1. Preparations for the nuclear new build programme Phumzile Tshelane 2 June 2015

2. A brief overview of the history of Necsa

3. The Atomic Energy Board established in 1946 (following World War II) to perform nuclear research & to be South Africa’s national nuclear authority. –Pelindaba site acquired in 1959. Four point nuclear industry development programme. –Development & refinement of the SA’s nuclear raw materials. –Promotion of nuclear power. –Development and utilisation of nuclear technology in industry, medicine, geology and agriculture. –Basic research in support of above 3

4. SAFARI – 1 Research Reactor Oak Ridge type reactor, part of “Atoms for Peace” 4

5. Nuclear Fuel Cycle Experience HF plant in operation since 1980 Conversion plant (capacity 1 200 t U/a) operated 1984 - 1996 (closed) Semi-commercial Z enrichment plant (300 000 SWU/a, LEU) in operation 1987 - 1995 (aerodynamic “Vortex” enrichment process ) (decommissioned) PWR fuel fabrication plant (100 t U/a) in operation 1986 - 1995 (decommissioned) Fabrication of SAFARI-1 fuel and target plates for isotope production Vaalputs national radioactive waste disposal facility in operation since 1986 5

6. Discontinued Strategic Programmes 6

7. LLW and ILW disposal at Vaalputs 7

8. NTP Radioisotopes SOC Ltd (NTP) NTP was established as a wholly owned subsidiary of Necsa in 2003 and operates as a commercial subsidiary of Necsa. NTP routinely serves customers in 60 countries on six continents with a range of radiation-based products and services and is one of the world’s leading producers of radiochemicals, radiopharmaceuticals and other radiation technology-based products. Since 25 June 2009, the SAFARI-1 reactor has been run continuously on a fully Low Enriched Uranium (LEU) fuel with a U235 content of less than 20%, conforming with International Safeguards requirements.

9. Pelchem SOC Ltd (Pelchem) Pelchem was established as a wholly owned subsidiary of Necsa in April 2007. It has a proud record of more than 25 years experience in locally produced fluorspar beneficiation, Pelchem maintains a portfolio of fluorochemical business activities that serve local and international markets while playing a leading role in the SA Fluorochemical Expansion Initiative (FEI). Pelchem products are versatile and important process chemicals, used in anaesthetics, high octane fuel, special alloys in aircrafts, cell phones, memory chips for computers, etc. Pelchem is the only company in the Southern Hemisphere which produces fluorochemicals from fluorspar.

10. Pelchem (Fluorochemicals) and the Nuclear Fuel Cycle 10 Gold and uranium mining Hydrogen fluoride production U conversion Beneficiation U enrichment Fluorination LWR operation Fluorspar mining U3O8U3O8 F 2 based products (sold globally by Pelchem) HF based products Salts Acids Etc. CaF 2 Fuel fabrication UF 6 Reactor fuel HF F2F2 235 U Pelchem Nuclear Fuel Cycle

11. SAFARI-1 Fuel conversion to LEU 11

12. A Brief Overview of Necsa’s Current Activities

13. Necsa Strategic Focus Areas (clusters) 13 Radiation Science and Applications Hosting Nuclear Programmes Nuclear Power

14. Main Areas of R&D at Necsa Radiation and reactor physics Beam line physics; materials characterisation Radiochemistry and radiopharmaceuticals Fluorine chemistry Plasma technology Front end of NFC Radioactive waste management 14

15. Some South African Linkages Government departments: DoE, DST, DTI, DoH,etc. Science Councils: iThemba LABS, CSIR, Museums, Mintek, etc. Many universities and academic hospitals Private sector Eskom, specifically regarding localisation during new-build Regulatory bodies Professional bodies, e.g. NIASA. 15

16. Some International Linkages IAEA (Technical Cooperation, Collaborative Research Projects, Fellowships, Expert Missions). AFRA Regional Collaborative Agreement. Collaboration with nuclear institutions and universities in Europe, Russia, Republic of Korea, Australia, Algeria, etc. (e.g. reactor modelling, neutron-based imaging and materials characterisation, radiopharmaceuticals, fuel cycle and waste management, research reactor operation and safety). Represent South Africa in various international nuclear collaborative programmes. 16

17. Some Nuclear Related Services Offered by Necsa Measurement of radioactivity Non-destructive testing and plant investigations Decommissioning, decontamination and site clean-up Radioactive waste management Nuclear Material Safeguards Radiation protection services Nuclear manufacturing (ASME VIII for non nuclear grade components, ASME III (NPT, NS and NA), ASME III N Stamp for Design) Training of engineers, scientists, technicians, artisans 17

18. NTP: Nature of Business 18 NTP Group Sales Forecast: R1.07 billion NTP Radioisotopes Sales Forecast: R730 million 90% of revenue is exports-based Radiochemicals Mo-99, I-131 Radioactive Sources Ir-192, Cs-137, Co-60 Irradiation Services Neutron Transmutation doping of Silicon, Neutron Irradiation Services Radiopharmaceuticals NovaTec-P Tc-99 Generator, FDG, MIBG, Cold kits, I-131 Capsules and Solution Radiation Technology Products Transport containers

19. Pelchem SOC Ltd 19 Fluorochemicals are playing an increasing and important role in our everyday lives driven by, amongst others:  Anti-retrovirals (ARV’s)  Higher performance materials,  Pharmaceuticals,  Electronics,  Renewable energy  Petrochemicals  Alloys  Refrigeration  Pesticides

20. What is Necsa’s plan to ensure it is prepared for the proposed nuclear new build programme and progress to date?

21. Necsa’s envisaged New Build Role Necsa is mandated through the Nuclear Energy Act to do Research & Development of nuclear technology in South Africa. Proposals for a Nuclear Energy Research, Development and Innovation Strategy (NERDIS) Necsa has the following certifications for design, manufacture and supply of components: –ASME VIII for non nuclear grade components –ASME III (NPT, NS and NA) –ASME III N Stamp for Design Training of engineers, scientists, technicians, artisans. Necsa has accredited and certified training facilities for artisans and professionals Necsa in relation to the new nuclear build will play a leading role in the nuclear supply chain and the development of the local industry to support localization and industrialization Planning for (re-)establishment of nuclear fuel cycle. Necsa has conducted pre-feasibility studies on redeveloping the Nuclear Fuel Cycle (Front-End) Conducted a preliminary nuclear new build readiness assessment 21

22. Future Plans Necsa growth prospects for the near future include the following: Necsa has conducted a preliminary new build readiness assessment for the planned nuclear power reactor fleet; Projects towards the security of supply of LEU fuel and target plates; In-principle decision-making regarding a multipurpose reactor to replace SAFARI-1 at the end of its operational life; Further market penetration for new NTP business initiatives relating to 18 F-FDG, gamma irradiation and radiography sources; Demonstration of the PlasWen system; Demonstration of the uranium recovery process that was proven on laboratory scale; and Further expansion of the NTeMBI network and clinical trials of candidate radiopharmaceuticals; and Securing a suitable investor for Pelchem. 22

23. Necsa’s Strategy and Plans for National Skills Training and Development for SA’s Nuclear and Energy Programme

24. Bilateral nuclear collaboration between South Africa and Russia 24

25. Bilateral nuclear collaboration between South Africa and Russia 25 Human Resources Requirements (2014-2018)

26. Capacity Building and Training for South African Civil Nuclear Energy Projects (Agreement with China) Basic Training (Ranges between 1 and 5 days in China) NPP Codes and Safety Oversight NPP Radiation Protection NPP Materials Science NPP CI System Equipment NPP Water Chemistry NPP Operation Theories NPP Reactor Physical Basis NPP NI System Equipment NPP Electrical System and Equipment 26

27. Capacity Building and Training for South African Civil Nuclear Energy Projects (Agreement with China) NPP Generic Mechanical Equipment NPP I&C Theories Thermodynamics and Basis of Reactor Thermal Hydraulics NPP Steam Power Conversion System Introduction to Nuclear Power Codes and Standards Chinese Nuclear safety Regulatory System Basic Knowledge of Project Management NPP QA System Nuclear Safety Culture 27

28. Capacity Building and Training for South African Civil Nuclear Energy Projects (Agreement with China) Specialised Training (Ranges between 2 and 8 days in China and South Africa) Gen III Advanced Passive NPP NI Design Basic training Gen III Advanced Passive NPP CI Design Basic training Gen III Advanced Passive NPP Procurement Basic training Gen III Advanced Passive NPP Module Gen III Advanced Passive NPP I&C Manufacturing Technology Basic training Gen III Advanced Passive NPP Construction Technology Basic training Gen III Advanced Passive NPP Commissioning and Start-Up Technology Basic training Gen III Advanced Passive NPP Operating and Maintenance Technology Basic training Gen III Advanced Passive NPP Project Management Basic training 28

29. Capacity Building and Training for South African Civil Nuclear Energy Projects (Agreement with China) On-the-job Training (Ranges between 15 and 120 days in China) Engineering design (NI) Gen III Advanced Passive NPP Equipment Mechanics Gen III Advanced Passive NPP Piping Mechanics Gen III Advanced Passive NPP Structural Analysis and Design Gen III Advanced Passive NPP Containment Vessel Design Gen III Advanced Passive NPP Building Layout Layout Design for Electrical System Lighting and Grounding System design Gen III Advanced Passive NPP Instrument Layout CAP1400 Image-Display Design Gen III Advanced Passive NPP Accident Analysis 29

30. Capacity Building and Training for South African Civil Nuclear Energy Projects (Agreement with China) On-the-job Training (Ranges between 15 and 120 days in China) Manufacturing Technology Module Fabrication Zirconium Material Manufacturing Construction Technology Manager of Construction Management Department Division Manager of Construction Management Department Project Management Gen III Advanced Passive NPP Project Management Technical training Welding Training Non-destructive Examination 30

31. Capacity Building and Training for South African Civil Nuclear Energy Projects (Agreement with China) Current Status 50 South Africans are in China receiving basic training (20 from Necsa) 31

32. Necsa’s strategy for skills development and training Consolidating current artisanal training through the Necsa Learning Academy Undertaking Radiation Protection Training Undertaking NKP Security Training Developing and growing skills offerings for technicians, technologists, artisans and operators Raising funding to enable Necsa to support Nuclear Programme 32

33. Necsa’s role in supplier development for the nuclear industry and how (if possible) this can be leveraged for the nuclear new build

34. NECSA ESD initiatives 34 WhatHowStatus StrategyESD Policy and Procedure was approved Implemented Transformation TargetsContribute 3% of Net Profit After TAX on Enterprise and Supplier Development (2015/2016). In progress 40% of the total spend to be on 51% Black Owned Companies. In progress 12% of the entire spend to be from 30% Black Women Owned Companies. In progress 80% of the spend to be placed with Empowering suppliers In progress

35. NECSA ESD initiatives (continued) 35 What (1)What (2)How ObjectivesLocalizationIdentify components that can be 100% locally produced Industry Specific Skills DevIdentify Skills gap and provide Nuclear specific Training Job Creation and preservation Establish new Enterprises and create jobs SME and Rural DevDevelop local entrepreneurs IndustrializationDevelop Black Youth, Women and Physically disabled Enterprises

36. ESD strategy of promoting suppliers 36 Tier 1 – Systems and Subsystems assemblies Tier 2 – Component Manufacture Tier 3 - Maintenance and Repairs

37. Challenges identified and mechanisms to address these

38. Challenges Funding for New Build Programme Development Activities –Submission to Energy Security Cabinet Sub-committee Establishment of Programme Management Office (PMO) Skills Capacity and Capability –Training Agreements in place with China and Russia; Students have been sent Multipurpose Reactor –Finalised User Requirements Specification Nuclear Fuel Cycle –Necsa has conducted pre-feasibility studies on redeveloping the Nuclear Fuel Cycle (Front-End) 38

39. THANK YOU 39