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Posted on : Jun 30, 2008
The government of South Africa is considering measures to limit the export of scrap metal to ease input costs on downstream manufacturing. They are likely to include the introduction of export taxes, according to SothAfrican news paper Business Day.

Trade and Industry Minister Mandisi Mpahlwa said in an interview, the government wanted to ensure a sufficient supply of scrap metal for the domestic industry. With commodity prices soaring internationally, the government was hoping to ease the cost of inputs of beneficiation, he said.

‘Scrap is an important and cheap source of input, which can reduce the cost of beneficiation. This is really low hanging fruit. You cannot impose a ban on exports, but there needs to be a balance,’ Mpahlwa said to news paper. Earlier other African countries like Uganda, Kenya and Tanzania have all suspended metal scrap exports to curb thefts.

The department has already taken steps to tighten up on the export of scrap metal goods. The International Trade Administration Commission published a notice in the Government Gazette, notifying industry that an export permit was needed for the exportation of a host of scrap metal products.

These include ferrous waste and scrap, refined copper wire bars and billets, copper-zinc base alloys, copper waste and scrap, nickel waste and scrap, aluminium waste and scrap, lead ingots, lead waste and scrap, lead plates, sheets, strip and foil, zinc waste and scrap and tin waste and scrap. The restriction has been in place since third week of June.
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