NECSA
NECSA
NECSA:
Environmental Approval Confirms Nuclear Progress
PRODUCTION: Manelesi Dumasi
NECSA is growing its market share in the international nuclear medicine industry, and is now ramping up plans for a new nuclear power station in the Western Cape. Site selection and environmental impact reports are complete and DEA approval has been granted. CEO, Phumzile Tshelane tells Enterprise Africa more about why now is a very exciting time for this organisation.
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INDUSTRY FOCUS: ENERGY
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The last 12-months have been challenging but we have realised great success,” says South African Nuclear Energy Corporation (NECSA) CEO Phumzile Tshelane. When Enterprise Africa spoke with NECSA at the end of 2016, the organisation was preparing for advancement with the country’s much-discussed Nuclear New Build Programme but also displaying its international importance, leading the way in the production of various nuclear medicines. While the new build process has come to a halt while legislative issues are resolved, nuclear medicine has provided NECSA with opportunities. The business is famous for its creation of products including Molybdenum99m, Technetium and Iodine-131 which can be used in various medical procedures. The world’s largest
producer of these nuclear medicines was Canada through its Chalk River reactor in Ontario. But it was announced in September last year that the Chalk River reactor would cease production of medical isotopes, leaving a gap in the market which Tshelane hopes to fill. “We are seeing success, in fact, in the past year sales have increased by just over 25%,” he says. “This is down to a realignment in the market with the exit of the Canadians. For the production of nuclear medicine, you need a reactor that is up to speed and the NRU reactor in Canada was shut down and because of that there was a market realignment. “There are new areas that we are exporting to but they are not large - we are simply taking over from the exit of the Canadians and that has been good for us.”
South Africa was already the second largest market share holder before the exit of Canada and the country, through NECSA, is now developing new products to ensure it continues with reliable supply of this vitally important material. “Product development is still a focus but, of course, new products have to go through various testing stages and clinical trials. We are starting to test some new products now and others are still in development but this does take time. “Nuclear medicine is a strong focus for us and we expect to grow in strength as we go into 2018 and 2019.” NEW BUILD HURDLES In April 2016, a High Court Ruling found that intergovernmental deals between South Africa and other nations including Russia,
Our company was formed in September 1998 and was awarded the sole distribution rights in sub-Saharan Africa for the Shimadzu and Aloka products. Since September 1998, we have focused on establishing an experienced engineering and sales base both to service the existing 1450 Shimadzu and Aloka clients as well as to establish new clientele. August 2009 saw the inception of the Nuclear Division engaged in the supply of all Nuclear Imaging equipment, both Clinical and Pre-Clinical, together with all pharmaceutical products used in molecular imaging procedures. AXIM also supply equipment for radiopharmaceutical production and quality control equipment and consumables. Our company is now represented nationally in South Africa and we have established offices and dealers in all the neighbouring countries within sub-Saharan Africa. AXIM is the distributor for Mediso Medical Imaging Systems who are world leaders in Pre-Clinical Imaging Systems AXIM have collaborated with NECSA on research in radiopharmaceutical drug development and NECSA purchased the NanoScan PET/CT Pre-Clinical Imaging System in 2014. NECSA will be installing the NanoScan SPECT/CT system in 2018 and AXIM looks forward to continuing their relationship with NECSA in the future.
AXIM House, 63 Old Pretoria Road, Halfway House South Africa Jannie Van Zyl: Product Manager – Nuclear Division Tel: +27 11 314 0140 Fax: +27 11 314 0141 info@axim.co.za www.axim.co.za
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NECSA
South Korea and the USA to supply materials for the build of new nuclear reactors in the country was unlawful and the future energy mix was once again cast in doubt. NECSA is a major part of the nuclear decision making process in the country and consults on all aspects of any potential bid, build or approval. Currently, it is uncertain if and when the nuclear new build programme will resume and at what level. Previous plans had suggested that the 9600 MW that that the government wants to add to the grid by 2030 would come largely from nuclear power; now the suggestion is that just 1359 MW will come from nuclear with other sources making up the balance. But Tshelane remains upbeat about the situation. “Some of the hurdles we can
anticipate in advance, such as the court case which means our processes need to be redone. By in large, the court ruling was not against nuclear at all, it was simply saying that we should have followed different processes. We are complying and we want to ensure we don’t hit that hurdle again.” In positive news for any nuclear build, South Africa’s Department of Environmental Affairs recently authorised a Final Environmental Impact Report (FEIR) from Eskom for a new nuclear power plant site at Duynefontein in the Western Cape, alongside the country’s existing Koeberg nuclear power plant. NECSA and Eskom were busy deciding between two sites, Duynefontein and Thyspunt in the Eastern Cape, and this environmental approval could mark
a start of progress for a new power station. NECSA Chairman Dr Kelvin Kemm said that the announcement signalled to local industry and the world that the country was committed to going through with the programme. “Once you have environmental impact authorisation, you can then start with work for site preparation,” explains Tshelane. “It’s a very positive early stage that says we can plan for getting water to the site, bringing electricity to the site, building roads etc so it is a very important step. I expect that with the planning work happening now - putting together a project team - we will soon begin work on the Duynefontein site before execution and contractor-appointment probably after 12-months. “Our environmental impact
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INDUSTRY FOCUS: ENERGY
CEO PHUMZILE TSHELANE
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NECSA
report which was given to the DEA had two sites as our preferred sites. However, we were keen on the Eastern Cape site although neither have fatal flaws. The DEA has approved Duynefontein which is a great positive as we would have asked for approval there in any case. We now want them to approve Thyspunt. My feeling is that both will eventually be approved but Duynefontein happened to be approved first. “Duynefontein is next to a currently operating power station and so it is something of a brownfield site but Thyspunt would be a greenfield site so the economic impact will be different. The greenfield site would require much more development. The economic impact in Thyspunt would be fantastic for the economy there,” he adds. However, not all agree with the CEO and some do not share his optimism. Critics of South Africa’s nuclear plans suggest that the country does not need extra nuclear generating capacity and, importantly, cannot afford it. There are also environmental concerns regarding any nuclear new build.
But Tshelane remains steadfast is his belief that nuclear is essential in securing future supply. “When people tell you we don’t need electricity, they’re saying we don’t need to develop the economy or infrastructure. Part of the reason put forward is that we have over capacity right now. Meanwhile, we have sufficient room for maintaining our plant and a healthy reserve margin. However, if we add something into the economy, like a smelter or a refinery, suddenly we don’t have a healthy reserve capacity and we will run out again. Secondly, people say we need plant that can be built quickly but of course it’s not only speed of development but how long the plant remains in the system. For example, a solar plant will be in the system for 12- 15 years and that is not solving the problem, you’re kicking the ball ahead of you and quickly catching up to it.” Currently, initial plans for the near-term future are for the construction of a new pressurised water reactor power station that can add further nuclear energy to
the 5% of total countrywide power supplied by Koeberg power station. “People complain that we cannot afford nuclear plant but my answer would be we cannot afford not to have nuclear plant,” says Tshelane. “The way to think of it is that you’re building an income generating asset which is constructed over a period of five years and amortised over a period of 15-18 years. By the time the 18 years comes around, the plant is paying for itself – very early. The affordability argument shows lack of understanding of how infrastructure financing works.” YOUNG & POSITIVE In October, a group of young South African nuclear professionals signed a Memorandum of Understanding (MoU) with Rusatom International Network, a subsidiary of Russia’s state-owned Rosatom. The MoU will see the South African Young Nuclear Professional Society (SAYNPS) and its Russian partner share information and develop frameworks to improve education and public acceptance surrounding nuclear
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INDUSTRY FOCUS: ENERGY
energy in South Africa. Young South Africans will help organise trade exhibitions and conferences, take courses at Russian education institutions, witness nuclear sites in operation first-hand, take part in competitions, and regularly exchange knowledge and experiences. Tshelane is thrilled to see young people getting interested and involved in the industry. “It’s a partnership between our young nuclear movement and a sponsor of some kind that can give them access to operating plant, plant under construction, communication frameworks and more.
“It’s very much a positive for the industry and we’re excited that the youth are getting to grips with real issues in the nuclear industry. I expect that any alignments that are happening there, whether with Rosatom or other entities, are very positive in terms of getting our youth exposed to different environments and aligning different thoughts and though processes,” he says. Of course, at home in South Africa, young professionals active in the industry have access to one of the world’s great nuclear assets, the Safari-1 reactor at NECSA’s Pelindaba
facility. The 20 MW light water-cooled, beryllium reflected, pool-type research reactor has been lauded as one of the world’s most successful thanks to its reliability and safety credentials. “The reactor continues to operate for more than 300 days each year,” says Tshelane. “We haven’t seen any change in terms of operability and the maintenance regime remains the same. We focus on this piece of equipment as an outlet for nuclear medicine and other industrial applications of radio isotopes. The ageing management continues but we haven’t seen any deterioration in
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(TCD) is a full-service Contract Research Organisation (CRO) headquartered in Centurion (Pretoria), South Africa, providing end-toend clinical development services. Founded in February 2000, initially as a niche African CRO focused primarily on regulatory and monitoring services, our services broadened with the addition of contract auditing in 2008 followed by integration of previously outsourced medical advisory, clinical data management and biostatistical services, enabling an in-house full-service offering since early 2013. Through a series of strategic acquisitions and joint ventures, TCD’s service offering was subsequently supplemented by the addition of TCD eClinical Solutions (eCS) and TCD Outcomes Research (OR), forming the TCD Group. In November 2016, the TCD Group was acquired by EOH Abantu, a wholly-owned subsidiary of EOH Holdings, a listed entity on the Johannesburg Stock Exchange (JSE). Clinical Trial Experience Since inception TCD has been awarded over 280 clinical trial contracts, across 20 therapeutic areas, by more than 100, predominantly international, clients. These contracts have spanned all phases of clinical research ranging from First-in-Human Phase I trials to large multicentre Phase III/ Phase IV trials. Co-Development Cost-effective risk reduction and quality maintenance in our clients’ projects. Providing input into development and GTM strategies, facilitating fund-raising, participating in co-development and risk sharing. SERVICES INCLUDE: Early Development We partner with centres of excellence to drive efficient early development, getting our clients to GO/NOGO decisions faster through effective design and conduct of First-In-Human, BA/BE, Biosimilar and other early-phase studies. We have a strong network of pre-clinical services with strategic partners across the globe. Phase II & III Partnering with our customers to bring products to market efficiently and effectively, saving time, reducing costs and improving quality using innovative and adaptive digital technology in clinical trials. Late-Phase & Post-Approval Partnering with our clients with expert guidance to lead products through late phase research toward increased market access. Studies are innovative and practical and include Phase IV trials, Observational Studies, Registries & Retrospective Studies
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NECSA
the operability of the plant. “It’s testament to the fantastic people that we have looking after it and the legacy that they’ve taken over from,” he adds. In the future, NECSA hopes to capitalise on its advantage in the nuclear medicine market while also making inroads in new industry sectors. “Medicine is a strong focus but we are looking at commercialising other projects that have nothing to do with medicine,” says Tshelane. “In mining and waste management we are procuring different partners that will assist us with commercialisation of new products and services. Our focus is to strengthen our ability to grow our revenue going forward. We remain outward focussed to ensure that we build the successful relationships that we need.” NECSA would benefit from
stability in South Africa’s economic climate, but despite the challenges that exist the organisation continues to perform well and remains relatively unscathed by any slowdown. “We do feel the effects of recession but our focus with our products is external and so the effects are small. If we had a bigger market in South Africa, we would feel much more of an effect but our customer base is outside SA for the main part. The decrease in value of the Rand can make us very attractive to foreign buyers and that is the counter balance to what is happening,” says Tshelane. So, despite the court ruling in April and the local economy which continues to struggle – both of which have undoubtedly set the nuclear new build process back – the future looks bright for NECSA. It is now a market share leader in nuclear medicine
industry and has opportunities to grow, it is a trusted and reliable nuclear manufacturer, and its facilities remain highly-regarded with an exemplary safety record. Asked if his job remains enjoyable, Tshelane is unequivocal in his reply: “I’m having a ball - I enjoy my work a great deal and I think if it were boring and predictable I probably would have left by now.”
NECSA +27 (012) 305 4911 www.necsa.co.za
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AFRICA
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Issue No.64
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NECSA:
Environmental Approval Confirms Nuclear Progress
ALSO IN THIS ISSUE:
SKA / Transnet / Metso / AVBOB
A S F E AT U R E D I N
ENTERPRISE AFRICA
OCTOBER 2017