Necsa presentation to Minerals and Energy Portfolio Committee
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Necsa presentation to Minerals and Energy Portfolio Committee 22 August 2007 Rob Adam Chief Executive Officer South African Nuclear Energy Corporation (Necsa). Presentation Plan. • 2007 Statement by President Mbeki History of Necsa Necsa Group &Corporate Structures

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Presentation plan

Necsa presentation to Minerals and Energy Portfolio Committee22 August 2007Rob AdamChief Executive OfficerSouth African Nuclear Energy Corporation (Necsa)

Presentation plan

Presentation Plan

•2007 Statement by President Mbeki

  • History of Necsa

  • Necsa Group &Corporate Structures

  • Examples of recent technology successes - NTP & Pelchem

  • Necsa in the National Nuclear Energy Policy & the National Industrial Policy

  • Potential Necsa contribution to a future South African Uranium/Nuclear industry.

  • Budget request for 2008/09

State of the nation address 09 february 2007

President Mbeki stated, “with regard to energy, we will also expedite our work to ensure greater reliance on nuclear power generation, natural gas and the various forms of renewable sources of energy”

“State of the Nation Address”09 February 2007

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Development of SA Nuclear Industry:

Research Era - 1959 onwards

  • The Atomic Energy Board (AEB) instituted as a research organization

  • Basic nuclear research & South Africa’s national nuclear authority

  • Four point nuclear research and development programme.

    • Development and refinement of the SA’s nuclear raw materials

    • Promotion of nuclear power

    • Development and utilisation of nuclear technology in industry,

      medicine, agriculture and for research

    • Basic research in support of above

Uranium Ore

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SAFARI-1 Research Reactor

[PMG note: photos not included]

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Development of strategic competence 1969 – 1989[PMG note: photos not included]

Fuel fabrication

Weapons programme

Uranium Enrichment

Two pwr reactors at koeberg pmg note photos not included

Two PWR Reactors at Koeberg[PMG note: photos not included]

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VAALPUTS Waste Disposal Site – Northern Cape

[PMG note: photos not included]

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VAALPUTS Aerial View

[PMG note: photos not included]

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Share Holding 100 %

Share Holding 100 %

Share Holding 51 %

Pelchem (Pty) Ltd

NTP Radioisotopes (Pty) Ltd

Arecsa Human Capital (Pty) Ltd

Cyclotope (Pty) Ltd

Share Holding 90%

Holding 90%

Fluoro Pack (Pty) Ltd

Share Holding 55%

AEC Amersham (Pty) Ltd

40 %

Share Holding 40%

Pharmatopes (Pty) Ltd

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NTP Radioisotopes (Pty) Ltd

a subsidiary of Necsa Ltd.

Reliable suppliers of world-class radiochemicals, radiopharmaceuticals and radioisotope products to Health Care, Life Science and Industrial Markets throughout the world.

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NTP Product Groups

  • RADIOCHEMICALS: Mo-99, I-131, P-32, S-35, P-33, Y-90


  • IRRADIATION SERVICES: Neutron Transmutation doping of Silicon,

  • Neutron Irradiation Services


  • Labelling Kits, I-131 Capsules and Solution

  • RADIATION TECHNOLOGY PRODUCTS: Radioluminescent light

  • sources, Contract Manufacturing and Consulting, Transport

  • containers, Dosimetry service

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NTP Sales Revenue

Radioisotopes 3 rd in the world

Radioisotopes....3rd in the world!

[PMG note: photos not included]

Sales to 55 countries…

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NTP Sales Per Year: Constant Rand Value

Pelchem pty ltd pmg note photos not included

Pelchem (Pty) Ltd[PMG note: photos not included]

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Fluorspar beneficiation

Nuclear cycle










Higher value


Fuel fabrication



Pelchem s mandate

Pelchem’s Mandate

  • Secure supply of HF and F2 for nuclear program

  • Champion government’s Fluorochemical Expansion Initiative (FEI)

  • Build non-uranium fluorochemical portfolio into sustainable business

  • Compliance with regulatory and stakeholder requirements

  • Deliver what is promised responsibly and safely on schedule within specification and cost competitively

Financial performance

Financial Performance

Pelchem plants pmg note photos not included

Pelchem Plants[PMG note: photos not included]

Pelchem products pmg note photos not included

Pelchem Products[PMG note: photos not included]

Drivers for investment in nuclear infrastructure in south africa

Drivers for investment in nuclear infrastructure in South Africa

  • Diversification from almost exclusive (90%+) reliance on coal leads to

  • decision to limit coal contribution to new build to 50%.

  • Geographic factors in Western Cape & Eastern Cape rule out other

  • base-load generation sources, i.e. no local coal or hydro present and gas

  • operation is very expensive .

  • Costing over the 60 year life time of power stations in a world that is

  • rejecting un-sequestrated carbon means nuclear comes out cheaper, even

  • in other regions of SA.

  • Long term uranium price buoyancy means nuclear fuel cycle investment

  • is attractive and may be needed to underpin security of supply.

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Necsa in the National Nuclear Energy Policy & Strategy, the National Industrial Policy & the National R&D Strategy

●Anchor for nuclear R&D.

●Uranium conversion.

●Uranium enrichment.

●Nuclear fuel manufacture

●Study of spent fuel reprocessing.


NIP - the DTI

●Nuclear Manufacturing.

●“Frontier” research programmes.


Uranium supply and demand

Uranium supply and demand

WNA upper case

WNA base case

Supplier & utility


Russian HEU downblend; US

govt stockpiles; recoveries

Russian HEU?

Mine expansions?


New mines


from existing


U 3 0 8 spot price jan 2005 to july 2007

U308 Spot Price - Jan 2005 to July 2007

Sa uranium resources

SA Uranium Resources

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Global Uranium Conversion Capacity, 2006

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World Distribution Uranium Enrichment Capacity /1000SWU

Details of the forecast shortage of enrichment uranium in 2015

Details of the Forecast Shortage of Enrichment & Uranium in 2015.

Presentation plan

Possibilities for fuel cycle in South Africa

  • There is an imminent, global shortage of both conversion and enrichment capacity.

  • Security of nuclear fuel supply is a matter of concern for any country embarking on a major build programme.

  • Conversion and enrichment therefore need to be carefully examined.

  • Although there is currently global over-capacity in fuel manufacture, this cannot be relied upon to continue.

  • Ultimately the industry will move towards a closed fuel cycle. Therefore spent fuel reprocessing must be investigated.

Possibilities for high tech manufacturing

Possibilities for High-tech Manufacturing

  • Existing capacity in local industry stimulated by PBMR.

  • Government intervention via Necsa yields National Nuclear Manufacturing Centre, intended to develop standards and capacity.

  • Need to develop localization strategy aligned with preferred bidder(-s) for new nuclear build.

  • Dual approach based on selected LWR component manufacture under license and PBMR spectrum.

Strategic r d focuses

Strategic R&D Focuses

  • Isotope production

  • Interface between nuclear and biotech

  • Generation 4 nuclear reactors

  • Hydrogen economy

  • Spent fuel management

Capital infrastructure projects

Capital & Infrastructure Projects


  • Pelindaba Site & Infrastructure Projects:

    Pelindaba Buildings, Infrastructure Effluent System & Facilities Security Upgrade

  • Nuclear Fuel Cycle Projects:

    Conversion and Enrichment, EURO Project

  • R&D Capacity Projects:

    SAFARI Equipment Upgrade, R&D Capacity

Proposed capital infrastructure expenditure

Proposed Capital & InfrastructureExpenditure

Proposed mtef adjustment operational funding vat incl

Proposed MTEF AdjustmentOperational Funding (VAT Incl)



  • South Africa has very large reserves of uranium and a very active mining industry on which many other countries will rely for their supplies of uranium.

  • South Africa can add value to the uranium that it produces by enriching it, in order to maximize its earnings in export markets.

  • Necsa has already developed and used substantial facilities for the conversion and enrichment of uranium. These were dismantled but the expertise was developed and still exists in South Africa.

  • Necsa also built a nuclear fuel fabrication factory and a plant for making zircaloy tubing.

Overall conclusions

Overall Conclusions

  • South Africa will significantly increase its nuclear power capacity over the next 20 years.

  • This will provide an impetus for a local nuclear industry with many new job opportunities.

  • The local mining and manufacturing industries are likely to partner with local and foreign nuclear players to create this industry.

  • Necsa needs to be rebuilt to play a pivotal role in this programme.

Thank you

Thank you!

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