Necsa Annual Report Presentation to the Portfolio Committee on Energy by: Rob Adam / Dan Moagi / Mbali Mfeka / Chantal Janneker 19 October Outline of Presentation 1.Mandate 2.Necsa Technical Matters 3.Necsa Human Resources 4.Necsa Finances 5.Necsa Outreach to the Community 2 Necsa Technical Matters Rob Adam Chief Executive Officer: SA Nuclear Energy Corporation Ltd 3 Mandate Necsa derives its mandate from three regulatory frameworks: The Nuclear Energy Act No 46 of 1999; The Nuclear Energy Policy (NEP) of 2008 Directives conferred on it by the Minister of Energy The policy and legislative framework confirms Necsas central role for a coordinated SA nuclear industry. 4 Nuclear Power Cluster Advanced techno-economic feasibility studies for the nuclear fuel cycle completed. Inputs provided to the DoE IRP 2 public consultation process and further inputs to be provided during November Necsas Nuclear Manufacturing Centre (NMC) has made good progress towards ASME III accreditation, in preparation for localisation from SAs nuclear energy new build programme. Necsa has had to deal with the drastic downsizing of the PBMR programme to prevent loss of scarce nuclear skills for SA 2009/10 Performance 5 Radiation Products and Services Cluster NTP Group revenue of R795 m (46% better than budget) NTP also leading global supplier of medical isotopes Successful conversion of SAFARI-1 reactor to LEU fuel Necsa developed OSCAR-4 reactor core calculation system won the NSTF award for innovation by an organisation 2009/10 Performance Continues 6 Necsa as a Host of Nuclear Programmes Cluster Necsas SHEQ system was upgraded to fully comply with NNR requirements Necsas Emergency Control Centre was upgraded and Necsa played a vital role during the 2010 World Cup in protecting SAs ports of entry and stadia R26.5m was invested in the refurbishment and upgrading of site infrastructure and R15.2 m in the improvement of R&D infrastructure Nuclear Skills Development Centre (NSD) trained 592 full-time student equivalents and the NSD has received full accreditation as a Decentralised Trade Test Centre from CHIETA 8 new innovations were completed during the past year Continues 2009/10 Performance 7 Alignment with DoE Objectives and Government Outcomes Department of Energy Necsas activities are fully aligned with the DoE objectives as stated in the 2010 ENE Programme 4: Associated Services South African Nuclear Energy Corporation undertakes and promotes research and development in the field of nuclear energy and radiation science. The corporation is also responsible for various institutional obligations on nuclear matters on behalf of the state 8 Alignment with DoE Objectives and Government Outcomes Alignment with Government Priorities: Medium Term Strategic Framework (2009 2014) Strategic Priority 1: Speeding up growth and transforming the economy to create decent work and sustainable livelihoods Strategic Priority 2: Massive programme to build economic and social infrastructure Strategic Priority 4: Strengthen the skills and human resource base Strategic Priority 5: Improve the health profile of all South Africans Strategic Priority 8: Pursuing African advancement and enhanced international cooperation Strategic Priority 9: Sustainable Resource Management and use Strategic Priority 10: Building a developmental state including improvement of public services and strengthening democratic institutions 9 Localisation of Nuclear Manufacturing Nuclear energy expansion programme estimated at R426 billion until 2030 Even 10% participation will bring revenue of ~R42billion to SA massive opportunity for local industrial development & job creation Necsa NM already manufactures coded pressure vesels, heat exchangers, storage tanks etc. NM has already attained ISO 9001/2008 & ASME U-Stamp Certification 10 11 Environmental Performance Comprehensive environmental programme in place Compliance to water permit rerquirements - no reportable events occured Compliance with environmental requirements of the Nuclear License: Significant decrease in stack releases Electricity consumption decreased by 2.2% Water consumption increased by 7% 12 Necsa Priorities for 2010/11 Responding to the IRP 2 Development of NM and its role in support of localisation Completion of the LEU target plate development Development of NTPs role in the US isotope market Launching of the Necsa Nuclear Science Centre Including a nuclear security training course at the Nuclear Skills Development Centre 13 Necsa Human Resources Dan Moagi Group Executive: Human Resources 14 Necsa Group Employment Necsa staff complement increased from 1870 to 2113 during the 2009/10 financial year Female employees increased from 508 to 608 Black employees increased from 986 to 1151 Black employees 52% against target of 49% Selected SHEQ Statistics: - workdays lost due to DIs improved by 56% - TIR improved by 17% 15 Necsa Executive Management Composition DesignationName Equity Classification and Gender Chief Executive OfficerDr. Rob AdamWhite Male Group Executive: Human ResourcesMr Daniel MoagiBlack Male Group Executive: Finance and Information Management Ms Nishina DayaramBlack Female Group Executive: Research and Development Dr Petro TerblancheWhite Female Group Executive: Marketing and Communication Ms Chantal JannekerBlack Female Group Executive: Nuclear Technology Industrialisation Mr Arie van der BijlWhite Male Group Executive: Strategy and Performance Dr Van Zyl de VilliersWhite Male Group Executive: Technical ServicesMr Joseph ShayiBlack Male Group Executive: Nuclear ComplianceDr Ramatsemela Masango Black Female 16 Human Resource Training Mentorship and coaching- first programme successfuly completed Graduate support programme: - Graduates in training = 18 - Bursary students = 36 PBMR bursary holders transfered to Necsa Internships/Graduates = 40 Apprentices =24 Adult Basic Education: English=66, Maths=30 Damelin Leaderships = 79 learners Necsa Finances Mbali Mfeka Senior Manager: Finance and Information Management 19 2007/082008/092009/102010/11 Rmillion Sales ,0491,058 Government and Sundry Grants Other Income Finance Income Total Income9211,1511,6001,670 Personnel and Personnel Related Expenditure Other Expenditure Net Profit after Tax Financial Performance and Projections for the Necsa Group 20 Financial Performance and Projections For Necsa Corporate 2007/082008/092009/102010/11 Rmillion Sales Government and Sundry Grants Other Income Dividends Finance Income Total Income Personnel and Personnel Related Expenditure Other Expenditure Net Profit after Tax Auditor-Generals Report Unqualified report for 2009/10 Emphasis of matter - Significant uncertainty relating to the taxpayer status - Restatement of corresponding figures - Material impairment of investment in subsidairy - Contingency liability relating to PAYE 22 Financial Constraints Necsas mandate was expanded by the publication of the Nuclear Energy Policy in However: These expanded mandate functions have not culminated into increased baseline funding; Whilst the Nuclear Energy Policy implementation strategy is still being formulated, SA is required to respond to new electricity generation capacity (IRP 2 November 2010); Misalignment between IRP 2 policy development and the national budget process introduces further challenges for Necsa going forward; Necsa has already had to reprioritise its funding in order to begin preparing for the requirements of SAs nuclear energy expansion (e.g. NFC, NMC, NSD, PBMR staff); Despite the increased/expanded mandate, as well as the above requirements Necsa had its baseline reduced by R207 million over the 2010/11 to 2013/14 MTEF period. 23 Implications if Additional Funding is not Secured 24 Limited capability to invest in urgent upgrading and renewal projects required to fulfil our role in terms of the NEA and NEP Challenge to retain highly skilled scarce nuclear staff Limited capability to run high level training programs especially for new generation nuclear technical experts and leaders Challenge to improve on risk and safety performance and comply with stricter regulatory requirements 25 Jeopardise Necsas capability to be prepared in time to support SA New Build program and exploit the multitude of opportunities offered to SA An underfunded nuclear programme poses risks to SA in terms of deteriorating infrastructure, skills scarcity and a delayed nuclear energy expansion programme. Implications if Additional Funding is not Secured Necsa Outreach to the Community Chantal Janneker- Group Executive: Marketing and Communication Necsa Outreach to the Community Radiation monitoring services: In support of the FIFA 2010 World Cup, 63 persons were recruited on contract from Necsas immediate and Vaalputs communities for training to carry out radiation monitoring tasks during the world cup Necsa after the World Cup, have appointed 20 of these persons on a permanent basis to receive further training as RPOs Necsa emergency services to community in vicinity of Necsas site: fire calls 122, ambulance calls 221, vehicle accidents assistance 152 Schools Outreach Programme: focusing on empowering historically disadvantaged Dinaledi Schools in science and maths training NTP schools assistance: Various programmes to support Ennis Thabong Intermediary School-Meerhof, Re-e-Lwele Primary School- Broederstroom and Zilkaatsnek Primary School Necsa-Vaalputs PSIF training agreement: transfer basic technical skills to the inhabitants of the Kamiesberg Municipality. NSD provides training to communities in basic technical skills and repairs to mechanical and electronic equipment. Necsa also provides for the training in Maths and science at Kharkams Bursaries for 11 Namaqualand students at the NSDC Necsa Outreach to the Community Nuclear Visitors Centre: improving public perceptions on nuclear energy is a big challenge to the nuclear industry. The NVC is aimed at making a significant contribution towards the dissemination of accurate nuclear info to the public and improving public perceptions on nuclear. Science week: In support of DST programme to develop interest in science and maths as career opportunities, Necsa also presented a programme attended by 2075 learners from 41 schools. School and University site visits: Necsa hosted visits from various schools and universities with an interest in science and physics Thank you! 30