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Scrap Sale / Disposal Procedure
TITLE SIGNATURE DATE
Originated by Human Resources Clerk
Reviewed by Engineering Foreperson
Reviewed by Plant Foreman
Approved by Operations Manager
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1. OBJECTIVE
To establish a standardized procedure for the handling and disposal of scrap materials that
promotes compliance, accountability, operational efficiency, and fairness.
Scrap materials deemed suitable for internal use such as for material fabrication or
recycling will be retained and not discarded. This process will also clearly differentiate
between general, non-regulated waste and regulated mineral waste (e.g., copper),
ensuring proper classification and disposal.
Ultimately, the procedure aims to support Golden Kopje Mine in generating petty cash
revenue through regulated scrap sales while fostering employee motivation from scrap
purchase.
2. SCOPE
This procedure applies to the disposal and sale of scrap materials to both employees and non-
employees.
3. RESPONSIBILITIES
3.1. Human Resources: Safeguard employee and stakeholder (community) interests.
3.2. Engineering: Collect, segregate, and weigh scrap material.
3.3. Supervisor: Approve and inspect the classification of scrap materials.
3.4. Procurement: Identify buyers or manage auctions.
3.5. Accounts Team: Handle billing and record sales transactions.
4. LEGAL AND OTHER REQUIREMENTS
This procedure shall abide by the stipulations regarding the sale or disposal of
regulated items or scrap materials.
The sale of copper or copper waste must be facilitated upon the approval and/or
presence of CID Minerals and/or the Zimbabwe Republic Police.
5. DEFINITIONS
5.1. Scrap: Unwanted material that has exhausted its use and is no longer earmarked for
further utilization.
6. OPPORTUNITIES AND THREATS
6.1 Opportunities:
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Generate funds from items that have exhausted their usefulness.
Offer employees a chance to benefit from disposed items, which may foster
motivation.
6.2 Threats: The nature of scrap being handled poses risks, including:
6.2.1. Electrocution
6.2.2. Chemical Contamination
6.2.3. Cuts / Tetanus
7. STEP-BY-STEP PROCESS
7.1 Collection and Sorting:
Employees responsible for collecting and sorting scrap materials must conduct a risk
assessment before starting work.
Gather scrap materials from various departments.
Sort materials by type (e.g., metal, paper, plastic).
Neutralize any scrap containers that previously held hazardous chemicals before sale
or disposal.
7.2 Inspection and Approval:
Supervisor reviews and approves the classification of materials as scrap.
Ensure compliance with environmental and legal standards.
7.3 Valuation:
Assess the market value of the scrap materials based on current rates.
Obtain quotes from potential buyers or auction the scrap.
7.4 Buyer Selection:
7.4.1 Employees:
Employees interested in purchasing scrap must submit a letter of interest to Human
Resources, who will escalate the issue to the relevant Head of Section.
The Head of Section must verify the availability of scrap and confirm in writing.
The Operations Manager must approve the transaction in writing prior to payment.
Employees will be given preference over on employees, all buyers of scrap must
adhere to statutory regulations.
7.4.2 Bidders/Registered Scrap Buyers:
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Interested buyers must submit a letter of interest specifying their offer price per
kilogram.
The Accounts/Procurement department must receive a minimum of three bids, and the
highest bidder will secure the tender.
Buyers must provide valid documentation, including an EMA license to deal with
scrap and a valid tax certificate.
7.5 Sale Authorization:
The Operations Manager / Mine manager must approve all scrap sales before
payment.
Accounts/Procurement must determine the value of the scrap.
For scrap containing copper components, CID Minerals and the Zimbabwe Republic
Police must be informed and provide written acknowledgment.
7.6 Payment and Documentation:
Issue an invoice to the buyer.
Ensure payment is received prior to scrap delivery (if applicable).
For bulk metal scrap sales, weigh the transporting truck on a weigh bridge before and
after loading to document the sold tonnage.
Record the transaction in the company’s accounting system.
7.7 Delivery of Scrap:
The buyer must arrange transportation.
Maintain a signed delivery receipt from the buyer upon material collection.
Employees must book the purchased scrap at the gate before removing it.
7.8 Record Keeping:
Archive all documents related to the transaction (e.g., sale agreement, invoice,
receipts).
8. PERFORMANCE INDICATORS
8.1. Record-keeping practices that demonstrate adherence to the procedure.
9. RECORDS
9.1. Training registers.
10. ATTACHMENTS
10.1. Training Registers.
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11. REFERENCES
11.1. S.I. 109 of 1990 Mining (Management and Safety) Regulations
11.2. Copper Control Act: Chapter 14:06
PRICE GUIDELINE FOR THE SCRAP PURCHASE
Item Employees Non-Employees
Empty Polycan USD $1.00 USD $ 2.00
Empty Plastic Buckets USD $1.00 USD $ 2.00
100 Ltrs Tank USD $20.00 USD $ 60.00
Scrap Metal USD $1.50 / Kg Bid
Metal Roofing Sheets USD $2.50 USD$5.00
Asbestos Roofing Sheets USD $3.50 USD$7.00