Distinguished leaders from business,
Leaders from Nuclear Stakeholder organisations,
Honourable guests,
Ladies and gentlemen
It gives me great pleasure this morning to present to you the most recent developments in one of the most exciting and much needed industry expansions in South Africa, the nuclear industry. Judging by the increase in the frequency of national and international nuclear events in South Africa this year, it is evident that the industry has continued to persevere even in the midst of the setbacks relating to funding nuclear new build.
Please diarise, if you have not already, the International Youth in Nuclear Congress 2010 being hosted by South Africa in Cape Town immediately after the 2010 FIFA World Cup final. This is happening almost two years after our very own South African Young Nuclear Professionals Society (SAYNPS) won the bid at an international event in Interlaken, Switzerland.
At that event, our youth won the majority of best paper awards, affirming that we have budding young professionals of international calibre in the nuclear sector that we must look after. Nurture their talents and provide them with opportunities and appropriate support to excel in your organisations. Failure to do this will lead to our participation in this critical sector ending with the current crop of personnel, many of whom are over 50 years.
From government, the Inter Ministerial Committee on Energy was formed in January this year to address issues ranging from the country build plan, electricity distribution to energy efficiency and impact of electricity prices. The development of the Integrated Resource Plan is well underway and the public stakeholder engagement has already commenced. I believe that most of you are already involved in this process to ensure that the end product will be a plan that balances available energy sources, cost of deployment of the different technologies and the benefits that will accrue to the people and the economy in the short and longterm. Full details regarding participation are available on the website http://www.doeirp.co.za.
Within the development of the Integrated Resource Plan (IRP), the department is also leading the development of a nuclear energy implementation strategy. This strategy will complement the Integrated Resource Plan to ensure that the nuclear build programme required is realistic and achievable. Nuclear energy has been part of the South African energy mix since the white paper on energy policy of 1998. The nuclear energy policy of 2008 expanded further on this intention by providing the policy framework for the expanded nuclear energy programme.
In this strategy, we are looking at key issues on how Government can support and develop the necessary infrastructure required for new build, such as skills development, legislative and regulatory framework procurement, localisation and industrialisation and nuclear fuel security. We will work with international partners who present the most cost effective plans that address these issues with minimum impact on cost and delivery schedule.
At Nuclear Energy Cooperation of South Africa (Necsa) we have also been doing feasibility studies into front end of the nuclear fuel cycle to ensure security of fuel supply for nuclear new build. In addition, having a locally produced fuel (i.e. from mining to fuel fabrication) will ensure beneficiation of our high natural uranium resources, and would contribute positively to our national balance of payments. These studies are nearing completion, and feed into the nuclear energy implementation strategy which in turn feed into the IRP process.
I understand that there are many concerns regarding nuclear construction, cost, and scheduling internationally. The truth is that some nuclear projects are actually completed ahead of schedule, implying that there are lessons to be learnt for us to embark on a successful nuclear build programme. We also have to accept and understand that building an industry after almost 30 years of dormancy is going to present many challenges. But, once we have surpassed these by commissioning the first reactor, the balance should flow rather seamlessly, as illustrated by those countries that have continued to build nuclear power plants in the last 20 years, i.e. China and South Korea.
Our recent success in the international radioisotope market, where we are currently the world leaders in supply of Molybdenum99, is a clear indication that we can play amongst the world’s best in the nuclear industry. As a result of a worldwide shortage of medical isotopes, NTP Radioisotopes, a subsidiary of Necsa, has managed to increase group sales by over 80% year on year, and unaudited financial results currently show net sales of over R700 million for the 2009/10 financial year.
All this thanks to the continued operation of our SAFARI1 research reactor that has stood the test of time against counterparts internationally which have shut down or been offline due to maintenance. The impeccable record of the SAFARI1 reactor is a demonstration of adherence to international standards for safe operations and maintenance.
This brings me to another point. Our SAFARI1 research reactor is currently reaching the end of its operational life and we need to plan for its replacement by 2020. In order to do that, we must start today, as it takes around 10 years before we could have another fully operational research reactor.
In the meantime, we are forming essential partnerships to ensure availability of these essential medical supplies. This forum and many more like it are the very key to nuclear success, simply because communication of the benefits of nuclear energy and its varied applications is a requirement, not a luxury. Public understanding of nuclear energy is very important. The applications of nuclear technology in other sectors (medicine, agriculture, industry, water) are still not generally known.
We will do more to illustrate these applications through our communication and stakeholder engagement strategy currently in development, and the industry must do more to get the message out there. It is the responsibility of all of you in the room to ensure that a balanced debate of nuclear energy takes place.
The biggest risk this industry face is not technical but public engagement. Think about that and find appropriate mechanisms to share information and address public concerns.
Thank you.
