Scrap Ferrous Metal Collection and Disposal

Eskom Holdings SOC Ltd, through its Investment Recovery division, has issued an open Invitation to Tender (OLT 2128230) for the purchase, collection and disposal of scrapped ferrous metals at its Eastern Cape Operating Unit. The contract runs for 36 months from the date of signature and operates on an as-and-when basis. Scrap categories include current and voltage transformers (CT/VTs), glass and ceramic insulators, porcelain, reclosers and breakers, isolators, steel cages, steel, sub-grade material, line hardware, general waste and mixed insulators, along with any other ferrous commodities. This is an income-generating disposal contract: the successful contractor purchases the scrap and pays Eskom, rather than being paid by Eskom for a service.

The contractor must collect all scrap ferrous metal from designated Eskom sites without sorting or selecting material, and must leave a clean area. Key operational requirements include providing at least six marked skip bins at designated sites, weighing trucks empty and full and supplying weighbridge tickets to the Eskom Materials Management Manager, submitting a reconciliation of collected scrap every two weeks, and paying within five working days of reconciliation verification, with proof of payment. Monthly safe disposal certificates are also required. Payments to Eskom are made in the total offer price, excluding VAT, and the tender notes that payment is by electronic bank transfer. Cutting or baling on site may be required, subject to written authorisation. Burning of waste is prohibited, rubble must be taken to an approved municipal construction waste site, and oil spills must be rehabilitated. Contractors must also provide their own accommodation, transport, water and toilet facilities, and no accommodation is permitted on site.

Compliance requirements are extensive. Mandatory returnables include valid CSD registration, a completed ITT and the SBD forms, including SBD 1, SBD 4 and SBD 6.1 for preference points under the 80/20 system (Price 80 points, Specific Goals 20 points). Other required documents include a second-hand goods certificate, a COIDA letter of good standing, CIPC registration documents, a tax compliance status, a B-BBEE certificate or affidavit, and a technical inventory list and method statement. Safety (Annexure M) and environmental (Annexure N) evaluation requirements apply, including a baseline risk assessment, a SHE policy, a waste management plan, an environmental aspects register and an emergency response plan. Technical evaluation (Annexure K) is two-phase, combining a desktop review with a site visit. Bidders are evaluated on fleet size and truck types, whether they process scrap or act only as agents, and whether they buy from the street. Eskom also requires criminal record checks for employees. The non-compulsory clarification meeting was scheduled for 26 October 2026, with confirmation of attendance due by 23 October 2026. Tenders close on 28 October 2026 at 10:00 and must be submitted electronically to the Eskom tender office.

For qualifying scrap dealers and recyclers, this tender offers a long-term, 36-month supply stream from a large utility, with volumes of mixed steel expected to be high. Eskom notes that mixed steel (ITAC Code 201) is its largest scrap category and that pricing for it will receive particular attention. Note that some tender documents show the SBD 1 closing date as 2025 while the ITT and tender data show 2026; bidders should confirm the closing date and payment terms directly with the Eskom Representative, Lunga May, before submitting.