DEALERS found in possession of illegal scrap metal could be fined in excess of $1 million, up from the current $3,000, and have their licences revoked when exports in the lucrative trade resume on July 15.

According to an Observer source at the industry ministry, the Trade Act is being amended so that anyone found with illegally acquired scrap metal after July 15 will be subjected to the increased fines.

Dealers, the source said, are being pushed to become more vigilant.

"They now have to be careful what and who they buy from," said the source, adding that while the exact fine has not been finalised, it will be increased substantially from the current $3,000 under the Trade Act.

According to Ricardo Buchanan, head of security at the National Water Commission (NWC), the maximum fine for breaches under the Metal and Jewellery Act of 1946 that up until recently regulated the scrap metal industry, was $200 or 12 months' imprisonment.

"To get a licence to trade in scrap metal was only $1," Buchanan told the Observer.

Industry Minister Karl Samuda last month put a halt on the scrap metal trade - the second in eight months - following reports of rampant theft, including equipment belonging to the NWC, such as steel water tanks, iron pipes, meters, stainless steel gates and metal rails, valued at $3.4 million.

At the time, the minister declared that the intention was to reduce the number of scrap metal sites across the island to allow for better monitoring by Customs officers. The halt on the scrap metal trade was also to facilitate the amendment to the act.

Trading in scrap metal was first suspended in October last year when functional items such as manhole covers, railway tracks and bridge rails were being stolen to fill increased demand abroad.

During a recent meeting with stakeholders in the trade at the ministry's New Kingston offices, Samuda said that there are currently 63 scrap metal sites across the island. But while 49 of the sites have been visited by the authorities, only 19 had been deemed suitable.

Samuda said that based on the re-inspection done by the Customs Department, it is proposed that the trade be reopened with export from these facilities.

The minister said the reopening of the industry hinged on a number of provisions and criteria, which are to be met by the traders. These, he said, include the proper cleaning of the Riverton City municipal landfill, where all scrap metal on the roadways must be cleared.

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