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30 April 2013. Necsa group corporate plan (2013/14 - 2015/16). By: Ambassador Mochubela Seekoe , Chairperson Mr Phumzile Tshelane, CEO Mr Daniel Moagi, Group Executive: Human Resources Ms Mbali Mfeka, Acting Group Executive: Finance and Information Management
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30 April 2013 Necsa group corporate plan (2013/14 - 2015/16) By: Ambassador MochubelaSeekoe, Chairperson Mr Phumzile Tshelane, CEO Mr Daniel Moagi, Group Executive: Human Resources Ms Mbali Mfeka, Acting Group Executive: Finance and Information Management Ms Chantal Janneker, Group Executive: Marketing and Communication
Index • Necsa’s Legislative and Policy Mandate • Alignment to Government Policy • Necsa’s Achievements in 2012/13 • Key objectives of the Necsa Group • Cross-cutting Management Priorities • Key Risks for the Necsa Group • Critical Success Factors for the NecsaGroup • Government Grant Budget 2014 • Government Grant Reduction Trend Continues…
Index • Group Revenue Graph 2013/14 • Group Expenditure Graph 2013/14 • Necsa Group Capital Expenditure Plan • Necsa Corporation Revenue Graph 2013/14 • Necsa Corporation Expenditure Graph 2013/14 • Human Resources • Necsa Group Predetermined Objectives and Key performance Indicators for 2013/14 - 2015/16
Necsa’s Main Functions (in terms of the Nuclear Energy Act, 1999) To undertake and promote research and development in the field of nuclear energy and radiation sciences and technology and .… to make these generally available. To process source material, special nuclear material and restricted material and to reprocess and enrich source material and nuclear material. To co-operate with any person or institution in matters falling within these functions. Also: Execute institutional responsibilities on behalf of government, e.g. operation and utilisation of SAFARI-1, decommissioning and waste management, international obligations.
Necsa in the Nuclear Energy Policy (2008) • Necsa shall serve as the anchor for nuclear energy research, development and innovation in South Africa. • Necsa shall be encouraged to participate in the uranium value chain. • Government, through Necsa, shall undertake/investigate... • the development of uranium conversion capabilities, • the viability of developing its own uranium enrichment capabilities and simultaneously seek to obtain access to established uranium enrichment programmes, • a strategy to develop nuclear fuel fabrication capabilities. • Government’s intention is to…establish a modern nuclear technology industry including manufacturing and construction capabilities as well as services.
Alignment with IPAP 2013/14-2015/16 • Pharmaceuticals – The Government supported Ketlaphela project to manufacture active pharmaceutical ingredients for antiretroviral treatment of patients with HIV-AIDS will be implemented in partnership between Pelchem, the IDC and Swiss company Lonza. • Nuclear Energy – Necsa participates in the Nuclear Energy Sub-working Group (NESWG) on Skills, Localisation and Industrialisation which is tasked with the development of localisation strategies and plans to support local industry.
Achievements • Necsa Group revenue in the 2011/12 financial year amounted to R1.11 billion (including grants and investment income this equals R1.64 billion). The group revenue for the 2012/13 financial year is forecast to be R1.66 billion. • NTP Radioisotopes (Pty) Ltd, the SAFARI-1 Reactor and the Necsa MTR Fuel Department managed to maintain the Necsa Group in a strong position in the radioisotope market. During the 2012/13 financial year the NTP Group achieved sales of R842 million. • The Necsa R&D division continues to meet and exceed innovation (17 innovation disclosures for 2012/13) value chain outputs with the number of peer-reviewed publications (34 for 2012/13) being doubled in the last 3 years.
Achievements • NTP donated a PET-CT scanner to the Tygerberg hospital to assist with oncology diagnoses.
Achievements • Necsa’s Radiochemistry group using NTP’s cyclotron produced a prostrate cancer imaging agent for use in a collaborative study by Prof. Mike Sathekge of the Steve Biko Academic hospital (SBAH) and the Pretoria University. • Other on-going R&D collaboration between Necsa/NTP and SBAH includes: • TB vs co-occurring cancer and TB diagnosis and treatment planning • HIV-AIDS imaging and therapy • Infection imaging
Achievements • Comprehensive feasibility studies relating to the re-establishment of nuclear fuel cycle programmes in South Africa was completed during 2011. Excellent relationships with most major international suppliers of fuel cycle technologies and products were developed. Significant capital investment is required if the vision of a future local fuel supply to the power reactor fleet is to be achieved. • The Nuclear Skills Development Centre received accreditation from various SETAs and recognition as a Decentralised Trade Test Centre for the final trade testing of apprentices and is currently in strong demand. • Necsa contributed to a range of policy making and public participation processes relating to the energy planning, nuclear energy R&D and related topics, and maintained participation in national and international collaborative programmes in the field of nuclear R&D and Generation IV nuclear energy systems.
Achievements • The Necsa Visitor Centre continues playing a significant role in improving public understanding of nuclear science and technology. • The Necsa Group continued to demonstrate compliance to good corporate governance by receiving unqualified audit reports from the Auditor General.
International Collaboration • Necsa to establish the Comprehensive Test Ban Treaty Organisation (CTBTO) Radionuclide Monitoring Station in the Western Cape. • Continued international R&D collaboration. • Establishment of NTP Europe. • Business collaboration between NTP and their Australian counterpart the Australian Nuclear Science and Technology Organisation (ANSTO).
Key Objectives of the Necsa Group Nuclear Power Cluster • To establish the Nuclear Manufacturing Centre as a viable entity. • To implement Pelchem’s strategy for growth and sustainability, including an increase of income from R203.5m (2012/13 forecast) to R376.1m by 2016/17. • To assess the viability of a future nuclear fuel cycle (front end) services industry in South Africa and to progress towards the development or demonstration of required processes and technologies.
Key Objectives of the Necsa Group Radiation Science and Applications Cluster • To maintain full operational capability of SAFARI-1 and implement the reactor’s ageing management programme. • To expand SAFARI-1 based R&D facilities and outputs. • To achieve the project targets for the establishment of an LEU fuel and target plate manufacturing plant. • To continue with the feasibility study on a multipurpose research reactor to replace SAFARI-1 at the end of its operational lifetime. • To grow NTP Group income from R952.5m (2012/13 forecast) to R1563.9m by 2016/17.
Key Objectives of the Necsa Group Necsa as Host of Nuclear Programmes Cluster • To increase Necsa’s research, development and innovation outputs. • Maintain and improve the Necsa Group safety culture, SHEQ processes and procedures, audit and reporting practices to ensure full compliance with all regulatory and best practice requirements. • To achieve a reduced but sustainable salary bill within existing funding constraints. • To maintain infrastructure at a suitable level.
Cross-cutting Executive Management Driven Priorities In addition to the strategic objectives already listed Necsa Executive management has selected the following main management priorities for the near term: • Obtaining early Shareholder support for key strategic projects. • Raising the performance of R&D, NMC, NURAD, the NTP Group (specifically its off-shore subsidiaries) and the Pelchem Group. • Increasing the awareness of Necsa research and production outputs and the positive impact thereof. • Finding sustainable funding models for the expansion and enhanced viability of Necsa subsidiaries.
Cross-cutting Executive Management Driven Priorities • Expanding R&D collaboration with iThemba LABS and the rest of the National System of Innovation, including government departments such as DST. • Future proofing of Necsa activities through the SAFARI-2 feasibility study, ensuring LEU fuel and target plate security of supply and commercial sustainability, and driving SAFARI-1 life extension within a proper regulated framework. • Maintenance of site infrastructure based on the risks and potential liabilities associated with such infrastructure.
Cross-cutting Executive Management Driven Priorities • Strengthening Necsa’s project management and business development capabilities. • Skills development and transformation by advancing employment equity, growing the pipeline of graduates and lowering the average age of researchers. • Ensuring optimisation and efficiency of all Necsa resources
Key Risks for the Necsa Group • Growing financial constraints experienced by Necsa Corporation. The fixed cost base which increased at a higher rate than the government grant and self-generated income; • Ageing equipment and infrastructure as well as production plant availability; • Business sustainability challenges and extremely tough global market conditions experienced by both the NTP Group and the Pelchem Group, which are being addressed though a range of interventions aimed at the restoration of Pelchem’s financial viability and removing some constraints among offshore subsidiaries of NTP;
Critical Success Factors for the Group • Improved sustainability of Necsa • Expand efforts to access research based and other grants from the DST and its entities • Obtain external funding for commercial projects. • Optimise the business relationship between NTP and its subsidiaries to ensure that the required growth and profitability targets are achieved within an appropriate governance framework • External direct investment in Pelchem is vital for its future development and sustainability
Necsa Group Capital Expenditure 2013/14 to 2016/17 – Classification
Necsa Group Capital Expenditure 2013/14 to 2016/17 – Per company
Necsa Corporation Capital Expenditure 2013/14 to 2016/17 Classification
PFMA s54 (2) (d) APPROVALS REQUIRED FOR CAPEX The following capital projects are above the significance level as per the significance and materiality framework, and will be subject to a section 54 approval process. All of these projects are scheduled to be undertaken over the MTEF period:
Human Resources The Human Resources department plays a key support role in Necsa to ensure availability of personnel that meet nuclear industry requirements and standards, as well as affordability and sustainability in terms of the corporate resources. The implementation of the new organisational structure, stabilisation of the HR environment, transformation and the implementation of the business plan for the Nuclear Learning Academy (NLA) are the key priorities for the financial year.
Human Resource Development Priorities • Increase the ratio’s of technical staff in regard to support staff. • Increase the number of Previously Disadvantaged Individuals (PDI) technical staff. • Increase the number of researchers with Masters and PHD degrees. • Establish a nuclear education and training unit within the Necsa Learning Academy. • Establish an advance manufacturing skills welding centre of excellence. • Launch the Radiation Protection Training Centre. 43
Human Resource Development Priorities Cont … Increase the ratio’s of technical staff in regard to support staff, as well as increase the number of Previously Disadvantaged Individuals (PDI)
Necsa Learning Academy (NLA) • Apprenticeships and Learnerships • The NSD plans to train 218 at its facilities. • NSD was accredited as the preferred training provider to train the Master Tooling artisans for Industry (DTI project). The first 46 students are enrolled and the number will be extended to 96 during the year. • Due to the need to train quality Coded Welders for industry, NSD has extended it’s welding division to accommodate Coded Welding which will be launched in August. The project is funded by Alstom. 46
Necsa Learning Academy (NLA) Cont … • Nuclear Skills Development Centre (NSD) • The NSD continues to grow and fulfill its mandate in terms of the National Skills Development Strategy and has increased the number of students in its facility by catering for the following clients: • Department of Public Works (42 students) • Development Bank of South Africa (46 students) • Grinaker LTA (96 students) • Sesto (55 students) • NTIP (46 students) • Others (157 students) 47
Necsa Learning Academy (NLA) Cont … • Decentralised Trade Test Centre (DTTC) The target for the DTTC is to increase the number of people coming to 2880 for the following: • pre-tests to determine the readiness of candidates for the final trade tests • Trade test preparation required by the SETAS, and • trade tests assessments and • Those who pass their trade tests (53%). 48
Necsa Group Predetermined Objectives and Key Performance Indicators
Necsa Group Predetermined Objectives and KPIs for 2013/14 - 2015/16
