The Copper Theft Barometer level increased to R13.6 million in April from R12.6 million in March 2015. The April figure is 7.08% higher than a month ago and 0.11% lower than a year ago.
Bearing in mind that the SACCI Copper Theft Barometer is based only on theft from 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. Recent estimates put the loss to the economy between R5 and R7 billion per year – a loss that the economy can ill afford.
The Copper Theft Volume Indicator increased to 179 metric tons in April 2015 from 173 metric tons in March 2015. This is concerning considering that replacement of the stolen cables has to take place before essential maintenance. Eskom in particular, needs the cash flow to invest in maintenance at power stations.
The international average monthly spot price of copper increased to $6 432 in April from $ 6 026 in March 2015. South African exports of waste copper products increased significantly to $7.2 million in March from $ 3.4 million in January and $ 7.0 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.
The relationship between the level of theft and the US$ price and the volume of theft have 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 is discernable.
It is debatable whether the upward trend is due 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.
South Africa is not the only country that faces this scourge. Internationally, copper theft is increasing and reports are being received from many countries.
Prof Bradly Mills, Director of Law Enforcement at the Institute of Scrap Recycling in Washington says that copper theft costs the USA economy more than US$1 billion per annum. Each of the USA 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.
SACCI believes that the time is appropriate for the effectiveness of the current legislation to be interrogated, not only whether the provisions are adequate, but also whether or not the fact that copper theft has been designated a high priority crime is being fully recognized by law enforcement and justice authorities.
-Statement
