplified load-shedding as well as the disruption of freight and passenger rail services.

ALSO READ: WATCH: Multi-truck accident, acid spillage cause N2 closure near Pongola

While the ban on exports was gazetted on Wednesday, arrangements have been made for exports approved ahead of the ban.

It was approved by Cabinet earlier in November following a comment period on a draft policy published on 5 August, outlining possible restrictions on the export of ferrous and non-ferrous scrap.

The policy seeks to dampen the demand for stolen metals.

Phase one will see a total prohibition of the export of copper and copper-alloy scrap. Ferrous scrap exports have also been banned, with a few exceptions, including aluminium and stainless steel, as well as ferrous waste and scrap produced in the normal course of manufacturing.

Minister of Trade, Industry and Competition Ebrahim Patel said a permit system would be administered by the International Trade and Administration Commission (ITAC) and would also be imposed on semi-finished copper exports during phase 1 and continued into phases 2 and 3.

While exports of other metals is not prohibited, it will be subject to the permit system administered by ITAC.

“We’ve looked carefully at both sides of the equation, and on one side these measures will limit, for a period, the export of these products, but scrap metal traders are still enabled to sell those products within the domestic market,” said Patel.

“Beyond that period, exports would be permitted but on a regulated basis.

“There is no question that there is going to be a commercial cost to some businesses that have built their economic model around the export of scrap metal.

“When we measure that against the enormous cost to the economy of doing nothing, it is clear the economic cost of doing nothing is substantially higher,” he said.

Public Enterprises Minister Pravin Gordhan welcomed the move.

HAVE YOUR SAY

Like our Facebook page  and follow us on Twitter.

For news straight to your phone invite us:

WhatsApp – 060 784 2695

Instagram – zululand_observer