Johannesburg — PEBBLE Bed Modular Reactor (PBMR) company CEO Jaco Kriek said yesterday he was quitting the state-funded entity, fuelling uncertainty over the project's future and the role of nuclear power in helping to meet SA's energy needs.

Kriek's sudden resignation appears to be an after-effect of the government's decision to cut funding to the project, which was intended to produce small-scale, high-temperature reactors, but which has struggled to attract private investment.

More than 75% of PBMR's 800 employees face retrenchment and it remains unclear why Kriek would suddenly leave when it faces a big restructuring.

Kriek, who was with the company for six years, did not give reasons for resigning. But PBMR said Kriek, a chartered accountant, would "explore opportunities" in the energy industry.

He did not have immediate plans. "I am going to take a good break and will consider my new career once I am back," he said.

PBMR spokesman Tom Ferreira yesterday moved to dispel a link between Kriek's resignation and the government's decision not to finance the company.

"(It) is not related at all to the lack of government funding," he said. "Although little or no provision was made for (the) PBMR in the recent budget vote, it should be noted that the government will in August take a decision about the future of PBMR. There is therefore still the possibility of future funding from the government and other investors."

With support from the government ending this month and no investor in sight, PBMR appears set for scaling down after 10 years of development.

Kriek's resignation shifts the spotlight to how the government will handle the restructuring of an entity with a high concentration of nuclear skills and expertise.

An interministerial task team to decide the future of the PBMR wants to ensure that valuable nuclear expertise and technology are not lost to SA, "and are retained for application in a possible future nuclear power generation programme," the Department of Public Enterprises said last month.

Nuclear energy is part of SA's future energy plans. In November, Energy Minister Dipuo Peters said SA could expect a new nuclear power plant to be operational by 2020. The new plant would produce 20000MW of electricity, she said.

The Department of Energy's second integrated resource plan, due in June, will clarify how a nuclear build programme will be implemented and by whom.

In 2008, Eskom cancelled plans to build a new nuclear plant, citing high costs.

In a terse statement, the Department of Public Enterprises said it had "noted" Kriek's resignation and thanked him for the valuable service he has rendered.

Last month, four days before news broke of the government's intentions not to fund the project, Kriek strongly argued for investment in the PBMR.

In an interview in the Sunday Times, he said: "As a developing country, if you feel you cannot spend money on this you will always stay a developing country." SA would be "mad" not to exploit the PBMR technology.

Kriek remained upbeat about nuclear technology yesterday.

"The PBMR could provide the South African economy not only with electricity, but also other applications such as clean-process heat. It is therefore an ideal programme to increase the country's exports. I have full confidence that I am leaving the PBMR company in good hands," he said.

Alex Tsela, GM for nuclear compliance at PBMR, has been appointed acting CEO.