2. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” The Generation IV International Forum, or GIF, was chartered in July 2001 to lead the collaborative efforts of the world's leading nuclear technology nations to develop next generation nuclear energy systems to meet the world's future energy needs. South Africa signed the Charter which is a loose arrangement. The GEN IV Framework Agreement is an international agreement that is legally binding on the Republic of South Africa. It entered into force on 28 February 2005 after signature by the USA, UK, FRANCE, CANADA and JAPAN. This agreement is now open to accession. The Department of Foreign Affairs (International Law) and the Department of Justice and Constitutional Development have both confirmed that there is no conflict with international obligations and domestic law, respectively. Subsequently, Cabinet approved the accession to this agreement on 18 April 2007. Cabinet also approved that the Department of Minerals and Energy (DME) shall be the implementing agent of this agreement However Section 231 of the Constitution of RSA, 1996 (Act No. 108 of 1996) requires that accession to the Framework Agreement be approved by Cabinet and subsequently, Parliament (both Houses) Once the Houses of Parliament have approved the accession, an instrument of accession will be lodged with the designated Depository of the GIF viz. the Nuclear Energy Agency (NEA)

3. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” A Nuclear Energy System – combination of a nuclear power reactor and its associated nuclear fuel cycle

4. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” What is Generation IV? The next generation of nuclear energy systems - generation IV - must be licensed, constructed and operated in a manner that will provide a competitively priced supply of energy. They must consider an optimum use of natural resources, while addressing nuclear safety, waste and proliferation resistance and public perception concerns of the countries in which those systems are deployed. What is the Generation IV International Forum? Recognizing both the positive attributes and shortcomings of the prior generations of reactor designs, the thirteen members of the GIF are working together to lay the groundwork for a fourth generation, called Generation IV. The governmental entities are working together as the Generation IV International Forum (GIF). When will Generation IV reactors be commercially available? The objective of the GIF is to have Generation IV nuclear energy systems available for international deployment by 2030 or earlier.

5. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” The GIF membership The thirteen current members of the GIF are set out below. Argentina* (*Non-active founding member) Republic of Korea Brazil* (*Non-active founding member) Russian Federation Canada Republic of South Africa* (*Non-active founding member) People's Republic of China Switzerland Euratom United Kingdom* (*Non-active founding member) France United States of America Japan All GIF members are signatories to the GIF Charter. Seven members have since signed or acceded to the Framework Agreement.GIF Charter Non-active members are those among the nine founding members which have not yet acceded to the Framework Agreement, to which seven members are currently acceded. The Framework Agreement establishes system and project organizational levels for further cooperation.Framework Agreementsystemproject Non-founding members joining the GIF are committed to acceding to the Framework Agreement within 12 months of signing the Charter

6. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” GIF Governance As detailed in its Charter and subsequent GIF Policy Statements, the GIF is led by the Policy Group. The Policy Group is responsible for the overall framework and policy formation and for interactions with third parties. An Experts Group advises the Policy Group on R&D strategy, priorities and methodology, and on evaluating research plans for each Generation IV System. The GIF Policy Group meets two to three times a year to review past activities, provide guidance to the Experts Group and Systems Steering Committees, and determine future program direction. The GIF Policy Group has elected a chair and two vice-chairs to lead its activities. The United States currently chairs the Policy Group, supported by Vice-Chairs from France and Japan. At its meeting in January 2005, the Policy Group confirmed arrangements under which the OECD's Nuclear Energy Agency will provide Technical Secretariat support for the GIF. The governance structure is illustrated below.Charter The GIF has established System Steering Committees to implement the research and development for each Generation IV reactor concept, with participation by GIF Members interested in contributing to collaborative R&D. Each System Steering Committee will plan and integrate R&D projects contributing to the design of a System. Participants in System Committees, and in Projects, will sign agreements governing intellectual property rights and other matters in order to work cooperatively on the concepts. The Charter of the GIF and the Framework Agreement allow for the participation of organizations from non-GIF countries on research projects, but not on Systems Steering Committees.CharterFramework Agreement The GIF represents the desire of all its members to find new and better solutions to the world's future energy and environment challenges while allowing continued economic development and growth throughout the world. Nuclear technology can play a key role in this future by providing a means of supplying people all over the world with a safe, proliferation-resistant, and economic means of producing electricity—and eventually hydrogen—without harming the environment in which we all live and breathe.

7. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems”

8. Framework Agreement This unique international effort reached a major milestone on 28 February 2005, as five* of the forum's member countries signed the world's first agreement aimed at the international development of advanced nuclear energy systems, the Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems.Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems As of January 2007, the agreement was in force for the following countries: CountryImplementing agent(s) CanadaDepartment of Natural ResourcesDepartment of Natural Resources EuratomJoint Research CentreJoint Research Centre FranceCommissariat à l’Énergie AtomiqueCommissariat à l’Énergie Atomique JapanAgency for Natural Resources and Energy Japan Atomic Energy AgencyAgency for Natural Resources and Energy Japan Atomic Energy Agency KoreaMinistry of Science and Technology (MOST) Korea Science and Engineering Foundation (KOSEF) SwitzerlandPaul Scherrer InstituteMinistry of Science and Technology (MOST) Korea Science and Engineering Foundation (KOSEF)Paul Scherrer Institute United States of AmericaDepartment of EnergyDepartment of Energy *Among the five signatories, the United Kingdom has not ratified the Framework Agreement.

9. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” Generation IV Systems Generation IV nuclear energy systems are future, next-generation technologies that will compete in all markets with the most cost-effective technologies expected to be available over the next three decades. Comparative advantages include reduced capital cost, enhanced nuclear safety, minimal generation of nuclear waste, and further reduction of the risk of weapons materials proliferation. Generation IV systems are intended to be responsive to the needs of a broad range of nations and users. The Generation IV Systems selected by the GIF for further study are: Gas-Cooled Fast Reactor (GFR) features a fast-neutron-spectrum, helium-cooled reactor and closed fuel cycle;Gas-Cooled Fast Reactor (GFR) Very-High-Temperature Reactor (VHTR) a graphite-moderated, helium-cooled reactor with a once-through uranium fuel cycle;Very-High-Temperature Reactor (VHTR) Supercritical-Water-Cooled Reactor (SCWR) a high-temperature, high-pressure water-cooled reactor that operates above the thermodynamic critical point of water;Supercritical-Water-Cooled Reactor (SCWR) Sodium-Cooled Fast Reactor (SFR) features a fast-spectrum, sodium-cooled reactor and closed fuel cycle for efficient management of actinides and conversion of fertile uranium;Sodium-Cooled Fast Reactor (SFR) Lead-Cooled Fast Reactor (LFR) features a fast-spectrum lead of lead/bismuth eutectic liquid-metal-cooled reactor and a closed fuel cycle for efficient conversion of fertile uranium and management of actinides;Lead-Cooled Fast Reactor (LFR) Molten Salt Reactor (MSR) produces fission power in a circulating molten salt fuel mixture with an epithermal-spectrum reactor and a full actinide recycle fuel cycle.Molten Salt Reactor (MSR) These 6 systems offer significant advances in sustainability, safety and reliability, economics, proliferation resistance and physical protection

10. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” The Very-High-Temperature Reactor (VHTR) is a graphite-moderated, helium-cooled reactor with a thermal neutron spectrum. The VHTR is designed to be a high-efficiency system, which can supply electricity and process heat to a broad spectrum of high-temperature and energy-intensive processes. The reference reactor is a 600 MWth core connected to an intermediate heat exchanger to deliver process heat. The reactor core can be a prismatic block core or a pebble-bed core according to the fuel particles assembly. Fuel particles are coated with successive material layers, high temperature resistant, then formed either into fuel compacts embedded in graphite block for the prismatic block-type core reactor, or formed into graphite coated pebbles. The reactor supplies heat with core outlet temperatures up to 1,000 degrees Celsius, which enables such applications as hydrogen production or process heat for the petrochemical industry. As a nuclear heat application, hydrogen can be efficiently produced from only heat and water by using thermochemical iodine-sulfur process, or high temperature electrolysis process or with additional natural gas by applying the steam reformer technology. Thus, the VHTR offers a high-efficiency electricity production and a broad range of process heat applications, while retaining the desirable safety characteristics in normal as well as off-normal events. Solutions to adequate waste management will be developed. The basic technology for the VHTR has been well established in former High Temperature Gas Reactors plants, such as the US Fort Saint Vrain and Peach Bottom prototypes, and the German AVR and THTR prototypes. The technology is being advanced through near or medium term projects lead by several plant vendors and national laboratories, such as: PBMR, GT-HTR300C, ANTARES, NHDD, GT-MHR and NGNP in South Africa, Japan, France, South Korea and the United States. Experimental reactors: HTTR (Japan, 30 MWth) and HTR-10 (China, 10 MWth) support the advanced concept development, and the cogeneration of electricity and nuclear heat application.

11. S Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems”

12. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” The Gas-Cooled Fast Reactor (GFR) system features a fast-neutron- spectrum, helium-cooled reactor and closed fuel cycle. Like thermal-spectrum, helium-cooled reactors, the high outlet temperature of the helium coolant makes it possible to deliver electricity, hydrogen, or process heat with high efficiency. The reference reactor is a 288-MWe helium-cooled system operating with an outlet temperature of 850 degrees Celsius using a direct Brayton cycle gas turbine for high thermal efficiency. Several fuel forms are candidates that hold the potential to operate at very high temperatures and to ensure an excellent retention of fission products: composite ceramic fuel, advanced fuel particles, or ceramic clad elements of actinide compounds. Core configurations may be based on prismatic blocks, pin- or plate-based assemblies. The GFR reference has an integrated, on-site spent fuel treatment and refabrication plant. The GFR uses a direct-cycle helium turbine for electricity generation, or can optionally use its process heat for thermochemical production of hydrogen. Through the combination of a fast spectrum and full recycle of actinides, the GFR minimizes the production of long-lived radioactive waste.

13. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems”

14. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” – NATIONAL CONTEXT Normal membership of GIF and participation in all activities of the Policy and Experts Group can only continue once the accession to the Framework Agreement has been concluded. The Framework Agreement is already in force and accession is now required. Failure to accede to the Agreement would result in South Africa becoming a non-active member of GIF and not receiving the potential benefits of the new and innovative R&D. As a member of the GIF South Africa is obliged to support the purpose and vision of the GIF by becoming a party to the Framework Agreement

15. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” – NATIONAL CONTEXT Becoming a party to the Framework Agreement will enhance the effectiveness of the South African nuclear R&D program related to the PBMR Project and the following specific potential benefits are noted: Building confidence in the PBMR type technology as a key element of Generation IV nuclear technologies. Early and exclusive access to research results arising from the specific research undertaken Special access to networks and institutions in the signatory countries that will enhance the product/market potential of PBMR Preferred access to potential partners for PBMR in the addressing and penetration of specific markets Reducing the regulatory risks attendant on the licensing of novel nuclear technologies which will be lower for the signatory countries Ensuring greater coherence of South African participation in international nuclear research and more effective transfer of knowledge to South African role-players International profiling in key nuclear manufacturing nations who compose the GIF

16. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” – NATIONAL CONTEXT International profiling in key nuclear manufacturing nations who compose the GIF A watching brief on competing and emerging technologies Reduction of the total R&D burden on non-critical path aspects of high temperature gas reactor research for PBMR Complementing our participation in the Next Generation Nuclear Programme Consortium with a longer term international research programme The potential to participate more actively in hydrogen generation using nuclear energy in support of South Africa’s Cabinet approved Hydrogen Economy Initiative. There will also be attendant benefits for the Department of Minerals and Energy, the Department of Science and Technology, the Nuclear Energy Corporation of South Africa (NECSA) and other nuclear role-players as a result of GIF participation An opportunity for South Africa to entrench its position as an international player in the global nuclear energy sector

17. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” – NATIONAL CONTEXT FINANCIAL IMPLICATIONS The DME requires a budgetary allocation of Euro 62 000-00 per annum starting from the 2007/2008 financial year towards GIF secretariat fees. PBMR (Pty) Ltd has expressed their support for the accession to the GIF Framework Agreement. COMMUNICATION IMPLICATION Once Parliament has approved, an instrument of accession will be lodged with the designated Depository and an announcement will be made by the Minister of Minerals and Energy

18. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” – NATIONAL CONTEXT The objective of this Framework Agreement is to establish a framework for international collaboration to foster and facilitate achievement of the purpose and vision of the GIF namely the development of concepts for one or more Generation IV (next generation) Systems that can be licensed, constructed and operated in a manner that will provide a competitively-priced and reliable supply of energy, while satisfactorily addressing nuclear safety, waste, proliferation and public perception concerns. The objective of South Africa’s PBMR Project is similar The PBMR, once successfully demonstrated in South Africa, shall be regarded as the leading contender, if not, the only contender to be regarded as a GEN IV Nuclear Energy System that meets the technical requirements of the envisaged GEN IV System viz. the VHTR, with respect to elctricty generation, hydrogen co-generation and process heat applications that the VHTR is intended to be developed for. The PBMR is a GEN IV Nuclear Energy System that may be available for international deployment before the GEN IV time window of 2030.

19. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems” – CONTACT PERSONS Ms N Magubane –Deputy Director General: Electricity and Nuclear (012-3178539) Mr T B Maqubela –Chief Director Nuclear (012-3178340) Mr H Haricharun –Director: Nuclear Technology (012- 3178615)

20. Accession by South Africa to the “Framework Agreement for International Collaboration on Research and Development of Generation IV Nuclear Energy Systems”