Presentation to the Parliamentary Portfolio Committee on Energy

1. Presentation to the Parliamentary Portfolio Committee on Energy ANNUAL REPORT OF THE NATIONAL NUCLEAR REGULATOR FOR THE 2008-09 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

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

12. FINANCIAL PERFORMANCE

13. FINANCIAL PERFORMANCE

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

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

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