Approved package to address damage caused by metal theft

The Department of Trade, Industry and Competition (dtic) has announced the approval by Cabinet of a comprehensive package of measures to address the damage caused by metal theft to public infrastructure and the economy by restricting and regulating trade of waste.

This also includes scrap and semi-finished metals. Implementation of the policy measures will proceed along what may broadly be described as a three-phased approach.

This follows the publication in the Government Gazette on 05 August 2022, of Draft Policy Proposals on Measures to Restrict and Regulate Trade in Ferrous and Non-Ferrous Metal Waste, Scrap and Semi-Finished Ferrous and Non-Ferrous Metals Products to Limit Damage to infrastructure and the Economy (the draft policy) for public comment.

The department has received over 2 800 comments on the draft policy from across society, including business, industrial associations, organised labour, State Owned Enterprises (SOEs), government departments and individuals.

Extensive comments were received from stakeholders within the metal sector, the mining sector, downstream manufacturing, and other parts of the economy. All comments were carefully analysed and considered.

“While the measures will impact on the commercial performance of parts of the scrap-metal industry, this is justified by the need for the government to act decisively against the scourge of metal theft that plagues the Republic of South Africa,” the Department of Trade, Industry and Competition said in a statement.

Accordingly, it is envisaged that the bulk of the proposed mechanisms outlined in the draft policy will be implemented.

dtic says the theft of ferrous metals imposes significant costs on society, albeit at a lower rate compared to copper.

“In the case of other metals like aluminium and other exotic metals, the problem of theft is lower but is still of grave concern to government. In addition, general metal trading and related exports provides a cover for the export of metals like copper and steel.

“Exports of ferrous waste and scrap metal will be temporarily prohibited but exceptions will be allowed. Ferrous scrap metal will be subject to the 6-month export prohibition but, unlike in the case of copper, exceptions will be made for stainless steel and ferrous waste and scrap that is produced in the ordinary course of business as a by-product of a manufacturing process.

“It is envisaged that the other aspects of the trading regime will be identical for both copper and non-copper metals. Both buyers and sellers of scrap, and all traders of semi-finished metal products, will need to be registered,” the department said.

Government extends its gratitude to the thousands of companies, workers, industry representatives, community organisations and members of the public who provided constructive comments and helpful suggestions.