Photo by: Bloomberg
The South African Chamber of Commerce and Industry’s (Sacci’s) Copper Theft Barometer saw a R1-million, or 7.08%, month-on-month increase to R13.6-million in April, from R12.6-million in March.
The April figure was, however, 0.11% lower than that of April 2014.
“Bearing in mind that the barometer is based only on theft from [parastatals] Eskom, Telkom and Transnet and considering that it comprises only the cost of replacing the metal, this figure is but a drop in the ocean when the impact on the economy is taken into account,” Sacci said in a statement.
It pointed out that recent estimates put the loss to the economy at between R5-billion and R7 billion a year – “a loss that the economy can ill afford”.
The Copper Theft Volume Indicator increased to 179 t in April from 173 t in March. Sacci noted that this was concerning considering that replacement of the stolen cables had to take place before essential maintenance.
Eskom, in particular, needed the cash flow to invest in maintenance at power stations.
COPPER PRICING
Meanwhile, Sacci noted that the international average monthly spot price of copper increased to $6 432/t in April from $ 6 026/t in March.
It further pointed out that South African exports of waste copper products increased significantly to $7.2-million in March from $ 3.4-million in January and $7-million in August 2014.
“This is particularly worrying – South Africa has only 2% of the global copper reserves, but now has the reputation of being the largest exporter of copper to China and India. There is thus a disconnect between the amount of copper mined and that being exported,” Sacci pointed out.
The relationship between the level of theft, the dollar price and the volume of theft had, to a large extent levelled over the past several months, albeit with fluctuations. However, an upward movement in the level of exports since the beginning of the year was discernable, the chamber said.
“It is debatable whether the upward trend is owed to greater demand, an increase in the price during the past months or to more lax implementation and policing of the Second Hand Goods Act, in spite of copper theft being designated a high-priority crime,” Sacci noted.
South Africa was not the only country that faced this scourge. Internationally, copper theft was increasing and reports were being received from many countries.
Washington-based Institute of Scrap Recycling law enforcement director Professor Bradly Mills noted that copper theft cost the US economy more than $1-billion a year. “Each of the US states has legislation to combat copper theft, and some even go as far as requiring photographs of vehicles, the items presented and of the sellers,” he added.
Sacci believed now was an appropriate time for the effectiveness of the current legislation to be interrogated, not only to determine whether the provisions were adequate, but also whether or not the fact that copper theft had been designated a high-priority crime was being fully recognised by law enforcement and justice authorities.