The Coega IDZ is one of the preferred sites identified by the national government for nuclear component manufacturing, something that could see it become the nuclear manufacturing hub for the components required for the pebble bed modular reactor.

Coega Development Corporation spokesman Vuyelwa Qinga-Vika confirmed that the IDZ was one of the preferred sites identified by the department of trade and industry for nuclear component manufacturing.
If successful, the hub will supply both the South African and export markets.

She said this would attract a lot of component manufacturers for the project and this would create a significant number of jobs.

Qinga-Vika said the IDZ might be the site for one of the pebble bed modular reactors (PMBRs) at a later stage.

Engineering News quotes DCD- Dorbyl executive director Sias Booysen as saying talks had been held in 2003 with the CDC and Industrial Development Corporation “to seek their support for our localisation programme”.

DCD-Dorbyl Heavy Engineering is the local partner of Mitsubishi Heavy Industries of Japan that will be producing the prototype PBMR.

Booysen says when his company investigated the Coega IDZ “it became clear to us that, in the event that Eskom commits itself to buying 24 PBMR units, we would be looking at a period of 15 or more years for manufacturing them.

“In that case Coega would be ideally suited to become the nuclear manufacturing hub for South Africa.

“It’s an IDZ, it’s in an area where both the government and PBMR seek to create new jobs around a new industry, and it is on the coast with an adjacent harbour.”

This, Booysen stressed, was critical because the special high-quality steel and stainless steel required for the manufacture the main PBMR components will have to be imported, as South African steel companies currently do not produce them.

He says that establishing the industry and Coega will mean that “eight, nine or even more” black economic empowerment support and infrastructure companies could be established to service the new industry”.

Booysen said training colleges would also need to be established.

He says that if Eskom ordered 24 PBMRs – Public Enterprises Minister Alec Erwin says that the project is now “factored into our future energy planning and we are negotiating a major intention-to-purchase agreement between Eskom and the PBMR company – establishing the hub at Coega would fulfil Mitsubishi’s localisation obligations.

Booysen suggests that Mitsubishi would “probably set up a joint venture with a local company to establish facilities at the IDZ”.

At this stage the PBMR company plans to order the major components for the first demonstration reactor by the end of this year or early in 2006.

The demonstration reactor will be built at Koeberg and should come into operation in 2010 when the first electricity will be generated.

Coega representatives will attend a major pebble bed modular reactor supplier conference from August 24 to 26.