South Africa is open to bids from Russia and Iran to expand its nuclear energy capacity. This move, criticized by the U.S. government, aims to address electricity shortages. The country is negotiating a strategic nuclear agreement with the U.S. that has faced delays and legal challenges, creating potential risks for future energy investments.
South Africa is exploring collaborations with Russia and Iran to enhance its civilian nuclear capacity, as stated by Gwede Mantashe, Minister of Mineral and Petroleum Resources. This approach aims to address persistent electricity outages and reduce emissions by adding approximately 2,500 megawatts of new nuclear energy. Mantashe emphasized that South Africa will not exclude any bidders if their proposals are the most competitive available.
The U.S. government has raised concerns regarding South Africa’s engagement with Iran, particularly after an executive order was issued by President Donald Trump halting aid due to alleged concerns over military and nuclear ties. However, the South African government has clarified that there are no existing nuclear cooperation agreements with Iran. The U.S. State Department has refrained from commenting on the specific implications of these developments for U.S.-South African relations.
The tender for nuclear projects in South Africa, initially expected to be released last year, has been postponed amidst ongoing legal challenges. Efforts have continued between Pretoria and Washington to finalize a Section 123 Agreement, which is essential for nuclear fuel or technology exportation from the United States. The previous agreement lapsed in December 2022, and while negotiations have reached a technical consensus, formal signing remains pending.
Industry analysts caution that failing to secure this new agreement could obstruct South Africa’s power utility, Eskom, from acquiring necessary reactor fuel from Westinghouse, which supplies Unit 1 of the Koeberg plant. Additionally, potential investments by U.S. firms in the nuclear sector could be hampered amid these negotiations, which have been ongoing for nearly a decade.
In summary, South Africa is contemplating bids from Russia and Iran to expand its nuclear energy capabilities, which could create tensions with the United States. The nation is under scrutiny regarding its relations with Iran but maintains that there are no current nuclear agreements. Delays in the tender process and the renewal of the U.S. nuclear agreement could have significant implications for future energy projects and investments from U.S. companies.
Original Source: www.usnews.com
