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Annual Report 2019 INTEGRATED ANNUAL REPORT 2019 South African Nuclear Energy Corporation SOC Limited TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS - - - - - - - - - - - - - - - - - - - - - 2 7. HUMAN RESOURCES AND REAL ESTATE MANAGEMENT ------------------------79 1. GENERAL INFORMATION-- -- -- -- -- -- -- -- 3 INTRODUCTION - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 80 ABOUT THIS INTEGRATED ANNUAL REPORT - - - - - - - - - - - 4 STAFF FINANCIAL STATISTICS - - - - - - - - - - - - 85 NECSA’S ORIGINS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 STAFF SOCIAL STATISTICS - - - - - - - - - - - - - - - - - - - - - - - - - - 87 NECSA STRATEGY - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 8. GOVERNANCE STRUCTURES- - - - - - 99 ORGANISATIONAL STRUCTURE - - - - - - - - - - - - - - - - - - - - - - - 7 BOARD OF DIRECTORS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 100 2. CHAIRPERSON’S FOREWORD-- -- -- -- -- -- 8 COMMITTEES OF THE BOARD - - - - - - - - - - - - - - - - - - - - - - - 108 3. CEO’S OVERVIEW ----------------------11 EXECUTIVE MANAGEMENT COMMITTEE - - - - - - - - - - - - -112 4. HIGHLIGHTS OF 2018/2019 - - - - - - 13 RISK MANAGEMENT - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -116 5. KEY PERFORMANCE INFORMATION-- -- -17 9. SUSTAINABILITY REPORT - -- -- -- -- -- --119 STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18 INTRODUCTION - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -120 AUDITOR GENERAL’S REPORT: PREDETERMINED ECONOMIC SUSTAINABILITY - - - - - - - - - - - - - - - - - - - - - - - -120 OBJECTIVES - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 SOCIAL SUSTAINABILITY - - - - - - - - - - - - - - - - - - - - - - - - - - -121 OVERVIEW OF PUBLIC ENTITY’S PERFORMANCE - - - - - 19 ENVIRONMENTAL SUSTAINABILITY - - - - - - - - - - - - - - - - - -122 STRATEGIC OUTCOME ORIENTED GOALS - - - - - - - 20 10. FINANCIAL REPORT- - - - - - - - - -123 PERFORMANCE INFORMATION BY PROGRAMME CLUSTER - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 21 11. KNOWLEDGE DISSEMINATION - - - - -243 6. NECSA DIVISIONS AND KEY SUBSIDIARIES ------------------------29 GROUP FUNCTIONS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 30 CHIEF TECHNOLOGY OFFICE - - - - - - - - - - - - - - - - - - - - - - - - 37 RESEARCH AND TECHNOLOGY DEVELOPMENT - - - - - - - 47 NUCLEAR COMPLIANCE AND SERVICES - - - - - - - - - - - - - 59 PELINDABA ENTERPRISES - - - - - - - - - - - - - - - - - - - - - - - - - 65 BUSINESS DEVELOPMENT AND INNOVATION - - - - - 67 FINANCE DIVISION - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 69 PELCHEM SOC LTD - - - - - - - - - - - - - - - - - 72 NTP RADIOISOTOPES SOC LTD - - - - - - - - - - - - - - - - - - - - - - 75 1 ABBREVIATIONS AND ACRONYMS AGSA Auditor-General of South Africa IDC Industrial Development Corporation ALARA As Low As Reasonably Achievable ISI International Scientific Indexing ANSTO Australian Nuclear Science and ISO 9001 Quality Management Systems - Technology Organisation Requirements API Active Pharmaceutical Ingredient KPI Key Performance Indicator ASME American Society for Mechanical LEU Low Enriched Uranium Engineers Molybdenum-99 A radioactive isotope of molybdenum B-BBEE Broad-Based Black Economic MTEF Medium-Term Expenditure Framework Empowerment Necsa South African Nuclear Energy BBS Behaviour-Based Safety Corporation SOC Limited CHIETA Chemical Industries Education and NEHAWU National Education, Health and Allied Training Authority Workers Union CTBTO Comprehensive Nuclear-Test-Ban NIASA Nuclear Industry Association of South Treaty Organisation Africa D&D Stage 1 Decontamination, Decommissioning NKP National Key Point and Waste Management of Disused NNR National Nuclear Regulator Historical Nuclear Facilities NQF National Qualifications Framework D&D Stage 2 Decontamination, Decommissioning and Waste Management of Operating NRF National Research Foundation Nuclear Facilities NRWDI National Radioactive Waste DIIR Disabling Injury Incidence Rate Disposal Institute DoE Department of Energy NTeMBI Nuclear Technologies in Medicine and the Biosciences Initiative DST Department of Science and Technology NuMeRI Nuclear Medicine Research dti Department of Trade and Industry Infrastructure EAP Employee Assistance Programme NVC Necsa Visitor Centre EE Employment Equity OSCAR Overall System for the Calculation of Reactors EXCO Executive Committee PFMA Public Finance Management Act GMP Good Manufacturing Practice PSIF Public Safety Information Forum HF Hydrogen fluoride PSMA Prostate-Specific Membrane Antigen IAEA International Atomic Energy Agency R&D Research and Development IAEA MSP International Atomic Energy Agency Membership Support Programme RPTC Radiation Protection Training Centre ICT Information and Communication SAFARI-1 South African Fundamental Atomic Technology Research Installation 2 Necsa Annual Report | 2018/2019FY General 1 Information ABOUT THIS INTEGRATED ANNUAL REPORT NECSA’S ORIGINS On 13 August 1944, the United Kingdom first requested South African’s assistance in obtaining uranium for the Manhattan Project. Post-World War II, interest in the extraction of uranium oxide continued from the USA and UK for both military and peaceful purposes. This led to the establishment in February 1946 of the “Uranium Research Committee” and in September 1948, the South African Atomic Energy Board (AEB) was constituted. Following international developments in nuclear power and radioisotope application, construction of the National Nuclear Research Centre, including the SAFARI-1 Research Reactor, started at Pelindaba in 1961. In 1970, the Uranium Enrichment Corporation (UCOR) NAME AND REGISTRATION NUMBER was created and tasked to establish a nuclear fuel cycle programme at Valindaba, adjacent to the then Pelindaba The South African Nuclear Energy Corporation, trading site. The ostensible aim was to investigate the feasibility as Necsa, is a state owned company (SOC). of nuclear explosives for peaceful applications. However, in 1977 the emphasis changed to a strategic nuclear Registration number: 2000/003735/06 weapons deterrent capability and in November 1979 Holding Company: Department of Energy the first nuclear explosive device was equipped with Country of South Africa highly enriched uranium. Incorporation and Domicile: Application of nuclear fuel cyle technologies to civilian Physical and Elias Motsoaledi Street Extension Business Address: (Church Street West) R104 nuclear power generation started with construction of Pelindaba the “Z” Enrichment Plant in 1978. A fuel element Brits Magisterial District manufacturing facility supplying Koeberg Nuclear Power Madibeng Municipality Station started production in 1987. North West Province, 0240 Postal Address: PO Box 582, Meanwhile, the Nuclear Energy Act of 1982 renamed Pretoria, 0001 the AEB to NUCOR and combined it with UCOR under South Africa the Atomic Energy Corporation (AEC) as controlling body. Telephone Number: +27 12 305 4911 On 01 July 1985, the NUCOR and UCOR subsidiaries Fax Number: +27 12 305 3111 were combined into the AEC. Dismantling of the nuclear E-mail Address: [email protected] deterrent capability started in 1989. While civilian use Website Address: www.necsa.co.za of the nuclear fuel cycle facilities proved uncompetitive External Auditors: Auditor-General of South Africa post 1994 and were systematically shut down. A drive 300 Middel Street to industrialise technologies emanating from the nuclear New Muckleneuk, Pretoria programme was launched. In 1999, the current Nuclear Bankers: Nedbank Limited Energy Act transitioned the AEC to the South African 135 Rivonia Road Nuclear Energy Corporation -Necsa. Sandown, Sandton Company Secretary: Fulufhulani Corporate Governance and Legal Advisory (Pty)Ltd 105 Ninth Road Carlswald Midrand, Johannesburg, 1685 Enquiries regarding General Manager: Finance at this report: +27 12 305 5678/5707 or [email protected] 4 Necsa Annual Report | 2018/2019FY NECSA STRATEGY STRATEGIC OVERVIEW • Nuclear Manufacturing, and • Clean Energy. Our Vision LEGISLATIVE MANDATE The Necsa Group is a world leading nuclear technology organisation that adds significant value to the economy The South African Nuclear Energy Corporation is listed and quality of life of citizens. as a Major Public Entity in PFMA Schedule 2. The company’s legislative mandate in terms of Section 13 of Our Mission the Nuclear Energy Act, No. 46 of 1999, is to To develop and utilise nuclear technologies which make • Undertake and promote research and development a socio-economic impact through materials beneficiation in the field of nuclear energy and radiation sciences and commercialisation of technologies. This will and technology and, subject to the Safeguards be achieved through environmentally responsible Agreement, to make these generally available; application of core nuclear and related technologies. • Process source material, special nuclear material, and restricted material, and to reprocess and enrich Our Values source material as well as nuclear material; and • Foundational values – Integrity, Respect, and • Co -operate with any person or institution in Accountability; matters falling within these functions, subject to the approval of the Minister. • Business values – Excellence, Innovation, and Stakeholder Orientation; and Section 14
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