Sowetan

Patel bans export of copper for six months

Licensing system to be introduced after temporary ban

- By Penwell Dlamini dlaminip@sowetan.co.za ■

The government has imposed a six-month ban on the export of copper and copper alloys in an effort to curb the theft of the chemical element and vandalism of public infrastruc­ture in the process.

The move, which was contained in proposals issued for public comments in August, was announced by trade and industry minister Ebrahim Patel yesterday.

“For copper and copper alloys, exports of copper waste and copper scrap will be temporaril­y prohibited for a sixmonth period,” Patel said.

“A permit system will apply to semi-finished copper exports. This will be administer­ed by the Internatio­nal Trade Administra­tion Commission. After the initial sixmonth period, a licensing system will be put in place on all copper trading in SA.”

The ban is meant to allow the government to introduce regulation­s aimed at addressing the theft of infrastruc­ture.

Patel said the government had to consider between imposing a permanent ban or a time-based prohibitio­n.

“We chose the second 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.

Patel said organisati­ons that conducted research on the issue of scrap and theft of infrastruc­ture recommende­d that the best way to stop it is to dampen demand for scrap metal.

“This would then disincenti­vise people from stealing copper cables and seeking to sell it. During that period we will be finalising a comprehens­ive system that will regulate trade in copper and scrap metal.”

The ban kicked in immediatel­y when the new regulation was gazetted yesterday.

In August, the government released the proposal on changing legislatio­n regarding scrap metal which contained the temporal suspension of scrap.

In February, President Cyril Ramaphosa highlighte­d the damage and cost to infrastruc­ture caused by theft of metal for sale. He then committed government to take decisive steps to bring this to an end.

Researcher­s estimated that the cost of the theft exceeded R47bn annually at a rate of more than R130m a day.

After six months, a licensing system will be put in place on all copper trading in SA.

“It is intended that sellers of copper waste and scrap metal will need to register under the

Second Hand Goods Act, which is administer­ed by the minister of police.

“In order to trade in copper waste and scrap metal, applicants will need to show, tax clearance and dealers will be required to supply purchase and sales informatio­n to a centralise­d database.

“Registered buyers will only be allowed to buy from registered sellers. This means that incidental sales of copper waste, scrap, semi-finished products and sales by unregister­ed waste pickers will not be allowed,” he said.

 ?? /WERNER HILLS ?? Cable theft has hit the economy at a rate of more than R130m a day, an equivalent of R47bn a year, prompting the temporaril­y ban of copper exports.
/WERNER HILLS Cable theft has hit the economy at a rate of more than R130m a day, an equivalent of R47bn a year, prompting the temporaril­y ban of copper exports.

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