SA open to nuclear project bids from Russia or Iran, says Mantashe

SA could turn to Russia or Iran to expand its civilian nuclear power capacity, says mineral and petroleum resources minister Gwede Mantashe, a stance analysts say could deepen a rift with the US and further delay the renewal of a strategic energy pact.

The country, which operates Africa's only nuclear power plant, Koeberg, plans to add 2,500MWof new capacity to tackle electricity outages that have plagued the economy and to reduce emissions.

"We can't have a contract that says Iran or Russia must not bid. We can't have that condition," said Mantashe, who is one of government's leading proponents of expanding nuclear capacity.

"If they are the best in terms of the offer on the table, we'll take any (country)," he told Reuters.

SA is under scrutiny from Washington after President Donald Trump issued a far-reaching executive order this month halting aid. Among other criticisms, the order claimed,  without providing evidence, SA Africa was "reinvigorating its relations with Iran to develop commercial, military and nuclear arrangements".

The office of President Cyril Ramaphosa said SA  has no bilateral cooperation with Iran on nuclear power or any nuclear-related technology.

A US state department spokesperson did not comment on the possibility of Iran or Russia helping SA expand its civilian nuclear capacity.

A tender for nuclear projects, initially planned for last year, has been delayed for further consultation after legal challenges led by the DA.

After almost a decade of talks, Pretoria and Washington had been seeking to conclude a new civilian nuclear pact, known as a section 123 agreement, which is a prerequisite for exporting US-made nuclear fuel or equipment.

"The allegations made in the executive order can significantly complicate getting the agreement renewed," said Isabel Bosman, a nuclear energy researcher at the SA Institute of International Affairs.

The state department spokesperson did not comment on whether Trump's executive order would affect talks between the two countries.

The previous 123 agreement, implemented in 1997, lapsed in December 2022.

Negotiations for a new agreement have been finalised at a technical level but nothing is signed yet as legal processes on both sides were incomplete, said Zizamele Mbambo, a senior official in the energy ministry.

"As far as we know both sides remain firmly committed to conclude the new agreement," he said.

Failure to secure a new deal could Eskom from sourcing reactor fuel from Westinghouse for unit 1 at Koeberg, industry analysts said. Unit 2 is supplied by France's Framatome.

It may also hinder US companies, such as the Bill Gates-backed TerraPower and ASP Isotopes, from investing in SA during a global atomic renaissance, the analysts said.

Reuters