The April figure for copper theft is 7.08 percent higher than March and 0.11 percent lower than a year ago.
The South African Chamber of Commerce and Industry’s (SACCI) Copper Theft Barometer is based only on theft from Eskom, Telkom and Transnet and it comprises only the cost of replacing the metal.
The Copper Theft Barometer level increased to R13.6-million from R12.6-million.
According to Ms Tshidi Maotshe, the communications officer of SACCI, this figure is a drop in the ocean when the impact on the economy is taken into account.
“Recent estimates put the loss between R5- and R7-billion per year,” she said.
Ms Maotshe said the copper theft volume indicator increased to 179 metric tonnes in April 2015, from 173 metric tonnes 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,” said Ms Maotshe.
“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-million in August 2014.”
Ms Maotshe said this is worrying as South Africa has only 2 percent of the global copper reserves, but now has the reputation of being the largest exporter of copper to China and India.
“The relationship between the level of theft and the US Dollar price and the volume of theft have levelled over the past several months. However, an upward movement in the level of exports since the beginning of the year is visible,” she said.
According to Ms Maotshe, it was not clear 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.
Ms Maotshe said South Africa is not the only country that faces this problem.
“Internationally, copper theft is increasing and reports are being received from many countries.
Professor Bradly Mills, the Director of Law Enforcement at the Institute of Scrap Recycling in Washington, said 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,” said Prof Mills.
SACCI believes that the time is appropriate for the effectiveness of the current legislation to be interrogated.
“We should not only look at 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 recognised by law enforcement and justice authorities,” said Ms Maotshe.
