Issued by: Minister of Mineral and Energy Affairs
Media release by Mr F K (Pik) Botha, Minister of Mineral and Energy Affairs
Thursday, 29 February 1996 Cape Town
CO-OPERATION AGREEMENTS BETWEEN SOUTH AFRICA AND FRANCE OF THE INDUSTRALISATION OF THE MOLECULAR LASER ISOTOPE SEPARATION (MLIS) TECHNOLOGY FOR THE COMMERCIAL ENRICHMENT OF URANIUM
Two intergovernmental agreements between South Africa and France were concluded today in Cape Town when the Ambassador of France, His Excellency Mr T d'Albis signed the texts following earlier signature by the South African Minister of Mineral and Energy Affairs.
The agreements open the way for co-operation between South Africa and France on the industrialisation of the Molecular Laser Isotope Separation technology for the commercial enrichment of uranium.
Prior to 1995 the AEC had for some years been engaged in the development of the Molecular Laser Isotope Separation technology for the commercial enrichment of uranium. By 1995 the AEC was recognised as one of the international leaders in MLIS technology. This tech- nology is one of two newly emerging laser-based enrichment processes that will play a significant role in the future international uranium enrichment market, currently valued at some R15 billion per annum.
Compagnie Generale des Matieres Nucleaires (Cogema) is a French government-controlled company and major international concern in uranium enrichment and the nuclear fuel business, with an annual turnover of about R17 billion per annum (30% from uranium enrich- ment). A letter of intent in terms of which Cogema expressed its willingness to invest R83 million over the next 3 years in a joint industrialisation programme to be carried out in South Africa, was signed in September 1994 in Paris with the prior approval of the Minister of Mineral and Energy Affairs and the concurrence of the Minister of Foreign Affairs. By that time Cogema and AEC had over several months of discussions reached agreement on the joint indus- trialisation of AEC's MLIS technology for commercial exploitation.
The draft agreement was, however, subject to two inter-govern- mental agreements between the Governments of South Africa and France, namely,
- a general umbrella agreement covering future nuclear co-operation and trade; and - a more specific agreement covering the co-operation on the industrialistion of the MLIS technology for peaceful and commercial purposes.
In view of the sensitive nature of international co-operation on uranium enrichment technology, governments of countries involved in the commercial enrichment of uranium as well as the International Atomic Energy Agency first had to be informed of the intended co-operation agreement. In addition, as France is a member of the European Atomic Energy Community (Euratom), the consent of this organisation has been obtained.
Over a period of 18 months Cogema directed more than 200 worker- days by high-level specialists from their own organisation as well as the French Commissariat a l'Energie Atomique (CEA) in studying the AEC's progress. Cogema's willingness to become financially in- volved provides evidence of the potential techno-economic viability of the project. It also reduces the extent of South Africa's own investment in the technology and will result in sharing the risk of the programme. The work will be carried out mainly by AEC personnel at Pelindaba thus ensuring 130 high-level technological job opportunties.
Support from a partner such as Cogema has become essential for the continuation of the MLIS programme which would otherwise have to be reconsidered, which in turn might lead to a considerable loss of commercial potential for the South African minerals industry as well as further loss of valuable knowledge and experience that was built up over more than a decade in the field of lasers, an important future technology also in other areas of industry. The AEC's laser group is internationally renowned for its expertise in this advanced technology.
The potential value of MLIS technology to South Africa lies in the direction of the value that can be added to uranium ore concen- trates exports as well as income that can be generated through the potential international licensing of the technology. The latter is, in the longer term, the more attractive, since it is widely recog- nised that laser-based enrichment technologies will have a major role in future. Should the outcome of the commercialisation pro- gramme be successful, a joint venture with Cogema would provide South Africa with an opportunity to globalise the technology and to gain access to the international uranium enrichment business presently valued in the region of R15 billion per year. Cogema's involvement in the future commercialisation of the technology would also provide support when capital for a possible MLIS plant in South Africa is sought in the private sector and it would also ensure a useful marketing channel for exporting enriched uranium from South Africa. This technology can potentially add value of about R200 million per year to South Africa's present uranium exports of about R200 million per year. The potential income through technology license agreements could further add several hundreds of millions of Rands of foreign exchange.
Quite apart from the financial aspect, South Africa stands to gain in many fields from this co-operation namely: - fundamental and applied research; - development of nuclear energy applications in the agricultural medical and industrial fields; - nuclear energy applications for electricity production; - nuclear safety, radiological protection and environmental protection; and - management of radioactive waste.
The agreement between the AEC and COGEMA is, in view of the adherence of South Africa and France to the Treaty on the Non- Proliferation of Nuclear Weapons, subject to international safeguards and to the two intergovernmental agreements confining any co-opera- tion and exchange of know-how and technology to peaceful uses only.
I would like to express my sincere appreciation to the AEC and its scientists who have developed this new technology. It is a great achievement of which all South Africans can be proud.
My thanks go also to the French Government and COGEMA for their commitment to and support of this programme. I am sure that this joint venture will greatly benefit both countries as the potential of this process is realised in the years ahead.
Enquries: Roland Darroll: (012) 462 2310 (012) 322 8695 082 552 7994