Annual Report 2012 Parliamentary Portfolio Committee Presentation

1. Annual Report 2012 Parliamentary Portfolio Committee Presentation

2. “Assuring South Africans of World-class Nuclear Safety Standards & Regulatory Practices”

3. PRESENTATION • Introduction • Highlights • Performance Against Objectives • Regulation of Nuclear Activities • International Cooperation • Human Resources • Financial Report • Other issues • Update on NNR Act amendments • Update on post – restructuring of NNR period • Additional presentations to be made include • Update on safety re-assessment exercise • Special briefing on regulatory approach to the new build programme proposed

4. INTRODUCTION The National Nuclear Regulator (NNR) is a public entity which is established and governed in terms of Section 3 of the National Nuclear Regulator Act, (Act no. 47 of 1999), to provide for the protection of persons, property and the environment against nuclear damage, through the establishment and enforcement of safety standards and regulatory practices. Vision To be an independent world-class regulatory authority on nuclear safety. Mission To provide and maintain an effective and efficient national regulatory framework for the protection of persons, property and the environment against nuclear damage.

5. HIGHLIGHTS • Nuclear installations and entities under the regulatory oversight of the NNR did not expose workers to harmful levels of radiation or caused nuclear damage to the environment in 2012. • The Board and its Committees were successful in fulfilling their fiduciary duties during the period under review and continued to discharge their mandate in accordance with the set charters and King III Code of Good Governance. • In light of the Fukushima Daiichi accident the NNR directed Eskom and the South African Nuclear Energy Corporation (Necsa) to perform safety assessments on the Koeberg and SAFARI-1 nuclear installations The safety assessments were completed during the period under review and the NNR is of the view that the said facilities are sufficiently robust to withstand events such as tsunamis and earthquakes in terms of its design basis.

6. HIGHLIGHTS • As part of the continual improvement of safety and in preparation for potential new nuclear projects, the NNR participated in the South African Government’s Integrated Nuclear Infrastructure Review (INIR) process. This process will culminate in the production of a National Report that will be presented to the Executive Ministerial Committee responsible for the nuclear new-build expansion programme for South Africa. • On 1 July 2011 the NNR began to operate under a new structure. This occurred after several months of intensive work involving both internal and external consultation. The organisational restructuring process entailed a comprehensive review of the NNR structure and processes, with the aim of streamlining the organisation to improve efficiency and operations.

7. HIGHLIGHTS • During the period under review, the NNR continued to manage the allocated financial resources conservatively. Total operating revenue for the year was R125,6 million, R88,7 million of which was derived from services rendered to holders of nuclear licences (Koeberg Nuclear Power Station and Necsa), and holders of certificates of registration (mines and small users of radioactive materials and processing), and R35,4 million from a direct government grant.

8. ORGANISATIONAL PERFORMANCE

9. ORGANISATIONAL PERFORMANCE • The NNR achieved 75,3% of its planned strategic initiatives during 2011/2012. The NNR Performance Information during the period under review, is summarised in the table below.

10. REGULATION OF NUCLEAR ACTIVITIES

11. REGULATION OF NUCLEAR ACTIVITIES • The NNR is mandated to exercise regulatory control over nuclear installations, nuclear vessels, the mining and processing of uranium and radioactive oresas prescribed in the NNR Act. • The facilities and actions currently under the regulatory control of the NNR includes the Koeberg nuclear power station, the Pelindabanuclear fuel cycle, production, and research facilities, the Vaalputs nuclear waste repository and mining and minerals processing facilities / activity. • The NNR’s regulatory process entails authorisation, safety case review and assessment, development and issuance of regulations, and the undertaking of compliance assurance and enforcement activities as appropriate.

12. REGULATION OF NUCLEAR ACTIVITIES • The regulation of nuclear activities by the NNR is performed by two technical divisions, namely Standards, Authorisations, Reviews and Assessments (SARA) and Compliance Assurance and Enforcement (CAE). • The SARA Division is primarily responsible for the development of nuclear safety standards, granting nuclear authorisations;conducting safety reviews and managing special nuclear related projects. • The CAE division is primarily responsible for the establishment of effective and efficient systems related to compliance and enforcement over nuclear safety and security. These include conducting compliance assurance inspections, audits, investigations, surveillances, environmental monitoring and sampling activities.

13. AUTHORISATIONS GRANTED

14. COMPLIANCE ASSURANCE INSPECTIONS • In order to verify degree of compliance with the conditions of authorisation, the NNR undertakes independent regulatory inspections. During the reporting period the NNR conducted a total of 333 inspections which comprised of;

15. WORKER DOSES General regulatory dose limits prescribed by the NNR The NNR prescribes that occupational exposure of any worker shall be controlled to ensure that the limits shown in the table below are not exceeded.

16. WORKER DOSES • Occupational exposure at Koeberg Nuclear Power Plant, Necsa, Pelindaba Site, Necsa, Vaalputs Radioactive Waste Disposal site and mining and mineral processing facilities were within prescribed regulatory limits • Projected public exposure at Koeberg Nuclear Power Plant, Necsa, Pelindaba Site, Necsa, Vaalputs Radioactive Waste Disposal site was within prescribed regulatory limits

17. WORKER DOSES - KOEBERG Although the trend indicates an upward surge in number of workers exposed to radiation, the exposure is within regulatory limits and is managed through the operational radiation protection dose programme.

18. PUBLIC EXPOSURE • The AADQs and the projected public doses resulting from the effluent releases (both liquid and gaseous) were well within the dose constraints for the 2011 calendar year. The maximum public dose for 2011 was determined to be 0.002962mSv which is within the NNR’s regulatory limit of 0.250mSv per annum for Koeberg.

19. PUBLIC EXPOSURE– NECSA PELINDABA The AADQ’s, and the projected public doses resulting from the effluent releases (both liquid and gaseous) were well within the dose constraints for the 2011 calendar year. The projected dose to members of the public was calculated to be 0.01mSa, with the liquid effluent contributing 0.007m7Sva and the gaseous effluent contributing 0.002mSva.

20. WORKER DOSES – NECSA VAALPUTS Worker doses at Vaalputs over the past five years is within regulatory limits

21. SPECIAL CASE MINES • For a mine to be classified as a special case mine by the NNR the potential of the monthly dose rate must be 1.7mSv and above, or the projected dose of 20mSv should be exceeded • The NNR has identified 17 mining and mineral processing facilities with the potential to exceed the set regulatory limit of 20mSv/a if not closely monitored. These facilities continue to implement appropriate corrective measures such as engineering and administrative controls to ensure that all dose levels are kept ALARA as part of the on going monitoring programme.

22. SPECIAL CASE MINES A slight improvement in the observed worker doses was noted over the reporting period which can be attributed to the compliance assurance measures enforced by the NNR on the holders.

23. SPECIAL CASE MINES

24. INTERNATIONAL COOPERATION National obligations • IAEA Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management : The NNR coordinated and submitted South Africa’s national report to the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management to the Joint Convention Secretariat in October 2011. • IAEA Convention on Nuclear Safety: The NNR participated in the 5thReview meeting of the contracting parties to the IAEA Convention on Nuclear Safety.

25. INTERNATIONAL COOPERATION National obligations • IAEA Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management : The NNR coordinated and submitted South Africa’s national report to the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management to the Joint Convention Secretariat in October 2011.

26. INTERNATIONAL COOPERATION • South Africa acceded to the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management (Joint Convention) on 15 November 2006, • South Africa’s obligations under the Convention entered into force on 13 February 2007. • The first South African National Report was presented at the third Review Meeting of the Contracting Parties in May 2009. • The second South African National Report updates the first report, which documented spent fuel and radioactive waste management safety in the Republic of South Africa under the terms of the Joint Convention.

27. INTERNATIONAL COOPERATION Highlights • Radioactive Waste Management Policy and Strategy for the Republic of South Africa. • NNR and RADCON participating in IAEA AFRA Regulatory Self- Assessment Project. • NNR participates in several regional regulator forums to share experience with countries having small nuclear programs (NERS) and strengthens regulatory oversight on the African continent (FNRBA). • Cooperative governance agreement has been established between the nuclear regulators (RADCON and NNR).

28. INTERNATIONAL COOPERATION National obligations Highlights • IAEA Convention on Nuclear Safety: The NNR participated in the 5thReview meeting of the contracting parties to the IAEA Convention on Nuclear Safety. The NNR participated at the fifth Review Meeting of the Contracting Parties to the Convention on Nuclear Safety (CNS) held at the Headquarters of IAEA in Vienna, Austria from 4 to 14 April 2011. The fifth Review Meeting was the first major international nuclear safety meeting following the events of the Fukushima Daiichi Nuclear Power Plant. It was noted that South Africa’s Report to the CNS complied with the provisions of the Convention as required by Contracting Parties in the National Reports.

29. INTERNATIONAL COOPERATION • The NNR participated in the following Committees, Technical Projects and Forums; • Nuclear Safety Standards Committee (NUSSC) • Radiation Safety Standards Committee (RASSC) • Waste Safety Standards Committee (WASSC) • Transport Safety Standards Committee (TRANSSC) • Commission on Safety Standards (CSS) • IAEA Technical Co-operation Project SAF9004 • IAEA Technical Co-operation Regional Project RAF/0/033 • Multinational Design Evaluation Programme (MDEP)

30. REGIONAL COOPERATION • AFRA Within the regional African context, South Africa is a member of the African Regional Co-operative Agreement (AFRA) which was established by the heads of state of African countries that are members of the IAEA. South Africa and the NNR in particular, are being called upon to play an increasing role in the strengthening of nuclear and radiation safety regulatory infrastructure throughout the African region. • FNRBA The NNR continued to represent South Africa in the Forum for Nuclear Regulatory Bodies in Africa (FNRBA).

31. NATIONAL COOPERATION • National Co-operation In order to give effect to co-operative governance, the NNR enters into strategic co-operation agreements with national and international competent authorities for the purposes of strengthening the nuclear safety regulatory regime. During the review period the NNR held a Joint Co-ordinating Committee (JCC) meeting with the following entities from the Department of Transport: • Civil Aviation Authority (CAA) • South African Maritime Safety Authority (SAMSA) • Railway Safety Regulator (RSR) • Road Traffic Management Corporation (RTMC)

32. PUBLIC SAFETY AWARENESS Tudor Shaft Informal Settlement • NNR created safety awareness by distributing Safety information to dwellers in the Tudor Shaft Informal Settlement • NNR created general public awareness of the issues when CEO fielded a media interview with SABC TV Programme Special Assignment onsite at the Tudor Shaft Informal Settlement

33. PUBLIC SAFETY INFORMATION FORUM(PSIF) • In accordance with the provisions of Government Notice No. 299, dated 12 March 2004 and section 26(4) of the NNR Act, Public Safety Information Forums have been established by: • Eskom for the Koeberg Nuclear Power Station, and • Necsa for Pelindaba and Vaalputs respectively. • During the period under review, NNR officials attended PSIF meetings and conducted presentations related to emergency planning and preparedness. The PSIF chairpersons and deputy chairpersons were duly appointed by the NNR Board of Directors during the period under review.

34. HUMAN RESOURCES

35. HUMAN RESOURCES • The NNR plays a pivotal role in overseeing the effective regulation of the nuclear industry and the maintenance of high safety standards. The recent developments in the nuclear sector in South Africa, and the ensuing competition for skilled and experienced personnel, have crucial implications for the recruitment, retention and development of trained staff members within the nuclear regulatory function. • The staff complement of the NNR during the reporting period was 106 and is apportioned as follows: • Management 19 • Technical/professional staff 61 • Support staff 26

36. HUMAN RESOURCES • The NNR continues to strive towards maintaining a workforce that mirrors the profile of the people that it services. During the period under review, the NNR achieved a 55% male/female split on the legislators, senior management and managers’ level. In line with the NNR’s employment equity objectives, African females account for 31.4% of the entire workforce, while African males account for 28%. Nine percent of our workforce is represented by coloured males, while coloured females account for 2.2%. Indian females account for 3.3% while Indian males represent 1.1% of the workforce. White males accounted for 17% and white females accounted for 8%.

37. HUMAN RESOURCES • During the period under review, the NNR went through a process of restructuring, which resulted in a leaner and flatter structure. With the filling of the new posts created by the restructure, new senior management was born. Significant performance improvements have since been registered and the NNR continues to enjoy innovation, quality work output and a generally positive work ethic. Of the 21 terminations 12 were as a result of retrenchments due to the restructuring process, five were resignations while one person retired and one was terminated through a disciplinary process. Two NNR employees passed away. The statistics reflect a healthy level of labour turnover and a stable work environment.

38. HUMAN RESOURCES Workforce profile

39. HUMAN RESOURCES Contractor’s worker profile

40. HUMAN RESOURCES Terminations

41. HUMAN RESOURCES Appointments profile

42. HUMAN RESOURCES Promotions

43. HUMAN RESOURCES Skills development

44. HUMAN RESOURCES Bursaries

45. FINANCIAL REPORT

46. FINANCIAL REPORT: STATEMENT OF FINANCIAL PERFORMANCE

47. FINANCIAL REPORT: FINANCIAL PERFORMANCE ANALYSIS • The NNR revenue grew by 14% from the previous financial year mainly from the increase on authorisation fees • The compensation of employees increased by 10% from the previous financial year due to the minimal growth on capacity and annual cost of living adjustment • The Depreciation costs in the same period increased by 138% in line with the leasehold assets associated with the new HQ in Centurion occupied through an operating lease with an option to purchase • The move to the new office resulted in 15% decline on maintenance costs during the year under review • Overall the NNR realised an operating surplus of R1,2 million which is just below 1% of the total budget

48. FINANCIAL REPORT: STATEMENT OF FINANCIAL POSITION

49. FINANCIAL REPORT: FINANCIAL POSITION ANALYSIS • Trade and other receivables increased significantly by 148% during the year due to the deposit of R20 million paid for the leased build to secure the option to buy the property as per lease agreement • The cash and cash equivalent decreased proportionally du to the transaction above • The post retirement liabilities increased by 122% during the period under review. The liability is however being stabilised as members exercise an option to surrender the facility. • The provisions decreased by about 27% mainly due to finalisation of organisational restructuring and utilisation of the funding that was provided for in the previous year

50. FINANCIAL REPORT AG • Audit Report • The NNR obtained an unqualified audit report for the third year in succession during 2011/12 financial year The entity developed and is implementing an audit management letter resolution plan addressing amongst others the following key issues raised by the Auditor General: • Significant changes on the financial statements through audit adjustments • Assets Management system that had programmatic error on depreciation calculation • Internal control deficiencies on cash administration • And the following issues with regard to performance information • Performance targets not time bound • Reliability of information