The PBMR was to have been a small-scale high-temperature reactor using fuel spheres of silicon carbide-coated uranium particles encased in graphite, with helium as the coolant, able to supply process heat as well as generating electricity. The nature of the fuel in particular gives the reactor a high degree of passive safety, exploiting inherent safety characteristics depending on the physical properties of the system without the need for intervention. Based on well-proved German technology, South Africa has been working on the PBMR project since 1993, but earlier this year PBMR Pty announced the loss of government funding, along with drastic staff cuts. At that point the government had initially decided to downsize the company by 75%, which would have allowed it to operate for up to 3 years.
Addressing the country's National Assembly, public enterprises minister Barbara Hogan cited a number of "sobering realities" underlying the government's decision no longer to invest in the project. Among these were the project's failure to secure an anchor customer or other investment partner; the prospect of the requirement for further investment of at least another ZAR 30 billion ($4.2 billion); and the loss of the opportunity to participate in the USA's Next Generation Nuclear Plant (NGNP) program as part of a consortium with Westinghouse when Westinghouse withdrew from the project in May 2010.
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