“The natural generation of scrap, based on the operations of legitimate businesses, is taking place at a slower pace than the appetite that exists out there to satisfy the many players who are attempting to make a living out of the collection and export of scrap and, as a consequence, persons are engaged in illicit activities which ultimately has a negative impact on legitimate operations,” he said.
He added that if the industry is to move forward, there needs to be a significant consolidation in the number of sites available for the inspection of scrap metal.
“Even though the rules require sites to be inspected and the loading of containers and the exporting of containers to be subjected to inspections, the logistics and the practicality of doing that, because of the number of sites that exist out there, makes it almost impossible.
Therefore, if this industry is to continue, one would have to look at major consolidation of those sites. That’s a proposal on the way forward,” Dr. Tufton said.
“The other area I think would require significant examination is the extent to which entities or individuals who are engaged in the industry are subjected to a fit and proper test. There are many entities, many sectors that require fit and proper examination to determine who the players are. I think that any future industry, if it is to function and function in a way that minimises the deviant activities, would have to be subjected to that,” he added.