New Scrap Metal Policy to Implement Transaction Tracing System

SEATTLE (Scrap Monster): The South African Trade, Industry, and Competition Minister Ebrahim Patel said that the proposed scrap metal policy by the government aims to introduce a rigorous transaction tracing system, which will it difficult for scrap metal thieves to hold or sell items. It may not implement a wholesale ban on scrap metal trade, as it may affect livelihoods of thousands of people and badly impact the country’s economy.

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The draft scrap metal policy released in early-August proposes to prohibit the use of cash in all transactions involving scrap, waste or semi-finished metal. This will further enhance the traceability of legal transactions involving scrap metal, the government gazette notification said.

The country had nearly 600,000 kilometre network of rail and electricity lines. The huge size of the public infrastructure network makes it difficult to ensure round the clock policing. It must be noted that criminal syndicates have been targeting public infrastructure for theft of scrap metal and copper cables. This has led to huge economic loss.

Patel added that given the circumstances in South Africa, it is not appropriate to introduce complete prohibition on copper trade in the country. That is the reason why it has opted for a more effective and less onerous alternative, he added.