Ferrous Scrap Metal Collection and Removal Services

Eskom Holdings SOC Ltd has issued an open tender for the purchase, collection and removal of scrap ferrous metal and related materials from its Free State distribution sites. Eligible materials include steel, sub-grade steel, current transformers (CTs), voltage transformers (VTs), steel cages, porcelain, rubber, insulators, plastic, isolators and line hardware. Work is requested on an as-and-when basis over a 24-month contract period from 1 January 2027 to 31 December 2028. The goods for sale are identified by Eskom, and the successful contractor must leave each site clean after collection. Littering is prohibited, no rubble may be left on site, and portable firefighting equipment must be available during all cutting and dismantling work. The scrap is sold with an unknown quantity of residual oil, which becomes the property of the successful contractor, who is then responsible for any spillage and its rehabilitation.

Tenderers must be registered on the National Treasury Central Supplier Database (CSD) before contract award and hold a valid Second-Hand Goods Act certificate from SAPS or a licence as a scrap dealer or recycler. Other mandatory returnables include a valid COIDA certificate of good standing, company registration documents, a tax compliance status (PIN or certificate), an SBD 1 form, an SBD 6.1 preference points claim, an SBD 4 bidder disclosure and an integrity declaration. Tenders are submitted electronically through the Eskom e-tendering portal, with a closing date of 19 November 2026 at 10:00. Evaluation is split 80/20 between price and specific goals (B-BBEE). Technical evaluation covers the contractor's mechanical capability, industry experience and ethical track record, and site visits form part of the process. Successful contractors must obtain an Eskom site permit before starting work, comply with the OHSA Act 85 of 1993, and complete a Safety and Environmental File. The tender documents also contain some inconsistencies that bidders should clarify with the Eskom Representative before submitting, including the tender validity period (stated as both 90 days and 12 weeks) and whether attendance at the clarification meeting is compulsory.

For scrap dealers and recyclers in the Free State, this tender offers a multi-year, volume-driven opportunity to supply recovered materials from a major state-owned utility. Its as-and-when structure means revenue depends on Eskom's demand, so bidders should plan trucking, storage and workforce capacity accordingly. Bidders with strong safety, environmental and site-clearance practices, and with the equipment to handle dismantling and oil management, are well placed to compete. Because pricing is confirmed through the e-auction, bidders should also understand current ferrous scrap market rates and build in margins for oil handling, transport and compliance costs.