Cables disappear as copper price soars

Not many people would think of linking the price of copper on the London Metal Exchange (LME) with China's communication networks, but Chinese police do.

The Ministry of Public Security said yesterday that soaring copper prices had led to widespread theft of electrical and telecommunication cables in China, impacting the country's entire network.

"Electricity, telecommunications and broadcasting facilities are vital components of the country's infrastructure and public services," said Vice-Minister Liu Jinguo at a teleconference involving eight government departments.

"However, they are currently being threatened by people driven by the prospect of high economic returns."

Li said the authorities had launched a six-month campaign to protect the telecommunication facilities.

The price of copper, from which telecommunications cables and wires are made, has increased by 67 percent on the LME since the beginning of last year.

The situation has triggered a sharp growth in the copper price in China.

Meanwhile, metal recyclers in China have doubled the salvage price of copper wiring to about 20 yuan ($2.60) a meter. Reports of theft have increased in tandem.

The ministry yesterday reported one case in East China's Anhui Province involving stolen copper wiring worth more than 600,000 yuan ($77,400). Eight suspects were caught in connection with that case in April.

No figures on the number of thefts across the country were provided, but China Netcom in Central China's Henan Province said it had recorded 20,491 thefts of copper wiring in the first 10 months of last year, an average of 67 cases a day. In 2005, there were only 16 cases a day.

"Some thieves think stealing wire is like withdrawing money from a bank," said Yuan Xinfeng, director of the network security department at the China Netcom office in Luoyang, Henan. "Whenever they lack money, they just cut a few meters."

Yuan said many people do not realize it is illegal to steal cable.

The Criminal Law stipulates that anyone who sabotages telecommunication or broadcast facilities could be sentenced from three years to life in jail.

Poor security for communications equipment, most of which is in remote areas, has made it easier for thieves to strike. Lax regulations among metal buyers have also helped, according to the ministry.

Liu said the ministry would work with other departments to clean up unlicensed metal recycling operations that are believed to have close links with thieves.

Source: China Daily