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Mchunu tightens regulations for scrap metal dealers in SA

Police Minister Senzo Mchunu is wasting no time in tightening up the South African scrap metal industry regulations. In 2022 the Department of Trade, Industry, and Competition (DTIC) introduced significant scrap metal and metal trading regulations, and these amendments, recently published in the Government Gazette, aim to further curb illicit trade, improve compliance, and promote fair competition within the sector.
Waste pickers will have slight exemptions in the new scrap metal regulations.
Waste pickers will have slight exemptions in the new scrap metal regulations.

The amendments cover various aspects of the scrap metal trade, such as registration, record-keeping, reporting, payment, and accreditation.

All scrap metal dealers are now required to provide comprehensive details about their operations.

This includes the business name, registration number, trading name, and contact information, as well as personal details of the responsible person managing the business.

Additionally, every employee’s identity numbers must be recorded and verified, ensuring traceability within the industry.

Dealers must maintain detailed records for each transaction, including the type and grade of metal, delivery times, and methods used for identity verification of sellers.

This measure is designed to prevent stolen metals from entering the market and to assist law enforcement in tracing the origins of scrap materials.

Enforced compliance

There are also further mandates for dealers to be members of accredited associations, with their accreditation numbers and responsible persons' details clearly documented.

This ensures that all players in the market adhere to a set of standards aimed at maintaining industry integrity and ethical practices.

For dealers or recyclers operating from multiple locations, the regulations stipulate the maintenance of corresponding registers at each site.

This will help ensure that movement and storage of scrap metal are consistently documented and seeks to maintain uniform compliance across all operational premises.

By tightening the regulatory framework, the government aims to curb illegal trade practices and promote fair competition within the industry.

Industry must familiarise with new regulations

Industry stakeholders are encouraged to familiarise themselves with these changes and ensure that their operations are fully compliant because non-compliance will attract strong penalties, as part of its broader efforts to clean up the sector.

The scrap metal industry plays a vital role in the country's economic and environmental landscape, as it provides raw materials for various sectors, such as infrastructure and utilities, and reduces waste and pollution.

By implementing these changes, South Africa aims to create a more robust and sustainable industry that contributes positively to the economy and society.

About Lindsey Schutters

Lindsey is the editor for ICT, Construction&Engineering and Energy&Mining at Bizcommunity
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