1. Presentation to the Parliamentary Portfolio Committee on Energy
ANNUAL REPORT OF
THE NATIONAL NUCLEAR REGULATOR FOR THE FINANCIAL YEAR
G A CLAPISSON
ACTING CHIEF EXECUTIVE OFFICER
27 OCTOBER 2009

2. PRESENTATION OUTLINE INTRODUCTION
MANDATE OF THE NNR /ORGANISATIONAL STRUCTURE
OVERVIEW OF FACILITIES REGULATED BY THE NNR
STATUS OF EMPLOYEMENT EQUITY
HIGHLIGHTS
NNR SCORECARDS
FINANCIAL PERFORMANCE
CHALLENGES
CONCLUSION

3. INTRODUCTION This annual report presentation outlines the following:
The NNR mandate, regulatory process and regulated facilities by the NNR.
Overview of the safety of the regulated facilities.
Key highlights achieved within the Regulatory Programmes and Support Services.
Performance against strategic measurable objectives.
Summary of the financial performance of the NNR for 2008/2009 financial year.
Challenges experienced and progress made against mitigation actions taken.
The strategic objectives outlined on the scorecard section of this presentation were informed by the NNR’s strategic plan and budget for the 2008 – 2011 planning cycle, as approved by the NNR Board and former Minister of Minerals and Energy.

4. THE NNR MANDATE
Provide for the protection of persons, property and the environment against nuclear damage by establishing safety standards and regulatory practices;
The objects of the Regulator are:
Exercise regulatory control related to safety over-
the siting, design, construction, operation, manufacture of component parts, and decontamination, decommissioning and closure of nuclear installations; and
vessels propelled by nuclear power or having radioactive material on board which is capable of causing nuclear damage.
Exercise regulatory control over other actions, to which this Act applies, through the granting of nuclear authorizations;
Provide assurance of compliance with the conditions of nuclear authorisations through the implementation of a system of compliance inspections;
Fulfill national obligations in respect of international legal instruments concerning nuclear safety; and
Ensure that provisions for nuclear emergency planning are in place

6. FACILITIES REGULATED BY THE NNR
Koeberg Nuclear Power Station
Necsa, Pelindaba site
Necsa, Vaalputs National Radioactive Waste Repository
Pebble Bed Modular Reactor
Mining and mineral processing radioactive minerals
Nuclear Vessels

7. EMPLOYMENT EQUITY MALE FEMALE WHITE BLACK Senior Managers 25% 0% 50%
Departmental Management
10%
70%
Professionals
27%
51% 4%
18%
Admin/Support staff
19%
33%
38%
Composition of Staff by Race
21%
45%
11%
23%
Composition of Staff by Gender
61%
39%

8. HIGHLIGHTS (1/2)
There is overall satisfaction with regulatory oversight on all nuclear facilities, however mining has shown a recurring trend of non-compliance. The NNR is taking serious steps to follow up and address this challenge. Satisfactory compliance with the NNR’s safety standards and regulatory requirements by authoristion holders such as Koeberg Nuclear Power Station, Necsa’s nuclear installations and the Vaalputs radioactive waste disposal site as well as various mining and minerals processing facilities.
Two nuclear vessel licenses granted
In the past financial year (2008) the NNR received a qualified audit. We have managed to implement an enhanced governance system that resulted in an unqualified audit for the2008/2009 period
NNR successfully licensed the conversion of High Enrichment Uranium to Low Enrichment Uranium at the NECSA Research Reactor
Publication of updated regulation on the appointment of chairperson and deputy chairperson to serve on Public Safety Information forums
Hosted an IAEA Technical Cooperation Project on promotion of self assessment of regulatory infrastructures for safety

9. HIGHLIGHTS (2/2)
Launch of the Forum of Nuclear Regulatory Bodies in Africa (FNRBA)
Coordination of the compilation of the South African Report to the IAEA Joint Convention on the Management of Radioactive Waste
Presentation of the South African National Report to the IAEA Convention on Nuclear Safety
International IAEA Conference on Regulatory Effectiveness to be hosted by the NNR in December 2009
Embarking on programme to optimize our regulatory and legislative framework to position ourselves for the envisaged nuclear expansion programme as stated in the Countries National Energy Policy and Strategy published in 2008

10. NNR SCORECARDS
The NNR has adopted the balanced scorecard methodology to measure its performance
Four key strategic focus areas have been identified to ensure achievement of the mandate of the National Nuclear Regulator.
Within each strategic focus area, key strategic objectives, supporting goals and initiatives have been identified.
The four focus areas are:
Safety and Regulation Scorecard
Stakeholder Management Scorecard
Internal Business Processes
Human Resources
The NNR balanced score cards uses both lagging and leading indicators to measure performance

11. NNR PERFORMANCE AGAINST OBJECTIVES FOR FY 2008/2009
Strategic Objective
Strategic Initiatives
ACHIEVED
NOT ACHIEVED
NOT APPLICABLE A
Develop, Review and Implement an Appropriate Regulatory Philosophy and Framework (including standards policies, practices and effective compliance monitoring) that provide for the protection of persons, property and the Environment against nuclear damage 24 10 8 6 B
Build Stakeholder confidence in South Africa’s Nuclear Regulatory System 13 4 1 C
Improve and strengthen internal business processes, aligned to Best practices and responsive to environmental dynamics 15 11 2 D
Attract, develop and retain staff 9 7

12. FINANCIAL PERFORMANCE

13. FINANCIAL PERFORMANCE
2009
R’000
2008
OPERATING INCOME
85,804
72,276
OPERATING EXPENSES
93,803
(72,343)
OPERATING DEFICIT
(7,999)
(1,066)
FINANCE INCOME
8,717
6,645
FINANCE CHARGE
(274)
(158)
NET SURPLUS FOR THE YEAR
444
5,420

14. FINANCIAL PERFORMANCE
Revenue: The NNR’s total operating revenue for the year was R85,8 m (2008: R71,3 m) mainly from:
R64,5 m authorisations fees
R20,3 m Direct Government grant
Expenditure: The NNR’s total operating expenditure for the year was R93,8 m (2008: R72,3 m) mainly due to:
R58,2 m – Employee expenses
R9,0 m – Service fees

15. BALANCE SHEET 2009 (R’000) 2008 ASSETS 87,650 87,878
Non-current assets
5,504
5,164
Current assets
82,147
82,714
EQUITY AND LIAIBILITIES
Reserves
29,827
29,383
Non-current liabilities
30,322
29,128
Current liabilities
27,501
29,367

16. CHALLENGES
The main challenges experienced by the NNR during the 2009 financial year:
Retention and attraction of skilled personnel.
Recurring non-compliance of mines
Regulating Developments around Nuclear Installations such as Koeberg
NNR is in the process of establishing a capability for oversight over Nuclear Security Management
Stakeholder relationship management

17. THANK YOU