This Policy serves as an embodiment of the South African Government's commitment to the further development and expansion of the existing nuclear energy sector in a coordinated manner. It presents the Government's vision for nuclear energy and proposes a framework within which this vision can be attained. The current involvement and activities in the nuclear energy sector both upstream and downstream are outlined. The long term vision of becoming globally competitive in the use of innovative technology for the design, manufacture and deployment of state of the art nuclear energy systems and power reactors and the nuclear fuel cycle is presented.

This vision is premised on Article IV of the Treaty on the Non-proliferation of Nuclear Weapons (NPT) which affirms South Africa's inalienable right to research, develop, produce and use nuclear energy for peaceful purposes.

South Africa has a track record of safe and secure nuclear power plant operation and maintenance, as well as world class research capabilities and development experience and use of nuclear power technology.

South Africa has an energy intensive economy mainly as a consequence of the exploitation of the country's mineral resources. Coal accounts for over 90% of the total electricity generating capacity. This is mainly due to the abundant coal deposits in the north-eastern parts of the country. This resulted in South Africa building its first nuclear power station in the Western Cape during the 1980's in order to ameliorate the situation. Although at present nuclear power accounts for only approximately 6% of electricity generated in the country, it is very important in an area where there are no coal reserves.

Concerns over increases in the price of coal, reserve exhaustion and global warming, partly as a result of greenhouse gas emissions and other atmospheric pollutants, necessitate a departure from the over-reliance on electricity generated from coal.

The White Paper on Energy Policy calls for the achievement of energy security through the diversification of primary energy sources. Further, South Africa's electricity generation capacity has to be increased significantly in the next few decades to facilitate economic growth and social progress, while remaining sensitive to climate change. This presents an opportunity to promote diversity in primary energy sources, considering that the use of nuclear energy is increasingly being recognised worldwide as one of the strategies to mitigate greenhouse gas emissions and global warming, since it is an important low carbon emission source of electricity generation compared to fossil fuels.

South Africa also possesses sizeable uranium reserves and has an extensive uranium mining industry, making the country one of the important producers of uranium in the world. The presence of this primary energy source in South Africa is a key element of security of energy supply nationally.

The geographical positioning of South Africa and limited resources in certain areas makes nuclear energy a viable alternative to coal for electricity generation on a large scale. Nuclear energy is attractive for a number of reasons amongst which are the following:

The White Paper on Energy Policy (1998) also states that "Government will ensure that decisions to construct new nuclear power stations are taken within the context of an integrated energy policy planning process with due consideration given to all relevant legislation and the process subject to structured participation and consultation with all stakeholders". This policy provision has in the meantime been taken over by pressing energy security challenges and although the Department of Minerals and Energy published the "Integrated Energy Plan for the Republic of South Africa" (19 March 2003) it only indicated that investigations into nuclear options as a future energy source should continue. Based on Government's fundamental position on diversification of energy resources to ensure security of supply, Nuclear is a viable energy resource for base load electricity production in the areas of South Africa that have no alternative energy resources that can be used for base load power. With regard to public consultation on the construction of new nuclear power stations new legislation promulgated since the 1998 White Paper on Energy Policy makes provision for such consultation during the Environmental Impact Assessment process and the Nuclear Installation Licensing process.

It is universally accepted that energy, and access to it, is essential for human development. Equally the continued health of the planet's environment is of concern to many Governments including the South African Government. There is consensus on the need to save energy, to diversify energy sources and to improve energy efficiency, while reducing greenhouse gas emissions. As a result there is a resurgence of electricity generation through the use of nuclear energy. Climate change and pressures on greenhouse gas emissions have resulted in many countries having adopted and launched nuclear energy programmes for electricity generation. This is because the contribution from nuclear power generation to greenhouse gases is negligible compared to fossil fuels. It is therefore anticipated that suppliers, manufacturers and operators will increasingly pay attention to nuclear technology as an important source of electricity generation. South Africa as a global player experiences similar energy policy driving forces and needs to respond appropriately.

Through this Policy Government aims to achieve the following objectives:

The Minister of Minerals and Energy is the responsible line Minister for the governance of the nuclear industry and related matters. Apart from the Minister's authority over radioactive waste and irradiated nuclear fuel, the Minister also regulates matters regarding nuclear non-proliferation as set out in the Nuclear Energy Act.

Nuclear energy policy is guided by the White Paper on Energy Policy as approved by Government at the end of 1998, where it was retained as one of the policy options for electricity generation. As part of national policy government also encouraged a diversity of both supply sources and primary energy carriers. In terms of the White Paper Government will investigate the long-term contribution nuclear power can make to the country's energy economy and, secondly, how the existing nuclear industrial infrastructure can be optimised. This Nuclear Energy Policy outlines the vision envisaged in the White Paper. Some of the main policy objectives relate to decisions regarding possible new nuclear power stations, the management of radioactive waste, safety monitoring of the nuclear industry, effectiveness and adequacy of regulatory oversight, and a review of bodies associated with the nuclear industry.

The Nuclear Energy Act provides for the following:

Establishment of the South African Nuclear Energy Corporation wholly owned by the State with its main function being to undertake and promote research and development in the field of nuclear energy and radiation science and technology

Ministerial responsibility for the implementation and application of the Safeguards Agreement entered into by the Republic and the International Atomic Energy Agency (IAEA) in fulfilment of South Africa's obligations under the Nuclear Non-Proliferation Treaty and any additional protocols.

Ministerial authority to regulate the acquisition and possession of nuclear material and related equipment in consultation with the South African Council for the Non-proliferation of Weapons of Mass Destruction, in order to comply with the international obligations of the Republic.

Ministerial authority over the management and discarding of radioactive waste and the storage of irradiated nuclear fuel.

This Act establishes the National Nuclear Regulator. The main object of the Regulator is to provide for the protection of persons, property and environment against nuclear damage through the establishment of safety standards and regulatory practices.

The Radioactive Waste Management Policy and Strategy for the Republic of South Africa (2005) establishes a national radioactive waste policy framework setting out the principles for management. It further provides for the necessary management structures for radioactive waste management.

Other secondary legislation that govern nuclear energy related matters are the Hazardous Substances Act, 1973 (Act No. 15 of 1973), the Non-Proliferation of Weapons of Mass Destruction Act, 1993 (Act No. 87 of 1993), the Mine Health & Safety Act (Act No. 29 of 1996), the Mineral and Petroleum Resources Development Act, (Act No. 28 of 2002), the National Environmental Management Act (Act No.1 07 of 1998), the National Water Act (Act No. 36 of 1998),the Electricity Regulation Act, 2006 (Act NO.4 of 2006) and the National Energy Regulator Act, 2004 (Act No. 40 of 2004).

South African private sector companies currently mine and export uranium ore without appreciable levels of beneficiation. Due to a high price increase there has been increased interest in the exploration and mining of uranium ore, however without any appreciable increase in the beneficiation of uranium ore concentrates.

The South African Nuclear Energy Corporation (NECSA) was established as a public company in terms of the Nuclear Energy Act, 1999 (Act No. 46 of 1999) and is wholly owned by the State. The main functions of NECSA are to undertake and promote research and development in the field of nuclear energy and radiation sciences and technology; to process source material, special nuclear material and restricted material and to co-operate with persons in matters falling within these functions. Apart from its main operations at Pelindaba, including the SAFARI research reactor, NECSA also operates the Vaalputs National Radioactive Waste Disposal Facility presently licensed to receive low & intermediate radioactive waste. South Africa has technical expertise on nuclear technology at NECSA, including expertise on uranium conversion and enrichment remaining from South Africa's previous nuclear weapons programme.

Eskom is the owner and operator of the Koeberg Nuclear Power Station. Construction of Koeberg's two reactors commenced in 1976 under a turn-key contract and they have operated safely in the more than 20 years since their commissioning in 1984 and 1985 respectively. Koeberg supplies 1800 MWe to the national grid when both reactors are operating at full power contributing approximately 6% of South Africa's electricity. With most of South Africa's electricity generating stations situated on the highveld coal fields, Koeberg provides a necessary anchor for the electricity transmission network. South Africa's expertise with respect to the management, operation and maintenance of nuclear power plants resides in Eskom.

The PBMR Company is developing a fuel manufacturing plant and a demonstration high temperature gas cooled reactor, which is a low power output reactor designed toward meeting Generation IV requirements, applicable to both electricity generation and process heat applications.

The National Nuclear Regulator (NNR) was established in terms of the National Nuclear Regulator Act, 1999 (Act No. 47 of 1999). The main objectives of the NNR are to provide for safety standards and regulatory practices for protection of persons, property and the environment from nuclear damage; to exercise regulatory control related to safety over the siting, design, construction, operation, manufacture of component parts, decontamination, decommissioning and closure of nuclear installations; to exercise regulatory control over vessels propelled by nuclear power or having radioactive material on board which is capable of causing nuclear damage; to exercise regulatory control over other actions to which the Nf\IR Act applies; to provide assurance of compliance and to ensure that provisions for nuclear emergency planning are in place. For purposes of the NNR Act the NNR is also the national competent authority in connection with the International Atomic Energy Agency's Regulations for the Safe Transport of Radioactive Material.

The Government's vision for nuclear energy shall be guided by the following principles:

Government shall be responsible for:

Where necessary amendments to existing legislation will be made to ensurealignment with the Policy Objectives.

Regulatory bodies shall be responsible for the efficient and cost-effective enforcement of compliance with legal requirements and internationally benchmarked regulatory requirements as well as provide advice to Government as appropriate.

Operators shall be responsible for fulfilling all regulatory requirements and for ensuring that decisions are taken within the confines of this Policy and any applicable legislation.

Investment funding to implement the nuclear energy programme envisaged by this policy shall be from government and public entities. Private sector investment will also be promoted in all aspects of the nuclear fuel cycle.

Nuclear activities take place within the framework of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) and other international obligations and commitments. National Obligations in this regard include a Comprehensive Safeguards Agreement with the International Atomic Energy Agency (IAEA) and an Additional Protocol. South Africa shall continue to fulfil all its multilateral obligations and commitments under the relevant international non-proliferation instruments.

When planning and promoting research, development and utilisation of nuclear energy for peaceful purposes, Government will cooperate and collaborate internationally within the constraint of protecting intellectual property in its national programme.

With due regard to its international legal obligations and commitments and national legislation, South Africa shall pursue bilateral cooperation with other states:

South Africa shall pursue multilateral cooperation on nuclear energy in terms of the national policy approach to multilateral institutions taking into account international obligations arising from treaties and other legally binding instruments. The Government recognises the International Atomic Energy Agency (IAEA) as the leading multilateral institution responsible for promoting the peaceful uses of nuclear energy.

In accordance with the African Nuclear-Weapons-Free-Zone Treaty (also known as the Treaty of Pelindaba) opened for signature on 11 April 1996, South Africa will host the Treaty's African Commission on Nuclear Energy (AFCONE) once the Treaty enters into force. The Commission is the Treaty's mechanism to ensure compliance with the obligations contained in the Treaty, which includes the encouragement and promotion of regional, sub-regional programmes and international co-operation in the peaceful uses of nuclear science and technology. The hosting of the Commission is a demonstration of South Africa's commitment to the Treaty and the promotion of it's obligations and undertakings.

South Africa will actively seek to promote uranium beneficiation on a regional basis.