Implementation of permit system for scrap exports.The establishment of an inter-departmental Metal Trade Task Force (MTTF).Introduction of a permit system for the import of furnaces and other machines capable of transforming metal and disguising its origin and.Introduction of a permit system for the export of semi-finished ferrous and non-ferrous metal products.A temporary (6-month) export prohibition on ferrous and non-ferrous waste and scrap metal.The draft policy proposals are sequenced across three, non-rigid phases: There is growing public outrage at the damage that such theft does to South Africa’s economy through the additional cost of repairing and replacing damaged infrastructure, the inconvenience to workers and commuters from rail disruptions, the financial cost of electricity disruptions to businesses of all sizes, and the safety risk to our communities and especially children when criminals damage and leave behind exposed live electricity cables.įull details of the proposals can be obtained at In February this year, President Ramaphosa committed in the State of the Nation Address that Government would take decisive steps to address the damage to public infrastructure from criminals who steal infrastructure containing metal and sell this to intermediaries who, for example, export the metal or disguise its origin and sell the metal to legitimate metal processors in South Africa. The sheer size of public infrastructure across the country made it necessary to identify additional measures that, together with improved policing, can be effective in protecting public assets in the national interest. Research found that the export of metal provides a crucial monetisation channel for criminals, and South Africa’s ports and borders are not adequately resourced to prevent the export of stolen scrap and semi-finished metal products. It is estimated that between 2017 to 2021, the length of cable annually stolen from Transnet’s lines increased from 120 km to 724 km, and the number of incidents rose from fewer than 2 000 to almost 4 500. Transnet’s regularly published cable theft statistics show that during a single week in April 2022 there were 123 attacks on South Africa’s rail infrastructure, including the theft of 39.4 km of copper cable. Some examples illustrate the extent of the problem: This was the findings in research commissioned by the dtic from an independent research team from Genesis Analytics. The economic damage of copper theft alone has been estimated at more than R45 billion annually. Criminals are targeting public infrastructure that taxpayers have invested in to expand service delivery to communities across the country. The measures were developed following sustained damage to public infrastructure from criminal theft of electricity cables, power pylons, railway tracks, traffic lights and manhole covers that has reached crisis levels. In a notice in the Government Gazette published today, notice no 47202, the Minister of Trade, Industry and Competition Ebrahim Patel invited public comments and representations on the proposed measures within 21 days, before final decisions are taken. This is the first of three envisaged phases, with further actions proposed in future that include a new, enhanced registration system for scrap buyers and sellers to improve monitoring, policing and law-enforcement, limitations on the ports and (potentially) border posts to be used for trade in scrap metal, and changes to the legislation to make it more difficult for stolen copper and metal to be traded. The draft measures propose a six-month export prohibition on scrap and waste metal, including copper cable, together with a permit system for export of specified semi-processed metal products. The proposals have been developed following consultations by the Departments of Trade, Industry and Competition (the dtic), Police, National Treasury, Mineral Resources and Energy, Public Enterprises (including state owned enterprises), and Transport and was published in the Government Gazette today by Minister Ebrahim Patel. Government today published draft proposals to address widespread theft of copper cable and other forms of metal from public infrastructure that has crippled power supplies, left trains unable to operate and damaged public facilities in many parts of the country.
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