Uranium industry in Niger from AREVA to Chinese companies
One uranium mine in Niger says a lot about China’s huge nuclear-power ambitions, Business Insider, 25 Oct 15, ARMIN ROSEN “………the ambitions of the nuclear powers in Niger are still playing out today as Niger’s remote and inhospitable northern desert environment contains the world’s fifth-largest recoverable uranium reserves, some 7% of the global total.
A fourth mine, in a place called Azelik, near the mostly ethnic Tuareg city of In’gall, is currently much smaller than the other three sites.
Like Imouraren, it’s currently shuttered as a partial result of the uranium price dip. But because of its ownership and a checkered recent history, it’s an instructive guide to the future of Niger’s uranium and the global nuclear energy industry at large.
Niger’s Azelik uranium mine, owned and operated by Chinese companies, is at the geographic and economic fringes of a continent-wide wave of Chinese investment, goods, and people. Continue reading
South Africa; court action to stop nuclear procurement
Court bid to stop SA nuclear procurement http://citizen.co.za/820348/court-bid-to-stop-sa-nuclear-procurement/Paperswere lodged with the Cape High Court this week in an application against Energy Minister Tina Joemat-Pettersson and President Jacob Zuma, aimed at stopping the country’s nuclear procurement programme.
Environmental group Earthlife Africa and the South African Faith Communities Environment Institute (SAFCEI) on Thursday announced that it had lodged an application in this regard. Other respondents are the National Energy Regulator (Nersa), Chairperson of the National Council of Provinces and the Speaker of the National Assembly. No relief is sought against these three.
The applicants, however, need money for what is expected to be a long and costly fight against government. They currently have less than R1 million available for legal costs and are busy raising more funds.
The South African government is preparing for a nuclear power procurement programme based on the 2010 Integrated Resource Plan (IRP) that suggests the country will need 9 600MW nuclear generation capacity by 2030. Details about which State entity will implement the project and the structure of the procurement process are however still unknown and there is much concern about the affordability of nuclear power.
The applicants argue in their papers that Joemat-Pettersson has failed to put the necessary processes in place to ensure that the nuclear procurement is conducted lawfully and meets the requirements of the Constitution for a fair, equitable, transparent, competitive and cost-effective process.
“Notwithstanding the vast sums of money to be committed, and the potentially long-term effect on the economy and for consumers of electricity and present and future generations of South Africans, the decision to proceed with procuring these nuclear power plants (the so called nuclear fleet), and to have concluded such procurement in the next few months, has occurred without any of the necessary statutory and constitutional decisions having been lawfully taken,” the applicants argue.
They are challenging the legality of the inter-governmental agreements between South Africa and Russia, the US and Korea, respectively. These agreements were held by the Department of Energy to be done in preparation of the actual procurement.
They are asking the court to set these agreements aside and, among other things, challenge certain decisions by Joemat-Pettersson, in consultation with Nersa, prior to making the formal determination about the amount of nuclear capacity the country needs.
They maintain a fair, equitable, transparent, cost-effective and competitive procurement process cannot take place in the current circumstances and are seeking a declaratory order in this regard.
In terms of the court rules Joemat-Pettersson and President Zuma have ten days to file opposing papers.
SAFCEI spokesperson Liziwe McDaid said the organisation does not support the notion that the country needs base load energy with coal and nuclear being the only viable options. She said a mix of renewable energy technologies as well as gas, but excluding fracking, is more appropriate.
It will be a mistake to lock the country into unaffordable nuclear projects that are in actual fact outdated technology, she said. Decommissioning of the country’s older coal-fired power stations will begin in about ten years’ time. During this period huge strides may be made with regard to technological solutions for the storage of renewable energy and that will be a better replacement for the coal-fired fleet than nuclear, she said.
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South African environmental groups sue Energy Minister over nuclear agreements
Environmental groups take energy minister to court over nuclear agreements https://www.enca.com/south-africa/environmental-groups-take-energy-minister-court-over-nuclear-agreements SOUTH AFRICA Thursday 15 October 2015 JOHANNESBURG – While South Africa has signed a number of intergovernmental framework agreements with Russia, China, South Korea and the USA on the country’s planned nuclear development, environmental groups say they are frustrated with the lack of transparency.
On Monday, they filed court papers challenging the constitutionality of the agreements.
Earthlife Africa Johannesburg and the South African Faith Communities Environment Institution want the intergovernmental framework agreements for nuclear procurement set aside.
They say their attempts to get information on the nuclear procurement deal have been blocked.
“We are concerned citizens standing up against the unlawful and unconstitutional exercise of power by government, and in the public interest are going to court in an effort to protect our constitutional rights,” said Makoma Lekalakala, senior programme officer at Earthlife.
Safcei’s Liz McDaid says that faith communities in their network are increasingly concerned about the government’s continued support for nuclear energy despite a lack of evidence that SA can afford it.
“Ethical governance has to be the cornerstone of true democracy,” she said.
- The organisations are represented by Adrian Pole Attorneys, assisted by the legal resource centre.
The application will challenge the legality and constitutionality of:
• the intergovernmental agreement (IGA) on strategic partnership and nuclear cooperation signed with Russia in 2014
• the tabling of the Russian IGA in Parliament under a provision that makes the agreement binding on the international plane without the need for parliamentary ratification
• the tabling of outdated IGAs on nuclear cooperation entered into with the USA and Republic of Korea
Environmental lawyer Adrian Pole says that the signing of the binding agreements is unconstitutional and unlawful because proper process wasn’t followed.
“In terms of section 34 of the electricity regulation act the minister in consultation with the energy regulator is required to make a determination on whether new electricity generation is needed and how much new nuclear generation capacity is required,” he said.
This should have been done with Nersa during a public participation process said Pole. Applicants will be using section 217 of constiution to argue that framework agreements be set aside @eNCA #nuclear
- The minister of energy is expected to respond to the application within 10 days.
To view the full unsigned court application see below:
In South Africa, nuclear plans might not proceed: parliament approval is necessary
Nuclear build plans need Parliament’s approval, MPs told http://www.bdlive.co.za/business/energy/2015/10/13/nuclear-build-plans-need-parliaments-approval-mps-told BY LINDA ENSOR, 13 OCTOBER 2015, IT WAS “HIGHLY IMPROBABLE” THAT GOVERNMENT WOULD PROCEED WITH THE NUCLEAR BUILD PROGRAMME WITHOUT IT FIRST BEING APPROVED BY PARLIAMENT, TREASURY DIRECTOR-GENERAL LUNGISA FUZILE TOLD PARLIAMENT’S FINANCE COMMITTEE ON TUESDAY.
All expenditure had to be reflected in the medium-term expenditure framework, which was subject to parliamentary approval and possible amendment, Mr Fuzile said in reply to questions by Democratic Alliance finance spokesman David Maynier. Mr Maynier was concerned about a comment made by President Jacob Zuma in August that the nuclear procurement would have been completed by the end of the current financial year.
The committee met to discuss the Treasury’s annual report.
Concern over government’s intentions mounted after it signed cooperation agreements with Russia, China, France and the US and seemed to be on the verge of clinching a deal with Russian energy company Rosatom. Energy Minister Tina Joematt-Pettersson has strongly rejected any suggestion that a deal has been concluded. There have also been public demands for greater transparency in the entire procurement process.
Mr Fuzile stressed that the process of finalising plans was still at its “very early stages”. The 2010 integrated resource plan included nuclear energy as one of the sources of power indicating that SA was open to the idea of nuclear. The government had been gearing itself up to understand nuclear better, Mr Fuzile said.
The Treasury had completed some work on the costing and financing models for a nuclear programme but it was classified information that the cabinet had not seen yet. Officials had discussed what elements of the work could be communicated in the public interest but to do this would require that it be declassified.
Mr Maynier has failed in his attempts to get information on the nature of the studies undertaken by the Treasury and their contents. Committee chairman Yunus Carrim emphasised the importance of the issue being discussed. “We have to know what the costs are,” he said and undertook to expedite arrangements to have a joint sitting with the energy committee.
Energy committee chairman Fikile Majola has committed himself to holding public hearings on the nuclear build programme, which opponents say will be too costly, especially given SA’s low growth prospects.
Mr Carrim noted that the African National Congress had decided at its national general council meeting at the weekend that a cost-benefit analysis be undertaken of the nuclear proposals.
Remote Kenya will be connected to grid with Africa’s larges wind farm
Africa’s largest windfarm set to connect remote Kenya to the grid, Guardian, Murithi Mutiga and David Smith , 9 Oct 15 Lake Turkana’s fierce winds have plagued villagers for generations, now they have inspired plans for Kenya’s most ambitious infrastructure project in 50 years – a 310MW windfarm, that they said was an impossible dream “……..Today, a sprawling, mostly-flat, dun-coloured terrain of moody, stumpy thorn bushes in the Sarima village around 40km from the shores of Lake Turkana is home to the most ambitious infrastructure development project carried out in northern Kenya since independence.
Covering 40,000 acres (162km2), the project will entail the installation of 365 wind turbines, each with a capacity of 850kW and is expected to be fully operational in mid 2017.
A 204km road linking the area to the nearest paved road will be built, and the Kenyan electricity transmission company, with funding by both the Kenyan government and a concessional loan from Spain, will construct a 428km transmission line to link it to the national grid……. A $600,000-700,000 community development budget means the contractors have been able to sink boreholes and deliver water to communities while the contractors have promised to light up most of the towns near the area once the power comes online……
Most people don’t worry too much about the energy but are happy that the powerful wind which was seen as a nuisance for generations might open up the region and link it with the rest of the country.” http://www.theguardian.com/environment/2015/oct/09/africas-largest-windfarm-set-to-connect-remote-kenya-to-the-grid
South Africa’s govt will face massive resistance if it continues with nuclear power plans
ANC warned: Abandon nuclear plans, or else, Mail & Guardian, 06 OCT 2015 MATTHEW LE CORDEUR
Greenpeace has warned the ANC that civil society will mobilise against it if the ruling party does not take nuclear energy off the table. Greenpeace has a message for the ANC ahead of its National General Council (NGC) meeting starting on Friday: drop nuclear energy, or face massive resistance.
Greenpeace executive director Kumi Naidoo said on Monday that the ANC should “take nuclear off the table”.
“The ANC needs to know that if it does go for the nuclear option as part of the (energy) mix, then they are on a collision course with the broader spectrum of the South African civil society,” he said.
“The faith organisations are mobilising and elements in the trade union federation are mobilising in the broader NGO spectrum.
“So the ANC can make that decision knowing full well that they will be blocked in the court,” he said. “There will be a robust campaign against any financial option. Any lending institution will come under tremendous pressure.”……..
Naidoo said South Africa should not be investing in nuclear at all, because it is “too expensive and too dangerous”.
“As a solution to our energy crisis, it will be delivered too little too late and will take 10 to 15 years to build one single plant.”
The Energy Department has signed agreements with several countries as part of its Nuclear Build Programme to build 9 600 MW of nuclear energy by 2030……http://mg.co.za/article/2015-10-06-anc-must-drop-nuclear-or-face-the-wrath-of-the-people
Europe targets Niger – for its uranium
EUROPE TARGETS WORLD’S MAJOR URANIUM PRODUCER NIGER. In Depth News,
“……….According to Wikipedia, Niger has been a uranium exporter since the 1960s and has had substantial export earnings and rapid economic growth during the 1960s and 1970s. The persistent uranium price slump brought lower revenues for Niger’s uranium sector, although it still provides 72% of national export proceeds.
When the uranium-led boom ended in the early 1980s the economy stagnated, and new investment since then has been limited. Niger’s two uranium mines – SOMAIR’s open pit mine and COMINAK’s underground mine – are owned by a French-led consortium and operated by French company Areva.
As of 2007, many licences have been sold to other companies from countries such as India, China, Canada and Australia in order to exploit new deposits. In 2013, the government of Niger sought to increase its uranium revenue by subjecting the two mining companies to a 2006 Mining Law.
The government argued that the application of the new law will balance an otherwise unfavourable partnership between the government and Areva. The company resisted the application of the new law that it feared would jeopardize the financial health of the companies, citing declining market uranium prices and unfavourable market conditions.
In 2014, following nearly a year long negotiation with the government of Niger, Areva agreed to the application of 2006 Mining Law of Niger, which would increase the government’s uranium revenues from 5 to 12 percent. [IDN-InDepthNews – 27 September 2015]…….http://www.indepthnews.info/index.php/global-issues/2437-europe-targets-worlds-major-uranium-producer-niger
South Africa’s Treasury kept its nuclear work secret
Treasury’s work on nuclear energy being kept secret – David Maynier Politics Web | 27 September 2015DA MP says dept has clearly done work on the feasibility, financing and assessment of alternative energy options The Minister of Finance, Nhlanhla Nene, has not disclosed the fact that the National Treasury conducted and completed extensive work on the proposed nuclear build programme in the 2014/15 Financial Year.
Up until now the Minister has claimed the National Treasury had only recently been invited into the process of decision-making on the financing of the nuclear build programme; and that, although work was being done on the nuclear build programme, the work had not been completed.
However, a careful reading of the National Treasury’s 2014/15 annual report tells a very different story. The National Treasury in fact:
– conducted and completed extensive work on nuclear energy during the 2014/15 Financial Year;
– some of the work was included in the decision-making process and submitted to the Department of Energy during the 2014/15 Financial Year; and
– an official, or officials, from the National Treasury, received training, at an estimated cost of R500 000, in nuclear finance, which was sponsored by South Korea……… We cannot sit back and allow the nuclear build programme to go ahead in secret given the massive financial implications for South Africa. http://www.politicsweb.co.za/politics/treasurys-work-on-nuclear-energy-being-kept-secret
South Africa’s govt keeping nuclear costs secret from the public
Business Day denied nuclear cost reports http://www.bdlive.co.za/business/energy/2015/09/18/business-day-denied-nuclear-cost-reports BY CAROL PATON, 18 SEPTEMBER 2015, THREE reports by top international consultancies which explore the cost of building 9,600MW of nuclear power in SA have been classified as secret and will not be made available to the public, the Department of Energy has said.
The reports were commissioned in the past year by the department from KPMG, Ingerop and Deloitte to provide information on nuclear-procurement models, the cost of nuclear plants and financing models.
The Open Democracy Advice Centre requested the documents on behalf of Business Day under the Promotion of Access to Information Act last month.
In a reply received this week, deputy director-general of the department Zizamele Mbambo said “the records contain information to be used in the procurement process. The disclosure of such information will compromise the negotiations or prejudice the commercial competition as far as third parties are concerned”.
These were the same grounds used to maintain the secrecy of the intergovernmental agreements on nuclear co-operation. But when the agreements were tabled in Parliament in June, they contained no proprietary or commercial information. The letter also states that the documents are classified. Mr Mbambo has said the department’s studies show that the nuclear build “is affordable” without giving details.
Business Day editor Songezo Zibi said the application was made as “we have reason to believe that the cost studies the department does not want the public to see until it is too late in the process, show that 9,600MW of nuclear will be unaffordable”.
The Open Democracy Advice Centre is to appeal against the refusal.
Spokesman for the Right 2 Know Campaign Murray Hunter said the affordability study for SA’s strategic arms procurement in 1999 was classified until last year. “When this was unclassified, it was clear that there had been enormous financial risks. Governments often overclassify documents to shield themselves from accountability and end up making the wrong decisions. The fact that these documents are being withheld makes it impossible for SA to have the conversation about nuclear energy.”
Energy Minister Tina Joemat-Pettersson recently claimed that she had never advocated nuclear build of 9,600MW.
Mr Zibi said it “was also curious how a cost study can be conducted if, as the minister claimed, the size of the procurement was yet to be determined. What, then, would be the benchmark number if not the 9,600MW already mentioned by the president and ministers of energy including Ms Joemat-Pettersson?”
South Africa fires key nuclear negotiator
Joemat-Pettersson fires point man on nuclear BY CAROL PATON, Business Day, 15 SEPTEMBER 2015, THE key figure in the government’s bid to secure a 9.6GW nuclear energy programme, nuclear physicist Senti Thobejane, has been fired by Energy Minister Tina Joemat-Pettersson, raising new questions on the future of the project.
Mr Thobejane, who was nuclear adviser to Ms Joemat-Pettersson, also advised President Jacob Zuma, which, with his knowledge and skills, placed him in a unique position to broker the large nuclear procurement, of which Mr Zuma has been an enthusiastic supporter.
He was the key figure in discussions with vendor countries and played a central role in the Cabinet’s energy security sub-committee, which is led by Mr Zuma himself.
His sudden departure comes as the Treasury is finally getting to grips with the feasibility of the nuclear procurement, which until recently had been kept under wraps by the Department of Energy. The department has repeatedly assured Parliament and the public that the procurement of 9.6GW of nuclear energy was affordable and viable. However, it has refused to make public the studies which it says support this.
The reasons for the termination of Mr Thobejane’s contract are not publicly known. ……..aside from Mr Thobejane’s departure there are other signs that the programme may be losing momentum. Six weeks ago Ms Joemat-Pettersson denied that the government had ever said it would build 9.6GW of nuclear power, describing the number as “a thumb-suck”………
In reply to questions submitted by Democratic Alliance MP David Maynier, Finance Minister Nhlanhla Nene said on Monday that the Treasury was still in the process of assessing both the financial costs and economic effects of the nuclear build programme.
“This work is currently not finalised yet as there is an interactive process under way with the Department of Energy on the scale of the programme and possible financing scenarios that have a bearing on the modelling work and its results. The recommendations from this work are expected to be submitted to the Cabinet as soon as the work is completed,” said Mr Nene. http://www.bdlive.co.za/business/energy/2015/09/15/joemat-pettersson-fires-point-man-on-nuclear
Exposed: confidential agreement gives Russia unfair control over South Africa’s #nuclear project
Exposed: Scary details of SA’s secret Russian nuke deal , Mail & Guardian 2 Sept 15 The secret nuclear deal our leaders have signed with Russia carries many risks for South Africa. Shocking details of the secret nuclear deal that Energy Minister Tina Joemat-Pettersson signed with Russia last year can, for the first time, be revealed. The text, which has been jealously guarded by her department and Russian nuclear company Rosatom, holds many dangers for South Africa.
It creates an expectation that Russian technology will be used for South Africa’s trillion-rand fleet of new nuclear power stations. And by laying the groundwork for government-to-government contracting, it appears designed to sidestep the constitutional requirement for open and competitive tendering.
Once the agreement comes into force, the Russians will have a veto over South Africa doing business with any other nuclear vendor. And it will be binding for a minimum of 20 years, during which Russia can hold a gun to South Africa’s head, in effect saying: “Do business with us, or forget nuclear.”
The agreement confirms the government’s intention to make “Atomic Tina’s” energy department the procuring agent for the nuclear programme rather than Eskom – where the country’s nuclear expertise lies, despite the utility’s travails. Joemat-Pettersson signed the agreement in Vienna on September 21 last year, three weeks after President Jacob Zuma held talks with his Russian counterpart, Vladimir Putin, at the latter’s country estate.
- Download the original signed agreement (Russian version)
- Download an English translation of the agreement…….
The terms of the agreement lean heavily in Russia’s favour. They:
- Indemnify the Russians from any liability arising from nuclear accidents during the reactors’ life. The agreement says South Africa is “solely responsible for any damage both within and outside the territory of the Republic of South Africa”;
- Hand the Russians a host of regulatory concessions and “special favourable treatment” in tax and other financial matters, but offer South Africa no such incentives; and
- Require Russia’s permission if South Africa wants to export nuclear technology it develops locally as a result of learning from the Russians, thereby hindering government’s aim that the nuclear new-build programme will develop a globally competitive local nuclear industry.
David Unterhalter, a University of Cape Town law professor and constitutional expert, this week said the agreement appeared to go far beyond the type of general framework document that government officials have declared it to be………
How we got the secret documentThe supposedly confidential agreement is published among the list of bilateral treaties on the website of the legal department of the Russian foreign ministry.
It was first obtained by South African environmental organisation Earthlife Africa Johannesburg by Russian anti-nuclear activist and head of Ecodefense Vladimir Slivyak, who got it from a source in the Russian foreign ministry. It is in Russian, and includes the signatures of Rosatom’s director general Sergey Kirienko and South African energy minister Tina Joemat-Pettersson.
A Russian translator commissioned by Earthlife to translate the agreement into English subsequently also found it publicly available on the ministry’s website.
amaBhungane has compared Joemat-Pettersson’s signature on the document with her signature on a current document; they are identical. amaBhungane has also commissioned its own translation of the agreement, which is available to download by clicking on the link at the top of this story. – Lionel Faull http://mg.co.za/article/2015-02-12-exposed-scary-details-of-secret-russian-nuke-deal/
Nuclear lobby working hard at education – 5 centres in Nigeria
5 Nigerian universities host nuclear energy centres of excellence —NAEC August 28, 2015 Premium Times Franklin Osaisai, chairman of the Nigerian Atomic Energy Commission, NAEC, has said that five Nigerian universities now host nuclear energy centres of excellence.
Mr. Osaisai, who disclosed this in an interview with newsmen on Friday in Abuja, said that the Nuclear Technology Centre, Sheda, was also a part of the nuclear centres of excellence.
He said the first two were the Centre for Energy Research and Training (CERT), Ahmadu Bello University (ABU), Zaria and Centre for Energy Research and Development (CERD), Obafemi Awolowo University (OAU), Ile-Ife.
He listed the latest centres as the Centre for Nuclear Energy Research and Training (CNERT), University of Maiduguri, and Centre for Nuclear Energy Studies (CNES), University of Port Harcourt.
The other is the Centre for Nuclear Energy Studies and Training (CNEST), Federal University of Technology, Owerri.
According to him, the establishment of these centres without a corresponding increment in the allocation to NAEC led to the reduction in funding of CERT and CERD.
“It is the mandate of NAEC to develop nuclear technology for the economic development of the country and produce and dispose atomic energy.
“To carry out research into matters connected with the peaceful uses of atomic energy, among others.
“CERT and CERD are arms of NAEC but in order to boost capacity of nuclear research and training, government created a lot of other centres.
“Remuneration, compensation, allowances are part of the public service and everything is paid according to guidelines.
“We have tabled the challenges of funding the centre to before the appropriate authorities; everything is now paid through IPPIS.’’……….http://www.premiumtimesng.com/news/more-news/189141-5-nigerian-universities-host-nuclear-energy-centres-of-excellence-naec.html
“Trojan horse’ – anti nuclear protest in Pretoria, South Africa
Green Peace activists protest against SA’s nuclear power plans http://citizen.co.za/652983/green-peace-activists-protest-against-sas-nuclear-power-plans/ Valeska Abreu , 25 Aug 15,
Green Peace activists have tied themselves to a four meter high Trojan horse which has been changed to a pillar at the entrance of the Department of Energy in Pretoria.
They are silently protesting against South Africa’s plans for nuclear power. Four activists are sitting on the cold cemented floor wearing white safety overalls and masks, holding up placards that read “no future in nuclear” and “solar is the solution”.
The activist group is calling for the department to focus its plans on renewable energy rather than nuclear. Melita Steele, senior climate and energy campaign manager, says nuclear energy is a trap and could bankrupt the country.
The lobby group wrote a letter of demands to the department seven days ago but say they have not received any response. “It’s indicative of how the department is engaging on the issue of nuclear,” said Steele.
She said they would remain outside the department until they received feedback.
South Africa’s Finance Minister under pressure about govt plans for unaffordable nuclear power
Nuclear must be affordable, says Nene, Business Day, BY CAROL PATON, 24 AUGUST 2015, FINANCE MINISTER NHLANHLA NENE SAYS HE WILL HOLD THE LINE ON THE PROCUREMENT OF NUCLEAR ENERGY IF IT IS UNAFFORDABLE, AND WILL REDUCE THE HEAD COUNT OF THE PUBLIC SERVICE TO ENSURE SPENDING STAYS IN LINE WITH FISCAL TARGETS.
Mr Nene is under enormous political pressure to accede to a presidency-backed plan to procure 9,600MW of nuclear energy capacity at a time when public finances are at their weakest since the mid 1990s.
Underlining this pressure was the appearance of a fake intelligence dossier last week, smearing top Treasury officials as apartheid agents and alleging that they and Mr Nene are part of a conspiracy by the old white establishment to control the Treasury.
The document aroused grave concern among the public, and in political and investor circles, as it is feared it may signal a political attack on the Treasury, which until now has been a strong source of confidence given its ability to exercise tight control over government finances.
The Treasury and Mr Nene say that the document is baseless but appears to be a worrying attempt “to undermine and destablise the institution”.
Mr Nene’s comments, in an exclusive interview with Business Day on Friday, come at a time of keen interest from ratings agencies and the investor community regarding whether the government will stick to self-imposed spending ceilings designed to cut debt in this challenging political context.
Of the challenges, top of the list is whether Mr Nene will be able to hold the line on the nuclear procurement.
Treasury and Department of Energy officials spent most of last week locked in an intense engagement in Cape Town over the financing options for the project.
Mr Nene said that since the Treasury had only just been invited into the process, it was too early to make pronouncements.
However, if it was unaffordable to the country and to consumers, who would have to pay for the energy generated, it could not be done, he said….. the Department of Energy’s discussions with vendors have all assumed the full 9,600MW would be commissioned. The department also envisages using the programme for industrialisation and job creation, and aims to create a nuclear export industry.
It has to date refused to make public its studies or provide evidence that a nuclear procurement of 9,600MW is affordable.
Mr Nene said that as with any project that involved the allocation of resources, the Treasury would have to account to the nation.
“That is why following process is critical…. My job is spelt out in legislation and my role is to uphold and stay within the confines of the Constitution and the Public Finance Management Act.”…..http://www.bdlive.co.za/business/energy/2015/08/24/nuclear-must-be-affordable-says-nene
African National Congress calls for transparency on nuclear tender process
ANC calls for transparent nuclear tender process, Mail & Guardian, 18 AUG 2015 2FRANZ WILD, STAFF REPORTER
ANC calls for “full, transparent and thorough cost benefit analysis of nuclear power” as SA prepares for a bidding process for new nuclear plants. n a document that will be discussed at its policy review conference in October, the ANC said: “Government must also announce publicly that nuclear energy can only be procured in line with the legal prescripts and after a thoroughgoing affordability assessment.”
The document was released on Monday.
During his State of the Nation address in February, President Jacob Zuma said all countries that bid “will be engaged in a fair, transparent and competitive procurement process to select a strategic partner, or partners, to undertake the nuclear build programme”.
But the Mail & Guardian reported earlier this year that in a “top secret” presentation, the energy department proposed a closed government-to-government procurement of new nuclear power stations instead of a transparent and competitive tender.
The nuclear agreement with Russia, which amaBhungane revealed, states that the government is prepared to give Russia exclusive rights to its nuclear build programme for a minimum of 20 years. During that time, Russia could block South Africa from procuring nuclear technology from any other country.
The Russians would be indemnified from any liability arising from nuclear accidents during the reactors’ lifespan. Russia would be granted a host of regulatory concessions and favourable taxation and other financial treatment. The designated competent authorities are South Africa’s department of energy and Russia’s state-owned Rosatom State Atomic Energy.
With the Russian economy in turmoil and the subsequent high cost of borrowing, the country’s ability to raise the funding for its nuclear ambitions in many countries is being called into question – as is its ability to deliver on time.
For South Africa, it is even more of a mystery how the government will provide the loan guarantees that would be required, given that so many have been extended to ailing parastatals such as Eskom and SAA. The state may have hit its limit………http://mg.co.za/article/2015-08-18-anc-calls-for-transparent-nuclear-tender-process
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