Necsa has to position itself to be a serious player in nuclear matters in terms of:
- active involvement in the international nuclear arena.
- establishing Necsa as a recognized centre of excellence in nuclear technology and related fields.
- becoming a major contributor towards the national agenda of developing people of South Africa.
CHAIRMAN’S REPORT HIGHLIGHTS AND CHALLENGES
SAFARI-1 reactor achieved 40 years of safe and successful operation.
Necsa continued to experience a negative impact from the strengthening of the rand which resulted in net operating loss of R29m
To reverse the financial challenge, a Recovery Plan was launched in consultation with labour.
Reduced discretionary spending through the implementation of strict austerity measures.
Necsa experts continued to play a pivotal role in the International Atomic Energy Agency/African Regional Co-operative Agreement for Research, Development and Training Related to Nuclear Science and Technology collaborative research, development and training programmes.
CHAIRMAN’S REPORT: LOOKING AHEAD
Need to empower and re-organize Board of Directors
Board intends to take SA’s nuclear science and technology to new highs of development and invention
Necsa to be established as a centre of excellence
Necsa needs additional funding support to:
- remove balance sheet encumbarances
- recapitalise and turn Necsa around
MANAGEMENT REPORT: HIGHLIGHTS
Necsa experienced a turbulent time during 2004/05 but maintained its positive image and remained balanced.
Management and staff remained committed to safe and secured nuclear operations.
Group revenue increased by 2,2% from previous year.
Made good progress to curb the escalating cost of post-retirement medical aid liability.
Success in improving gender equity quota
- woman now 23% in 3 critical categories
MANAGEMENT REPORT: HIGHLIGHTS
A woman was appointed as CFO of Necsa and acted as CEO from April to October 2005.
Target that 40% of workforce will be women by 2010.
Provide products regularly and reliably to 50 countries mainly through NTP Radioisotopes (Pty) Ltd (a fully Necsa owned subsidiary).
Implemented a staff retention strategy to protect core skills.
Necsa has numerous collaborative research projects with the high education sector including universities and research institutions.
Necsa engaged in various awareness and public relations programmes to educate stakeholders on nuclear matters.
SAFARI-1 (SA FUNDAMENTAL ATOMIC REACTOR INSTALLATION)
SAFARI-1 is the mainstay of Necsa’s nuclear programme and will render at least a further 20 years service to the country .
Research reactor also utilized for production of medical radioisotopes mainly during last 10 years.
Annually ~60 000 SA and 2,3 million patients across the world benefit from isotopes originating from SAFARI-1.
Experimental beam line facilities are used extensively for research and training.
ISO9001 and ISO14001 accredited (this is an exceptional achievement which only a few reactors in the world received)
SAFARI-1 currently one of most efficiently operated and best utilized reactors in the world.
The Government has approved that the reactor be converted to utilize low enriched uranium together with dedicated funding for this purpose (R12m/a for 3 years).
PRODUCTS AND SERVICES
Major products and services:
Radiopharmaceuticals used in nuclear medicine
Radiochemicals used for medical and agricultural purposes
Radioactive sources used in industry
Irradiation services and radiation technology products
Fluorine-based chemical products and services
Specialised engineering products and services
Operation of SAFARI-1 nuclear reactor
Management of the institutional obligations on behalf of the State such as decommissioning, decontamination, storage and disposal of radioactive waste
Management of the State’s programme of safeguarding nuclear material to prevent proliferation of nuclear weapons
Provision of a support structure for African Regional Co-operative Agreement for Research, Development and Training
Development of nuclear fuel production technology for PBMR
Radiation and reactor theory; research and services to Necsa and the PBMR Programme
Radiochemistry and radioanalytical services for Necsa
Utilisation of existing infrastructure and buildings
Research collaboration with SA and international universities and research institutions
ECONOMIC PERFORMANCE INDICATORS
Approximately 14,8 per cent suppliers listed as black suppliers
33% of Necsa’s budget was spent on black suppliers
42% of Necsa’s expenditure comprised personnel expenses
69,6% of our workforce comprises designated employees
Due to a moratorium on appointments, we lost 235 employees who was replaced with 168 new appointees
Strong alliance with the Chemical Industries’ Education and Training Authority SETA.
About 70 learnerships were trained in various occupations such as engineering, chemistry, apprenticeships.
Though the Necsa bursary scheme, 24 previous disadvantaged students are being sponsored for their studies in science and technology.
A total of 1409 employees received training, some of whom attend more than one course in various disciplines, including leadership development, health and safety and technical training.
ARECSA is a joint venture between five SA companies, namely, Eskom, Necsa, PBMR, NNR, Koeberg and Areva (France) for the training of especially previously disadvantaged individuals in the much sought-after nuclear and related skills.
Necsa: CURRENT SITUATION
Deficit recorded for 2004/05 – R29,8m - cumulative R95,6m
Vacancy of key personnel - 183
Austerity measures due to cash constraints
HSE & security risk profile deteriorated
Management systems inadequate
Declining market conditions
Economy of scale problems and operational inefficiencies
Volatility of exchange rates
Limited funding of institutional obligations by shareholder
LOOKING TO THE FUTURE
Necsa received an additional allocation of R56m for the current year to implement urgent HSE-related projects and to meet its commitments.
Possible DST financial support for specific R&D projects.
Additional funding envisaged from 2006/07 financial year onwards.
Turnaround Plan submitted to Government.
Projects to focus on:
Nuclear technology R&D expansion and upgrading.
Restructuring and recapitalisation of commercial activities.
Human capital development programmes.
Infrastructure and HSE upgrading.
High Temperature Reactor/PBMR Advance Fuel Development.
Necsa TURNAROUND PROGRAMME
The Turnaround Plan to run over 5 years.
Necsa will prioritise projects within available funding allocations.
The plan will be aimed at the renewal of Necsa to take advantage of the re-emerging nuclear market.
The plan will require significant commitment from Necsa, the Board and Government.
Necsa is confident that the implementation of the plan will yield the desired results to ensure that Necsa could fulfill its mandate and be looked upon as a centre of excellence for the nuclear industry.