? THE 10MW HIFAR MULTIPURPOSE RESEARCH REACTOR ? THE ANTARES 8MV TANDEM ACCELERATOR ? THE 3 MV VAN DER GRAAFF ACCELERATOR ? GAMMA IRRADIATION FACILITIES ? CERAMIC POWDER CHARACTERISATION FACILITIES ? COLLOIDAL CHARACTERISATION FACILITIES ? HOT AND COLD ISOSTATIC PRESSES ? TRANSMISSION AND SCANNING ELECTRON MICROSCOPES ? SCANNING PROBE MICROSCOPE ? SCANNING LASER DILATOMETER ? A RANGE OF X-RAY DIFFRACTION FACILITIES ? NUCLEAR MAGNETIC RESONANCE SPECTROMETERS ? PLASMA IMMERSION ION IMPLANTATION FACILITIES ? SECONDARY ION MASS SPECTROMETER ? MATERIALS TESTING LABORATORY ? ORE PROCESSING AND WASTE TREATMENT FACILITIES ? A RANGE OF ENVIRONMENTAL FACILITIES THAT ALL CAN BE UTILISED UNDER SERVICE ARRANGEMENTS Australian Nuclear Science & Technology Organisation ANSTO scientific facilities Australian Nuclear Science & Technology Organisationii ANSTO Annual Report 2002-03 1 18 September 2003 The Hon. Peter McGauran MP Minister for Science Parliament House CANBERRA ACT 2600 Dear Minister In accordance with Section 9 of the Commonwealth Authorities and Companies (CAC) Act 1997, I am pleased to present the Annual Report of the Australian Nuclear Science and Technology Organisation for the period 1 July 2002 to 30 June 2003. This Annual Report includes a Report of Operations, the content and preparation of which the Board is responsible for under Section 9 of the CAC Act. Yours sincerely Ian D Blackburne Chairman Chairman?s Letter Contents About ANSTO........................................................................................................................................2 Organisational chart ............................................................................................................................5 Members of the Board ........................................................................................................................6 Chairman?s report ................................................................................................................................8 Executive Director?s report ................................................................................................................12 Highlights ............................................................................................................................................15 Key performance indicators ..............................................................................................................17 Core business areas ............................................................................................................................21 International strategic relevance of nuclear science and technology ....................................................22 Core nuclear facilities operation and development ..............................................................................30 Nuclear science for environment and sustainability..............................................................................44 Treatment and management of man-made and naturally occurring radioactive substances ................52 Sustainability and international competitiveness of industry ................................................................62 Organisational development and support ............................................................................................78 Safety arrangements at ANSTO ........................................................................................................87 Environmental protection ..................................................................................................................95 Corporate governance........................................................................................................................99 Associated organisations and programs ........................................................................................109 Australian Institute of Nuclear Science and Engineering ....................................................................110 Access to Major Research Facilities Program ......................................................................................112 Australian Synchrotron Research Program..........................................................................................113 Financial statements ........................................................................................................................115 Appendices ........................................................................................................................................157 1. Equality of Employment Opportunity ..............................................................................................158 2. Freedom of Information ..................................................................................................................159 3. Functions and powers of the organisation under the ANSTO Act ....................................................162 4. Status report on the implementation of the conditions arising from the Environmental Impact Assessment of the Replacement Research Reactor ..............................................................166 5. ANSTO Technology Park tenants ....................................................................................................178 6. Ecologically sustainable development and environmental performance............................................181 7. Commonwealth Disability Strategy..................................................................................................182 8. Performance reporting ....................................................................................................................183 9. Index of compliance with reporting guidelines ................................................................................190 Glossary..............................................................................................................................................191 ANSTO?s core values Underpinning the vision and mission are ANSTO?s core values: ? safety and quality in our operations; ? excellence, creativity and innovation in our work; ? commitment to cooperation and interdisciplinary responses; ? understanding and meeting stakeholder needs; ? integrity in the pursuit of excellence and service to Australia; and ? perceptive leadership and good management. External environment ANSTO?s strategic directions are also influenced by external issues and national policies. Factors that could impact on ANSTO are: ? nuclear policy (government policy on international nuclear developments, involvement in bilateral or multilateral initiatives) and the replacement research reactor program; ? science policy (government policy which impinges on ANSTO, allocation of funding to priority science areas, government priority to areas where ANSTO?s research capability can influence public policy); ? industry policy (government policy on uranium mining, the radiopharmaceutical industry, research and development incentives); ? public attitudes; and ? fiscal policy. Strategic goals ANSTO, to be acknowledged as an innovative organisation at the leading edge of its field, must provide excellent service to stakeholders and high quality research in its speciality areas. To fulfil its vision and mission, ANSTO?s strategic goals are to: ? provide timely delivery of valued scientific advice and technical services to government and other customers and stakeholders; ? fulfil Australia?s national and international nuclear obligations, advancing Australia?s interests through international nuclear science and technology and its applications; ? enhance and improve core nuclear science and technology based facilities to produce research, products and services at the highest possible standard to meet the needs of universities, industry and others in the innovation cycle; ? contribute, either alone or in partnership with others, to new knowledge in selected, relevant research areas in the applications of nuclear science, in the nuclear fuel cycle and in related technologies; ? focus on core business opportunities where innovative solutions can generate economic, environmental or social benefits; ANSTO Annual Report 2002-03 3 The Australian Nuclear Science and Technology Organisation (ANSTO) is Australia?s national nuclear research and development (R&D) organisation and the centre of Australian nuclear expertise. With a salaried staff of approximately 830, ANSTO is responsible for delivering specialised advice, scientific services and products to government, industry, academia and other research organisations. We do so through the development of new knowledge, delivery of quality services and support for business opportunities. ANSTO?s nuclear infrastructure includes the research reactor HIFAR (High Flux Australian Reactor), particle accelerators, radiopharmaceutical production facilities, and a range of other unique research facilities. HIFAR is Australia?s only nuclear reactor. It is used to produce radioactive products for use in medicine and industry, as a source of neutron beams for scientific research and to irradiate silicon for semiconductor applications. ANSTO also operates the National Medical Cyclotron (NMC), an accelerator facility used to produce certain short-lived radioisotopes for nuclear medicine procedures. It is located in the grounds of the Royal Prince Alfred Hospital in Camperdown. Located at the Lucas Heights Science and Technology Centre (LHSTC), 40 km south west of Sydney?s central business district, ANSTO?s main site occupies 70 hectares, surrounded by a 1.6 km buffer zone. ANSTO?s general purpose is prescribed by the Australian Nuclear Science and Technology Organisation Act 1987 and translated into action through corporate drivers of vision, mission and strategic goals. ANSTO?s vision Our vision is to benefit all Australians and the international community through the innovative applications of nuclear science and technology and for ANSTO to be recognised as a leader in selected fields of expertise. ANSTO?s mission Our mission is to: ? provide expert scientific and technical advice across the nuclear fuel cycle to government and support Australia?s national strategic and nuclear policy objectives; ? operate large nuclear science and technology-based facilities in Australia and overseas for the benefit of industry and the Australian research and development community, including postgraduate students and staff in higher education; ? undertake research on specific topics to advance the understanding of nuclear science and the nuclear fuel cycle; and ? apply resulting technologies and other relevant, unique capabilities to focussed research and development and other scientific activities to increase the competitiveness of Australian industry and improve the quality of life for all Australians. Australian Nuclear Science & Technology Organisation2 About ANSTO The Board Dr Ian Blackburne (Chairman) Professor Helen Garnett (Executive Director) Mr Michael Eager (Deputy Chairman) Mr Grahame Cook Dr Klaus Schindhelm Dr Carrie Hillyard Dr Agatha van der Schaaf Chief Executive and Executive Director Professor Helen Garnett Mr Robert Muir Business Development Mr Ian Cullen Corporate Services Mr Barrie Hill Engineering Services Professor Ann Henderson-Sellers Environment Dr Ron Cameron Government and Public Affairs Dr George Collins Materials and Engineering Science Mr Jack Dillich Nuclear Technology Dr Stuart Carr Radiopharmaceuticals Mr David Woods (acting) Safety and Radiation Science ANSTO Annual Report 2002-03 5 ? empower and motivate staff to be at the cutting edge of their disciplines, able to adjust to new ideas and information in an evolving internal and external environment; and ? embrace continuous improvement in business management practices. Enabling legislation The Australian Nuclear Science and Technology Organisation is a body corporate established by the Australian Nuclear Science and Technology Organisation Act 1987. The functions and general powers of ANSTO are set out in Part 2, Sections 5 and 6 of the Act. See also ?Functions of the Organisation under the ANSTO Act?, Appendix 3 of this report. Responsible Ministers The responsible Minister during the reporting period was the Hon Peter McGauran MP, Minister for Science. Statement of compliance This report is written according to the reporting guidelines provided for statutory authorities in Requirements for Departmental Annual Reports, published by the Department of the Prime Minister and Cabinet in June 2002 and the Commonwealth Authorities and Companies (Report of Operations) Orders 2003. An index of compliance is provided in Appendix 9. Australian Nuclear Science & Technology Organisation4 About ANSTO Organisational Chart As at 30 June 2003 Division Directors Minister The Hon Peter McGauran MP (Minister for Science) ANSTO Annual Report 2002-03 7 Dr Ian D Blackburne BSc, PhD, MBA, FTSE, FAICD Chairman Chairman since 1 July 2001 Company director, former chief executive, scientist Appointed 1 July 2001 Term concludes 30 June 2006 Mr Michael Eager BE (Mining), FAusIMM Deputy Chairman Deputy Chairman since 26 June 2002 Company director, mining engineer Appointed 1 January 2002 Term concludes 31 December 2006 Professor Helen M Garnett BSc (Hons), PhD, FTSE, FAICD Executive Director, ANSTO Member of the Board by virtue of Section 9 (1) of the ANSTO Act Appointed 11 May 1995 Reappointed 11 May 2000 Term concludes 10 May 2005 Dr Carrie (Carmel) J Hillyard BSc (Hons), PhD, FTSE Venture Capital Partner Appointed 21 July 1999 Term concludes 21 July 2004 Mr Grahame Cook PSM BEC, AIMM Deputy Secretary, Department of Education, Science and Training Appointed 13 June 2001 Term concludes 4 April 2006 Dr Agatha van der Schaaf MB, BS, BMedSc, FRACP Head, Department of Nuclear Medicine, Sir Charles Gairdner Hospital Appointed 25 July 2002 Term concludes 24 July 2007 Dr Klaus Schindhelm BE, PhD Senior Vice President Operations, ResMed Ltd Appointed 20 March 2003 Term concludes 19 March 2008 Mr John M Craker BE, BSc, MAusIMM, MIMM (UK) Appointed 2 June 1998 Term concluded 31 December 2002 Australian Nuclear Science & Technology Organisation6 Members of the Board ANSTO BOARD MEMBERS 2002/03 During the last financial year, reactor availability was 96.4 per cent of scheduled operating time. Changes in operating and maintenance routines were introduced which improved the efficiency of operation and the ability to fulfil the needs of customers. When completed in late 2005, the replacement research reactor ? Australia?s largest scientific investment ? will have enormous additional potential for unlocking knowledge associated with biotechnology, engineering, materials, nanoscience and environmental science. It will be world class in its scientific and radioisotope production capabilities, meeting Australia?s scientific and medical needs for the foreseeable future. Despite overcoming a few obstacles during the last financial year, including a legal challenge and geotechnical delays, which were resolved to ARPANSA?s satisfaction, work on the replacement reactor is proceeding at an accelerated rate with increased resources. ANSTO is well advanced in its plans for implementing national research priorities (NRPs). The ANSTO plan describes our strategies for enhancing collaboration with other institutions, addresses investment in NRPs, highlights activities that ANSTO has recently initiated in priority areas, and sets out our approach to reporting on implementation. ANSTO?s capabilities mean that it is well positioned to make a significant contribution to Australia?s research priorities. We have been active in working group meetings with the Defence Science and Technology Organisation and CSIRO regarding research that supports various aspects of national security. We are also engaged in international nuclear security issues through our membership of the International Atomic Energy Agency (IAEA). During 2002-03, some 447 papers were published in scientific journals or presented to conferences. ANSTO?s scientific program is reviewed annually by an independent technical advisory committee for quality and relevance, and its reports are particularly reassuring to the Board. The launch of the Bragg Institute in December 2002 was an initiative that will place Australia at the forefront of research. Designed to be an international leader in neutron beam and x-ray science, our aim is to make the Bragg Institute a centre of excellence for scientific endeavours in its field. Through the Institute, we intend to forge extensive linkages between ANSTO and other national and international organisations using joint staff, project teams and students. ANSTO Annual Report 2002-03 9 In this landmark year, it?s a pleasure for me to present ANSTO?s 2003 annual report. It is 50 years since the passing of the Atomic Energy Act 1953 by the Federal Parliament, an Act which led to a most significant milestone in Australian history when at 11.15 pm on 26 January 1958 at the Lucas Heights High Flux Australian Reactor (HIFAR) the process of criticality, a self-sustaining chain reaction which splits atoms, was achieved. This was the first nuclear chain reaction conducted in the southern hemisphere. It was a step that would ultimately make Australia a world leader in the application, research and development of nuclear based science and other technologies. Fifty years on, although many people know about important medical procedures that employ radioactive materials, they remain unaware of the widespread uses and benefits of other nuclear-based services in our daily lives. ANSTO has gone on to achieve international recognition for its innovative applications of nuclear science and technology. Today ANSTO works in the development and application of new knowledge and expertise, important to sustainability, human health, national security and the economic development of Australia. One of HIFAR?s major uses has been the production of radiopharmaceuticals and industrial isotopes for medical diagnosis and therapy. Radiopharmaceutical sales rose 6% over the previous year. Achievements in the year included the approval by the Therapeutic Goods Administration of the CEA-scan, a diagnostic agent for staging of colorectal cancer. The rapid growth in nuclear medicine has required ANSTO to upgrade handling facilities and plan for a building extension so the manufacture of radioisotope products can continue to meet community needs. I am pleased to report that HIFAR has operated safely and efficiently throughout its history and continues to do so. ANSTO complies with the conditions of its operating licence in all respects. Australian Nuclear Science & Technology Organisation8 Chairman?s Report ANSTO Annual Report 2002-03 11Australian Nuclear Science & Technology Organisation10 At ANSTO we recognise the important link between science and business in building Australia?s economic strength. Commercialisation of our work includes the manufacture and distribution of radioisotopes, for medical applications in diagnosing and treating life-threatening diseases and for environmental and industrial applications. These provide a significant community benefit. ANSTO has a number of important partnerships with Australian industry, particularly with the national and international mining industry due to our large range of research skills that contribute to the industry?s development of innovative products and processes. We specialise in handling and treating ores and wastes, particularly where radioactivity is present, and the oxidation and subsequent leaching of sulfides relating to waste rock, stockpiles and heap leach piles. We undertook a number of commercially important projects during the year, such as irradiation services for silicon used in computers and semi conductors. Neutron transmutation doped (NTD) silicon revenue exceeded $3 million for the year, and approximately 16,000 samples from industry and research organisations were irradiated for analysis. ANSTO also provides consulting services to clients, including collaborative strategic research and development projects. One of our strategic partners, SIRTeX, announced ANSTO staff for maintaining the high quality of product and service for which ANSTO has become recognised. I would particularly like to extend our best wishes to Professor Garnett, who announced her resignation from ANSTO to take up the role of Vice-Chancellor, Northern Territory University and foundation Vice-Chancellor elect of the Charles Darwin University in October this year. She has contributed enormously to ANSTO?s success in making it a leading science and technology organisation. I would also like to thank all Board members for their valuable contributions and service to ANSTO, especially Mr John Craker who retired as a Board member on 31 December 2002. We welcome to the Board Dr Klaus Schindhelm, who was appointed 20 March 2003. Ian D Blackburne Chairman this year that it has been awarded approval to market SIR-Spheres (used to treat secondary liver cancer) on the European market ? significant in business terms for Australia. It also means that a proven and effective cancer fighting treatment is now accessible to patients in Europe as well as in Australia and adds to the range of medical options for practitioners. In 2002-03, ANSTO received parliamentary appropriations of $217.4 million (2001-02 $158.7 million). This included $104.2 million for the replacement reactor construction (2001-02 $59.1 million), $99.1 million for operational and capital expenses for science and technology activities (2001-02 $93.9 million), and $14.1 million for disposition of spent fuel (2001-02 $0.8 million). In 2002-03 ANSTO also generated $38.1 million from external sales of research services, radioisotopes for medicine and industrial products and other services (2001-02 $35.3 million). Total operating expenditure on research and related activities was $137.3 million (2001-02, $128.8 million) resulting in an operating surplus of $0.2 million (2001-02, $0.8 million). In 2003-04 ANSTO will receive $11.1 million, spread over two years, for a major redevelopment of its security systems. In closing, I would like to thank the Chief Executive, Professor Helen Garnett, and all Chairman?s Report Australia?s largest project in new scientific infrastructure is taking shape ? the replacement research reactor. As a state-of- the-art facility, it will keep Australia virtually self-sufficient in nuclear medicines and enable the development of new therapeutic and diagnostic substances. It will also allow us to expand our commercial capability and further contribute to the economical development of Australia in areas such as biotechnology, sustainability, engineering, materials, nanoscience and environmental science as well as contributing to history and archeology. In the future, the replacement reactor will no doubt attract researchers from educational and research institutions around the world. Construction is proceeding on schedule and budget. Commissioning is planned for 2005. At ANSTO, our goal is to turn good science into good business for our clients, global partners and stakeholders. With this in mind, we have put in place processes to fast track some possible commercial ventures. In March 2003 we launched the ANSTO Business Lab ? a total ?cradle to grave? environment for the evaluation, management and commercialisation of ANSTO?s intellectual properties and technologies. In a knowledge-based organisation such as ANSTO, our staff are integral to delivering excellent outcomes. During the year ANSTO implemented an enhanced performance management system, in conjunction with our enterprise bargaining agreement. Designed to foster open employer and employee communication, the system will establish clear accountabilities and provide benefits to both parties. ANSTO?s aim over the past few years has been to establish itself as a knowledge management and learning organisation. The new performance management system is another major step in that direction. One of ANSTO?s greatest achievements is its support for students. We provide work experience opportunities for school students, as well as access to our facilities and expertise for undergraduate and postgraduate university students (for example, year in industry scholarships) ? either directly or through the Australian Institute of Nuclear Science and Engineering (AINSE). ANSTO also hosts postgraduate students from some Cooperative Research Centres (CRCs). On Anzac Day this year, current and former ANSTO staff, advisers and Board members featured among recipients of the prestigious Centenary Medal, awarded for contributions or achievements at the time of the centenary of federation. Those honoured included current and former Board members, Dr Ian Blackburne, Dr Carrie Hillyard, Dr Max Richards and Mr Michael Codd AC; current and former members of our Technical Advisory Committee, Dr Roy Green and Dr John Zillman; and current and former staff ANSTO Annual Report 2002-03 13 Welcome to ANSTO?s 51st annual report. This year is a significant milestone for ANSTO and the Australian research and development community, as it is the 50th anniversary of the passing of the Atomic Energy Act 1953. The passing of 50 years gives us the opportunity to reflect, not only on past achievements, but also to look to the future. Since inception, ANSTO?s work has evolved significantly. The one constant, however, has been ANSTO?s commitment to maximising the benefits from our facilities and know-how for Australia?s and the world?s sustainability, health and economic development. ANSTO remains a crucial part of Australia?s science and innovation infrastructure as our facilities provide essential capabilities to a range of educational institutions, research and development bodies, and industry. And our reputation for excellence is fundamental to ANSTO?s research as it is a prerequisite for the outputs and outcomes that yield value to the organisation. Applications of our research and development activities are demonstrated throughout this report, indicating both the value and potential of the organisation. ANSTO?s potential was highlighted by the announcement by the Prime Minister last December of the National Research Priorities ? into which much of ANSTO?s research and development activities fall. Backed by a long history of collaboration with educational bodies and other publicly- funded research organisations, the Government?s new priorities will serve to sharpen our research focus and collaborative relationships. We have identified specific goals where we most expect to make a discernible difference to research in Australia over the coming few years. The launch of the Bragg Institute last December was another great milestone for ANSTO. A tribute to the father and son team of William and Lawrence Bragg, the institute is at the forefront of research and development in neutron scattering and the use of x-rays. We will use the institute to forge extensive partnerships with other research organisations, international agencies and industry. Australian Nuclear Science & Technology Organisation12 Executive Director?s Report ANSTO Annual Report 2002-03 15 members, Professor Ann Henderson-Sellers, Dr Brian Spies, Dr Adam Jostsons, Dr John Friend and myself. These awards are testament to the important contribution made by ANSTO to the Australian community today, where many applications of nuclear science and technology are used in everyday life. Backed by the commitment of our staff, our unique facilities and ever strengthening cooperation with universities, industry and other publicly-funded research agencies, ANSTO is moving more strongly into the future. We see our research contributing significantly to the National Research Priorities, along with more effective application of our science and technology through business ventures. This will be my last report as Chief Executive. It has been a privilege to lead ANSTO toward the future. Given the enthusiastic workforce and the investment in facilities, I have no doubt that ANSTO will underpin socioeconomic development in Australia for many years ahead. Professor Helen Garnett Chief Executive and Executive Director Australian Nuclear Science & Technology Organisation14 Executive Director?s Report July 2002 ? Russian nuclear science delegation visits ANSTO to establish a basis for future commercial opportunities for radioactive waste immobilisation. ? ANSTO Green Trends established as a marketing strategy for technology-based services in the field of nuclear sciences applied to environmental problems. ? Provisional patent is granted for improved process for microwave heating as a spin-off from waste immobilisation development. ? A combined exercise is held with ANSTO first response personnel and NSW Ambulance Rescue. ? The Australian Institute of Nuclear Science and Engineering hosts third year university students for its fifth Winter School. August 2002 ? US pollution researchers choose ANSTO to analyse New York smog samples. ? Gentech ? technetium-99m radiopharmaceutical generator accepted as part of the Australian Technology Showcase. ? Collaborative work with Industrial Research Limited (New Zealand) commenced on geopolymers for waste immobilisation. ? Finalist in the prestigious Sherman Eureka Prize for Environmental Research into the potential threat to resident estuarine crocodiles in Kakadu National Park. ? An ANSTO patent application regarding controlled release encapsulation materials and process technology enters the national phase. ? The National Synchrotron Radiation Research Centre (NSRRC) in Taiwan signs an agreement to give the Australian Synchrotron Research Program (ASRP) access to facilities. September 2002 ? Geological fault information provided to ARPANSA. ? ANSTO and the South African Nuclear Energy Corporation agree to establish joint research and activities. October 2002 ? ARPANSA concludes that research reactor construction can proceed. ? ANSTO strategic partner, SIRTeX gets European approval for Australian cancer ?magic bullets?. ? New small tandem accelerator delivered to ANSTO. November 2002 ? AusAID announces funding of $1.42 million to support a regional radiological safety program proposed by ANSTO. ? Successful full-scale demonstration by ANSTO and French colleagues of immobilisation in a glass-ceramic of wastes from the Idaho National Engineering and Environmental Laboratory, USA. Highlights 1 July 2002 to 30 June 2003 ANSTO Annual Report 2002-03 17 Key performance indicators Triennium Funding Agreements between the Government and the science agencies ? ANSTO, CSIRO and the Australian Institute of Marine Science (AIMS) ? were renewed in 2000 for the years 2000-01 to 2002-03. In the 2003-04 Budget, the Government announced that the Agreements would be extended for a further year, to 30 June 2004, particularly to take account of the Government?s program to evaluate research and innovation. The principles of the Triennium Funding Agreement offer the Government and the science agencies a more stable financial environment and a realistic timeframe in which to plan for resources and activities that extend for much longer than budget cycles. The Government has developed with the science organisations the framework and operational elements of arrangements for the three years, including performance reporting requirements containing agreed performance indicators. These indicators are used to monitor and evaluate ANSTO?s performance and achievement of its objectives in relation to the Agreement. They should be read in conjunction with ANSTO?s Report of Operations included in this annual report. Comparative figures for the prior years of the triennium are shown. 1. Research and development This set of indicators measures the performance in terms of ANSTO?s objectives to maintain and encourage the highest level of research (both at the national and international levels) which will meet the future needs of industry and other users, and to ensure the effective and efficient use of resources to conduct that research. The performance indicator is the level and quality of scientific and technical publications and conference contributions (see Table 1). List of distinguished awards and major prizes: ? Short-listed in International St Andrews Prize for the Environment ? Finalist in Telstra Business Women?s Awards ? Election as Fellow of the American Ceramic Society ? Election as Fellow of Australian Institute of Company Directors In addition, several ANSTO staff were recognised as adjunct professors at Australian universities. Australian Nuclear Science & Technology Organisation16 Key Performance Indicators Highlights 1 July 2002 to 30 June 2003 December 2002 ? First concrete poured on the replacement research reactor site. ? Launch of the Bragg Institute. ? ANSTO welcomes the Prime Minister?s announcement of National Research Priorities. ? Cooperative Research Centre for Sustainable Resource Processing announced, with ANSTO as a member. January 2003 ? A new elemental analyser/isotope ratio mass spectrometer, purchased by AINSE, is delivered to ANSTO. February 2003 ? An ANSTO provisional patent application is filed regarding methods and systems for measuring rate of change in gaseous oxygen concentration and for measuring intrinsic oxidation rate in a pile of material. March 2003 ? ANSTO launches innovative ANSTO Business Lab to commercialise next generation R&D. ? ANSTO hosts the International Group of Research Reactors Ninth Conference at Darling Harbour, with over 100 attendees representing research reactors from around the world. ? ANSTO and the University of Sydney sign a Memorandum of Understanding which leads to the establishment of a joint Centre for Structural Biology and Chemistry. April 2003 ? ANSTO celebrates 50 years since Parliament passed the Atomic Energy Act. ? ANSTO finalises Northern Territory radioecology study to assess the impact of radioactivity in the tropical environment. ? An ANSTO patent application regarding transition metal oxide compositions enters the national phase. ? An ANSTO patent regarding peripheral benzodiazepine receptor binding agents is granted in the United States. ? An ANSTO provisional patent application is filed regarding methods and systems suitable for use in determination of intrinsic oxidation rate. May 2003 ? ANSTO staff and Board members awarded Centenary Medals for achievements in science. ? One of ANSTO?s Chief Research Scientists, Dr Lou Vance, is elevated to Fellow of the American Ceramic Society. ? ANSTO submits its implementation plan for the National Research Priorities. ? An ANSTO international patent application for an oxidation process is filed under the Patent Cooperation Treaty. ? The Australian Government allocates additional funding for major redevelopment of ANSTO security. ANSTO Annual Report 2002-03 19Australian Nuclear Science & Technology Organisation18 Key Performance Indicators Table 3: External earnings as a percentage of appropriation outcome 3 ($000?s) External Earnings as Percentage of Total External Revenue Revenue from Government 28.6 71.4 2002-03 2001-02 2000-01 Appropriation revenue from Government, 93,986 88,877 72,193 (net of capital usage charge, equity injections and special maintenance supplementation) External revenue (net of asset disposal proceeds) 37,638 34,401 35,162 Total revenue (outcome 3) 131,624 123,278 107.355 External revenue as a percentage of total 28.60 27.91 32.75 Note: Presentation has been re-stated for previous years to ensure uniformity. 3. Technology transfer and commercialisation This performance indicator measures the performance in terms of ANSTO?s objective to encourage and facilitate the application of knowledge and technology developed by the organisation for the benefit of industry and others for the maximum long-term benefit of Australia. The performance indicator for this objective is the earnings and net contributions from external research and services contracts and from commercial operations (see Table 3). 2. Liaison and collaboration This set of indicators measures the performance of our objective to encourage the transfer of research through liaison and collaboration with industry, government and other uses (includes science and academic communities). The performance indicator is the level of use of ANSTO?s facilities (see Table 2). 2002-03 2001-02 2000-01 Postgraduate/undergraduate students 215 181 191 Postdoctorals 50 57 45 Collaborative research projects 305 376 276 Others 9 42 28 Total 579 656 540 2002-03 2001-02 2000-01 Books, chapters & monographs 5 7 19 Journal articles (refereed) 147 125 135 Conference papers/ abstracts 300 268 194 Commercial & technical reports 477 553 391 Total 929 953 739 Table 2: Level of use of ANSTO?s facilities Table 1: Publication level measured by number and categorised by type of publication Books, chapters and monographs 5 147 300 477 Journal articles (refereed) Conference papers /abstracts Commercial and technical reports Publications level 2002-03 ? Number of nominations as host agency by internationally recognised researchers 10 nominations (25 in 2002, 11 in 2001) Australian Nuclear Science & Technology Organisation20 Core Business Areas 2002-03 2001-02 2000-01 Number of projects 15 16 17 Number of person years 26.3 28.6 28.9 Amount expended ($m) 5.29 5.78 5.84 4. Advice to Government This performance indicator measures ANSTO?s performance in terms of the objective to ensure we provide highly regarded advice to Government on nuclear and related matters. The performance indicator is the level of involvement in international policy developments (see Table 4). The reporting system does not capture staff seconded to and paid by international activities, and where activities are driven by international nuclear organisations. 5. Customer satisfaction This performance indicator measures the performance of our objective to ensure a high level of customer satisfaction. The performance indicator is the level of successfully completed research and service contracts for industry and government (see Table 5). Table 4: Effort expended for and on behalf of Government on domestic and international policy-related issues Table 5: Contract performance 2002-03 2001-02 2000-01 Number of contracts completed during 1311 935 585 report period Number of contracts due for completion 1321 944 591 during reporting period Proportion of contracts completed against 99 99 99 the number of contracts due (%) Number of continuing contracts at 95 70 47 end of period with period milestones met Number of continuing contracts at end of 96 81 47 period with milestones to be met during period Proportion of continuing contracts that 99 86 100 met milestones during period (%) Proportion of all contracts that 99 98 99 were completed or met milestones Key Performance Indicators ANSTO Annual Report 2002-03 23 Core Business Areas Australian Nuclear Science & Technology Organisation22 Projects in this core business area provide high level technical advice on the nuclear fuel cycle to government and advice on nuclear-related issues to the international and local communities. ANSTO is taking a leading role in promoting the implementation of appropriate nuclear-related practices, including the application of safeguards to our nuclear material and facilities. Keeping the government informed Activity Providing advice and responses to ministers, Parliament, government departments and agencies about a range of nuclear issues nationally and internationally. ANSTO also contributes advice that assists government decision-making regarding science and technology, health, environment, industry, foreign affairs and trade, as well as responding directly to public inquiries that it receives about its activities, and nuclear science and technology in general. Output During the year ANSTO provided submissions to inquiries and reviews that addressed National Research Priorities, higher education, biotechnology, the pharmaceutical industry, clinical research, future workforce skills, science and security, business R&D and Australian adherence to international treaties. We also provided reports to ministers and the Parliamentary Public Works Committee on the replacement research reactor project. Outcomes The Government was able to draw on a depth of experience in matters such as nuclear waste management, research, higher education reform and national security. Discussions on topics ranging from salinity to nanotechnology contributed to stronger understanding of these issues by departments and members of parliament. Future At the end of the 2002-03 year, ANSTO was contributing to the Mapping of the National Innovation System, and the Review of Closer Collaboration Between Universities and Major Publicly Funded Research Agencies, as well as another 14 reviews and inquiries. Australia?s international nuclear profile Activity Continuing ANSTO?s specialised overseas representation through Counsellor (Nuclear) posts located in Australian diplomatic missions in Vienna, London and Washington DC, to maintain Australia?s nuclear profile internationally. Output ANSTO?s Counsellors (Nuclear) develop technical contacts with the International Atomic Energy Agency and the Organisation for Economic Cooperation and Development (OECD) Nuclear Energy Agency (NEA) and provide essential links between ANSTO and those geographical regions most active in nuclear science and technology. They also provide advice to the Department of Foreign Affairs and Trade (DFAT) on the development of policy and guidelines for the peaceful application of nuclear science and technology. Outcomes The counsellors provided a vital component of ANSTO?s services to government by reporting on nuclear developments in the international agencies and elsewhere, and representing Australia in international meetings and negotiations. Future The Counsellor (Nuclear) in Vienna will assume Europe-wide responsibilities when the Counsellor (Nuclear) arrangements in London end during the 2003-04 financial year. Leading the way in nuclear safeguards Activity Meeting national and international nuclear safeguards requirements established by the IAEA and the Australian Safeguards and Non-Proliferation Office (ASNO). Output Australia has taken a leading role in the implementation of advanced safeguards arrangements. IAEA inspectors carried out verification of ANSTO?s nuclear material in an unannounced inspection, including a complementary access visit, in November 2002 and a physical inventory verification visit in April 2003. Results from those inspections were satisfactory, with the opportunity to further tighten the accounting methods for and checking of nuclear material. Outcomes ANSTO demonstrated continued compliance by it, and Australia, with the Nuclear Non-proliferation Treaty (NPT) and Australia?s bilateral safeguards agreements with the IAEA and others. International Strategic Relevance of Nuclear Science and Technology ANSTO Annual Report 2002-03 25 Core Business Areas Australian Nuclear Science & Technology Organisation24 International Strategic Relevance of Nuclear Science and Technology Supporting nuclear policy Activity Advancing Australia?s international nuclear policy objectives through a strong presence in key conferences and meetings. Output ANSTO is Australia?s principal technical interface with the IAEA. In addition, the Executive Director is a designated Alternate for Australia?s Governor on the IAEA Board of Governors and participates in its key policy meetings. Australia is a designated member of the Board. The Executive Director is also a member of the Standing Advisory Group on Nuclear Applications, which reports directly to the Director General of the IAEA. ANSTO contributes to numerous technical committees and working groups of the IAEA, OECD/NEA and other international fora. We also provide technical and logistic support to the IAEA Technical Cooperation Program. During the last year, ANSTO hosted IAEA meetings and training events, while staff participated in almost 30 IAEA and OECD/NEA missions. We assessed almost 60 applications from IAEA fellows and scientific visitors for training in Australia and placed some 20 individuals with appropriate organisations. We provided advice to DFAT on technical nuclear issues and international nuclear developments. ANSTO played a key role in the leadership of the International Conference on the Safe Transport of Radioactive Material and chaired an international meeting to finalise a Code of Conduct on the Safety and Security of Radioactive Sources. Senior personnel have contributed to IAEA programs on the potential for misuse of radioactive material, potential radiation effects and protective measures. An ANSTO staff member is working with the IAEA Iraq Action Team. Outcomes ANSTO continues to be asked by the IAEA, NEA and others to provide advice and technical expertise on nuclear issues and participate in technical committees and meetings. Participation in international meetings enables us to maintain and develop a firm understanding of current and future nuclear related issues, and assist in representing and promoting Australia?s interests internationally. Future To ensure a strong Australian presence regionally and internationally in the nuclear area, ANSTO will continue to be involved during the coming year in international activities, such as hosting IAEA events, placement of IAEA fellows in Australia, participation in IAEA and NEA technical and advisory committees, which are leading specific safety-related activities, and providing technical expertise for the IAEA Technical Cooperation Program. In particular, ANSTO will continue to provide specialist input to further strengthen Australia?s role in brokering solutions for the safe transportation and shipment of nuclear materials for the benefit of Australian industry and global security. ANSTO expertise for RCA projects Activity Representing Australia on Regional Cooperative Agreement (RCA) matters and providing significant ?in kind? contributions to its activities. Output Australia is a leading member of the RCA for research, development and training related to nuclear science and technology in the Asia Pacific region. In November, AusAID announced funding of $1.42 million over three years to support an RCA project proposal prepared by ANSTO to improve regional radiological safety capabilities. Managed by ANSTO, a significant number of the project activities will utilise ANSTO?s knowledge, experience and expertise. Outcome Participation in the RCA is a demonstration of the fulfilment of Australian obligations and commitments under Article IV of the Nuclear Non-proliferation Treaty. It also provides a platform to demonstrate ANSTO?s nuclear science and technology capabilities at the regional level. Future In fulfilling Australia?s commitments under the RCA, ANSTO will continue to be involved during the coming year in a wide range of RCA activities, especially those associated with the extra-budgetary support recently approved by AusAID. Nuclear powered warship visits Activity Monitoring nuclear powered warships (NPWs) within Australia. Outputs ANSTO provides operational health physics support and technical advice to the Commonwealth and Australian states for visits by nuclear powered warships to Australian ports. During the last year, there were eight such visits. We also assisted the Department of Defence in updating port plans and answering questions from the public regarding technical aspects of NPW visits. Outcomes This service, which uses ANSTO?s specialist expertise in nuclear operations and safety, is of strategic value to Australia. Supporting IAEA safeguards research Activity Analysing iodine-129 and uranium-236 by accelerator mass spectrometry (AMS) to identify these key nuclear signatures in environmental samples for the IAEA Safeguards Network of Analytical Laboratories. Undertaking research on the capabilities of radiation detectors. Analysing and providing information to the IAEA. ANSTO Annual Report 2002-03 27 Core Business Areas Australian Nuclear Science & Technology Organisation26 International Strategic Relevance of Nuclear Science and Technology Output Our success with the detection of signs of nuclear activity was reported at several international conferences. Demand for our specialised analytical service has exceeded forecast by 60 per cent due to extra requirements from the IAEA this year, as a result of the global security situation. The results of our evaluations have been reported to the IAEA, and will contribute to further international research and development in this area. As part of an IAEA Coordinated Research Project (CRP), ANSTO has undertaken studies of the capabilities of radiation detectors to find smuggled nuclear material. Outcomes The IAEA has adopted ANSTO-developed techniques that are leading to greater confidence in the ability of the nuclear safeguards system to detect undeclared nuclear facilities. The capabilities of commercially available detectors to detect illicit trafficking have been more precisely evaluated. Future In cooperation with the IAEA, development of plutonium isotopic analysis by AMS will enhance nuclear safeguards by enabling the detection of this key nuclear signature at even lower levels than are presently possible. The technique can also be applied to nuclear forensics. International bilateral agreements Activity Maintaining bilateral nuclear cooperation agreements with institutes in a number of countries around the world. Output The bilateral agreements in the Asia Pacific region are of particular importance, specifically the ANSTO/KAERI (Republic of Korea) agreement and the ANSTO/BATAN (Indonesia) agreement. During the last year, ANSTO continued implementing ANSTO/KAERI cooperation projects and explored possible expanded cooperation in neutron science and research reactor materials evaluation. We provided expert assistance to BATAN to advise on its future human resource and equipment requirements to improve the reliability of ?in service? inspections conducted on research reactor tank vessels. Outcomes Bilateral nuclear cooperation supports and reinforces Australia?s bilateral treaty and agreement obligations in science and technology as well as other cooperation and Nuclear Non-proliferation Treaty priorities. ANSTO has 155 memoranda of understanding with other organisations through which its collaborative activities with national and international researchers are progressed. Future ANSTO will proceed with the implementation of the agreed ANSTO/KAERI cooperation activities and the application of IAEA and AusAID funding to improve BATAN?s ?in service? inspection capabilities for research reactor tank vessels, and to provide BATAN with a quality remaining life assessment and material properties capability. Nuclear cooperation in Asia Activity Representing Australia in both policy and technical Forum for Nuclear Cooperation in Asia (FNCA) meetings, ANSTO leads FNCA activities in the area of nuclear safety culture and participates in activities on small angle neutron scattering and radioactive waste management. The FNCA, which involves nine Asian countries, all NPT signatories, operates outside the IAEA and RCA frameworks. It undertakes a range of nuclear cooperation activities covering aspects of the utilisation of radioisotopes and radiation in agriculture, medicine and industry as well as radioactive waste management, nuclear safety culture and the utilisation of research reactors. Output ANSTO organised and supported the sixth Nuclear Safety Culture workshop held in Vietnam in January, at which most participating countries submitted a self- assessment report covering a research reactor. ANSTO also participated in the Radioactive Waste Management workshop held in Korea in November, and hosted a visit by a FNCA naturally occurring radioactive material (NORM) task group in February. Outcome Participation in the FNCA reinforces Australia?s position as a leader in nuclear science and technology in the Asia Pacific region. It also supports Australia?s obligations and commitments under Article IV of the Nuclear Non-proliferation Treaty and provides a window into nuclear developments in the region. FNCA activities also provide an appropriate venue to promote ANSTO?s nuclear science and technology capabilities at the regional level and enable strong regional linkages. Future ANSTO will continue to lead the nuclear safety culture initiatives in the FNCA during the coming year and will specifically promote and support the nuclear safety culture workshop, to be held in Thailand. ANSTO will also participate in a number of planned workshops in key activities, such as radioactive waste management and small angle neutron scattering scheduled for the coming year. ANSTO Annual Report 2002-03 29 Core Business Areas Australian Nuclear Science & Technology Organisation28 International Strategic Relevance of Nuclear Science and Technology High quality information for the community and industry The publication and distribution of high quality information on ANSTO to the community and potential collaborative partners. Output During the past year ANSTO participated in the Sydney Royal Easter Show, Science Festival Wollongong, Science Week, Sutherland Home Show and the Gray?s Point Festival. A series of media lunches around Australia, hosted by Professor Ben Selinger of the Australian National University, focused on nuclear and radiation issues and applications. We also continued to encourage visits to the ANSTO site. ANSTO issues media releases (45 during the last year) and liaises with journalists about its activities, especially the outcomes of its research and development, and the benefits of its radiopharmaceuticals. Major publications included a new corporate brochure, Our Lives Would be Unimaginable Without the Applications of Nuclear Science, and a Royal Easter Show 2003 brochure, Celebrating 50 years of Applying Nuclear Science to Daily Life. In line with the general trend towards electronic publishing, ANSTO aimed to provide all major publications in CD and web formats. External usage of ANSTO?s website averages about 1000 visits per day. Outcome More members of the community gained first-hand understanding of ANSTO, and nuclear science and technology in general, through visits and the presence at community events. Visitor numbers rose by 40 per cent this past year. Media coverage presents a myriad of ways in which ANSTO benefits Australian society. Quality publications and our website provide ready access by the public to information about ANSTO?s activities and capabilities. Announced in November 2002, a competition to name the replacement research reactor stimulated interest among school students and teachers around Australia. ANSTO?s Easter Show stand won a gold award for a commercial exhibit of 18-50 square metres in size. Future The website will be developed further to enhance navigability and ease of access. The result of the replacement research reactor naming competition will be announced early in the new financial year. Celebrations of the 50th anniversary of the passing of the Atomic Energy Act will include activities to engage the community. Site security Activity Providing physical protection of the Lucas Heights Science and Technology Centre. Output ANSTO provided protective security arrangements covering classified material and information. Security vetting of staff and contractors were satisfactorily managed. In consideration of the national and international security environment, ANSTO provided security awareness training for all staff and long-term contractors. Outcome ANSTO has satisfactorily maintained the physical protection of all facilities and materials in accordance with international obligations and guidelines recommended by the IAEA and national requirements set by ASNO. ANSTO Annual Report 2002-03 31 Core Business Areas Australian Nuclear Science & Technology Organisation30 management of new and used nuclear fuel is provided in a safe manner. Using experience obtained over the years, ANSTO implements a comprehensive plan to remove spent HIFAR fuel from the site. We have implemented a detailed plan to enable the sixth spent fuel shipment to proceed. ANSTO?s exacting management of the Fuel Facility Licence ensures safe storage and shipment of used fuel. Outcomes ANSTO demonstrates commitment to safely managing spent fuel and providing a disposition strategy. Our interest in the management and disposition of research reactor spent fuel is represented in international and national deliberations . Future ANSTO will continue to provide the facilities to safely handle, store, inspect and use nuclear fuel into the future. A reliable source of ion beams Activity Managing the operation of the Australian National Tandem Accelerator for Applied Research (ANTARES) and the smaller Van de Graaff particle accelerator facilities. Outputs The safe and reliable operation of our accelerator facilities is ensured through a well developed program of preventative maintenance and upgrades. Enhancement of the particle beams that we produce and the control systems are designed to meet the demands of the research projects. We maintain and operate accelerator facilities to world class standards to meet the expectations of the science community. Outcomes ANTARES and the smaller Van de Graaff accelerator provide a reliable source of ion beams to support two key research areas ? ion beam analysis (IBA) and accelerator mass spectometry ? benefiting the Australian research and development community and industry. Future To replace the 38-year-old Van de Graaff accelerator, a small tandem accelerator (STAR) is currently being installed and should be operational in 2003. Once commissioned, the STAR facility will provide a new source of ion beams for IBA and AMS. New state-of-the-art accelerator Activity Replacing the small tandem accelerator. Outputs ANSTO is commissioning and installing a new particle accelerator that fully meets the current and projected needs of accelerator sciences. Outcomes When installed, we will have a state-of-the- art accelerator that will provide enhanced analytical information in accelerator mass spectrometry and ion beam analysis. This facility will be more cost effective and increase the capability to satisfy the needs of accelerator scientists by AINSE and ANSTO strategic projects and commercial contracts. The Core Nuclear Facilities Operation and Development (CFOD) core business area?s role is to operate core facilities in Australia and overseas for the benefit of the Australian research community and industry. Critical to CFOD?s success is safety, efficiency and access for scientists to our nuclear infrastructure. High quality industrial irradiation Activity Supplying neutron irradiation services for industrial materials purposes. Outputs HIFAR?s irradiation service is provided for the production of high quality neutron transmutation doped silicon for electronics metals manufacturers around the world. Ore and material samples for environmental and archaeological studies are irradiated for subsequent neutron activation analysis investigations. Materials are also irradiated for use as tracers in environmental studies and for engineering investigations into wear rates and performance of machine components. Outcomes Recognised as a reliable supplier to the NTD silicon markets, HIFAR has acquired new customers over the last financial year. Throughout the year neutron activation analysis business remained steady with additional interest by universities for research projects. Future During the next financial year HIFAR will continue to produce high quality NTD silicon for the electronics industry, along with irradiation services for researchers and other clients. Continuing participation in development of irradiation techniques for production of high resistivity material will provide a potential base for new business opportunities. Shipping ANSTO?s fuel safely Activity Arranging for the safe storage and transport of spent fuel to reduce the on-site inventory of irradiated fuel. Output In accordance with stringent regulatory requirements, ANSTO ensures that the Core Nuclear Facilities Operation and Development Australian Nuclear Science & Technology Organisation32 Core Nuclear Facilities Operation and Development ANSTO Annual Report 2002-03 33 Core Business Areas Brad Difford (left) and John Staraj preparing reactor top plate for a fuel element change. DAY-TO-DAY OPERATIONS OF HIFAR Reactor operation In accordance with the conditions of the ARPANSA operating licence, HIFAR was operated safely throughout the last year and at a nominal power of 10 megawatts for 7832 hours ? being 96.4% of its scheduled available operating time. Nuetron Beams Usage of neutron scattering facilities increased by 25% this year. The neutron beam instruments were used for ANSTO research projects (445 days), university research supported by AINSE and the ARC (642 days), and national and international collaborative research (153 days). Reactor maintenance and modifications Accredited to the ISO9000 requirements for quality systems and all operations and maintenance, HIFAR?s activities are undertaken in accordance with procedures. There were 11 scheduled shutdowns for routine maintenance and refuelling totalling 1080 hours (45 days). Modifications included replacement of radiation monitors in the reactor protection system and the installation of a new storage block for neutron transmutation doping silicon production. Radioisotope production Demand for the molybdenum continues to grow. The number of targets irradiated increased by 15% during the year and 3 extra irradiation facilities were introduced by early 2003 to cater for the demand. During the year approximately 2180 targets were irradiated to produce medical and industrial isotopes. Irradiation services World market demand for NTD silicon has remained strong. HIFAR has continued to attract an increasing share of this business due to the high quality of our product, responsiveness to customer needs and ability to contribute in development of the NTD process for new products and more precise specification. During the year export revenue in excess of $3 million was produced from irradiation of silicon. Some 16,170 environmental, archaeological and mineral samples were also irradiated for neutron activation analysis. interpretation capabilities. ANSTO ensures continuous improvement by developing the capabilities. The user community includes researchers at Australian universities, along with other Australian and overseas research organisations and ANSTO scientists. AMS analyses have supported research on global climate change, palaeoenvironment, landscape evolution, Pacific Island and South East Asian archaeology and forensic science. Outcomes Radioisotopic analysis of carbon, beryllium and aluminium supports scientific research projects in environmental and earth sciences, archaeology, heritage and forensic studies. Over 1000 samples were measured in the last year, most of which were radiocarbon analyses. Analyses for radioisotopes of beryllium and aluminium have been maintained at around 400 per year. The AMS facility has been improved by commissioning an elemental analyser isotope ratio mass spectrometer (funded through AINSE), which extends our capability to include stable isotope analysis of carbon and nitrogen and will provide a means of automating some aspects of radiocarbon sample processing. Future With the commissioning of the new accelerator and routine operation of the elemental analyser isotope ratio mass spectrometer, the AMS facility will improve and increase the capacity for radiocarbon analyses, thus sustaining ANSTO?s position as a leading player in AMS analysis. Low energy end of the ANTARES accelerator. The object at bottom right with the white cover is the ?injection magnet? which provides the first stage of mass analysis. On the right at bottom is one of three negative ion sources ? a high-intensity, multi- sample cesium sputter ion source. Future Becoming operational in 2003, this new facility will be utilised to significantly improve the outputs in scientific programs related to the environment, archaeology, heritage, biology and materials science. Accelerator mass spectrometry Activity Providing access for Australian and overseas researchers to the AMS facility on ANTARES. Output Designed for ultra-sensitive multi-isotope analysis with high precision and high throughput, the facility routinely delivers high quality AMS sample processing and target preparation, measurement and ANSTO Annual Report 2002-03 35 Core Business Areas Australian Nuclear Science & Technology Organisation34 Outcomes ANSTO maintained its standing as a provider of choice for ion beam analysis by universities, local and state government organisations and industry. Future New funding and grants have been obtained to characterise fine particle pollution in capital cities around Australia. This will provide new and valuable information for state and federal Environment Protection Authorities. Identifying pollution with ion beams Activity Analysing ion beams to identify pollution. Output ANSTO provides on-demand ion beam analyses and expert advice for internal projects and externally driven activities involving universities, CSIRO, local and state government organisations, industry and international organisations, including the International Atomic Energy Agency. Dr Ugo Zoppi holding a carousel in which cathodes, containing processed samples, are located. The carousel can hold up to 58 cathodes, which are loaded with ?unknown? samples (i.e. those which we are trying to measure) plus a number of ?blanks? (samples depleted in the radionuclide of interest) or ?standards? (samples containing a known ratio of radionuclide of interest to stable nuclide). The carousel is placed under vacuum (in the aluminium box to the right of the carousel) and samples are remotely loaded into the active region of the ion source under computer control. Refer to page 32. Core Nuclear Facilities Operation and Development ON A CLEAR DAY I CAN SEE FOREVER Emissions of dust particles into the air are of great interest to everyone for health, environmental and aesthetic reasons. Dust (or particulate matter) occurs in the atmosphere from two sources ? either from the surface, such as wind-blown soil, agricultural and open-cut mining activities, or from combustion products, such as from cars or the burning of fossil fuels. In response to increasing community concerns about the possible impacts of airborne particles, regulatory authorities are increasingly expecting the generators of these emissions to ensure the fallout from their activities have minimal consequences. ANSTO is using ion beam analysis techniques to identify the nature and origin of the particulate emissions in the air at selected sites. The high analytical sensitivities afforded by ion beam analysis enables the effects of seasonal climatic changes to be observed and transient events to be tracked, long after they have taken place. The fast, highly sensitive and non-destructive technique of ion beam analysis rapidly identifies a suite of 21 selected elements in particulates collected on aerosol filters located at strategically positioned sampling stations. Statistical techniques are then used to identify and classify the signatures that identify their origin. ANSTO has been using these techniques in the Muswellbrook area in a project for the Australian Coal Association Research Program. From the data collected, five main sources of particulate matter in the air have been identified in the area: soil (40%), petrol- fuelled engines (15%), sea spray (11%), diesel-fuelled engines (7%) and sulfur from industrial processes (5%). The identification of different sources leads to a better understanding of the transport of the particulate matter by wind. The information gained from this research is being used by stakeholders to develop and implement strategies for effective environmental management. Open cut coal mine in the Hunter Valley where ANSTO has been carrying out research on airborne dust transported from this mine across the township of Muswellbrook and adjacent farms. Australian Nuclear Science & Technology Organisation36 Core Nuclear Facilities Operation and Development The replacement research reactor under construction. REPLACEMENT RESEARCH REACTOR ON ITS WAY Construction of the research reactor to replace HIFAR, which has been operating since 1958, is now well under way. When completed in 2005, the replacement reactor will be a low power pool reactor using low enriched uranium fuel, which is cooled by water. The reactor will be a multi-purpose facility for radioisotope production, irradiation services and neutron beam research. Its compact core has been designed to achieve high performance in the production of neutrons. The reactor building will contain all the nuclear systems as well as the reactor and service pools. It will protect the reactor from external elements, and provide the structural basis for the reactor containment. Constructed from reinforced concrete, it will be seismically robust with a metallic grillage for added protection. A modern, more efficient reactor will allow us to expand our work in the development and application of new knowledge in many areas that are vital to Australia?s future, such as agriculture, industry and manufacturing, minerals and energy, construction, human health and the environment. HIFAR?s performance limitations, compared with more modern reactors, indicate that it is approaching the end of its useful life. It will be taken out of service, following a successful parallel operation period with the replacement reactor. Contracted project expenditure remained within budget. Details of expenditure to date are explained in the financial statements that accompany this report. Progress ? Previous years Phase 1 ? environmental assessment, public works review, pre-tender and tender processes. Phase 2 ? selection of the contractor ? INVAP S.E., an Argentine company, working with an Australian joint venture subcontractor comprising John Holland Construction and Engineering Pty Ltd and Evans Deakin Industries Limited ? was completed by July 2000. Phase 3 ? detailed engineering, construction, commissioning and demonstration of performance is well under way. Delays of two months in February and March 2002, were incurred in issuing the construction licence. ? ANSTO Annual Report 2002-03 37 Core Business Areas Progress ? Current year Site construction work was suspended due to the discovery of the geological fault in the excavated site in June 2002. Geological investigations were carried out from late June to late October. The project schedule is being expedited as quickly as possible to overcome this and the earlier delay. While site construction was suspended, detailed design and engineering proceeded. In other countries, the granting of a construction licence would lead directly to manufacturing and procurement of equipment and systems for the facility. However, Regulation 54 of the ARPANS Act requires that separate approval must be obtained from ARPANSA before construction can commence on each and every item of importance to safety. Development of effective systems for making applications to ARPANSA and the ongoing preparation of documentation to obtain the necessary approvals required substantial commitment from INVAP and ANSTO. Following completion of the geological investigation, go-ahead was received from ARPANSA in late October and building work was resumed. A project award productivity agreement was employed by the contractor to achieve an accelerated rate of building work. To enable building equipping works in the lower levels prior to completion of the upper levels of the building shell, project re-scheduling was implemented by the contractor in May 2003 in an attempt to accelerate the project schedule. Work also commenced in early 2003 on preparation of the application to ARPANSA for an operating licence for the new facility. Seven out of eight neutron beam instruments for the replacement reactor have now been approved, along with the necessary computing infrastructure to operate them in the facility. The conceptual designs are complete, engineering design is proceeding and some major procurements have been placed. The schedules for the neutron beam instruments project and reactor construction have been aligned. Both schedules will be monitored to ensure alignment of the completion of the two projects. Future planning Hot commissioning tests are planned from around mid-2005. Prior to this, ANSTO will request approval from ARPANSA to load fuel. ANSTO?s application for an operating licence will require significant supporting documentation. Preparation of this documentation and subsequent submission of the final application is currently scheduled for September 2004 to allow at least eight months for ARPANSA processing and approval, which will include significant interaction with and input from the public. Operations and maintenance procedures and associated manuals will need to be finalised by late 2004. Training is also planned for completion by this time. ANSTO Annual Report 2002-03 39 Core Business Areas Australian Nuclear Science & Technology Organisation38 of reactor core materials, along with the effects that any changes may have on the structural integrity of the reactor. Output The studies undertaken provide information on the ability of the materials used in ANSTO?s nuclear plant to withstand changes caused by reactor operation. This will allow ANSTO personnel to ensure that any changes are recognised and taken into account in future operational decisions. It will also contribute to the worldwide body of knowledge of radiation effects on engineering materials. Outcomes The key value of the work is to support the continued safe operation of ANSTO?s existing and future nuclear plant. For HIFAR, information is gained to ensure that the state of structures and components do not change significantly during the remaining years of operation. For the replacement research reactor, the aim is to ensure that the materials used in construction enable the facility to operate safely and efficiently for its design life. Understanding of the behaviour of Zircaloy-4, an alloy used extensively in the reactor core regions, is particularly important. Future Future work is directed towards preparing for testing of active materials as part of the surveillance program for the replacement research reactor. This will have to be performed remotely in hot cells due to the high activity of the samples that will be taken from the reactor. of the Lucas Heights Science and Technology Centre and buffer zone using an airborne helicopter radiological survey has been completed. Outcomes Effective environmental management shows ANSTO?s commitment to protecting the environment and that the organisation complies with Australian Radiation Protection and Nuclear Safety Agency regulations and other requirements. Future We are aiming to achieve ANSTO certification to the international ISO14001 standard for environmental management systems in 2003-04. Keeping assets in good order Activity Ensuring capital upgrades to keep building infrastructure operating efficiently. Output Many ANSTO infrastructure services and buildings are now around 50 years old. Effective asset management and replacement continues to ensure appropriate functionality. Outcomes Key outcomes have included: ? an upgrade of the main electrical substation; ? an upgrade of low voltage distribution supplying switchboards to many buildings; Michael Jance and Mirela Ribicic applying the basics of welding principles in the Building 3 Development Workshops. This was part of an introductory welding course to develop a greater understanding and appreciation of the technical and practical aspects of the welding process by engineers. Exacting environmental management Activity Enhancing ANSTO?s Environmental Management System towards ISO14001 certification and implementing a current world?s best practice environmental monitoring program for ANSTO. Output ANSTO is preparing essential components of the ISO14001 environmental management system, such as an environmental aspects database and a legal requirements register. Environmental emissions from ANSTO sites are continuously monitored and results reported to facility operators and the regulator as required. Environmental monitoring systems, such as that used to monitor airborne emissions, are being upgraded and a radiological characterisation Heathcote Creek ? capital maintenance work for ANSTO Radiopharmaceuticals and Industrials (ARI) production facilities; and ? reconstruction of site roads and parking areas. Future Asset maintenance studies indicate that an increasing program of refurbishment will be required over the next 10 years, particularly for building, roofing and ventilation services. Maintaining Integrity of nuclear plant Activity Studying the effects of radiation and the operating conditions within research reactors on the mechanical behaviour Core Nuclear Facilities Operation and Development ANSTO Annual Report 2002-03 41 Core Business Areas Australian Nuclear Science & Technology Organisation40 Core Nuclear Facilities Operation and Development Ensuring safety of operations Activity Providing safety assessments of facilities and assistance and advice on safety issues. Outputs This service provides high quality safety assessments of ANSTO?s core facilities, along with sound technical advice on hazards, risks, safety reviews and licensing issues. Outcomes ANSTO has improved safety and operations of controlled facilities in accordance with our duty of care to the public and staff, along with compliance with licensing requirements of ANSTO facilities, apparatus and materials. The level of risk has also been reduced. Neutron scattering science Activity Undertaking research in materials science, physics, chemistry, biology, the earth sciences and engineering using neutron scattering techniques. Output Studies have included the development of superconducting and magnetic materials, soft condensed matter and colloids, ferroelectric materials and structural characterisations of ceramic and small molecular systems. Outcomes ANSTO has enhanced the reputation of its neutron scattering effort and established new collaborative research relationships with the aim of expanding our user group for the replacement research reactor. This project enables ANSTO to maintain staff for the replacement reactor?s Neutron Beam Instrument Project. Future ANSTO aims to maintain excellent scientific output for the next 12 months (more than 50 refereed journal publications in the neutron scattering field) and expects to attract high-profile overseas personnel to Australia as visitors and users. Australia?s scientific reputation will also be enhanced, lending credibility to its investment in the replacement reactor, and raising the general scientific standard in Australian research institutions. We intend to use this project to seed future focussed research projects and commercial activities. Refereed journal publications 41 Invited scientific talks 3 Presentations at domestic and international conferences 31 Scientific web highlights 3 New scientific collaborations developed 16 Awards or prizes 3 Postgraduate students supervised 12 Over the last financial year, outcomes of neutron scattering studies have resulted in: Ross Finlay holding a prototype fuel assembly for the replacement research reactor. UNDERSTANDING REACTOR MATERIAL INTEGRITY Safe and efficient operation of HIFAR and the replacement research reactor is of utmost importance to ANSTO. The Nuclear Component Integrity project develops knowledge and expertise on the effect of the plant operations on the materials used in the reactor core region. Such conditions include neutron and gamma radiation, heat and coolant flow. The project involves a study of the mechanical properties of Zircaloy-4, used in the core of the replacement reactor reflector vessel and in the control rod structures. Of particular importance is the fracture toughness, which determines a material?s capability of resisting the growth of pre-existing defects or initiation of new defects under extreme off-normal operating conditions. Small sample techniques have been used to monitor changes in fracture properties, which are necessary due to space limitations in the replacement reactor core region where the surveillance samples will be located. We have evaluated a number of different tests with the conventional three-point-bend and the short- rod tests proved to be capable of measuring change in fracture properties. We are investigating additional methods, including the small punch test. Early in its operational life, the replacement reactor will be one of the first research reactors to operate with the newly developed uranium molybdenum fuel. Developed under the Reduced Enrichment for Research and Test Reactors (RERTR) program, it will provide a high density, low enrichment uranium fuel suitable for wide application in research reactors and capable of being conditioned or processed after use. ANSTO staff have played a leading role in the RERTR project, which has been carried out at Argonne National Laboratories in the United States. During the past year ANSTO has participated in the post-irradiation examination of trial fuel plates that have been irradiated in test reactors in Europe and the United States. ANSTO Annual Report 2002-03 43 Core Business Areas Australian Nuclear Science & Technology Organisation42 Core Nuclear Facilities Operation and Development WHY COOPERATIVE MAGNETIC BEHAVIOUR OCCURS A team from the Bragg Institute and three universities have been working together to study the relationships between atomic structure and the physical properties of a new family of oxygen-deficient cobalt oxide compounds. Containing a mixture of rare earth and strontium atoms, these compounds have attracted significant attention over recent years due to their applications in energy storage devices such as solid oxide fuel cells. They also show a wide range of interesting magnetic properties, including glassy behaviour and room temperature ferromagnetism. While these applications have been widely reported, the atomic structure that underpins the materials? technologically exciting physical properties was previously unknown. The attractive physical properties of these materials depend on the overall oxygen content and location of atoms and vacancies within the structure. Oxygen ionic conductivity, for example, is strongly affected by oxygen vacancy ordering while magnetic behaviour is strongly affected by the ratio and distribution of cobalt ions of differing oxidation state. Our compositional studies showed that these compounds contained substantial oxygen vacancies along with cobalt ions in 3+ and 4+ oxidation states. Susceptibility measurements revealed ferromagnetic transitions close to room temperature. Electron diffraction, along with the brilliance and high-resolution afforded by the synchrotron powder diffractometer at the Australian National Beamline Facility in Japan, enabled us to correctly determine the structure of these materials for the first time. We observed a tetragonally-distorted superstructure with ordered oxygen vacancies in the cobalt oxide planes and further ordering between the rare earth and strontium atoms [see image below]. Furthermore, neutron powder diffraction data collected at HIFAR, both above and below the magnetic ordering temperature, enabled us to show that the moments on the cobalt atoms were aligned ferri-magnetically parallel to the crystallographic c-axis. Our structural studies ? carried out with the University of NSW, the Australian National University and the University of Wollongong ? have not only clarified why cooperative magnetic behaviour occurs, but also how the ordering of oxygen vacancies and metal atoms contributes to the dramatic stability shown by these materials when used as electrodes in energy storage devices. The structure of Ho0.33Sr0.67CoO3-d. The general class of materials that have this structure type (determined using diffraction techniques) are called ?perovskites?. Diagram of the neutron beam facility in the replacement reactor. MATERIALS RESEARCH OF THE FUTURE By scattering neutron beams, ANSTO scientists and engineers are building a future in materials research with a modern high performance facility that probes atomic and molecular structures. New materials that display exotic and exciting properties ? potentially of great benefit to humanity ? are discovered in chemistry, physics, materials science and engineering laboratories every day. To exploit this potential, scientists must have a complete understanding of crystalline structure and interactions on an atomic scale. There is no better way for probing this structure than neutron beam scattering. However, the method requires that neutrons be generated in a nuclear fission reaction and then cooled sufficiently so that their interaction with atoms and molecules can provide information about the way materials are arranged and how neighbouring atoms influence each other. ANSTO?s replacement reactor will provide a more powerful and versatile source for neutron beam research than the ageing HIFAR reactor. The design and construction of the neutron beam instruments is being undertaken in close consultation with the Australian research community. We expect the facility to rank amongst the best in the world. When completed in 2006, the beam facilities will house a suite of eight world-leading neutron beam instruments that will enable Australian scientists and engineers to compete at the forefront of research into new materials. Underpinning our research into advances in science and technology, the facility will attract leading international researchers to our shores to collaborate with Australian scientists. It will also have potential for further expansion and modification to meet Australia?s evolving research challenges through the first half of the 21st century. ANSTO Annual Report 2002-03 45 Core Business Areas Australian Nuclear Science & Technology Organisation44 Nuclear Science for Environment and Sustainability resulted in the generation of revenue from commercial clients and maintained our standing as a ?Superior Laboratory?, as classified by the National Research Council (Canada) in the 15th Inter-comparison for Marine Biological Tissues and Sediments. Future A presentation on the effect of dissolved organic carbon and water hardness on the toxicity of copper and zinc to a tropical freshwater alga will be given at a joint Australasian Society for Ecotoxicology and the Society of Environmental Toxicology & Chemistry Asia Pacific Conference in New Zealand from 28 September to 1 October 2003. Isotopic microanalysis of surfaces Activity Microanalysis of surfaces by secondary ion mass spectrometry (SIMS). Output ANSTO provided detailed information on isotopic composition and impurity content at the surfaces of metallic, geological and biological materials to researchers and industrial clients leading to the publication of five collaborative research papers, the improvement of processing parameters and the development of new materials. Outcome Improved understanding of isotopic composition and structure at the nano- scale for scientific research and development of new technologies. Future ANSTO will continue to identify and improve services to industries. Migration of radionuclides Activity Studying radionuclide pathways with a focus on: ? scientific support for the proposed national waste repository; ? issues associated with the rehabilitation of the Rum Jungle uranium minesite; ? the uptake of nuclides in tropical food plants; and ? the transport of particles and sediments that carry contaminants in terrestrial and marine environments. Output Project personnel were finalists in the Sherman Eureka Prize for Environmental Research. Featuring the application of advanced technology, the project included an improved ion microprobe, small angle neutron scattering and synchrotron techniques at major facilities in the USA and Japan. The project undertook sand and sediment tracer studies in the Sydney region, Mumbai (India) and the Philippines through the International Atomic Energy Agency. Outcomes The project contributed significantly to an understanding of the migration of radionuclides and other contaminants through the biosphere. As governments, businesses and communities look to identify strategies for environmental sustainability, they are becoming more aware of the need for a better understanding of natural processes and the impact of human activity on the environment. The Nuclear Science for Environment and Sustainability (NSES) core business area includes projects where nuclear- based techniques increase this level of understanding. Our activities in this area have evolved significantly. Where we once only focussed on measuring and monitoring any environmental impacts associated with the operation of ANSTO?s facilities and uranium mining, we now address a range of environmental concerns and contribute technical advice on issues of public importance. Excellence in environmental performance and applying nuclear- based techniques to predicting and solving environmental impacts has become an integral part of our operation. Quality analytical services Activity Providing high quality analytical services relevant to the environmental sector. Output ANSTO provides high quality analytical reports to commercial clients, site operations and research projects. In addition, we presented research at the Interact 2002 conference in Sydney on the effects of acidity on the copper and zinc toxicity of algae. ANSTO also performs analyses and assessments for companies in the mining and manufacturing industries to provide data in areas such as environmental impact, ecotoxicology and mineral processing. Such data are required to monitor operational levels and demonstrate compliance with regulatory limits. Outcomes Tactical Environmental Services and Analysis underpins the quality of science on research projects across ANSTO and with external collaborators. Our ongoing commitment to excellence in research has ANSTO Annual Report 2002-03 47 Core Business Areas Australian Nuclear Science & Technology Organisation46 Nuclear Science for Environment and Sustainability New insights in both tropical and arid environments resulted from the application of advanced technologies to multi-element distribution and mineralogy at the micro- scale. Sediments and particles are major pathways for radionuclide and general contaminant transport and were studied over extended periods using tracer techniques. Future This project concluded on 30 June 2003. Some investigations and activities will be taken up in other projects. What is changing our environment? Activity Utilising nuclear techniques to investigate evidence of human activity and climate variability in the Asian and Australasian regions. Outputs The Asian Regional Aerosol Characterisation Experiment Project generates official archive data. In collaboration with other participants, ANSTO will prepare papers for an international journal on air characterisation. A significant scientific contribution will be made to the understanding and characterisation of regional air masses in southern Australia by publishing scientific analysis of measurements, maintaining data quality and guiding the scientific projects at Cape Grim baseline air pollution station, a joint program between The Bureau of Meteorology and CSIRO. Outcomes ANSTO has enhanced understanding of what is changing Australia?s and the region?s environment. The natural archive studies will enable better environmental management and long-term planning strategies. By improving understanding of the role of aerosols in ?climate forcing? in the Asian region, ANSTO is also improving the ability to predict climate change ? including long-term changes in the concentrations of trace species in the atmosphere on a regional and a global basis. Future The project components will be re-aligned to both the National Research Priorities and internationally driven research into global climate change. Techniques used for groundwater flows Activity Developing novel neutron and gamma analytical techniques to determine groundwater flow parameters. Output ANSTO developed a single borehole radiotracer technology using HIFAR-produced bromine-82 to provide high resolution hydraulic conductivity and other aquifer parameters. A novel method using neutron activation of salt water is progressing. Neutrons are used to produce prompt gamma radiation from chloride in the aquifer. The idea has been investigated in an artificial aquifer and two boreholes in sandstone of quite different hydraulic conductivity. ANSTO AIR POLLUTION STUDIES OFFER CLUES TO CLIMATE CHANGE Is air pollution in Asia influencing climate change? As part of a program known as the Aerosol Characterisation Experiment (ACE), ANSTO scientists at are at the forefront of an international effort to answer this question. Like greenhouse gases, aerosols are believed to influence climate. Atmospheric aerosols are very fine particles suspended in air that can come from the dispersal of material at the earth?s surface or by reaction of gases in the atmosphere. They include sulphates and nitrates from the burning of fossil fuels, organic materials from the oxidation of volatile organic compounds, soot from fires, and mineral dust blown in the wind. Natural aerosols include sea salt and volcanic dust. It is known that increased burning of coal and other biomass raises the concentrations of sulfate and soot particles in the air. These particles are thought to scatter more sunlight back into space, influence cloud formations, and alter the amount of atmospheric material deposited into the Pacific Ocean. Scientists have theorised that these factors could cause localised cooling and affect the amount of rainfall and associated agriculture, as well as marine biota and fisheries. ANSTO scientists are collecting samples from filters at five selected sites to observe the outflow of air pollution from the Asian continent. They are located in Hong Kong, Manila (the Philippines), Hanoi (Vietnam), Sado Island (Japan) and Cheju Island (South Korea). Using ANSTO?s facilities, accelerator-based nuclear techniques of analysis are being applied to obtain over 25 different elemental and chemical species from hydrogen to lead, including the key components of elemental carbon, sulfate and soil. A radon measuring site at the southern tip of a Hong Kong island. ANSTO Annual Report 2002-03 49 Core Business Areas Australian Nuclear Science & Technology Organisation48 Nuclear Science for Environment and Sustainability Outcome ANSTO?s technology provides solutions to aquifer studies such as of tidal flow, river loss to alluvium and estimates of mobility of salt stores. These methods may have great value for predicting the rate of movement of salt in groundwater as current methods of estimating saline flows are very unreliable. Future The technique will be developed in aquifers to allow valuable calculations of salt movement to be demonstrated in significant salt-affected agricultural areas. Understanding salinity Activity Encouraging the enhanced use of isotopes in an Australia-wide assessment of groundwater recharge and basin-wide hydrology. Output Studies are under way in the Great Artesian Basin and Murray Darling Basin, involving significant collaboration with national institutes, such as The Bureau of Meteorology, and the International Atomic Energy Agency Coordinated Research Project. Outcomes The use of isotopes provides a basis for predicting the impact that climate change has on effective groundwater recharge. This knowledge will contribute to the national effort of ?drought proofing? Australia. Future Following the successful measurements undertaken using the synchrotron, further work will apply other advanced micro- analytical techniques, such as analytical electron microscopy, ion beam analysis and secondary ion mass spectrometry to further elucidate the chemistry of cadmium in soils. The results will enable an assessment of the effectiveness of possible management practices to reduce the contamination of crops. Future This work is ongoing under the framework of the IAEA Coordinated Research Project and the Murray Darling Basin Water Budget Project. Assessment of salinisation processes that lead to urban salinity could have major implications on Australian building codes. Currently ANSTO is using nuclear techniques to investigate these processes in Western Sydney. This work will address a major issue that could cost Australians millions of dollars over the coming years unless understood and addressed. Reducing the contamination of crops Activity Measuring the distribution of contaminants in soils using the highly sensitive synchrotron x-ray fluorescence technique. Output This application of synchrotron x-ray fluorescence enabled the relative concentration and exact location of cadmium contamination in soil particles to be determined. Outcomes Knowledge of the behaviour of pollutants in soils is important due to the possibility of uptake by vegetables as part of the human diet. The work enables the importance of different sources of cadmium to be assessed, and helps identify the mechanisms leading to accumulation in plants. MIGRATING SANDS AND SEDIMENTS AT OLYMPIC PARK ANSTO has been using tracer techniques to study the migration of sands and sediments, due to their potential role in radionuclide and contaminant transport. There is currently worldwide interest in the migration of cohesive sediments (or muds) in urban areas. A major European study has defined several unanswered questions and is addressing them by using the activatable tracer indium. Activatable tracers are non- radioactive materials added to the environment in small amounts and subsequently measured in collected samples at very low levels after irradation in our HIFAR reactor. Together with the Sydney Olympic Park Authority, ANSTO is investigating the transport of cohesive sediment in Homebush Bay over a 12-month period. The three-dimensional distribution of the tracer is being used to evaluate and extend numerical models of the transport processes developed by the University of NSW Water Research Laboratories. The migration of sand off McMasters Beach in NSW, following storm events, has also been studied using iridium-192 labelled glass beads in collaboration with the NSW Department of Land and Water Conservation (DLWC) and Sydney University. Precise measurements of tracer dispersion are now possible and have contributed to theories for the development of megarips and for interaction of beach processes with longshore sand transport. ANSTO Annual Report 2002-03 51 Core Business Areas Australian Nuclear Science & Technology Organisation50 Nuclear Science for Environment and Sustainability The source of the water was proven using the stable isotopes of water while the age was determined using naturally occurring radioactive isotopes. We were also able to delineate the main zones of river water leakage through the use of geophysical surveys to reveal where the water flows underground. A picture of the precise shape of the buried valley was produced along a number of key transects across the westerly moving plume of water. The value of this work is very significant. It provides a sound basis for the sustainable use of groundwater dependant irrigation practice in the region and demonstrates that the loss of water from the river and the extraction for irrigation and other uses has established a new groundwater equilibrium. Additionally, the volume of extractable water resources in the alluvial sediments can now be better determined since the improved understanding of the bedrock topography provides more accurate dimensions of the buried valley. Taking water quality measurements from the river using a hand-held meter. Honours student, Meredith Thomas, taking a bore water sample from alluvial flats adjacent to the river. WHERE IS ALL THE WATER GOING? ANSTO, together with the NSW Department of Land and Water Conservation, has investigated the loss of up to one-third of the volume of the Macquarie River into alluvial aquifers downstream of Narromine in Central West NSW. The long-term sustainability of groundwater extraction in the area is also under investigation as part of the NSW Water Sharing Plan process. Narromine is about 460 km from Sydney and 40 km west of Dubbo, the nearest major city. The land is predominantly used for cotton and grain crops, due to irrigation from the river and a large number of high yielding groundwater bores. DLWC developed a model of how the water was leaking from the river and invited ANSTO to use nuclear expertise to fill in the picture. The project utilised stable and radioactive isotopes to determine the source and ages of groundwater in the vicinity of the irrigation area and assessed the suitability of the electrokinetic sensing technique in alluvial areas as a means for detecting permeable media. Using nuclear tools such as tritium and carbon- 14 dating, ANSTO set about to accurately quantify the amount of water lost from the Macquarie River to the alluvial aquifers in the buried valley adjacent to the river south-west of Narromine. This work was critical in demonstrating that a plume of mainly modern river water was extending up to 20 km west of Narromine at depths from 30 to 100 metres ? an enormous amount of water. ? ANSTO Annual Report 2002-03 53 Core Business Areas Australian Nuclear Science & Technology Organisation52 Outputs Our work has led to the development of wasteform formulations and technology for immobilising intermediate-level wastes produced during our radioisotope production activities. Contract work was undertaken with British Nuclear Fuels plc (BNFL) on a research-scale demonstration plant for immobilising actinide bearing wastes at Sellafield, United Kingdom. Outcomes Our innovative use of ceramics for the immobilisation of radioactive waste has provided ANSTO with international recognition, through the development of a patent portfolio and numerous research papers embodying both scientific and engineering aspects of the work. By providing radioactive waste management solutions to close the nuclear fuel cycle, the project has enhanced Australia?s reputation as a responsible member of the international nuclear community and uranium exporter. Future Collaborative work continues with BNFL, Cogema (France) and ANSTO Radiopharmaceuticals in the area of radioactive waste immobilisation. Planning is in progress for a pilot plant overseas that would exploit our immobilisation technologies for high-level nuclear wastes. There will also be increased involvement with BNFL and European agencies at the back end of advanced fuel cycles to reduce hazards of high-level radioactive wastes. Treating liquid and solidified waste Activity Developing and designing an immobilisation process plant to treat existing liquid and solidified waste from molybdenum-99 production using leach- resistant titanate-based ceramic. Molybdenum-99 is used to produce the medical isotope technetium-99m. Output ANSTO has identified and assessed a potential wasteform which conforms to international best practice guidelines. We have identified a suitable processing route for the immobilisation process and completed a preliminary conceptual design of the immobilisation plant. A spin-off of this work has been an improved process for microwave heating. Outcomes / future The major outcome will be design of a process plant to effectively immobilise wastes arising from molybdenum-99 production in a form suitable for indefinite storage or disposal in a geological repository. This will also demonstrate ANSTO?s use of its own technologies for waste treatment which could open up the possibility of its application to similar and related waste streams around the world. Radioactivity is part of our everyday lives. Projects in the Treatment and Management of Man-made and Naturally Occurring Radioactive Substances (TMRS) core business area develop new approaches and processes, and refine existing ones, for the management of man-made and naturally occurring radioactive substances. Removal of naturally occurring radionuclides from ore products and minerals is important to maintain Australia?s competitive edge internationally in the mining industry. ANSTO places a high priority on the safe management of radioactive wastes, including conditioning of waste for safe storage and disposal. This will continue to be an important focus for TMRS. Fire testing of charcoal filters Activity Providing in situ testing and fire protection of charcoal air extract filters, along with the redesign of filling machinery. Output This project involves enhancing the operational reliability of ventilation systems that extract radionuclides from laboratories and process facilities, and verifying them by routine in situ testing of charcoal filters. Outcomes In line with best practice, routine in situ testing of charcoal filters ensures the filter systems operate at consistent levels before the filter medium requires replacement, thus ensuring maximum retention levels of radionuclides. Future All development and installation outcomes for the project are scheduled for completion over the next 12 months. Solving global waste problems Activity Providing outstanding scientific research and development capabilities to promote commercial exploitation of ANSTO?s innovative ?designer ceramics?, and contribute to solving the global problem of radioactive waste immobilisation. Treatment and Management of Man-made and Naturally Occurring Radioactive Substances ANSTO Annual Report 2002-03 55 Core Business Areas Australian Nuclear Science & Technology Organisation54 Treatment and Management of Man-made and Naturally Occurring Radioactive Substances Selective inorganic sorbents for liquid waste Activity Developing selective inorganic sorbent materials to extract radioactive isotopes from liquid process streams. Output ANSTO has developed selective inorganic sorbent materials that show high selectivity for ions of interest (caesium-137 and strontium-90). After extensive experimentation with simulant solutions, testing with ANSTO?s liquid waste from its medical isotope production has recently commenced. Initial results indicate an ability to extract essentially all the caesium- 137 and strontium-90 from the liquid waste and concentrate it in a solid sorbent, leading to a 10,000-fold reduction in waste volume. Outcomes Ion-selective microporous materials have a range of potential applications, some of which have been demonstrated in laboratory tests. The application and commercial potential of these materials to industry is being explored. The sorbent materials will be used to separate medical isotopes, control radioactivity in liquid waste originating from isotope production at ANSTO, and in various industrial mineral extraction processes. Future ANSTO liquid waste remediation could be just around the corner ? possibly applying this technology to liquid waste remediation operations at other international sites. Our efforts are ongoing to explore commercial avenues for this technology, develop other new materials for valuable medical isotope separations, and solve a range of environmental problems. Radioactivity of ores and environmental solutions Activity Developing innovative changes in radioactive ore processing and associated hydrometallurgical flowsheets that will contribute to the sustainability of industry. Output Three provisional patent applications related to process development innovations (and jointly owned with a key customer) are in progress. ANSTO has been accepted as a core participant in the Cooperative Research Centre for Sustainable Resource Processing, which has similar objectives to this project and is expected to enhance opportunities for interaction with industry. Outcomes Industries within Australia and worldwide that are most affected by radioactivity are uranium, copper, mineral sands, rare earths, phosphates, niobium/tantalum, aluminium and steel. Commercial arrangements for the use of one new process are in progress. A major mining company has also undertaken to assess the applicability of a second new process. Patent applications were filed last year for both these processes. Chemical analyst Terry McLeod using Soxhlet apparatus to assess nuclear wasteform durability EFFECTS OF IRRADIATION ON WASTEFORMS Zirconolite has been proposed as a major constituent of titanate wasteforms for radioactive wastes rich in actinides, such as plutonium. These wasteforms will be of importance if partitioning and transmutation are pursued as part of advanced reprocessing strategies overseas. Collaboration with overseas reprocessors of spent fuel has a substantial inherent value to ANSTO. A memorandum of understanding between ANSTO and two French organisations, Commissariat a? l?Energie Atomique (CEA) and Cogema covers, collaborative studies between the three organisations on zirconolite for actinide immobilisation. Recent collaborative and parallel studies at CEA and ANSTO have focused on the consequences of radiation damage from incorporated actinides on the structure and chemical durability of zirconolite. Damage was simulated using heavy ion bombardment using facilities at CEA, the Australian National University and Pacific Northwest National Laboratories (USA), and durability studies carried out using a Soxhlet rig. Regardless of the type or intensity of irradiation applied it was found that chemical durability was not affected and there was no evidence of secondary phases on the leached surface. These current investigations show that radiation damage alone does not increase zirconolite leach rates. Commercial opportunities with CEA and Cogema have arisen from these collaborative studies and the potential exists for continuing contractual work. Australian Nuclear Science & Technology Organisation56 Treatment and Management of Man-made and Naturally Occurring Radioactive Substances ANSTO Annual Report 2002-03 57 Core Business Areas RADIOECOLOGY STUDY TO BENEFIT TROPICAL NATIONS A Northern Territory radioecology study recently completed by ANSTO scientists will substantially improve environmental risk assessments in tropical nations across the world. The research is part of an international collaborative research program initiated by the International Atomic Energy Agency and the United Nations Food and Agriculture Organisation in a wide range of areas such as Russia, USA, Greece, Syria, Vietnam, China, Pakistan and Bangladesh. Some countries in the tropics are expected to utilise nuclear energy in the next few decades, so key information to improve environmental risk assessments is vital. ANSTO chose Douglas Daly Research Farm, about 250 kilometres south of Darwin, to carry out the experiment. Because similar soils predominate right across the tropics, other countries will be able to use the Australian data to help predict the impacts of any potential environmental releases. Trace amounts of radioactive elements were injected into Blain and Tippera soils, where sorghum and mung bean crops were grown. The research monitored the uptake of the radioactive materials over several growing seasons to determine how the plants accumulated radioactivity from the soil. This study showed that most radioisotopes in this tropical environment behave in a similar fashion to those studied in temperate regions, although some showed relatively higher bioaccumulation. The work also related the transfer factors of radionuclides from soil to plants to the chemistry of the radionuclides and the properties of the soils. Until this study was undertaken, there was virtually no relevant information on the behaviour of radionuclides in tropical Australian soils and crops, as research has been restricted largely to the temperate regions. incorporated in the RADCON model, used for predicting doses from environmental exposures to radioactivity. Outcomes On an international level, the work enables data from tropical regions to be adequately considered when assessing the impacts of nuclear activities. It also enhances ANSTO?s radiological dose assessment capability for northern Australia and similar regions within the tropics. This is important in assessing the environmental aspects of facilities, including uranium mines and nuclear power stations overseas. In addition, understanding the uptake of both beneficial and detrimental elements in crops is important for farming practices and this aspect of the work has received favourable local media attention. Future The combined findings of all studies and data obtained will be made accessible to all the international research participants, and will be presented at the final project meeting to be held in Greece in September. This will also help to maintain ANSTO?s well-regarded international profile in radioecology. Predicting radionuclide migration in the environment Activity Developing mathematical (?surface complexation?) models to describe the uptake of contaminants on mineral surfaces. Expertise and knowledge developed as part of the research program has been responsible for our associated industry project which obtained several major commercial contracts. Australian industry has gained an increased awareness of issues relating to radioactivity in minerals processing circuits at a time when State and Federal governments are introducing new regulatory codes of practice. Five papers were published during the last year. As part of ANSTO?s contribution to IAEA committees that are developing criteria for sustainable development of uranium mining and milling operations, two reports were prepared, along with guidelines for the management of naturally occurring radioactivity in non-uranium industries. Future Several promising process developments in radioactivity control are expected to be proven in the coming year. Radioactivity uptake in plants Activity Contributing to the assessment of the impact of any release of radioactivity in the tropical environment. Output The results of the study were reported to the International Atomic Energy Agency for use in a database to evaluate the parameters controlling the uptake of radionuclides into crops grown on a variety of soil types. The data were also Output The modelling outcomes have been reported to the OECD Nuclear Energy Agency, which is undertaking a comparison and evaluation of the modelling approaches used internationally to describe the movement of radionuclides in sub-surface waters. Outcomes ANSTO is recognised as having world-class expertise in this field and contributes to both the modelling and scientific co- ordination of this international project. The improvement of these modelling approaches contributes to increased accuracy in predicting the performance of radioactive waste repositories. Future The project strengthens the scientific basis for improving the prediction of radionuclide migration in the environment, using models based on chemical thermodynamic principles. More generally, the results are applicable to migration of heavy metals and other contaminants in ground waters. ANSTO Annual Report 2002-03 59 Core Business Areas Australian Nuclear Science & Technology Organisation58 Treatment and Management of Man-made and Naturally Occurring Radioactive Substances REDUCING THE ENVIRONMENTAL IMPACT ON WASTE STREAMS Many mineral processing operations, including those that treat radioactive ores, produce waste liquor streams that typically require treatment prior to final disposal or storage. Treatment will often produce a sludge stream, containing solids, and a water stream that may be reused in the process. Key aspects of sustainability in these operations include: ? maximising water recovery from the waste streams to minimise fresh water requirements; and ? minimising the final volume of waste sludge produced and cost of disposal. With these aims, ANSTO has been investigating treatment processes that have the potential to minimise the environmental impact of the waste streams. One such example is the treatment of acidic waste liquors which is often carried out in a conventional neutralisation circuit where lime or limestone is added as a reagent to neutralise acidic waste liquor. This process produces a waste sludge stream and a neutral effluent liquor stream. A disadvantage of the conventional neutralisation process is the voluminous sludge produced which is often relatively low in solids and high in water. ANSTO is investigating the high-density sludge processes to gain an understanding of how dense sludges can be produced. These processes differ from conventional treatment in that part of the waste sludge is recycled back to the start of the treatment process. By investigating the fundamentals of sludge recycling, a better understanding of particulate formation and interaction in precipitation systems is being achieved. This allows these mechanisms to be manipulated to achieve the desired results of minimising waste solids volume and maximising water recovery. ANSTO has considerable expertise in the application of sludge recycle systems to process environments. Application of this technology has recently been demonstrated in small scale pilot trials and will be incorporated in ERA?s waste water treatment plant for the Ranger uranium minesite, which is in the final design stages and due to be commissioned during 2004. SORBENTS HELP DEAL SAFELY WITH WASTES The treatment of highly acidic Intermediate Level Liquid Waste (ILLW) is a technological challenge that can benefit organisations worldwide. ANSTO has recently developed novel selective inorganic sorbent materials that are unique in being able to extract essentially all of the caesium-137 and strontium-90 from its ILLW inventory and concentrate it into a volume of less than one litre. The treated liquid would then have very little radioactivity remaining. Further processing of this waste into a form suitable for safe long-term storage, is then much simpler and safer. Once the small volume of sorbent is saturated with caesium-137 and strontium-90, it can be heated in air to temperatures between 800 and 1300?C to produce a highly leach- resistant ceramic material that is suitable for long-term storage in a waste repository. The novel sorbent technology represents an effective and simple technique to enable ANSTO to deal safely with the wastes arising from medical isotope production. It also has potential application to similar waste streams produced by isotope manufacturers overseas. The ion-selective sorbent materials are also extremely effective in extracting troublesome trace radioactivity arising from lead and polonium in minerals processing circuits in the mining industry. Another potential application is in the separation and concentration of valuable medical radioisotopes. Chemist, Chris Griffith, measuring the efficiency of sorbents at extracting radioactive species from solution. ANSTO Annual Report 2002-03 61 Core Business Areas Australian Nuclear Science & Technology Organisation60 Treatment and Management of Man-made and Naturally Occurring Radioactive Substances CLAYS REDUCE THE MOBILITY OF RADIOACTIVE ELEMENTS The ability of a radioactive waste repository to prevent the release of radionuclides into the environment is increased by locating it in a suitable geological formation. For many radionuclides, the presence of abundant clays will reduce their environmental mobility. In a recent research paper, contributed by ANSTO and CSIRO scientists, the importance of specific types of clay minerals was investigated. Using the quantitative x-ray diffraction technique, the scientists estimated the quantities of different clay minerals in complex sub-surface materials from the central region of Australia. The results proved to be an extremely useful indicator of the retention properties of the materials, demonstrating the role of specific clay minerals in retaining radionuclides in the sub-surface environment. Woomera in central South Australia, where a site has been selected for the Australian low-level radioactive waste repository. PREDICTING MOVEMENT OF RADIOACTIVITY ANSTO scientists are contributing to an international project that aims to develop improved models of the movement of radioactive elements in the environment. The Nuclear Energy Agency of the OECD has coordinated the project in which teams from several countries have developed models for the uptake of radioactive elements on mineral surfaces. Known as ?adsorption?, this uptake process is important in understanding the environmental mobility of radioactive elements from a variety of sources. When necessary, mobility can then be minimised to reduce the possibility of radioactivity entering the biosphere. In conjunction with modelling teams from several other countries, ANSTO scientists have developed models to address this issue. Comparison of the models has indicated the strengths and drawbacks of the various modelling approaches, and the most appropriate directions for further experimental and modelling studies of environmental reactions. ANSTO Annual Report 2002-03 63 Core Business Areas Australian Nuclear Science & Technology Organisation62 Sustainability and International Competitiveness of Industry ANSTO recognises the important link between science and business in building Australia?s economic strength. Through the activities in this core business area, ANSTO continues to develop a strong research base for Australia, extend opportunities for further collaboration with the world?s best scientific organisation, enhance our local expertise and skills and underpin and progress business opportunities. One commercial activity is the manufacture and distribution of radioisotopes, for medical applications in diagnosing and treating life-threatening diseases and for environmental and industrial applications. These provide a significant community benefit. Engineering work for customers Activity Carrying out commercial work for a range of customers across Australia and overseas. Output Engineering Services commercial work principally covers the pressure certification of pipework, pipe fittings, aerosol cans, etc. using our testing laboratory accredited by the National Association of Testing Authorities. The Engineering Development Workshop provides commercial clients with high precision engineering components in a range of conventional and exotic materials. The majority of work undertaken is unique and unable to be provided by alternative sources within Australia. Outcomes ANSTO obtains a commercial return while maintaining staff expertise and high level precision equipment for use within existing laboratory facilities at Lucas Heights. Future Requests for commercial work to be undertaken using the research support engineering facilities available at ANSTO are expected to increase. Fabricating anti-reflection coatings Activity Deposition of anti-reflective and scratch resistant ceramic coatings on polymeric substrates using atomic layer chemical vapour deposition (ALCVD) and sol-gel processing. The burst pipe after hydrostatic testing BURST TESTING ON GAS PIPELINES In early 2003, ANSTO completed a two-year project in conjunction with the Cooperative Research Centre for Welded Structures and the Australian Pipeline Industry Association (APIA). Designed to improve understanding of gas pipeline strength and safety, the research applied finite element modelling techniques to predict pipeline behaviour during hydrostatic testing carried out during installation as well as during normal operation. The aim has been to enable the use of higher operating pressures or thinner walled pipe, whilst remaining within safe operational limits. These options have the scope to increase pipeline throughput or reduce installation costs respectively. APIA estimates the potential savings from this project to be $110 million over the next seven years. As well as computer modelling, burst testing on full size pipeline has been used to validate the computer models, which entailed pressurising a section of pipeline with water and monitoring the deformation of the pipe up to the point at which it burst. This capability will be jointly marketed with capabilities in materials assessment and reliability to address problems in Australia?s manufacturing and engineering sectors. This work has generated considerable interest in the pipeline industry and prospects for funding for future research work are promising. The likely focus will be to apply the technology developed in this project to the design of new pipelines, and also to look at existing pipelines with a view to safely upgrading their operating pressure. ANSTO Annual Report 2002-03 65 Core Business Areas Australian Nuclear Science & Technology Organisation64 Sustainability and International Competitiveness of Industry Output Multilayer stacks with alternating layers of alumina and titania were successfully synthesised using ALCVD. The stacks had precisely controlled thickness (20?1 nm), abrupt chemical interfaces and excellent uniformity. ANSTO introduced organically modified silicates (ORMOSOLS) into the sol-gel process to enable us to tailor the mechanical properties of the hybrid thin films, significantly increasing adhesion to polymeric substrates. Plasma treatment of these substrates also increased film adhesion. Finally, a nano-scale building block approach led to closer control over their assembly and higher density in the final film. Outcomes ANSTO?s ability to deposit multilayer stacks of alternating materials, combined with thin oxide films on polymeric substrates at temperatures as low as 50?C, makes ALCVD a serious candidate for the industrial fabrication of anti-reflection coatings. Close collaboration in this area is ongoing with a number of Australian companies. The development of expertise and tools for the characterisation of mechanical properties of nano-hybrid coatings generated several international collaborations (Centre National de la Recherche Scientifique-Grenoble, France; CEA-Le Ripault, France; and University of Padova, Italy) as well as with some local manufacturers. Future When this project concludes in the current financial year, ANSTO will capitalise on this research with two follow-on projects: ? the practical implementation of the ALCVD technology for the production of anti-reflection coatings on optical lenses; and ? the development of technology to produce nano-structured films for applications such as medical diagnostics, sensors and other nano-technology devices. Sol-gel technology Activity Developing sol-gel technology for entrapping organic molecules, such as pharmaceuticals, in metal oxide nanoparticles, and subsequently releasing the encapsulated molecules at controlled rates. This technology has been patented. Output Particle size control enables the passive targeting of key organs and the drug release rates. Encapsulation of larger functional biological species, including micro-organisms, has also been demonstrated in bulk sol-gel matrices. Patent protection for the technology has entered the national phase in Australia and overseas. Further activity in this area involved: ? biodistribution studies of radio-labelled nanoparticles in rodents, confirming low blood clearance rates (i.e. nanoparticles were not recognised by the body?s immune system); and ? developing improved synthetic routes for producing silica nanoparticles with controlled nanostructures and diameters of 50 to 500 nm, together with in situ techniques for investigating factors controlling the structural evolution. Outcomes Commercial exploitation of ANSTO?s intellectual property is being pursued in conjunction with appropriate R&D partners. Presentations of the technology to venture capitalists generated significant interest. The promising biodistribution results obtained in tumour-free rodents have been extended to tumour-bearing animals. This work has the potential to significantly improve clinical protocols and procedures for the treatment of cancer. Apart from its applications in oncology, the work has potential applications for producing bio- implantable controlled delivery systems for a range of pharmaceuticals. Controlled delivery systems could also enable localised delivery of small quantities of potent bioactive agents such as food flavours, biocides, pesticides and cosmetics. Future ANSTO is currently seeking partners for sponsored R&D projects for the use of this controlled release technology in a range of areas. These include drug delivery, active paints that slowly release pesticides or biocides, cosmetics which release UV- protection agents, and foods that protect encapsulated molecules inside innocuous micro-capsules until release. UPGRADE OF BUILDING 54 TO REDUCE NOBLE GASES ANSTO?s Building 54 Isotope Handling Plant has undergone a major upgrade. Part of the Radiopharmaceutical Production Facility, the building contains four handling cells used principally for the production of molybdenum-99. This is used to manufacture technetium-99m generators, the workhorse of nuclear medicine. The project involved a total review of the air supply and active and non active exhaust systems to bring them up to the latest standard. In addition, new radiation monitoring equipment and real time gas discharge were installed. A computer control system has been developed using industrial control software to monitor and control the performance of the building systems in real time. All relevant ANSTO safety directives were adhered to during this project, leading to approval by our ANSTO Safety Assessment Committee and ARPANSA. No production was lost and, importantly, no accident occurred during the upgrade. ARI will be able to significantly increase production while staying below environmental emission levels of 1997. ANSTO Annual Report 2002-03 67 Core Business Areas Australian Nuclear Science & Technology Organisation66 Sustainability and International Competitiveness of Industry Radiation protection training Activity Providing radiation protection training. Outputs ANSTO provided 19 commercial radiation protection training courses for external organisations in sectors such as local government, mining, engineering, healthcare, education and research and development. A total of 171 personnel from 43 organisations were trained at either ANSTO or in the workplace. Outcomes This training, which utilises specialist ANSTO expertise, earned revenue for ANSTO and provided a necessary service to Australian industry. Quality calibration services Activity Calibrating radiation protection instruments. Outputs During the year the radiation protection instrument calibration facility calibrated 180 instruments for commercial clients, which represents almost 20% of all calibrations for the year. The remaining 80% of all calibrations completed during the year were for ANSTO instruments. The instruments included gamma dose rate meters, neutron dose rate meters, contamination monitors and electronic personal dosimeters. The facility also provided support for nuclear powered warship visits by calibrating instruments for the monitoring kits used in these visits. Outcomes The facility provided quality calibration services for the external community in sectors such as mining, engineering, emergency services, education, hospitals and research organisations ensuring that equipment used is accurate. Future The service is moving into new premises providing state-of-the-art facilities and will continue to provide specialist services to Australian industry. Digital coincidence counting Activities Developing a computer-based method for accurately determining the radioactivity of nuclides that simultaneously emit beta and gamma radiation ? called Digital Coincidence Counting (DCC). Outputs ANSTO, in collaboration with the National Physical Laboratory UK, has continued to work at commercialising the DCC system and to expand the potential application of the technology. In particular ANSTO has designed a new version of the data capture and compression hardware to provide for four channels of input data, instead of two, as used in the current version. This design is now complete and ready to be embodied in electronic hardware. Safety in our community Activity Specialist radiation protection consultancy services. Output ANSTO provides radiation protection services to the government, industry and community sectors. It involves analysis and advice on the radiological hazards associated with the use of ionising radiation and naturally occurring radioactive material in industry and the environment. One example of the work completed by ANSTO during the year was the Illawarra Radionuclide Investigation into radiological consequences on the Illawarra community from the presence of material containing NORM in industrial processes. The investigation provided radiological advice for the remediation of contaminated land, storage of radioactive materials, application of processes using radioactive materials and site clearances. The overall finding of the study is that public dose from industrial sources is under one twentieth of the annual public dose limit. This small contribution is far less than the natural background dose and much smaller than the natural variability in radiation dose measured worldwide. ANSTO also provided advice to Wambo Coal on plant process and disposal options of plant equipment containing NORM. Outcomes Assurance of radiological safety for industry and the community supports the continued operation of industry. Table: Summary of commercial radiation protection training TYPE OF COURSE NUMBER PARTICIPANTS General radiation safety officer 3 38 Advanced radiation safety officer 2 17 Industrial radiation safety officer 2 26 Safe use of nuclear type soil moisture & density gauges 3 23 Safe use of industrial radiation gauges 3 29 Radiation safety for x-ray analysis operators 3 25 Radiation safety with x-ray imaging operators in industry 1 4 Safe use of x-ray devices 1 4 Radiation safety with Brachy Therapy Units 1 1 ? Australian Nuclear Science & Technology Organisation68 Sustainability and International Competitiveness of Industry of the molecular interactions between the completely exfoliated clay platelets and the polymer matrix, will enable the design of novel nanocomposite materials with defined properties. Australia is one of the top bauxite and alumina producers in the world. The raw bauxite contains alumina and impurities such as silicates and organic matter (oxalates and humics). ANSTO is exploring the formation of micelles of the organic matter and how these molecular aggregates reduce the efficiency of the alumina recovery. The goal is to provide an industry partner with information that will reduce the concentration of the organic matter in a critical step in the alumina refining cycle (the Bayer Cycle). The efficiency of oil exploration and recovery is critically dependent on the porosity of the reservoir rock. We are investigating the interaction of drilling muds (complex fluids containing polymers, clays and solvents) with oil-bearing rock to understand the molecular interactions of the mud with the pores, particularly those interactions that can lead to pore blockage. A better understanding of drilling mud interaction with reservoir rock will lead to drilling muds with improved properties, and ultimately to more efficient oil recovery. LOOKING AT THE WORLD ON A MOLECULAR SCALE The description of our world on the molecular (or nano) scale can provide Australian industry with solutions to problems and competitive edge with new products and improved processes. We are focussing our specialist knowledge and skills in molecular structure and dynamics on industry needs. Based on x-ray, neutron and electron scattering, this knowledge and skill set extends into enabling areas of advanced materials science, physics and chemistry. We have worked with research and industry partners in the CRC for Polymers to determine the shape of polymer molecules in injection moulded polypropylene products and to understand the influence that the shape has on the mechanical properties of the product. This has a major impact on the design of the moulded product, the types of polymers and fillers that can be used and the overall cost. The new knowledge gained from these investigations is being incorporated into sophisticated computer software that is used for the design of injection moulds. The growing demand for lighter, stronger materials for the automotive and aeronautical industries, for example, is driving the development of nanocomposite materials. We have investigated the molecular architecture of nanocomposites fabricated from clay platelets and a range of polymers in routine commercial use. A detailed description ANSTO Annual Report 2002-03 69 Core Business Areas Outcomes DCC has not yet achieved commercial success and at this stage no further research will be undertaken. ANSTO believes that this technology is valuable intellectual property, and its business value, along with the alternative means to exploit it, are now being re-evaluated. Future We are continuing our efforts to sell the package internationally and are currently negotiating a sale to a national European laboratory. DCC is ideally suited to enabling a range of novel new software-based radiation standardisation and counting techniques. Measuring radioactivity Activity Maintaining the Australian primary and secondary standard for measuring radioactivity as well as a secondary standard for measuring the absorbed dose. Output ANSTO, through our Radiation Metrology Laboratories for neutron flux validation, developed a new gold-198 activity standard. To validate the neutron fluence of the HIFAR reactor, gold foil activation is performed at a designated position of the reactor geometry. Once activated, the gold is measured in the secondary standard ionisation chamber. A measure of absolute activity is obtained from which neutron fluence can then be calculated. To maintain the secondary standard, a primary standard has to be developed ? carried out once every 10 years. Our results produced a measurement of gold-198 activity with an accuracy of 0.71% (this is an expanded uncertainty with a coverage factor of 2 at a 95% confidence interval). ANSTO has measurements of gold-198 activation for the validation of the neutron fluence of the HIFAR reactor. We also support commercial neutron transmutation doped silicon production through the continuing supply of the silicon resistivity measurement service. Outcomes ANSTO?s activity and dosimetry standards ensure that radioactivity quantities can be accurately measured within Australia. International linkages with the Bureau International des Poids et Mesures (BIPM) and the Asia Pacific Metrology Program keep ANSTO and the radiopharmaceutical industry abreast of developments in international metrology, with associated implications on international trade. Through our international partnerships, ANSTO participated in two inter- comparisons on activity and dosimetry measurements: activity of thallium-204 (coordinated by BIPM); and dose from cobalt-60 using thermo luminescent dosimetry (coordinated by the IAEA Secondary Standard Dosimetry Laboratory Network). ANSTO Annual Report 2002-03 71 Core Business Areas Australian Nuclear Science & Technology Organisation70 Sustainability and International Competitiveness of Industry Future The Australian community benefits through the reliable delivery of diagnostic, therapeutic and palliative treatment modalities within the nuclear medicine and radiation therapy centres of Australia?s hospitals. Irradiation in medicine, agriculture and manufacturing Activity Providing radiation technology services in radiation processing and high-dose dosimetry to industry, agriculture, government and universities. Output Irradiation is used to process such materials as medical devices, human tissue grafts, microbiological test kits, tropical fruit, polymers and Queensland fruit fly pupae for the sterile insect technique. The Queensland fruit fly is the most serious insect pest for fruit and vegetable crops in Australia. Up to 15 million of its pupae were irradiated per week with a total of 415 million for the year. We also provided our traceable high-dose dosimeter supply, measurement and calibration service to customers in Australia, New Zealand, Malaysia and Sri Lanka. Outcomes Australian horticultural, agricultural and manufacturing industries and the medical HIPed knee implant. HIPING OF PROSTHETIC IMPLANTS Manufacturing hip and knee joints may not be what the community expects from ANSTO. We have, however, begun a commercial partnership with Australian Surgical Design and Manufacture (ASDM), a manufacturer of prosthetic devices. While initially sourcing much of its technology overseas, ASDM intends to bring much of the manufacturing cycle back to Australia, and ANSTO is helping it meet that goal. Complex shaped knee and hip joints are formed by casting, which can result in pores and other undesirable microstructural defects. Hot isostatic pressing (HIPing) applies heat and high pressures at the same time and in all directions. When castings are HIPed, the defects are removed, producing a fully dense component ? improving the strength, flexibility and fatigue life of the component. ASDM processed around 1500 knee joints during 2002 to 2003 using ANSTO?s HIP technology. This number is expected to increase greatly over coming years. ANSTO?s certified laboratory status, along with its ability to provide mechanical testing and characterisation of these components, has enabled the HIP technique to meet the United States Food and Drug Administration standards. The manufacture of artificial body parts is an unusual spin-off of ANSTO know-how that was originally developed for making radioactive wasteform ceramics. ANSTO is also providing sterilisation services to ASDM. ANSTO Annual Report 2002-03 73 Core Business Areas Australian Nuclear Science & Technology Organisation72 Sustainability and International Competitiveness of Industry community continued to benefit through ANSTO?s unique capability within Australia to irradiate material to precise doses at a range of temperatures and dose rates. Commercial radiation processing in Australia and the Asia Pacific region was supported through ANSTO?s dosimetry service. Routine production of radiopharmaceuticals, industrial isotope products and R&D for new products Activity Production and supply of radiopharmaceuticals and radioisotopes for use in medical, industrial and environmental applications in both the domestic and international medical, manufacturing and services industries. These are provided under the trading name ANSTO Radiopharmaceuticals and Industrials. Output A large range of radiopharmaceuticals for diagnostic and therapeutic uses was provided to hospitals, nuclear medicine practices and central radiopharmacies in Australia and the Asia Pacific region. Radioisotopes were supplied for industrial use for non-destructive testing. In addition, radioisotopes were provided for research purposes to a number of centres around Australia. Outcome The supply of these radioisotope products has generated revenue in excess of $21 million for the 2002-03 financial year. Many Australians will benefit from nuclear medicine in the diagnosis and treatment of various forms of cancer, heart disease and neurological disorders. Treating malignant melanoma Activity Melanoma is a highly prevalent concern in Australia. ANSTO is conducting a clinical trial in 20 patients of a radio-labelled benzamide as an effective marker of malignant melanoma. Clinical trials are required to prove safety and efficacy of new diagnostic and therapeutic pharmaceutical products. We are also modifying the benzamide molecule to test its potential as a radiotherapeutic. Output So far, we have studied 13 patients, comparing the benzamide with the ?Gold Standard? tumour marker fluorine-18 deoxyglucose (FDG). The results are encouraging. Outcome ANSTO developed a diagnostic and therapeutic agent for malignant melanoma. An artist?s impression of Building 23 MASTERPLAN TO REDEVELOP BUILDING 23 As Australia?s national nuclear research and development organisation, ANSTO produces radioisotopes for use in medicine, industry and research. The manufacture of radioisotope products is largely conducted in Building 23 at the Lucas Heights Science and Technology Centre. Originally planned as a research facility, Building 23 has evolved into a full production facility. As Building 23?s current production facilities are not capable of meeting projected needs, there has been a pressing need to streamline production flow and materials handling, and improve production capacity based on expected growth in demand. During the last year, ANSTO developed a strategic master plan study to build an extension to the north and east of Building 23 on three levels. When completed, the complex will comprise modern quality controlled chemistry laboratories, service and instrumentation rooms, production clean room facilities, packaging and dispatch facilities, stores and component wash bays. It will also include modified microbiological and clean rooms, intermediates solutions preparation clean rooms and a sterilisation room. Amenities and support facilities, as well as roadwork extensions, additional parking bays, landscaping, engineering and communication services will be provided. The development will satisfy all relevant Australian codes and standards and be built according to best practice principles in the pharmaceutical industry. The project is currently being designed and first stage approval from ARPANSA has been received. ANSTO Annual Report 2002-03 75 Core Business Areas Australian Nuclear Science & Technology Organisation74 Sustainability and International Competitiveness of Industry Future After 20 patients, we plan to review the trial. If the research is successful, we will move to the next phase aiming to produce novel diagnostic and therapeutic radiopharmaceuticals for treating malignant melanoma. Producing quality radiopharmaceuticals with molybdenum-99 Activity Development of a new molybdenum-99 process to meet the needs of nuclear medicine, with the goal to use low enriched uranium in the most effective way for isotope production. Output New process for producing molybdenum-99 which achieves best practice. Outcomes The improved molybdenum-99 production process includes state-of-the-art methods for managing liquid and gaseous by- products. The process will initially be used in HIFAR and transferred to the replacement reactor. This will ensure an uninterrupted and guaranteed supply of molybdenum-99 to the Australian medical community. Future In the long-term, the Asia Pacific region will benefit from ANSTO?s ability to produce quality radiopharmaceuticals. Why aren?t rock dump covers working? Activity Finding out why the performance of the earthen covers placed on the Rum Jungle waste rock dumps in 1984-85 to control water infiltration rates has declined. Output Funded by the Australian Centre for Mining and Environmental Research, this project was carried out in collaboration with CSIRO Land and Water. The study found that the cover materials had deteriorated over the 18 years since replacement and hence no longer meet the original specifications. In particular, the permeability has increased, which explains the increase in rainfall infiltration into the waste rock. This increased permeability is largely due to biological activities ? galleries formed by termites and ants, as well as root growth from the pasture grasses and the few trees that grow on the waste rock dumps. Outcomes Recommendations have been made for the improved design and construction of future earthen covers for waste rock dumps. Future Better cover designs of waste rock dumps will also enhance the ecological sustainability of the mining industry. Hydrometallurgical know-how Activity Capturing ANSTO hydrometallurgical know- how and making it available to industry. Output Ores, radioactivity and environmental solutions (ORES) is an exciting new concept that draws on our experience of developing uranium and rare earth processing circuits, the behaviour of radionuclides in processing plants, and the management of liquid and solid waste streams. We are providing consulting services to the minerals processing and metallurgical industry. Over the past year, 12 major jobs were undertaken. These made use of our extensive experience as well as the excellent laboratory and pilot-scale experimental facilities at ANSTO. In addition, as a service to the industry, many smaller tasks were carried out that required our specialised chemical and radio-chemical analysis. Outcomes There is an increasing awareness in the industry that radioactivity is not limited to uranium ores. The drivers for this are: ? a progressive tightening of the radionuclide limit in product specification; ? occupational health and safety issues; and ? improved waste management. In terms of waste management, there is a general move towards near zero or zero release of water from industrial sites to reduce the environmental impact, aid water conservation and minimise cost by reuse. This trend is providing opportunities for ANSTO to use its expertise to assist the minerals industry in addressing these issues. All the work done in this area is of a commercial nature and funded by industry clients. This ensures that the findings will be implemented by industry whenever this is economically attractive. Future The pattern of work is expected to be similar in the year ahead. However, the emphasis will be shifted to expanding our engagement with the global minerals industry, under the ANSTO Minerals umbrella. Characterisation of biomolecules Activity Applying neutron and x-ray based techniques for analysing the relationship between structure and function of large molecules of biological origin. This is the key to understanding biological processes at the cellular and sub-cellular level. Ouput Research partnerships have been formed with the University of NSW, University of Technology, Sydney and Macquarie University to investigate biomaterials such as bacterial polymers, naturally occurring ANSTO Annual Report 2002-03 77 Core Business Areas Australian Nuclear Science & Technology Organisation76 Sustainability and International Competitiveness of Industry biomineralised structures (diatom shells) and enzyme-based biocatalysts. Properties characterised included porosity and surface area, association between cell components and structural changes in biocatalyst components after assembly. Neutron technology enabled these measurements to be done at a scale of hundredths of a micrometre. Outcomes This project strengthens ANSTO?s expertise in the preparation of biomaterials and deuteration of biomolecules for neutron- based analyses to meet demand from the bioscience user community in the South- East Asian and Pacific region. The biomaterials investigated have potential application in the production of biomedical prostheses, drug-delivery systems, environmentally-friendly biodegradable polymers and communication infrastructure. Future The development of a showcase of biological applications of neutrons will further stimulate external demand from the tertiary and industrial sectors for use of neutron instrumentation under construction for the replacement research reactor. This technology will not only assist scientists developing biotechnological and nanotechnological products but those investigating the fundamentals of biological processes. Green Trends for our environment Activity Combining the various environmental services from ANSTO Environment to make a coordinated service available to external clients. Outputs Backed by ANSTO?s unique nuclear facilities and the skilled personnel who operate those facilities, a core group of ANSTO scientists provided expert advice to industry, local councils, water corporations and government environment organisations. ANSTO Green Trends is using knowledge gained from earlier strategic research carried out in the core business area of Nuclear Science for Environment and Sustainability. It applies this fundamental scientific knowledge to practical environmental problems, such as catchment pollution and the effects on the environment of urban sprawl. Outcomes ANSTO Green Trends customers receive high quality reports from a business that adheres to ANSTO?s service charter. This business expands ANSTO?s potential commercial revenues. In addition, the community will benefit from the application of ANSTO facilities and expertise. Future A business plan has been developed and we anticipate that ANSTO Green Trends will need a lead-in period of up to two years to reach its full potential. Initially a small team worked on the business plan, marketing and liaison with clients. Services are delivered in custom made packages. The scope of this consultancy business is to attract work that is challenging to the team and will lead to increased visibility of ANSTO. It will also lead to increased revenue by delivering high quality environmental work to customers at the right price. New Business Lab Activity Providing a total learning environment for the evaluation, management and commercialisation of intellectual properties and technologies. Output ANSTO is building a portfolio of opportunities and a future track record of success in the framework of the ANSTO Business Lab. Outcomes The Business Lab will improve the transfer of technology, and enhance ANSTO?s and Australia?s reputation in commercialisation of public sector R&D. Patenting our intellectual property Activity Managing the evaluation, filing, prosecution and commercialisation of ANSTO?s patent portfolio, in accordance with ANSTO?s intellectual property management process. ANSTO Annual Report 2002-03 79Australian Nuclear Science & Technology Organisation78 Core Business Areas $106.109 million from Government appropriations. In 2004, there will be a further equity injection for construction costs of the replacement reactor of $84.69 million. Enhanced learning systems and training Activity Providing strategic learning and development. Outputs The number of training courses ANSTO provided to staff are listed above. Outcomes The courses have improved skills across the organisation in the management of people, projects and resources, and enhanced personal and operational effectiveness. Future Existing programs will continue to be supported in an ongoing effort to improve our operational performance. A review of the learning and development strategy will be undertaken during 2003-04, which may lead to program enhancements. Competency framework Activity Implementing the objective setting and review process based on a competency framework. Output An enhanced objective setting and review process was successfully implemented following the introduction of the 2002 Enterprise Agreement. All staff (approximately 830) were provided with training in the process. In addition, supervisors, project leaders and managers were provided with intensive training at the beginning and end of the review year, to strengthen the performance management skills of our line managers and demonstrate the links between performance and learning objectives, and ANSTO?s competency framework. Organisational Development and Support NUMBER OF COURSES ATTENDANCE Learning environments for new strategies project 44 627 Health and safety courses 168 2,988 Nuclear science and engineering courses and seminars (including HIFAR-specific training) 16 257 All other management, operational and competency based courses 85 642 ANSTO training during 2002-03 Projects in the Organisational Development and Support (ORDS) core business area ensure ANSTO?s business processes, safety systems, information services and human resources management are best practice. Financial support Activity Support to all ANSTO projects through the provision of an effective and efficient financial accounting, planning and budgetary support service. Output The Finance unit provides a sitewide service to support financial accounting, planning and budgetary processes. In July 2002 our services were enhanced by the introduction of a sitewide planning and budgeting process based on the SAP Enterprise Resource Planning System. Outcome ANSTO achieved value from having one sitewide system to manage its operational and financial resources, through improved reporting on project progress, including milestones and objectives. Our operating income for the year was $137.209 million comprising $38.144 million from external services in research and sales of radioisotopes and $99.065 million from Government appropriations. During 2002-03 ANSTO also received appropriations of $14.171 million for the disposition of spent fuel in terms of an agreed program and equity injection of $137.833 million towards the construction costs of the replacement reactor. This sum includes an undrawn amount of $33.658 million from the 2002 year, which has been accrued in 2003 year accounts. Future For the 2004 year we expect to generate $39.3 million from external services, research and sales of radioisotopes and Lynne Blackbourn facilitating a workshop on how to conduct effective assessments in ANSTO?s objective setting and review process. ANSTO Annual Report 2002-03 81 Core Business Areas Australian Nuclear Science & Technology Organisation80 Organisational Development and Support information. In the coming financial year, ANSTO staff will gain access to the valuable information contained in the Nuclear Sciences Abstract (USA) and receive monthly updates of the INIS on CD-ROM. Moving from paper to electronic literature and access to electronic data Activity Providing electronic delivery of literature and reference databases. ANSTO?s file appraisal, indexing, keyword development and storage are important components of our overall knowledge management strategy. Output ANSTO?s library continued to move from paper to electronic delivery of journal literature, a process facilitated by its networking arrangements with the CSIRO Library Network. Subscription agreements with Academic Press, American Institute of Physics, American Physical Society, Elsevier (chemistry backsets), Emerald, Nature Publishing Group and others were established during the year, resulting in an additional 640 e-journal titles. We introduced subscription agreements, several in collaboration with the CSIRO Library Network, for access to several new literature and reference databases. They included Building Code of Australia, Business Who?s Who of Australia, Current Protocols, Emerald Management Reviews, MIMS Pharmaceutical Database and Zoological Record. In addition, close to 400 keywords were added to the ANSTO intranet records file creation index. Library staff looking at updated material on new online system Outcomes Improved understanding of the objective setting and review process amongst managers and employees, and improved skills in conducting it. Future Lessons learned from this inaugural year will be addressed in the operation of the process in 2003-04. Business systems improvement Activity Developing a business management system that incorporates continuous improvement with a strong customer focus, based on the quality standard AS/NZS ISO 9001-2000. Output ANSTO developed a framework for the implementation of our business management system and completed a review of policies and began documentation of processes for approval by senior managers. Outcomes From this project, ANSTO achieved a greater understanding of process and interrelations with process owners, as well as the practical application of the quality standard, resulting in simplified documents, reduced duplication and improved efficiencies. Future The ANSTO business management system will be subjected to an independent external audit in the next financial year which will provide verification that it represents international best practice and can be certified in accordance with the quality standard. Providing information through our library Activity Contributing Australian publications to the International Nuclear Information System (INIS) of the IAEA and providing access to scientific and technical nuclear information for Australian users. Output Library staff indexed and contributed to the INIS database with 932 new Australian scientific and technical publications on the peaceful applications of nuclear science and technology. They also facilitated access to the INIS database on the Internet. Twelve Australian universities and academic institutions have been granted free access to INIS. Outcomes This project supports ANSTO core business activities, promotes Australian scientific and technical developments in nuclear science and technology worldwide and contributes to the preservation of knowledge as a result of current and past investment in nuclear research for the use of future generations. Future More efforts will be directed towards harvesting and disseminating print and electronic resources and enhancing nationwide accessibility to nuclear ANSTO Annual Report 2002-03 83 Core Business Areas Australian Nuclear Science & Technology Organisation82 Organisational Development and Support diverse group of tenants providing services in fields such as: ? radiocommunications and telecommunications; ? scientific instruments; ? neutron activation analysis; ? aviation support technologies; ? raw materials manufacture; ? financial services; ? research and development on energy fuels; ? development of laser isotope separation technology; ? nuclear medicine; and ? waste disposal technologies. Outcomes The Technology Park?s existing tenant portfolio and planned development will increase ANSTO?s interaction with compatible organisations, support scientific and technological research advancement, and provide ANSTO with knowledge sharing and a greater return on its investment in Technology Park facilities. Future The ANSTO Technology Park will continue to attract a wider range of scientific, industrial, government and commercial entities as tenants which will benefit from proximity to ANSTO, along with our expertise and infrastructure. In preparation for this development, we are extending our fibre optic communications network to provide advanced communication services to our tenants. ANSTO is also negotiating with a number of organisations with regard to the development of Technology Park land. As a result of these negotiations we anticipate that formal arrangements will be realised in the 2003-04 financial year, benefiting ANSTO, its business partners and the community. Data and telecommunications network Activity Implementation of stages 1 & 2 of the site PABX system upgrade covering most buildings outside the HIFAR protected area, and a wide area network (WAN) upgrade of the link between ANSTO at Lucas Heights and the National Medical Cyclotron at Camperdown. Output ANSTO redesigned the topology of the PABX system from a centralised to a distributed network. Making use of fibre optic trunk cabling, we eliminated the reliance on 40-year-old lead-sheathed, paper-insulated copper cable which was common when the site was first established. Outcomes ANSTO staff now have desktop access to 116 literature and reference databases and over 4270 electronic journal titles covering areas of science, technology, business, human resources and management, thus further supporting internal and external organisational activities. The adding of 400 keywords to the intranet index enabled demands for additional space to be resolved. It significantly reduced file appraisal which improved the currency of our record keeping practice. File appraisal resulted in a significant reduction of unsentenced ANSTO records. ANSTO now has more efficient file titling, facilitated by quicker retrieval of information and assigning of disposal authorities. Future The library will continue to seek ways to move from print to electronic delivery of journal literature and will implement this where cost-effective. It is expected Nucleonics Week and Nuclear Fuel will change to electronic delivery early in 2003-04. Negotiations between CSIRO Library Network, ANSTO and the Institute for Scientific Information (ISI) are continuing and we expect access to the Current Contents Database will move from the Structured Information Manager to the ISI?s Web of Knowledge platform during 2003-04. Our more efficient filing system has laid the basis to enable ANSTO to select an archive service provider that meets the requirements of both ANSTO and the National Archives of Australia next year. Enterprise bargaining for our people Activity Negotiating a replacement enterprise agreement for ANSTO employees. Outputs A comprehensive Enterprise Agreement was negotiated and agreed. Outcomes The Agreement operates for three years from 10 January 2003 to 10 January 2006 and provides a stable platform for ANSTO?s employment relations, conditions and remuneration. Future The Agreement allows ANSTO to concentrate on its strategic direction and allows for an appropriate period in which further employment based reforms will be able to be developed for implementation in 2006. ANSTO Technology Park Activity Developing and leasing land for any commercial purpose. Output The ANSTO Technology Park continues to benefit science, industry and the community through its long standing and ANSTO Annual Report 2002-03 85 Core Business Areas Australian Nuclear Science & Technology Organisation84 Organisational Development and Support monitored against key performance indicators. And when appropriate, outcomes and value will be tested against the market. We will stay abreast of developments in technology to ensure that ANSTO obtains maximum value from its supply chain. Risk management As a cross-organisational function involving all ANSTO staff, the risk management structure is embedded in ANSTO?s day-to- day operational processes, ranging from good occupational health and safety practices to financial checking processes. An independent internal auditor reviews these processes, maintaining close communication with senior management, and reports formally each quarter to the ANSTO Board Audit Committee. The Australian National Audit Office (ANAO) conducts an annual audit of financial results and reports directly to the Audit Committee in that regard. The ANAO also conducts periodic reviews of specific functions of ANSTO and those, too, are reviewed by management and the Audit Committee. The WAN link required the installation of optical fibre cable from the NMC to Sydney University via the Royal Prince Alfred Hospital, then a link from Sydney University to AARNET?s regional network office at the University of Technology, Sydney (UTS). The installation of a shared 155Mbit microwave link with CSIRO allowed data to be routed from UTS to Lucas Heights. Outcomes Now in line with modern business practices, the new PABX system provides a greater range of features as well as a significant improvement in reliability. The previous system suffered repeated failures, particularly in bad weather when old copper cabling becomes vulnerable. The new WAN link has increased the bandwidth from 128 K bit over an ISDN link to 100Mbit Ethernet over optical fibre and shared microwave. The increased bandwidth will accommodate growth in requirements, particularly with the implementation of phase 2 of the SAP business system into production operations. Future Stage 3 is scheduled for completion in the coming financial year and will integrate the Technology Park with the enhanced PABX system and ANSTO fibre optic backbone. This will complete the site upgrade. Stage 4 will support the replacement reactor project. The WAN link?s increased bandwidth will enable the direct linking of ANSTO?s Lucas Heights and NMC telephone systems via voice over Internet Protocol technology. This will lead to reduced ongoing communication costs, allow for the implementation of video conferencing between sites and complete integration of telecommunications features for all ANSTO staff. Always getting the best value Activity Support to all ANSTO projects by negotiating a number of strategic supply arrangements. Output The procurement project covers a wide range of tasks associated with the review of the ANSTO supply chain across the site, including an appropriate selection process, contract negotiation and registration of preferred supplier status. To support the process, a specialist team has been formed to review and evaluate outputs. Outcome The value to ANSTO will include cost savings, productivity and technology improvements, increased service levels, and safety and security enhancements. Our suppliers will also benefit from the partnership through the use of new technology and consistency of business opportunities. Future This project will be ongoing in an environment of continuous improvement where supply relationships will be Overview of financial performance Particulars Actual Budget Variance $000?s $000?s $000?s 1. Revenue Appropriations 168,252 182,087 (13,835) External earnings 38,144 36,713 1,431 Total 206,396 218,800 (12,404) 2. Expenditure Operating 108,644 105,766 (2,878) Depreciation 28,368 29.451 1,083 Spent fuel 326 14,709 14,383 Capital use charge 68,851 68,874 23 Total 206,189 218,800 12,611 Net operating result 207 207 3. Capital expenditure 30,784 37,479 6,695 4. Replacement Reactor 77,167 86,893 9,726 Comments on variances from Budget Appropriations The variance of $13.8 million is due to deferment of the scheduled shipment for spent fuel and a change in the accounting treatment for amounts not expended. In this year $13.8 million was booked to unearned revenue and will be drawn as required in a future period. External earnings Industrial irradiation of silicon exceeded budget by $1.3 million, due to strong demand for ANSTO?s quality services in final half of year. Expenditure After allowing for the impact of the deferred shipment of spent fuel operating expenditure overall is $1.2 million above budget principally due to increased security costs. Net operating result Favourable variance of $0.2 million. Capital expenditure Under budget by $6.6 million due to delays in completion of major buildings and road works due to inclement weather. Replacement Reactor Under budget by $9.7 million due to delays which have occurred as a consequence of the seismic investigations. This has now been satisfactorily addressed. Enquiries and complaints Customer feedback is fundamental to improving customer service and is an integral part of all service charters. During the financial year, ANSTO recorded 260 customer queries, pertaining mainly to the supply and delivery of radiopharmaceuticals. Most of the non-technical issues were resolved within 24 hours. Australian Nuclear Science & Technology Organisation86 Safety arrangements at ANSTO Organisational Development and Support ANSTO Annual Report 2002-03 89Australian Nuclear Science & Technology Organisation88 Safety management The ANSTO Health, Safety and Environment Policy sets out safety and environmental principles, values and commitments. Under this policy is a framework of documents, including safety directives, that together provide the safety management system. ANSTO?s safety goals are: ? continual improvement of the efficiency and effectiveness of safety systems; ? regular promotion of safety initiatives and safety awareness programs; ? continually improving radiation protection; ? ensuring that staff are appropriately trained for all potentially hazardous activities; and ? complying with the requirements of the regulators Comcare and ARPANSA. These goals are implemented by project activities involving staff from Safety and Radiation Science working in collaboration with the other divisions. Monitoring of safety performance is a key element of the safety management system. The ANSTO Health, Safety and Environment Committee (AHSEC) has a membership that includes external members, ANSTO directors and senior staff. The role of this committee is to monitor health, safety and environmental performance and advise the Executive Director on these matters. AHSEC met four times during the year. At the operational level, the Safety Assessment Committee, which also has external membership, provides internal review of all potentially hazardous activities involving ANSTO staff. They assessed and endorsed 126 submissions during the year. Radiation protection Radiation protection services are provided to ANSTO sites by the operational health physics group and the radiation monitoring group within Safety and Radiation Science. The operational health physics group monitors radiological conditions and provides specialist assistance in developing procedures for work in controlled areas. The group?s work includes routine health physics monitoring of work areas to ensure that radiological hazards are controlled and safe working conditions are maintained. The radiation monitoring group provides dosimetry services, facilitates the measurement of airborne discharges and provides radiation instrument calibration services. The dosimetry service involves monitoring any radiation doses that may be received externally or internally by workers. This is part of assuring safety at work for all personnel. The service monitored 859 workers during the year, 83% of whom received less than 1 mSv and no person received more than 9.7 mSv. The highest dose is well below the relevant regulatory annual dose limit of 20 mSv (averaged over five years) for radiation workers. 18 of the 23 workers with doses between 5 and 10 mSv had been involved with radiopharmaceutical production at the Lucas Heights site or at the National Medical Cyclotron. ANSTO is committed to ensuring a safe and healthy environment for employees, visitors, contractors and the external community. Our objectives To ensure our activities do not adversely impact on the community, our objectives are to: 1. provide protection of human health and safety as the organisation?s highest priority; 2. provide and maintain safety systems and assessment procedures that are in accordance with national and international standards; 3. promote a positive safety culture; and 4. strive for continual improvement in safe work practices so that the risk to staff and the public from ANSTO?s operations is as low as reasonably achievable. Outcomes during the year ? Improved ownership of safety at the individual level through implementation of behavioural observation and accident investigation activities. ? Control of radiation exposure for employees again ensured that the highest dose to any employee was 9.7 mSv which is less than the occupational dose limit of 20 mSv. ? Annual radiation doses to the public from ANSTO discharges remained less than 0.01 mSv which is only 1% of the recommended annual limit of radiation recommended by the Radiation Health Committee for any person to receive over and above normal environmental and medical doses. ? Contributed to ANSTO?s operational and research outcomes by providing safety systems and maintaining an emergency response capability to protect employees and the public. Activities and Outputs ARPANSA licensing and regulation Licences have now been issued from ARPANSA for all of ANSTO?s major facilities, for which quarterly reports continue to be produced on time. Having the licence approvals, regulatory attention is now turning to continued compliance with the licence conditions. To this end, ARPANSA has instituted a program of planned inspections of ANSTO?s controlled facilities and sources. The planned inspections carried out to date have shown ANSTO to be compliant with the licence conditions. Safety arrangements at ANSTO ANSTO Annual Report 2002-03 91Australian Nuclear Science & Technology Organisation90 The highest shallow dose (skin dose) for the year to any individual was 17.74 mSv, which is a small fraction of the national and international annual dose limit of 500mSv. Staff who handle radioisotopes may receive doses to their hands and fingers that are significantly different to their whole body average and consequently these extremity doses are monitored separately. The highest extremity dose to any individual for the year was 239 mSv, which is less than the annual dose limit of 500mSv. Annual dose limits Whole body 20 mSv Shallow (skin) 500 mSv Extremities 500 mSv There is routine monitoring for possible internal exposures of staff working with unsealed sources. The methods used include bioassay and whole body and thyroid counting. Any such doses are added to those from external radiation in the effective doses reported above. Occupational health and safety Accidents and incidents An important element of the safety management system involves capturing information on all safety-related events including accidents and ?near misses?. This system ensures appropriate investigation and follow-up of events and provides data for monitoring of safety performance. Significant incidents are reportable to Comcare and are recorded using its classification system. Seven notifications to Comcare of reportable incidents were made during the year. 1998 1999 2000 2001 2002 -1999 -2000 -2001 -2002 -2003 Maximum effective dose mSv 11.3 8.9 8.6 8.7 9.7 Average effective dose mSv 1.0 0.8 0.8 0.9 0.8 Collective effective dose person 772 617 630 749 684 mSv Dose is the physical quantity involved with assessing the effects of ionizing radiation on living cells. The unit of measurement of dose is joules per kilogram, termed the sievert (Sv). Typical doses are expressed in units of millisievert (mSv), which is one thousandth of a sievert. Dose estimates take into account the susceptibility of different body organs to radiation. Everyone in the world receives ionizing radiation from natural sources. In Australia the average dose received from natural background radiation (excluding medical exposures) is 1.5 mSv per year. Table1 shows the maximum, average and collective effective doses for the past four years. The distribution of individual effective doses over that period is given in Table 2. To enable comparison, the maximum and average effective doses for the period are graphed in Figure1. Table 1: Effective dose Individual effective 1998 1999 2000 2001 2002 dose ranges (mSv) -1999 -2000 -2001 -2002 -2003 ? 2 665 669 700 726 756 > 2 to 5 81 67 65 77 80 > 5 to 10 25 26 23 25 23 > 10 to 15 1 0 0 0 0 > 15 0 0 0 0 0 Table 2: Distribution of individual effective dose 0 2 1998-99 1999-00 2000-01 2001-02 2002-03 4 6 8 10 12 Year Figure 1: Comparison of the maximum and average effective doses (mSv) maximum average Ef fective dose (mSv) Safety arrangements at ANSTO ANSTO Annual Report 2002-03 93Australian Nuclear Science & Technology Organisation92 The remaining five reports were classified as ?dangerous occurrences? and were unrelated: 1. Pieces of concrete debris fell from a building onto a pathway due to concrete ageing. A structural engineer inspected the site, loose material was removed and the area made safe before repairs were instigated. 2. A mobile elevated work platform (snorkel) was setting up in a workshop to carry out upgrade work on an overhead travelling crane. The placement was over a services valley covered in plate metal which buckled under the weight of the equipment. The snorkel was undamaged. The damaged plates were taken for repair and all floor plates were reviewed for modification to take loads required for future maintenance. 3. A process in one of the research laboratories uses hydrofluoric acid solution (which is corrosive and toxic) to dissolve quartz. During a regular check of the process the chemist observed that a sealed bottle had spilt and leaked acid. The emergency response procedures were initiated and HAZMAT was called to make the area safe. During the subsequent recovery a safe work method statement was developed for safe clean-up of the laboratory. Changes to the equipment and procedures have been instigated following the investigation. 4. In another research laboratory process, grit is digested by a small quantity of a mixture containing nitric acid, hydrochloric acid and hydrofluoric acid. The digestion takes place in a microwave oven. After a digestion run the operator received a whiff of gases when the oven door was opened. This incident was unrelated to the previous incident. Changes to procedures have been made following the investigation. 5. A building contractor was cutting through an internal wall and severed an electrical cable inside the wall. The wall had been checked the previous day by an electrician and cleared for the work to go ahead. Improved scanning equipment has been purchased. Safety training In addition to filling requirements for induction and role specific safety training, the focus has been directed towards: ? providing accredited competency-based training for staff required to enter confined spaces (75 staff); ? training supervisors in safety behaviour observation (105 staff); ? training staff in the application of new safety directives and safe systems of work (322 staff); and ? accident investigation training for supervisors in preparation for the revised event reporting system (152). One ?serious personal injury? report was made, which involved a crush injury to the nail of a staff member?s finger caused by the clamp of a guillotine. The guarding of the guillotine was immediately improved and all health and safety representatives and workshop supervisors were issued Comcare?s ?Identifying Plant Hazards Checklist? to review guarding on all plant. One ?incapacity? was reported as a result of a person losing more than 30 consecutive working days. This resulted from a fracture to the wrist following a fall while cleaning. Safety arrangements at ANSTO EMERGENCY PREPAREDNESS AND EFFECTIVE RESPONSES A high safety priority this year has been raising awareness of and training staff in the hazards of confined space entry. An important part of this is the emergency response to any incident that may occur. A hypothetical emergency involving a confined space rescue from the tandem accelerator was simulated to exercise the response capability. The hypothetical scenario The tandem accelerator is open for routine maintenance. Confined space entry clearance has been given and workers are inside performing maintenance. One worker is discovered collapsed on the floor in what is suspected to be a diabetic coma. The rescue An emergency call is made to the Site Alarm Centre and the Site Operations Safety Supervisor responds to the scene. The vessel is entered, first aid given and the patient made stable. The patient is then recovered from the vessel to waiting ambulance staff. Lessons learnt Changes to the work environment were identified that would assist a ?real? rescue, should it be required. Also some improvements to response procedures were identified. Kevin Thorpe acts out a suspected diabetic coma during a confined space rescue exercise that took place in the tandem accelerator. Australian Nuclear Science & Technology Organisation94 Environmental Protection Safety arrangements at ANSTO Overall 900 contractors completed contractor site induction and 1956 staff participated in 173 courses covering 50 different safety topics. Emergency preparedness and effective responses ANSTO, together with State emergency services organisations, maintains a 24-hour emergency response capability to deal with incidents on-site and off-site at the Lucas Heights Science and Technology Centre. The Response Plan for Accidents and Incidents at the ANSTO LHSTC identifies responsibilities and provides arrangements to coordinate the response. Details of how ANSTO and the emergency services organisations respond are contained in standing operating procedures owned by the individual organisations. Emergencies with off-site consequences are covered by escalating arrangements consisting of the Sutherland Shire Local Disaster Plan, the Georges River District Disaster Plan and the NSW State Disaster Plan. The ANSTO Response Plan provides for ANSTO staff giving technical and practical support to the emergency services organisations for incidents with off-site consequences. A close working relationship is maintained between ANSTO and the State emergency services organisations through the Local Liaison Working Party (LLWP). Membership of this working party includes ANSTO specialists, the emergency services organisations, local government and support organisations including NSW Health. ARPANSA is an observer. In July 2002 a combined exercise was held with the local NSW Ambulance Rescue, the purpose of which was to exercise coordination between ANSTO first response personnel and outside agencies. An internal exercise was held in October 2002 (see page 92) to exercise confined space training and instigate a rescue from a confined space. A program of familiarisation visits through the year by all the local NSW Fire Brigades has been highly successful and will be maintained. ANSTO and ARPANSA are working together to develop ideas and draft material to augment the familiarisation visits of the emergency services organisations. Liquid effluent discharges within limits Effluent discharged from ANSTO into the sewer met all limits for radioactive discharges in accordance with the Trade Waste Agreement with Sydney Water. Compliance with these limits ensures water at the Cronulla Sewage Treatment Plant meets the World Health Organisation drinking water standards for radioactivity. For non-radioactive materials, all discharges were in compliance with the Trade Waste Agreement. Good quality storm and groundwater ANSTO regularly monitors the storm water leaving the site and the groundwater collected from an array of groundwater monitoring bores. The tritium concentrations measured in stormwater are well below the Australian Drinking Water Guidelines and gross alpha/beta measurements were also below the levels required of Class C waters designated by the NSWEPA. Monitoring of groundwater around the Lucas Heights site showed no detectable ANSTO-produced radionuclides apart from tritium. All tritium, gross alpha and gross beta concentrations were well below the guideline levels for drinking water. The groundwater response to heavy rainfall has been assessed using continuous water level measurements over a year. The response is consistent with a groundwater flow regime consisting of a near surface permeable aquifer, which drains within a few weeks, and deeper, less permeable material. ANSTO Annual Report 2002-03 97Australian Nuclear Science & Technology Organisation96 commissioning of the replacement research reactor, scheduled for 2005. A register of environmental aspects for ANSTO activities has been developed as required for ISO14001 certification. The ISO14001 environmental management system will demonstrate ANSTO?s commitment to the environment. Safe gaseous emissions In the course of normal operations, some ANSTO facilities produce small gaseous radioactive emissions which are minimised by treatment and filtration before discharge. They are all constantly monitored. The effect on local residents of the airborne emissions is too small to detect directly, so an atmospheric dispersion model is used to estimate doses to public in the surrounding region. The maximum potential public dose determined by the atmospheric dispersion model, PC-CREAM, was 0.005 mSv for the 2002-03 financial year. Details of the dose calculation and quarterly dose results are provided in the report, Environmental and Effluent Monitoring at ANSTO Sites. The doses from airborne emissions are a very small fraction of the average dose of 1.5 mSv per year that Australians receive from natural background radiation and less than 1% of the 1 mSv annual limit recommended by the National Health and Medical Research Council for any added dose (i.e. above background) to a member of the public. For comparison, 0.01 mSv corresponds to the dose a passenger receives on a return commercial airline flight between Sydney and Melbourne. Environmental management ANSTO is committed to undertaking its activities in a manner that protects the environment and is consistent with national and international standards. ANSTO reports the results and findings of its environmental monitoring in the annual Environmental and Effluent Monitoring at ANSTO Sites report which is available to the public. An aerial survey using a helicopter carrying radiation detectors was used to determine the radiological characterisation of the Lucas Heights Science and Technology Centre and the buffer zone. The gamma spectrometry data indicated no measurable impact of long-lived, man-made radioactivity in the buffer zone beyond the LHSTC boundary. The results of this survey provide a baseline for assessing radiological trends over time. ISO14001 Certification As part of its strategic plan, ANSTO is implementing an environmental management system that will be certified to the international standard ISO14001. ANSTO has committed to have this certification standard prior to Environmental Protection Stormwater and groundwater drain into the MDP + 60m site, situated at the south-east corner of ANSTO. Creek water is sampled from this site weekly and measured for tritium, gross alpha/beta activity and the presence of gamma- emitting nuclides. Transportable high volume air sampler which samples air at the rate of 70 cubic metres of air per hour, is deployed at the Little Forest Burial Ground to monitor the air for particulates. Australian Nuclear Science & Technology Organisation98 Corporate Governance ANSTO Annual Report 2002-03 101Australian Nuclear Science & Technology Organisation100 Corporate Governance Compliance ANSTO is subject to the provisions of the following key Commonwealth Acts and Awards: ? Australian Nuclear Science and Technology Organisation Act 1987 (ANSTO Act) ? Auditor-General Act 1997 ? Commonwealth Authorities and Companies Act 1997 (CAC Act) ? Workplace Relations Act 1996 ? Public Service Act 1999 ? Long Service Leave (Commonwealth Employees) Act 1976 ? Superannuation Act 1976 ? Superannuation Act 1990 ? Superannuation (Productivity Benefit) Act 1988 ? Superannuation Guarantee (Administration) Act 1992 ? Maternity Leave (Commonwealth Employees) Act 1987 ? Nuclear Non-proliferation (Safeguards) Act 1987 ? Australian Radiation Protection and Nuclear Safety Act 1998 ? Australian Radiation Protection and Nuclear Safety (Licence Charges) Act 1998 ? Freedom of Information Act 1982 ? Environment Protection and Biodiversity Conservation Act 1999 ? Occupational Health and Safety (Commonwealth Employment) Act 1991 ? Australian Nuclear Science and Technology Organisation (General) Award 1990 ? Australian Government Statutory Authorities Redeployment and Retirement (Redundancy) Award 1988 ? A New Tax System (Goods and Services Tax) Act 1999. ANSTO has put in place policies and procedures to deliver compliance with the above Acts and Awards. The provisions of the Australian Government Statutory Authorities Redeployment and Retirement (Redundancy) Award 1988 are only operative to the extent that they deal with an allowable matter in terms of Section 89A of the Workplace Relations Act 1996. The functions of the Board A Board established under Section 8 of the Australian Nuclear Science and Technology Organisation Act 1987 governs ANSTO. The general functions of the Board, as set out in Section 9 of the ANSTO Act are to: ? ensure the proper and efficient performance of the functions of the organisation; and ? determine the policy of the organisation with respect to any matter having regard to the current policies of the Commonwealth Government. In particular it has responsibility for: ? approval of organisational strategy and the annual business plan and budget; ? monitoring financial performance; ? monitoring managerial performance; and ? ensuring that the significant risks facing the organisation have been identified and that appropriate control, monitoring and reporting mechanisms are in place. The CAC Act requires the Board to comply with certain accountability and corporate governance principles, including: ? the maintenance of an Audit Committee; ? specific financial and reporting provisions; ? disclosure of all Board members? personal interests; and ? provision of indemnities and indemnity insurance in certain circumstances. All CAC Act requirements are currently being met. Processes are in place for Board member induction and ongoing education and performance assessment of the Board and its committees. The Board has established an Audit Committee. All matters considered by that committee are submitted to the Board for information and, where appropriate, ratification. Details of the Audit Committee are provided below. The Board is also supported in its role by other committees or mechanisms relating to safety and environmental management and to technical assessment. These are also described below. Board membership During the 2002-03 financial year, the Board comprised six non-executive members, drawn from the broader community, who are not involved in the day-to-day running of the organisation, and an Executive Director. The Executive Director, who is appointed by the Board, cannot be the Chair. The non-executive members are appointed by the Governor- General for specified periods. Section 19 of the ANSTO Act provides that the Executive Director shall manage the affairs of the organisation, subject to the directions of, and in accordance with, policies determined by the Board. Senior management attend Board meetings as required to report on matters relevant to their individual areas of responsibility. Each member brings complementary skills and experience to the Board. Its members during the 2002-03 financial year had experience in areas that included public service, industry, mining, scientific research, medicine and the commercialisation of research. ? ANSTO?s mission and strategic plan has not changed from that reported for the previous financial year and continues to be managed through six core business areas; ? each core business area is reported against in terms of its outputs, strategies for achieving and contribution to outcomes and future performance; ? actual performance is reported against approved performance indicators; ? there were no significant events requiring disclosure in terms of Section 15 of the CAC Act; ? there have been no significant changes in ANSTO?s state of affairs or principal activities during the year; and ? ANSTO has continued to manage both the risks and opportunities it faces. In the opinion of management and the Board, at the time of making this report, adequate cash resources are, and will continue to be, available to cover the ANSTO?s requirement for working capital, to pay existing debts, and meet obligations during the next financial year. Safety The Board places primary importance on the safe performance of all ANSTO activities. The monitoring of safety in general, and compliance with relevant legislation in particular, is designated as a responsibility of the whole Board. ANSTO?s Health, Safety and Environment Policy sets out clearly the Organisation?s commitment to verifiable implementation of best practices in safety and environmental protection. The Board continued to attach priority to the recommendations on safety made by the Australian Radiation Protection and Nuclear Safety Agency. Under the ARPANS Regulations 1999, ANSTO has submitted licence applications and received licences for all ANSTO facilities and radioactive sources. Procedures are in place to ensure compliance with all licence conditions. ANSTO has the ANSTO Health, Safety and Environment Committee to oversee health, safety and environmental management and advise the Executive Director on the effectiveness and compliance of ANSTO?s performance in these areas. The Board receives regular reports on health and safety issues. ANSTO was granted occupational health and safety self audit status for two years by Comcare in 1999. Comcare renewed this self-audit status for a further two years to 2003 and now to 2005. The audit program for 2002- 03 was successfully completed. Comcare conducted its own audit of ANSTO?s self audit activities with positive results reported to the Executive Director, Board Audit Committee and the Board. Audit Committee The Audit Committee, a formal sub- committee of the Board, comprised during the year Mr M A Eager (Chairman), Dr C J Hillyard, Mr J M Craker (until 31 December 2002) and a member external to ANSTO, ANSTO Annual Report 2002-03 103Australian Nuclear Science & Technology Organisation102 The Board meets regularly in accordance with a formally approved timetable and agenda. Board members receive regular papers from management on financial and business performance and specific papers on a range of issues relevant to the organisation. Six Board meetings were held during the 2002-03 financial year. Details of the number of Board meetings attended by each member during the period in which each member held office during the financial year are provided above. Remuneration and allowances Non-executive members of the Board and the Executive Director?s remuneration and allowances are determined by government policy . Remuneration of Board members is disclosed in the Financial Statements. Disclosure of interests Section 21 of the CAC Act provides for the disclosure of material personal interests in a matter that is being considered by the Board and prohibits participation, deliberation and decision making by any member on such matters. All these requirements were met during the year. Independent professional advice The Board has established procedures by which members, in the interests of their duties, may seek independent professional advice. Report of operations Section 9, Schedule 1 of the CAC Act requires that this Annual Report include a report of operations. The Commonwealth Authorities and Companies (Report of Operations) Orders 2002 set out the requirements. The format and content of the 2002-03 Annual Report, including the financial statements, addresses these requirements in general and Appendix 9 sets out compliance with the particular requirements of these Orders. The Board reports that: Corporate Governance Meetings Meetings Member Held Attended Dr I D Blackburne (Chair) 6 6 J M Craker (term concluded 31 December 2002) 3 2 Dr C J Hillyard 6 5 G Cook 6 6 M A Eager 6 6 Dr A A van der Schaaf (term commenced 25 July 2002) 6 6 Dr K H Schindhelm (term commenced 20 March 2003) 2 2 Professor H M Garnett (Executive Director) 6 6 ANSTO Annual Report 2002-03 105Australian Nuclear Science & Technology Organisation104 The Committee also reviews summaries of the internal and external audit work schedules and reports. Additionally, in accordance with the provisions of the CAC Act, the Committee is responsible for assisting Board members to fulfil their specific responsibilities under that Act. The Committee has unlimited access to both the internal and external auditors and to senior management. The Committee scrutinises the annual financial statements of ANSTO and considers the appropriateness of accounting practices reflected therein. It has received a signed recommendation from the Chief Financial Officer, through the Director Corporate Services and the Executive Director, as to the veracity of the financial statements signed by the Board. Four Audit Committee meetings were held during the financial year. Details of the number of Committee meetings held and attended during the period in which each member held office during the financial year are provided in the table below. Risk management The Board recognises that developing and implementing ANSTO?s strategies requires careful assessment and balancing of both risk and opportunity. The Board is charged with the responsibility of ensuring that appropriate policies are in place to cover identified risks, and management is required to develop appropriate procedures to manage these risks. The Board has endorsed a risk management framework introduced by management in 1997. As part of this framework, ANSTO?s Internal Audit function undertakes a systematic program of risk assessments designed to identify, evaluate and prioritise high and significant risks, utilising a methodology consistent with the Australian Risk Management Standard AS/NZS ? 4360/1999. The Audit Committee and the ANAO receive summaries of all risk assessment reports. ANSTO has a risk management policy setting out that it is the responsibility of the operational management of ANSTO to develop and implement risk mitigation strategies. The overall risk framework is actively applied in ANSTO?s operations and to new initiatives in particular. Project risk management remains a significant area of focus in the replacement research reactor, business information system, particular capital works and information technology outsourcing projects. Mr W Wilton. Mr Wilton is a chartered accountant. The ANSTO Chairman is an ex officio member of the Committee. The Executive Director, the Director, Corporate Services, the Chief Financial Officer and the Chief Internal Auditor attend all meetings or relevant parts of all meetings by invitation. Others, including representatives of the Australian National Audit Office, attend meetings, as appropriate, at the invitation of the Committee. In accordance with better practice, all Board members receive copies of Audit Committee papers and meeting minutes and can attend Committee meetings as a right. This Committee was established by the Board under a formal written charter to oversee the Organisation?s risk management policies, practices and controls in relation to financial and commercial activities including the financial reporting process, legislative and regulatory conformance, including corporate governance and asset protection. Its charter extends to the review of safety and environmental systems and performance. Technical Advisory Committee The Technical Advisory Committee, formally established in accordance with a Board decision, comprises four members, all of whom are external to ANSTO. Members are chosen on the basis of internationally recognised scientific expertise and experience. The current members (as at 30 June 2003) of the Committee are Dr Roy Green (Australia), Professor Alan Leadbetter (United Kingdom) and Dr Dan Shochat (United States), with the term of Professor Joan Dawes (Australia) having been completed on 26 March 2003. This Committee operates under a written terms of reference and was established by the Board to advise on: ? whether projects are nationally or internationally important; ? the quality of the science and whether it is appropriately focussed and achievable; ? the quality of the networks and/or collaborations with other relevant research leaders and industry, and whether other contacts and networks could add value; and ? whether the research is being presented at the most appropriate fora, and other ways whereby ANSTO research can be fully recognised and the value captured. The Committee was formally constituted in October 1996 and is required to meet at least once per year. It met during the 2002-03 financial year and presented a formal report to the Board. Corporate Governance Meetings Meetings Member Held Attended M A Eager (Chairman) 4 4 J M Craker (term concluded 31 December 2002) 2 2 W Wilton (external member) 4 4 Dr C J Hillyard 2 2 The Committee generally meets quarterly. It is the only sub-committee of the Board. ANSTO Annual Report 2002-03 107Australian Nuclear Science & Technology Organisation106 In appropriate circumstances, insurance is used as a method to transfer the financial impact of risk. The Board, supported by the Audit Committee, oversights the development and operation of business continuity planning and other emerging risk issues Ethical standards ANSTO?s ethics policy is set out in a document entitled Ethics and Conduct ? A Code for ANSTO Staff. The policy provides a reference point for ethical behaviour and applies to members of the Board, management and all staff. The Code sets out the standards for ethical behaviour and conduct and provides guidance by defining the expected values and standards of workplace behaviour and performance. Fraud control The organisation has an established fraud control policy and plan, in line with the Fraud Control Policy of the Commonwealth and guidelines set out by the Attorney General?s Department, Criminal Justice Division. External audit Under the CAC Act, the Commonwealth Auditor General, through the ANAO, is the external auditor for ANSTO. The ANAO, as a matter of policy, provides only audit services to ANSTO. The Audit Committee reviews the ANAO audit plan and reports and meets with ANAO representatives prior to recommending to the Board that the Service charter ANSTO?s Service Charter sets out a statement of what ANSTO does and the standards of product and service that customers, stakeholders and the community can expect from the organisation. The Service Charter was released in June 1999 and adheres closely to the Customer Service Charter Principles developed by the Department of Finance and Administration. External scrutiny There were no judicial decisions or decisions of administrative tribunals that had an impact on ANSTO during the reporting year. Ministerial directions There were no ministerial directions to ANSTO made under either the ANSTO Act or the CAC Act during the reporting year. Under the relevant provisions of the CAC Act, the Minister for Education, Science and Training consulted the ANSTO Board during the year in relation to the adoption of the amended Fraud Control Policy of the Commonwealth. The Board responded to the Minister that it would comply with this policy, as it had done with the previous policy. The Minister, using CAC Act provisions, consulted the Board during the year in relation to the adoption of Government policy on foreign exchange risk management and a response was provided. annual financial statements be accepted and the Statement by Directors signed. Internal audit The ANSTO Internal Audit function has a dual reporting line to the Audit Committee and the Executive Director. Its responsibility is to provide an independent, risk-based review function as set out in a formal charter endorsed and periodically reviewed by the Audit Committee. The Audit Committee reviews the annual Internal Audit plan and receives regular reports on progress against that plan. Internal control The Board is responsible for ensuring that appropriate policies and internal controls are in place and operating. Compliance and review are monitored through the Audit Committee and the Internal Audit function. Information technology services market testing Pursuant to a whole of government policy, the Board and the ANSTO Executive Director have a responsibility to ensure that ANSTO conducts a market testing exercise on the provision of relevant information technology services. A project to undertake this market testing exercise was commenced in 2001 and was completed in July 2003 in accordance with a defined plan. Indemnities and insurance premiums for officers ANSTO?s insurance coverage includes professional indemnity and directors? and officers? liability. Certain sections of the CAC Act contain prohibitions against ANSTO giving indemnities and paying insurance premiums relating to liabilities arising from conduct involving a lack of good faith by officers. There have been no exceptions to these provisions and no claims were made against ANSTO that required a claim on the insurer, Comcover. Corporate Governance Australian Nuclear Science & Technology Organisation108 Associated Organisations and Programs ANSTO Annual Report 2002-03 111Australian Nuclear Science & Technology Organisation110 Core business AINSE uses the funds it receives primarily to provide access to the nuclear and other facilities at ANSTO and AINSE-supported facilities. During 2002, 283 university projects were supported, including 204 new and 79 carried over from previously, along with 34 postgraduate research student supplements, representing $2,090,619 in total. Some 20% of these researchers had not previously had access to ANSTO?s facilities, and for 12 of the postgraduates, the award was the first they had received from AINSE. The projects have applications in a wide range of disciplines including cultural heritage, advanced technology, manufacturing, mining, agriculture, medicine and environmental protection, all of which are of vital importance to Australia?s future. AINSE supported two neutron scattering workshops, two national conferences and one international conference during the year by subsidising the travel to and accommodation at the conferences for researchers and students from member universities. The Fifth AINSE Winter School was held in July 2002. A scholarship was offered to every member university to enable a nominated third-year student to participate, and 37 attended. Judged to be an outstanding success from feedback, the program will be held again in 2003. AINSE is very grateful to the staff at ANSTO who give their time and expertise to this important program. It significantly contributes to AINSE?s and ANSTO?s public profile, and is especially effective as an opportunity for potential users to see ANSTO?s facilities in operation. Additional projects AINSE acts as a peak body on behalf of its member organisations in applying for and administering major research infrastructure grants. An application to the Australian Research Council (ARC) Research Infrastructure and Equipment Fund was successful. The grant of $255,000 for access to the UK facility ISIS, the world?s most powerful pulsed neutron source, is supplemented by $90,000 from universities, $25,000 from ANSTO and $30,000 from AINSE. Twenty- four experiments were accepted and they used a total of 75 days. There were ten publications notified during the year. A new accelerator was purchased with the assistance of a 2000 ARC Linkage- Infrastructure Grant, 27 universities and ANSTO. Ordered in December 1999 and delivered in October 2002, it is expected to perform routine accelerator mass spectrometry and ion beam analyses from December 2003. To free the bottleneck with AMS sample preparation, AINSE presented ANSTO with an elemental analyser/isotope ratio mass spectrometer. Worth about $264,000, this facility will facilitate both automatic Australian Institute of Nuclear Science and Engineering Located next to ANSTO at the Lucas Heights Science and Technology Centre, the Australian Institute of Nuclear Science and Engineering (AINSE) Incorporated is a consortium of 36 Australian universities and the University of Auckland in partnership with ANSTO. It has four full- time staff. AINSE is a non-profit-making institute incorporated under the NSW Associations Incorporation Act 1984 and was established by the Commonwealth Government in 1958 to conduct research into nuclear energy and to provide training in the nuclear field. AINSE?s mission is to advance research, education and training in nuclear science and engineering and their applications within Australia by being, in particular, the key link between universities, ANSTO, and major nuclear science, engineering and associated facilities. AINSE?s governing council comprises a representative of each member university, the executive director of ANSTO and five directors of ANSTO?s scientific and technical divisions. AINSE?s objectives are to: ? ensure users in member organisations of AINSE have access to major nuclear science, engineering and associated facilities for research purposes; ? facilitate graduate and undergraduate education and training experience utilising major nuclear science and technology facilities; ? encourage collaboration and cooperation between member organisations of AINSE in areas primarily related to nuclear science and engineering and their applications; and ? sustain and support the development of major nuclear science and technology facilities in Australia for shared use by AINSE?s member organisations. AINSE operates on a calendar-year basis and this report covers 1 January to 31 December 2002. Income of $2,765,717 comprised $1,351,577 from ANSTO, $705,526 from university subscriptions, $494,090 from external grants, and $209,664 from interest on investments and $4,860 from other sources ? mainly conference registrations. Associated Organisations and Programs Northern Territory University doctoral student and AINSE Postgraduate Research Award Scholar, Tony Jong, using the SIMS facility as part of his doctoral research. ANSTO Annual Report 2002-03 113Australian Nuclear Science & Technology Organisation112 2. attend strategic planning meetings where this can be clearly demonstrated to be essential to Australia?s participation in projects using major international research facilities not available in Australia. The term ?major research facilities? refers to large facilities not available in Australia such as synchrotron radiation sources, high flux neutron beam sources, high energy physics facilities and astronomical facilities. There are two unique demands that need to be met for major facilities access, and which underlie the current program: ? Access to such facilities is competitive and subject to heavy worldwide demand. Scientists who apply for access to the facilities are often given only short notice that they have been successful in their application. Hence a program with a very short turnaround time is vital to enable the scientist to make use of the access time granted. ? In many cases the use of these facilities is complex and requires more than one person to operate the equipment. Postgraduate students and technicians are therefore often involved in the running of the experiment. This program provides for multiple personnel to visit the facilities. During 2002-03, the AMFRP funded 83 experimental teams that performed experiments on facilities in USA, Europe and Asia. Fifteen ANSTO teams were funded to overseas neutron scattering, synchrotron and accelerator facilities. Australian Synchrotron Research Program ANSTO manages the Australian Synchrotron Research Program (ASRP), which provides access to a comprehensive range of synchrotron x-ray research capabilities for Australian science in the fields of physics, chemistry, materials science, structural biology, polymer research, environmental science and geophysics. ASRP?s member organisations are ANSTO, the Australian National University, Curtin University of Technology, the University of Sydney, the University of Canberra, the University of NSW, the University of Melbourne, Monash University, the University of Newcastle, the University of Queensland, the University of South Australia, the University of Western Australia, the CRC for Microtechnology, CSIRO and the State Governments of NSW, Queensland and Victoria. The ASRP was established to operate synchrotron radiation research facilities at two overseas laboratories ? the Photon Factory in Japan and the Advanced Photon Source in the United States. Any research scientist affiliated with an Australian academic, government or industry research organisation can obtain access to these facilities via a peer reviewed research proposal. ANSTO maintains specialist scientific staff at these facilities to assist visiting Australian research teams. The Australian synchrotron user community has grown steadily since the ASRP was established in 1996. The ASRP currently Access to Major Research Facilities Program Acting on the recommendation of its International Science and Technology Advisory Committee, the Department of Industry and Technology set up the Access to Major Research Facilities Program (AMFRP) in 1990. ANSTO has operated AMFRP since its inception. It is currently funded under the Innovation Access Program and administered by the Department of Education, Science and Training. Initially $150,000 per year, its funding has increased steadily and currently stands at $621,500 including GST and a management fee. The cost of constructing large research facilities, which now dominate many aspects of scientific activities, can exceed several billion dollars. Furthermore as science has become more and more sophisticated, the range and scope of such facilities has also increased. For Australian science to participate in current activities and for the country to benefit from developments in technology, it has been recognised that mechanisms must be developed that allow Australian scientists to gain access to these overseas facilities. The objectives of the program are to provide support for Australian researchers from industry, private or public research organisations and universities to travel to: 1. access major international research facilities not available in Australia; and Associated Organisations and Programs preparation of graphite targets for AMS analysis as well as determine the carbon- 13/carbon-12 isotope ratio which provides critical quality control as well as calibration information. This facility was delivered in January 2003 and will be operational before the end of 2003. AINSE member organisations as at 30 June 2003 ANSTO, Australian Catholic University, University of Adelaide, University of Auckland, Australian National University, University of Ballarat, University of Canberra, Central Queensland University, Charles Sturt University, Curtin University of Technology, Deakin University, Edith Cowan University, Flinders University of South Australia, Griffith University, James Cook University of North Queensland, La Trobe University, Macquarie University, University of Melbourne, Monash University, Murdoch University, University of New England, University of New South Wales, University of Newcastle, Northern Territory University, University of Queensland, Queensland University of Technology, Royal Melbourne Institute of Technology, Southern Cross University, University of South Australia, University of Southern Queensland, Swinburne University of Technology, University of Sydney, University of Tasmania, University of Technology, Sydney, Victoria University of Technology, University of Western Australia, University of Western Sydney and University of Wollongong. For further information on AINSE, visit its website at http://www.ainse.edu.au. Australian Nuclear Science & Technology Organisation114 supports visits to the overseas synchrotron facilities by more than 100 Australian research teams a year, with a total user community of more than 300. Scientists from 24 universities, four government laboratories including ANSTO and CSIRO, and five CRCs have used ASRP beamlines in the past six years. During the last financial year, ANSTO continued to be a significant user of ASRP facilities, with funding and beamtime awarded to nine teams from ANSTO Environment, Materials and Engineering Science, and the Bragg Institute. The ASRP was initially funded for a five-year period by the Major National Research Facilities (MNRF) program in 1996. A proposal for funding for an additional five years was submitted to the 2001 MNRF program with ANSTO again acting as the principal proponent and managing agent. This proposal was successful, with the ASRP being awarded $14.8 million to operate until mid-2007. Included in the current ASRP grant are new funds to expand access to soft x-ray beamline facilities, an area that was under-resourced in the original ASRP operation. Accordingly in 2002 the ASRP negotiated a new collaborative agreement with the National Synchrotron Radiation Research Center (NSRRC), which operates a 1.5 GeV synchrotron facility in Hsinchu, Taiwan. Under this agreement ASRP users have access to all beamlines at the NSRRC, including nine state-of-the-art soft x-ray Associated Organisations and Programs Dr Richard Garrett, ASRP Facility Director, and Dr King-Long Tsang, Head, Beamline Division at the Taiwan synchrotron, taken during a visit in July 2002 to negotiate access to that facility for ASRP users. beamlines, an infra-red beamline and a deep x-ray lithography beamline for manufacturing micro-structure devices. The ASRP has begun the acquisition of a specialised soft x-ray end station which will be based at NSRRC and available to Australian users. The ASRP administers a post-doctoral fellowship program, using membership subscriptions from the 16 member organisations. In July 2002 the ASRP awarded five fellowships, to be taken up at ANSTO, CSIRO, Monash University, the University of Melbourne and the University of New England (under the NSW State membership). An additional fellowship round closed in May 2003, and it is expected that a further six fellowships will be awarded. Financial Statements STATEMENT BY DIRECTORS In our opinion, the attached financial statements for the year ended 30 June 2003 give a true and fair view of the matters required by the Finance Minister's Orders made under the Commonwealth Authorities and Companies Act 1997. In our opinion, at the date of this statement, there are reasonable grounds to believe that the Organisation will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the members of the Board. Ian D Blackburne Helen M Garnett Chairman Executive Director 19th August 2003 19th August 2003 Sydney Sydney Australian Nuclear Science & Technology Organisation 2002 2003 Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03118 119 Financial Statements STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2003 STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2003 Note 2003 2002 $'000 $'000 REVENUE Revenues from ordinary activities Revenues from Government 2(p), 4A 168,252 152,364 Goods and services 4B 33,645 32,251 Grants 4B 624 738 Interest 4B 3,356 1,255 Revenue from sale of assets 4C, (c) 507 862 Net foreign exchange gains ? non speculative 4D 12 6 Other 4E ? 151 Revenues from ordinary activities 206,396 187,627 EXPENSES Expenses from ordinary activities (excluding borrowing costs expenses) Employees 5A 49,738 53,948 Suppliers 5B 55,904 46,939 Depreciation and amortisation 5C 28,368 24,672 Write down of assets 5D 585 1,143 Grants 5E 2,278 1,964 Value of assets sold 5F, (c) 333 324 Expenses from ordinary activities (excluding borrowing costs expenses) 137,206 128,990 Borrowing costs expense 5G, (b) 132 124 Operating surplus from ordinary activities (a) 69,058 58,513 Net surplus 9 69,058 58,513 Net credit to asset revaluation reserve 9 24,320 ? Total revenues, expenses and valuation adjustments recognised directly in equity 24,320 ? Total changes in equity other than those resulting from transactions with owners as owners 93,378 58,513 Notes: (a) The net surplus, after allowance for payment of the capital use charge to Government of $68.8 million (2002: $57.7 million) represents an operating surplus from ordinary activities of $0.207 million (2002: operating surplus $0.840 million). (b) This amount relates to interest attributable to prepaid revenue under a lease of property (refer Note 8A). (c) Last year amounts have been adjusted for comparative purposes. The above statement should be read in conjunction with the accompanying notes ANSTO Annual Report 2002-03 121 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2003 2002 2003 Note 2003 2002 $'000 $'000 ASSETS Financial assets Cash 6A 5,426 34,523 Receivables 6B 85,181 9,811 Investments 6C 53,083 17,953 Total financial assets 143,690 62,287 Non-financial assets Land and buildings 7A 167,627 138,533 Infrastructure, plant and equipment and major facilities 7B 389,765 314,639 Inventories 7C 8,114 5,189 Intangibles 7D 2,906 4,473 Other 7E 380 5,502 Total non-financial assets 568,792 468,336 Total assets 712,482 530,623 LIABILITIES 8 Interest bearing liabilities Other 8A 2,326 2,194 Total interest bearing liabilities 2,326 2,194 Provisions Capital use charge 8B ? 1,355 Employees 8C 20,433 21,788 Other 8D 8,949 7,364 Total provision 29,382 30,507 Payables Suppliers 8E 14,707 8,178 Grants 8F 57 76 Other 8G 14,210 228 Total payables 28,974 8,482 Total liabilities 60,682 41,183 NET ASSETS 651,800 489,440 Note 2003 2002 $'000 $'000 EQUITY 9 Contributed equity 265,889 128,056 Reserves 319,579 284,259 Accumulated surpluses 66,332 77,125 Total equity 651,800 489,440 Current assets 146,898 64,765 Non-current assets 565,584 465,858 Current liabilities 50,334 29,844 Non-current liabilities 10,348 11,339 The above statement should be read in conjunction with the accompanying notes Australian Nuclear Science & Technology Organisation120 Financial Statements STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2003 ANSTO Annual Report 2002-03 123 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 Note 2003 2002 $'000 $'000 Inflows Inflows (Outflows) (Outflows) OPERATING ACTIVITIES Cash received Goods and services 38,490 28,598 Interest 3,248 1,306 GST received from ATO 13,147 7,569 Appropriations 168,252 152,364 Total cash received 223,137 189,837 Cash used Employees (50,666) (52,138) Suppliers (62,618) (53,642) Grants (2,278) (735) Total cash used (115,562) (106,515) Net cash from operating activities 10 107,575 83,322 INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 507 861 Proceeds from sales/maturity of investments 18,000 13,831 Proceeds from foreign currency disposals 87 55,523 Total cash received 18,594 70,215 Cash used Purchase of property, plant and equipment * (107,034) (77,099) Purchase of investments (53,130) (31,784) Purchase of foreign currency for future construction progress payments ? (52,750) Purchase of foreign currency for future supplier payments (319) (29,744) Total cash used (160,483) (191,377) Net cash used by investing activities (141,889) (121,162) FINANCING ACTIVITIES Cash received Appropriation ? contributed equity 73,836 64,039 Total cash received 73,836 64,039 Note 2003 2002 $'000 $'000 Inflows Inflows (Outflows) (Outflows) Cash used Capital use charge paid (68,851) (57,655) Total cash used (68,851) (57,655) Net cash from financing activities 4,985 6,384 Net decrease in cash held (29,329) (31,456) Cash at 1 July 34,523 39,008 Cash at 30 June 5,194 7,552 Cash per statement of financial position 6A 5,426 34,523 Less cash not used in the daily cash management function Foreign currency held as forward cover for future construction progress payments 6A ? (24,267) Foreign currency held as forward cover for future supplier payments 6A (232) (2,704) 5,194 7,552 * The major portion of the figure in 2003 relates to the cash flow impact of the Replacement Research Reactor of $79.2 million (in 2002: $52.8 million). The above statement should be read in conjunction with the accompanying notes Australian Nuclear Science & Technology Organisation122 Financial Statements STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2003 ANSTO Annual Report 2002-03 125 SCHEDULE OF COMMITMENTS NOT RECOGNISED AS LIABILITIES AS AT 30 JUNE 2003 2002 2003 Note 2003 2002 $'000 $'000 CAPITAL COMMITMENTS Infrastructure, plant and equipment 1,900 5,335 Waste treatment and disposal project ? 4,730 Fuel elements purchase 3,718 4,340 Total capital commitments 5,618 14,405 By maturity Capital commitments payable One year or less 4,738 9,675 From one to five years 880 4,730 Over five years ? ? 5,618 14,405 OTHER COMMITMENTS Replacement Research Reactor Project (b) 207,324 257,500 Disposition of spent fuel (a) 60,646 59,916 Operating lease (c) 2,543 2,661 Total other commitments 270,513 320,077 Total commitments payable 276,131 334,482 Commitments receivable Replacement Research Reactor Project (b) 207,324 257,500 Disposition of spent fuel (a) 46,811 59,916 GST recoverable from Australian Taxation Office 511 1,310 Total commitments receivable 254,646 318,726 Net commitments 15,867 1,351 By maturity ? operating lease ? minimum payments One year or less 118 118 From one to five years 591 591 Over five years 1,834 1,952 (a) In 1997-1998 the Government determined to provide $98.56 million in 2003 dollars ($86.4 million in 1997 dollars) to remove spent fuel rods from the Lucas Heights Science and Technology Centre and meet the costs of reprocessing offshore. An amount of $37.914 million has been spent to date. The amount of $60.646 million is not included in the commitment by maturity figures as the commitment payable is fully offset by the commitment receivable and $13.835 million recognised as other receivable, refer Note 6B(b). (b) A contract was executed on 13 July 2000 between ANSTO and INVAP SE for the design, construction and commissioning of a replacement research reactor at Lucas Heights. The amount of $207.324 million (excluding GST) is not included in the commitment by maturity figures as the commitment payable is fully offset by the commitment receivable. (c) ANSTO has a twenty five year lease contract with Central Sydney Area Health Services with an annual rental of $118,142. The annual rental is subject to review each three years. The amounts reported as commitments payable includes GST where relevant. Recoveries due from the taxation in relation to commitments payable are disclosed as commitment receivable. The above schedule should be read in conjunction with the accompanying notes Australian Nuclear Science & Technology Organisation124 Financial Statements SCHEDULE OF COMMITMENTS NOT RECOGNISED AS LIABILITIES AS AT 30 JUNE 2003 2002 2003 ii. in accordance with: ? Finance Minister's Orders (being the Commonwealth Authorities and Companies (Financial Statements for reporting periods ending on or after 30 June 2003) Orders); ? Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; ? Consensus views of the Urgent Issues Group (UIG). Schedule 1 requires statements to be prepared having regards to: ? The explanatory Notes to; and ? Finance Briefs, Finance Circulars and other Guidance Notes issued by Finance. The Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liablities can be reliably measured. Assets and liabilities arising under agreements equally proportionately unperformed are however not recognised unless required by an Accounting Standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments. Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured. ANSTO Annual Report 2002-03 127 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 Note Description 1 Economic dependency 2 Summary of significant accounting policies 3 Segment and outcomes reporting 4 Revenue 5 Operating expenses 6 Financial assets 7 Non-financial assets 8 Liabilities 9 Equity 10 Cash flow reconciliation 11 Extraordinary items 12 Remuneration of members of the Board 13 Remuneration of executives 14 Replacement Research Reactor Project costs 15 Insurances 16 Remuneration of auditors 17 Board membership 18 Related party disclosures 19 Average staffing levels 20 Trust money 21 Financial instruments 1 Economic dependency Australian Nuclear Science & Technology Organisation (ANSTO) is dependent on appropriations from the Parliament of the Commonwealth Government for its continued existence and ability to carry out its normal activities. 2 Summary of significant accounting policies (a) Basis of accounting The financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are a general purpose financial report. They have been prepared: i. having regard to the provisions of the Australian Nuclear Science and Technology Organisation (ANSTO) Act 1987 (as amended) Australian Nuclear Science & Technology Organisation126 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 (b) Changes in accounting policies The accounting policies used in the preparation of these financial statements are consistent with those used in 2001-02, except in respect of: ? Measurement of certain employee benefits at nominal amounts (refer to Note 2e) ? The initial revaluation of land on a fair value basis (refer to Note 2k) ? In accordance with the Finance Minister's Order appropriations made by Goverment but not drawn at balance date are now recorded as a receivable, whereas in the previous years no accounting recognition was made. Refer to Note 6B(b). (c) Reporting by outcomes A comparison of budget and actual figures by outcome specified in the Appropriation Acts relevant to ANSTO is presented in Note 3. (d) Revenue recognition Parliamentary appropriations From 1 July 1999, the Commonwealth Budget has been prepared under an accruals framework. Under this framework, Parliament appropriates money to ANSTO as revenue appropriations and as equity injections (refer Notes 4 and 9). Revenue from Government ? Output Appropriations Revenues from Government are revenues of the core activities of ANSTO and are recognised in accordance with policy 2A.5 of the Finance Ministers Orders 2002-2003. Equity injections Appropriations for capital items are recognised directly into equity in full amount as appropriated by the Parliament (refer Note 9). Operating revenue from goods and services Operating revenue from independent sources comprises revenue earned from the provision of products, or services, to entities outside ANSTO. Revenue is recognised when the goods are provided, or when the fee in respect of the services provided is receivable. Revenue received in advance Revenue received in advance is initially brought to account as other payables and subsequently recognised as revenue when earned. Contract revenue Revenue from the rendering of a service is recognised by reference to the stage of completion of each contract. The stage of completion is determined by reference to the proportion that the completed physical contract work bears to the estimated total physical contract work. Interest revenue Interest revenue is recognised as the interest is received or is entitled to be received by the end of the year. Revenue from sale of assets Revenue is recognised when control of the asset has passed to the buyer. Core operations All material revenues described in this note are revenues relating to the core operating activities of ANSTO. Details of revenue amounts are given in Note 4. (e) Employee benefits Benefits Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for wages and salaries (including non ? monetary benefits) and annual leave are measured at their nominal amounts. Other employees benefits expected to be settled within 12 months of their reporting date are also to be measured at their nominal amounts. 2002 2003 ANSTO Annual Report 2002-03 129 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 Australian Nuclear Science & Technology Organisation128 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. This is a change in accounting policy from last year required by initial application of new Accounting Standard AASB 1028 from 1 July 2002. The current enterprise bargaining agreement pay rates applicable on 1 June each year are considered in the calculation. The financial effect of this change was an accrual of $0.549 million. The provisions for employee entitlements encompass annual leave and long service leave that ANSTO has a present obligation to pay resulting from employee services provided up to balance date. General leave The Organisation's Enterprise Agreement provides under the heading General Leave for an employee entitlement which combines sick leave, carer's leave and leave for other prescribed purposes. No provision has been made for general leave as all such leave is non-vesting and the average general leave taken by employees is less than the annual entitlement. Annual leave The provision for annual leave reflects the value of total annual leave entitlements of all employees at balance date and is recognised at its nominal value. Long service leave The provision for long service leave is recognised and measured at the present value of estimated future cash outflows to be made by ANSTO in respect of employee entitlements at balance date. The leave liabilities are calculated on the basis of employees' remuneration, including employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. (f) Superannuation The Australian Nuclear Science and Technology Organisation contributes to the Commonwealth Superannuation (CSS) and the Public Sector (PSS) superannuation schemes which provide retirement, death and disability benefits to employees. Contributions to the schemes are at rates calculated to cover existing and emerging obligations. Current contribution rates in 2003 were 9.6% of salary (CSS) and 11.7% of salary (PSS). An additional 3% is contributed for employer productivity benefits. The vast majority of staff are covered by one of these two schemes. For those staff who do not contribute to either of these two schemes, ANSTO contributes 9% of salary to the Australian Government Employees Superannuation Trust fund. Additional employer contributions are made to nominated complying funds on behalf of several term employees at a rate of 9% where the employee chooses not to make a personal contribution, or 11% where the employee chooses also to contribute. Contributions during the year are detailed in Note 5A.No liability is shown for superannuation in the Statement of Financial Position as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth. (g) Leases Operating leases are expensed on a basis which is representative of the pattern of benefits derived from the leased assets. (h) Cash For the purposes of the Statement of Cash Flows, cash includes short term deposits held in a bank, cash on hand and cash equivalents. (i) Financial instruments Accounting policies for financial instruments are stated at Note 21. (j) Bad and doubtful debts Bad debts are written off during the period in which they are identified. A provision is made for any doubtful debts based on a review of all outstanding accounts at year end. (k) Buildings, infrastructure, plant and equipment and major facilities Acquisition Items of buildings, infrastructure, plant and equipment and major facilities are recorded at cost on acquisition and depreciated as outlined below. Items of plant and equipment with a cost of less than $3,000 are expensed in the year of acquisition. The cost of assets constructed by the entity includes the cost of materials, direct labour and an appropriate proportion of fixed and variable overheads. Revaluations Basis of valuation Schedule 1 of the Commonwealth Authorities and Companies Act 1997 (Financial Statements 2002-2003) Orders and AASB 1041 requires that from 1 July 2002, entities must revalue every class of assets that includes land, building, infrastructure, plant and equipment. The clause 3c.1 of the FMO allows entities to utilise the transitional arrangements as stated in Section of AASB 1041. Entities that are progressively revaluing a class of assets over a number of years may continue to do so, provided that the requirements of AASB 1041 in respect of progressive revaluations are met. Land was revalued this year in accordance with the fair value method of valuation and will be valued in successive five year cycles on the basis of its highest and best use, unless disposal is restricted by legislation zoning or government policy. The requirements of Schedule 1 of the Commonwealth Authorities and Companies Act 1997 (Financial Statements 2002-2003) Orders are being implemented as follows: ? Freehold land was revalued as at 30 June 2003 ? Buildings on freehold land were revalued at 30 June 2001 ? Plant and equipment were revalued at 30 June 2001 ? Infrastructure was revalued at 30 June 2001 ? The major national facility, HIFAR reactor including instrumentation was revalued at 30 June 2001 ? Other national and major facilities were revalued at 30 June 2001. Land was revalued in 2003 and the next revaluation cycle will commence in 2004 for each of the following class of assets: buildings, infrastructure, plant and equipment including national and other major facilities as part of three year progressive revaluation cycle. Assets acquired during the same financial year of revaluation are reported at cost. All valuations are carried out by qualified parties, independent of ANSTO. Any assets classified as ?not to be replaced? or which are surplus to requirements are valued at net realisable value at balance date. The valuation of land was conducted by an independent qualified valuer, Mr John Starr (registered Valuer No. 2388) of the Australian Valuation Office on 8 May 2003. The valuation of buildings, infrastructure, plant and equipment including national and other major facilities was last performed by independent quantity surveyors, Currie & Brown (Australia) Pty Ltd in November 2000 and the revaluations were adopted by the Directors. 2002 2003 ANSTO Annual Report 2002-03 131 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 Australian Nuclear Science & Technology Organisation130 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 Depreciation and amortisation Items of property, plant and equipment, including buildings, but excluding freehold land, are depreciated over their estimated useful lives to ANSTO using the straight line method. Depreciation and amortisation rates applying to each class of depreciable asset are based on the following useful lives: 2003 2002 Buildings on freehold land 30 years 30 years Plant and equipment 2 ? 30 years 2 ? 30 years Infrastructure 20 years 20 years National and major facilities 5 ? 30 years 5 ? 30 years The depreciation rates (useful lives) of ANSTO's property, plant and equipment have been reviewed during the year and found to be appropriate. The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 5C. Recoverable amount test Those assets carried at cost are reviewed to determine whether this is in excess of the recoverable amount. If an excess exists as at the reporting date, the asset is written down to its recoverable amount. In assessing recoverable amounts, the relevant cashflows have been discounted to their present value. (l) Inventories Stores are valued at cost. Provision is made for obsolete inventory and dimunition in value. Inventories of Cobalt-60 and enriched, natural and depleted uranium are valued on the basis of net realisable value. Stocks of reactor fuel, heavy water and stores are valued at average purchase price. (n) Patents Due to the uncertain commercial value of patents, trademarks, designs and applications, and because benefits extending beyond one accounting period cannot be assured, the costs associated with the development and registration of patents are expensed in the year in which they are incurred, unless recoverability is assured beyond any reasonable doubt. At 30 June 2003 there were 159 patents, trademarks, design and applications (153 at 30 June 2002) registered to ANSTO and no associated costs are recognised as an asset (nil at 30 June 2002). (o) Foreign currency Transactions denominated in a foreign currency are converted at a rate of exchange prevailing at the date of the transaction. At balance date, amounts receivable and payable in foreign currency are translated at the exchange rate prevailing at that date and any exchange differences are brought to account in the Statement of Financial Performance. (p) Capital use charge Included in revenues from Government is an appropriation to cover the capital use charge of 11% on budgeted estimate of net assets of ANSTO for the 2002/2003 financial year (Note 4A). Any adjustment based on the calculation of actual net assets, excluding asset revaluation during the financial year is recognised as an asset or liability as appropriate in the balance sheet (refer Note 8B). Capital use charge is to be discontinued from 1 July 2003. (q) Taxation ANSTO is exempt from all forms of taxation in Australia except fringe benefits tax and the goods and services tax (GST). The Organisation is not subject to exemption from any foreign taxation laws relative to its overseas operations. (m) Intangibles Software Items of software are recorded at cost and depreciated as outlined below. Items with a cost of less than $3,000 are expensed in the year of acquisition. In previous years software was included in plant and equipment and was revalued with other plant and equipment. There is no material internal software development. Software which was revalued in 2001 in terms of AASB 1041 paragraph 8.7 (a) is reported at deemed cost. Licences Licences were revalued in 1999. Amortisation Intangibles are amortised over their estimated useful lives to ANSTO using the straight line method. Amortisation rates applying to intangibles are as follows: 2003 2002 Purchased software 2 ? 7 years 2 ? 7 years Licences 3 years 3 years The amortisation rates (useful lives) of ANSTO's software and licences have been reviewed during the year and found to be appropriate. The aggregate amount of amortisation allocated for each class of asset during the reporting period is disclosed in Note 5C. Recoverable amount test Those assets carried at cost are reviewed to determine whether this is in excess of the recoverable amount. If an excess exists as at the reporting date, the asset is written down to its recoverable amount. In assessing recoverable amounts, the relevant cashflows have been discounted to their present value. Revenues, expenses and assets are recognised net of GST except; ? where the amount of GST incurred is not recoverable from the Australian Taxation Office; and ? for receivable and payables. (r) Assets received free of charge The acquisition of property, plant and equipment free of charge, or for a nominal amount, is recognised at fair value. (s) Principles of consolidation ANSTO's sole subsidiary company Ansto Inc., a company incorporated in Delaware, USA, is unlikely to trade in the foreseeable future. Any amounts owing to the parent have been foregiven and the financial statements reported are that of ANSTO as a single entity. The financial effect of the debt foregiven was a cost of $0.204 million in this years results, refer Note 5D. (t) Comparatives Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures. (u) Rounding Amounts are rounded to the nearest one thousand dollars except in relation to: ? remuneration of members of the Board ? remuneration of executives ? remuneration of auditors 2002 2003 ANSTO Annual Report 2002-03 133 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 Australian Nuclear Science & Technology Organisation132 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 4 Revenue FINANCIAL YEAR Note 2003 2002 $'000 $'000 4A. Revenues from Government Appropriation for outputs 168,252 152,364 4B. Goods and services Radioisotope sales 21,203 19,578 Services and contract research 4,117 4,529 Silicon irradiation 3,290 2,688 CSIRO site support 695 936 Training courses 109 122 Land management 2,606 2,295 Synchrotron project 813 774 AINSE interactions 812 1,329 Total sales of goods and services 33,645 32,251 Grants 624 738 Interest on deposit 3,356 1,255 4C. Net gain from sales of assets Infrastructure, plant and equipment: Revenue from sale of assets 507 862 Value of assets disposed (333) (324) Net gain from disposal of infrastructure, plant and equipment 174 538 4D. Net foreign exchange gains ? non speculative 21 12 6 4E. Other revenue: Sundry materials ? 151 4F. Sales of goods and services 4B Goods 21,203 19,578 Services 12,442 12,673 Total sales of goods and services 33,645 32,251 Provision of goods and services to: Related entities 695 936 External entities 32,950 31,315 Total sales of goods and services 33,645 32,251 Cost of sales of goods 20,547 19,090 3 Segment and outcomes reporting Reporting by segments ANSTO operates in a single industry within Australia, namely in the nuclear scientific research industry. Reporting by outcomes ANSTO has three outcomes and each have one output. Outcome 1: Replacement Research Reactor Project Outcome 2: Disposal of spent fuel Outcome 3: Core business: science and technology Major Classes of Departmental Revenues and Expenses by Output Groups and Output Outcome 1 Outcome 2 Outcome 3 Total Output 1 Output 2 Output 3 2003 2002 2003 2002 2003 2002 2003 2002 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Operating revenues Revenue from Government 336 778 99,065 93,931 99,401 94,709 Sale of goods and services 33,645 32,251 33,645 32,251 Interest 3,356 1,255 3,356 1,255 Revenue from sale of assets 507 862 507 862 Other 636 895 636 895 Total operating revenues ? ? 336 778 137,209 129,194 137,545 129,972 Operating expenses Employees 95 107 49,643 53,456 49,738 53,563 Suppliers 231 104 55,673 47,239 55,904 47,343 Depreciation and amortisation 28,368 24,671 28,368 24,671 Other 3,328 3,555 3,328 3,555 Total operating expenses ? ? 326 211 137,012 128,921 137,338 129,132 Notes: The net cost shown include intra ? government costs that would be eliminated in calculating the actual Budget outcome. The Capital use charge is not included in any of the net cost/(contribution) of outcomes as it is not an operating expense. 2002 2003 ANSTO Annual Report 2002-03 135 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 5 Operating expenses The breakdown of operating expenses is: FINANCIAL YEAR Note 2003 2002 $'000 $'000 5A. Employee expenses: Salaries 39,593 42,584 Superannuation 5,083 5,332 Annual leave 4,100 2,804 Long service leave 388 2,742 Separation and redundancy 236 90 Total employee benefits expenses 49,400 53,552 Workers compensation premiums 338 396 Total employee expenses 49,738 53,948 5B. Supplier expenses: Goods from external entities 14,125 11,360 Services from related entities 10,408 9,500 Services from external entities 31,280 26,048 Operating lease rentals 91 31 Total supplier expenses 55,904 46,939 Operating expenses 11,847 17,401 Stores 6,882 5,517 Maintenance and external services 28,079 16,408 Power and water 1,762 1,725 Reactor supplies 2,554 834 Disposition of spent fuel rods ? 14 Variable production costs 4,689 5,009 Operating lease rentals 91 31 Total supplier expenses 55,904 46,939 5C. Depreciation and amortisation: (See footnote (a) below) Depreciation of property, plant and equipment (a) 7B 26,659 24,229 Amortisation of intangible assets ? licence 7D 345 191 Amortisation of intangible assets ? software 7D 1,364 252 Total depreciation and amortisation 28,368 24,672 5 Operating expenses (continued) FINANCIAL YEAR Note 2003 2002 $'000 $'000 5D. Writedown of assets (See footnote (b) below) Financial assets: Receivables for goods and services ? 75 Unrealised foreign exchange loss 21 66 10 Other (b) 204 ? Non financial assets: Materials ? Write off obsolete Stock ? 297 Nuclear material stock devaluation 315 761 Total other expenses 585 1,143 5E. Grants 2,278 1,964 5F. Value of asset sold 333 324 Total operating expenses 137,206 128,990 5G. Borrowing costs expense 8A 132 124 (a) Depreciation of property, plant and equipment: The aggregate amounts of depreciation expensed during the reporting period for each depreciable class of property, plant and equipment are as follows: Buildings on freehold land 4,854 4,575 Plant and equipment 11,543 12,996 Infrastructure 2,137 2,055 National and major facilities 8,125 4,603 Total allocated 26,659 24,229 (b) ANSTO Inc. accumulated losses of A$0.204 million were foregiven in the 2002/03 year as ANSTO Inc. is unlikely to trade in the foreseeable future. Australian Nuclear Science & Technology Organisation134 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 6 Financial assets (continued) FINANCIAL YEAR Note 2003 2002 $'000 $'000 6C. Investments Fixed term investments (a) 53,083 17,953 (a) The majority of the value held is to meet contracted future payments including construction of the Replacement Research Reactor. 6D. Investment in subsidiary ANSTO Inc. was incorporated in Delaware, USA on 27 October 1999. At 30 June 2003, US$100 (2002, US$100) of capital has been invested in this wholly owned subsidiary. ANSTO Inc. accumulated losses of A$0.204 million were forgiven in the 2002/03 year as ANSTO Inc. is unlikely to trade in the foreseeable future. The investment is carried forward at nil value. ANSTO Annual Report 2002-03 137 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 6 Financial assets FINANCIAL YEAR Note 2003 2002 $'000 $'000 6A. Cash Cash at bank for operating needs 5,194 7,552 Foreign currency held as forward cover for future construction progress payments (a) ? 24,267 Foreign currency held as forward cover for future supplier payments 232 2,704 Total cash 5,426 34,523 (a) In 2002 the Department of Finance and Administration introduced a new policy whereby programs were no longer required to hedge foreign currency positions. Consequently the foreign exchange exposure related to the Replacement Research Reactor is no longer hedged. 6B. Receivables Goods and services (a) 4,866 5,355 Less provision for doubtful debts 376 376 4,490 4,979 Advance held by Dept of Education, Science and Tourism ? 20 Interest accrued 178 69 Reimburseable foreign exchange loss 86 1,451 Other (b) 77,909 77 GST receivable 2,518 3,215 Total receivables (net) 85,181 9,811 (a) Goods and services (trade debtors) Age analysis of trade debtors Current 3,079 3,037 Overdue: Less than 30 days 1,059 1,418 30 to 60 days; and 467 471 60 to 90 days 128 268 More than 90 days 133 161 4,866 5,355 (b) Of the total amount, $77.832 million represents appproriations receivable from Government for undrawn equity injection ($63.997 million) and spent fuel appropriation ($13.835 million), (2002, Nil). Australian Nuclear Science & Technology Organisation136 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 7 Non-financial assets (continued) FINANCIAL YEAR Note 2003 2002 $'000 $'000 7B(iii). Major national and major research facilities Major national research facilities ? at cost 487 302 Less accumulated depreciation 77 36 410 266 Major national research facilities at Directors Valuation ? 30 June 2001 * (deprival) (a) 111,052 110,900 less accumulated depreciation (c) 79,721 73,467 31,331 37,433 Major research facilities at Directors Valuation ? 30 June 2001 (deprival) (a) 23,203 23,203 Less accumulated depreciation (c) 9,498 7,720 13,705 15,483 * includes $17,133 (2001 $17,133) buildings on leasehold land. Research facility under construction at Directors Valuation ? 30 June 2001 (deprival) (a) ? ? Replacement Research Reactor Project capitalised cost 185,497 106,301 Total major national and major research facilities 230,943 159,483 Total infrastructure, plant, equipment and major facilities 389,765 314,639 Total land, buildings, infrastructure, plant, equipment and major facilities 557,392 453,172 ANSTO Annual Report 2002-03 139 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 7 Non-financial assets FINANCIAL YEAR Note 2003 2002 $'000 $'000 7A. Land and buildings Land ? at independent valuation ? 30 June 2003 (fair value) (b), (d) 76,500 52,180 Buildings ? at cost 9,676 280 Less accumulated depreciation 420 ? 9,256 280 Buildings ? at Directors valuation ? 30 June 2001 (deprival) (a) 109,865 109,634 Less accumulated depreciation (c) 27,994 23,561 81,871 86,073 Total buildings 91,127 86,353 Total land and buildings 167,627 138,533 7B. Infrastructure, plant, equipment and major facilities 7B(i).Plant and equipment Plant and equipment ? at cost 13,010 7,262 Less accumulated depreciation 2,417 1,226 10,593 6,036 Current years additions ? at cost 6,013 5,748 Less accumulated depreciation 2,178 1,191 3,835 4,557 Plant and equipment ? at Directors valuation ? 30 June 2001 (deprival) (a) 203,064 204,056 Less accumulated depreciation (c) 116,318 107,841 86,746 96,215 Plant and equipment under construction 29,679 18,381 Total plant and equipment 130,853 125,189 7B(ii). Infrastructure Electrical/site services Electrical/site services facilities ? at cost 151 12 Less accumulated depreciation 9 1 142 11 Electrical/site services facilities at Directors valuation ? 30 June 2001 (deprival) (a) 50,807 50,807 Less accumulated depreciation (c) 22,980 20,851 27,827 29,956 Total infrastructure 27,969 29,967 Australian Nuclear Science & Technology Organisation138 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 7 Non-financial assets (continued) Movement summary 2002-2003 for all assets at valuation Item Land Buildings Total Land Infrastructure, Total and Buildings plant, equipment national and major facilities $'000 $'000 $'000 $'000 $'000 As at 30 June 2003 Gross value 76,500 119,541 196,041 388,126 584,167 Accumulated depreciation /amortisation (28,414) (28,414) (229,783) (258,197) Net value 76,500 91,127 167,627 158,343 325,970 As at 30 June 2002 Gross value 52,180 109,915 162,095 388,966 551,061 Accumulated depreciation /amortisation (23,561) (23,561) (209,879) (233,440) Net value 52,180 86,354 138,534 179,087 317,621 Summary of all assets under construction as at 30 June 2003 Item Land Buildings Total Land Infrastructure, Total and Buildings plant, equipment national and major facilities $'000 $'000 $'000 $'000 $'000 As at 30 June 2003 Gross value 215,176 215,176 Accumulated depreciation /amortisation Net value as at 30 June 2003 215,176 215,176 Net value as at 30 June 2002 124,681 124,681 ANSTO Annual Report 2002-03 141 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 7 Non-financial assets (continued) Movement summary 2002-2003 for all assets irrespective of valuation basis (excluding intangibles) Land Buildings Total Land Infrastructure, Total and Buildings plant, equipment national and major facilities $'000 $'000 $'000 $'000 $'000 Gross value as at 1 July 2002 52,180 109,914 162,094 526,971 689,065 Additions ? new assets 9,627 9,627 97,265 106,892 Additions ? replacements Transfer/Reclassification Revaluations 24,320 24,320 24,320 Disposals (1,272) (1,272) Write-offs Gross value as at 30 June 2003 76,500 119,541 196,041 622,964 819,005 Accumulated depreciation/ amortisation 1 July 2002 23,561 23,561 212,332 235,893 Depreciation/amortisation 4,853 4,853 21,806 26,659 Transfer/Reclassifications Revaluations Adjustment for disposals (939) (939) Write-offs Accumulated depreciation/ amortisation 30 June 2003 28,414 28,414 233,199 261,613 Net book value as at 30 June 2003 76,500 91,127 167,627 389,765 557,392 Net book value as at 30 June 2002 52,180 86,353 138,533 314,639 453,172 Notes: (a) The 2001 Directors valuation of buildings, plant and equipment including national and major facilities and intangibles reflects the valuation performed by Currie and Brown (Australia) Pty Ltd (quantity surveyors) in November 2000 Note 2(k). (b) The 2003 independent valuation of land was performed by Mr. John Starr (registered valuer No. 2388) of the Australian Valuation Office Note 2(k), May 2003. (c) In accordance with the requirements of Schedule 1 of the Commonwealth Authorities and Companies Act 1997 (Financial Statements 2002-2003) Orders, all revalued assets are shown on a gross basis: asset values are at deprival value (except for land which is valued at fair value) and accumulated depreciation has been calculated based on this value. The resulting adjustment has been transferred directly to the asset revaluation reserve. (d) The value of land in 2003 was increased by $24.32 million due to revaluation in May 2003. Australian Nuclear Science & Technology Organisation140 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 7 Non-financial assets (continued) Movement summary 2002-2003 for all intangibles irrespective of valuation basis Licenses Software Total $'000 $'000 $'000 Gross value as at 1 July 2002 1,101 4,462 5,563 Additions ? new assets 8 134 142 Revaluations Disposals Gross value as at 30 June 2003 1,109 4,596 5,705 Accumulated depreciation/amortisation 1 July 2002 420 670 1,090 Depreciation/amortisation 345 1,364 1,709 Additions ? New Assets Additions ? replacements/upgrades Revaluations Adjustment for disposals Writeback of accumulated depreciation Accumulated depreciation/amortisation 30 June 2003 765 2,034 2,799 Net book value as at 30 June 2003 344 2,562 2,906 Net book value as at 30 June 2002 682 3,791 4,473 FINANCIAL YEAR 2003 2002 $'000 $'000 7E. Other Prepayments 380 5,502 380 5,502 Total non-financial assets 568,792 468,336 ANSTO Annual Report 2002-03 143 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 7 Non-financial assets (continued) FINANCIAL YEAR Note 2003 2002 $'000 $'000 7C. Inventories Raw materials and stores-not held for resale Stores ? at cost 2,027 1,288 Cobalt-60 sources ? at net realisable value 246 280 Reactor fuel and heavy water ? at average purchase price 5,832 3,678 Nuclear materials ? at net realisable value 73 7 Provision for stock dimunition (64) (64) Total inventories 8,114 5,189 7D. Intangibles Licences ? at cost 1,033 1,056 Less accumulated amortisation 720 411 313 645 Design fees ? at cost 76 45 Less accumulated amortisation 45 9 31 36 Software at cost 4,138 4,004 Less accumulated amortisation 1,611 248 2,527 3,756 Software at deemed cost 458 458 Less accumulated amortisation 423 422 35 36 Total intangibles 2,906 4,473 Australian Nuclear Science & Technology Organisation142 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 Notes: (a) Relates to prepaid revenue under a lease of property. (b) Provision for HIFAR spent fuel rods. In 1995 ANSTO created a provision of $6.6 million, for the overseas transport and reprocessing of HIFAR spent fuel rods. No expenses were incurred against the provision during 2002-2003 and following review, the balance has been retained, as expenditure is expected to be incurred in the future. This provision is separate from and precedes the Government's 1997 determination to fund disposition of the balance of spent fuel rods. (c) A provision has been created for the cost of disruption to business arising from a scheduled routine maintenance program to meet ongoing ARPANSA operating license conditions. This provision is reviewed annually. (d) A provision has been established for expected future contributions to staff superannuation funds for past service. (e) Amount has been repaid to Department of Finance and Administration. (f) Revenue recognised to cover costs of spent fuel shipment scheduled for year ended 30 June 2003, deferred to 2004 year. Refer to Note 6B(b). ANSTO Annual Report 2002-03 145 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 8 Liabilities FINANCIAL YEAR Note 2003 2002 $'000 $'000 8A. Interest bearing liabilities Other (a) 2,326 2,194 Total interest bearing liabilities 2,326 2,194 Provision and payables 8B. Capital use charge Capital use charge (e) ? 1,355 Balance owing 1 July 1,355 1,355 Capital use charge provided for during the period 68,851 57,655 Capital use charge paid (70,206) (57,655) Balance owing 30 June ? 1,355 8C. Employees Accrued salaries and wages 1,427 1,660 Annual leave 7,416 7,428 Long service leave 11,590 12,700 20,433 21,788 8D Other HIFAR spent fuel rods (b) 1,000 1,000 Provision for HIFAR license review (c) 4,749 3,166 Superannuation fluctuation (d) 1,692 1,692 Common law and other claims 1,508 1,506 8,949 7,364 8E Suppliers Trade creditors 14,707 8,178 14,707 8,178 8F Grants Non-profit entities 57 76 57 76 8G Other Revenue received in advance 375 228 Unearned revenue (f) 13,835 ? 14,210 228 Total provisions and payables 58,356 38,989 Total liabilities 60,682 41,183 Australian Nuclear Science & Technology Organisation144 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 9 Equity (continued) FINANCIAL YEAR Note 2003 2002 $'000 $'000 Accumulated surpluses Accumulated surpluses 1 July 77,125 76,267 Transfer to fuel elements reserve (6,800) ? Transfer to instrumentation reserve (1,700) ? Transfer from waste treatment reserve 4,300 ? Transfer to RRRP training and business iniatives reserve (6,800) ? Operating surplus 69,058 58,513 Capital use charge (68,851) (57,655) Accumulated surpluses 30 June 66,332 77,125 Total equity 651,800 489,440 (a) Fuel elements reserve A transfer has been made to this reserve in 2003 to identify separately the amount anticipated to be required for the purchase of fuel elements. (b) Instrumentation reserve In addition to the 1997 Government decision to fund the construction of a Replacement Research Reactor at Lucas Heights, ANSTO has identified a planned future capital investment for the development of instrumentation associated with the Replacement Research Reactor. The sum was increased by $1.7 million in 2003. (c) Waste treatment reserve During the 2001 financial year, a $5.0 million equity injection was received from the Government to upgrade low level liquid effluent treatment facilities. This amount has now been spent. (d) Equity injection The total drawdown of $73.836 million (2002, $51.432 million) is for expenditure on capital projects. Total equity injection for $137.833 million includes undrawn amount of $63.997 million which is to be drawn as required. (e) RRRP training and business initiatives reserve In addition to the 1997 Government decision to fund the construction of a Replacement Research Reactor at Lucas Heights, ANSTO has identified a planned future capital investment for the development of ancillary facilities, business initiatives and operator training to fully utilise the replacement research reactor capabilities. ANSTO Annual Report 2002-03 147 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 9 Equity FINANCIAL YEAR Note 2003 2002 $'000 $'000 Capital Capital 1 July 128,056 64,017 Equity injections from Government ? Appropriation Act Nos. 2 & 4, (d) 137,833 64,039 Balance 30 June 265,889 128,056 Reserves, including movements Asset revaluation reserve Balance 1 July 269,859 269,859 Net revaluation increases 24,320 ? Balance 30 June 294,179 269,859 Fuel elements reserve Balance 1 July 5,600 5,600 Transferred from accumulated surpluses (a) 6,800 ? Balance 30 June 12,400 5,600 Instrumentation reserve Balance 1 July 4,500 4,500 Transferred from accumulated surpluses (b) 1,700 ? Balance 30 June 6,200 4,500 Waste treatment reserve Balance 1 July 4,300 4,300 Transferred to accumulated surpluses (c) (4,300) ? Balance 30 June ? 4,300 RRRP training and business initiatives reserve Balance 1 July ? ? Transferred from accumulated surpluses (e) 6,800 ? Balance 30 June 6,800 ? Total reserves 319,579 284,259 Australian Nuclear Science & Technology Organisation146 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 12 Remuneration of members of the Board FINANCIAL YEAR 2003 2002 $ $ Board members are paid in accordance with government policy. Included in operating expenses (Note 5) are: Aggregate amounts of superannuation payments in connection with the retirement of members of the Board 31,880 24,087 Other remuneration received, or due and receivable by members of the Board 439,035 366,365 470,915 390,452 The number of members included in these figures is shown below in each relevant remuneration band: Remuneration between Number Number $Nil and $9,999 2 1 $10,000 and $19,999 2 2 $20,000 and $29,999 1 2 $40,000 and $49,999 2 1 $260,000 and $269,999* ? 1 $320,000 and $329,999* 1 ? 8 7 * Includes payment of special allowances 13 Remuneration of executives Executive remuneration is determined by the ANSTO Enterprise Agreement 2002 which is underpinned by the ANSTO Award. Included in operating expenses (Note 5) is total remuneration received or due and receivable, by executives (excluding the Executive Director who is included in Note 12) who earn $100,000 or more in connection with the management of ANSTO. 1,434,608 1,839,653 The number of executives included in these figures is shown below in each relevant remuneration band: Remuneration between Number Number $100,000 and $109,999 2 ? $110,000 and $119,999 3 5 $120,000 and $129,999 2 2 $130,000 and $139,999 ? 3 $140,000 and $149,999 ? 2 $150,000 and $159,999 3 1 $170,000 and $179,999 1 ? $180,000 and $189,999 ? 1 11 14 ANSTO Annual Report 2002-03 149 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 10 Cash flow reconciliation FINANCIAL YEAR 2003 2002 $'000 $'000 Reconciliation of Operating Surplus to Net Cash from Operating Activities: Operating surplus before extraordinary items 69,058 58,513 Non-cash items Depreciation/amortisation 28,368 24,672 Gain on disposal of assets (174) (575) Write off obsolete stock ? 258 Nuclear materials (devaluation) (315) (610) Changes in assets and liabilities (Increase)/decrease in receivables 489 (554) (Increase) in other receivables (76,446) (1,515) (Increase) in receivable from DOFA 77,832 ? Decrease/(increase) in GST receivables 697 (1,898) Decrease(increase) in prepayments 5,122 (4,453) (Increase)/decrease in inventories (2,610) 1,749 (Decrease)/increase in creditors (7,306) 2,207 (Decrease)/increase in employee entitlements (1,355) 1,854 (Decrease)/increase in other creditors (1,228) 3,467 Increase in unearned revenue 13,835 ? (Increase)/decrease in accrued interest (109) 50 Increase in other provision 1,585 33 Increase in revenue in advance 132 124 Net cash from operating activities 107,575 83,322 10A Cash flows presented on a net basis Cash flows arising from profits and losses on foreign exchange activities are presented on a net basis in the Statement of Cash Flows and the cash flow reconciliation. 11 Extraordinary items There were no extraordinary items for the year ended 30 June 2003 ($NIL 2002). Australian Nuclear Science & Technology Organisation148 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 For the 2002-2003 financial year the aggregate remuneration paid to members of the Board is disclosed in Note 12. The aggregate of superannuation payments paid to the Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation Scheme (PSS), in connection with the retirement of members of the Board was $31,880 (2002, $24,087). 18 Related party disclosures Several members of the ANSTO Board were also members of Boards of entities with whom ANSTO had commercial transactions. None of these members were in a position to exercise significant influence on the relevant Boards. All such transactions were in accordance with commercial practice and on normal terms and conditions. 19 Average staffing levels FINANCIAL YEAR 2003 2002 The average staffing levels for ANSTO during the year were: 824 837 20 Trust money Monies received by ANSTO for specific purposes are placed in special bank accounts and are expended for these specified purposes only. These monies are not recognised in the ANSTO financial statements. Total Balance 1 July 4,156 3,306 Add: receipts 1,708 3,218 interest received 140 88 Deduct: payments (3,121) (2,456) Balance 30 June 2,883 4,156 Represented by the following: Trust account ANSTO receives monies from trade creditors as security deposits for contracts to be performed. These monies are held in a Trust Account and refunded to the respective trade creditors on satisfactory completion of the contract. Balance 1 July 5 5 Add: receipts 14 ? interest received ? ? Deduct: payments (13) ? Balance 30 June 6 5 ANSTO Annual Report 2002-03 151 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 14 Replacement Research Reactor Project costs Following the requisite approval from the Minister for Industry, Science and Resources, a contract was executed on 13 July 2000 between ANSTO and INVAP SE for the design, construction and commissioning of a replacement research reactor at Lucas Heights. The cost of construction of the replacement research reactor is A$278.5 million excluding GST (November 1999 dollars). The Government has agreed to maintain the purchasing power of the $278.5 million in regard to foreign currency movements, changes in prices arising from movements in price indices attributable to the contract, and for the changes in the Government parameters where appropriate. 15 Insurances Insurance risks, including professional indemnity, general liability, industrial special risk for a property used substantially for commercial purposes, directors and officers, and travel, are placed through Comcover, the Government's insurable risk managed fund. Workers compensation is insured through Comcare Australia and by virtue of statute under the Safety Rehabilitation and Compensation Act 1988. A Deed of Indemnity between the Commonwealth Government and ANSTO, under which the government has formally agreed to indemnify ANSTO and ANSTO Officers from any loss or liability arising from claims caused by ionising radiation, remains in place. 16 Remuneration of auditors FINANCIAL YEAR 2003 2002 $ $ Remuneration to the Auditor-General for auditing the financial statements for the reporting period 90,000 90,000 No other services were provided by the Auditor-General during the reporting period. 17 Board membership The members of the Board during the financial year and to the date of the report on the statements were: Term Term Member Appointed Concluded Concludes H M Garnett 11 May 2000 10 May 2005 I D Blackburne 1 July 2001 30 June 2006 A Van der Schaaf 25 July 2002 24 July 2007 K Schindhelm 20 March 2003 19 March 2008 J M Craker 2 June 1998 31 December 2002 C Hillyard 21 July 1999 20 July 2004 G Cook 13 June 2001 4 April 2006 M Eager 1 January 2002 31 December 2006 Australian Nuclear Science & Technology Organisation150 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 21 Financial instruments (a) terms, conditions and accounting policies Financial Instruments Notes Accounting Policies and Methods Nature of underlying instrument (including recognition criteria and (including significant terms & measurement basis) conditions affecting the amount, timing and certainty of cash flow) Financial assets Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured. Cash at bank 6A Cash is recognised at cost. All Australian dollar cash balances Interest is accrued as it is earned. are with the Commonwealth Bank of Australia. At 30 June current rates were 3.50%pa (2002 3.50%pa), calculated daily Fixed term investment 6C The deposits are recognised at cost. The deposits are with the Interest is accrued as it is earned. Commonwealth Bank of Australia, and earn an effective rate of interest of 4.30% for 90 days (2002 4.75%pa for 90 day terms) payable on maturity. Foreign exchange 6A, 6B Transactions denominated in a foreign The foreign currency deposits are holdings currency are converted at a rate of with the Commonwealth Bank of exchange prevailing at the date of each Australia, and earn an effective rate transaction. Balances at year end are of interest of 2.25%pa (2002 2.25% converted at end of year exchange rates. pa) payable monthly. Receivables for 6B Receivables are recognised at the nominal Credit terms are net 30 days goods & services amounts due less any provision for bad (2002 30 days). and doubtful debts. Provisions are made when collection of the debt is judged to be less rather than more likely. Other debtors 6B Receivables are recognised at the Majority of the amount nominal amounts due less any provision ($77.832 million) is receivable for bad and doubtful debts. from Department of Finance and Administration for undrawn equity injection $63.997 million and appropriation of $13.835 million for spent fuel disposition. Financial Liabilities Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured. Trade creditors 8E Creditors and accruals are recognised at Settlement is usually made their nominal amounts, being the net 30 days. amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Revenue received 8F, 8A, Revenue received in advance is initially Revenue earned is brought to in advance 8G brought to account as other payables account when the transaction is and subsequently recognised as revenue completed. when earned. ANSTO Annual Report 2002-03 153 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 20 Trust money (continued) FINANCIAL YEAR 2003 2002 MNRF Synchrotron The Australian Synchrotron Research Program Incorporated was established under the Major National Research (MNRF) Program. Balance 1 July 4,103 3,283 Add: receipts 1,693 3,190 interest received 139 86 Deduct: payments (3,108) (2,456) Balance 30 June 2,827 4,103 ISRC ? 2003 ANSTO received this trust money to facilitate assistance to the attendance of students to the ISRC ? 2003. Balance 1 July 29 ? Add: receipts 1 28 interest received ? 1 Deduct: payments ? ? Balance 30 June 30 29 Welfare fund A Welfare fund trust account is maintained to receive and manage donations to the fund and expenditure on specific welfare items for ANSTO employees. Balance 1 July 19 18 Add: receipts ? ? interest received 1 1 Deduct: payments ? ? Balance 30 June 20 19 Australian Nuclear Science & Technology Organisation152 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 21 Financial Instruments (cont.) (c) Net fair values of financial assets and liabilities FINANCIAL YEAR 2003 2002 Total Aggregate Total Aggregate carrying net fair carrying net fair amount value amount value Note $?000 $?000 $?000 $'000 Financial assets (recognised) Cash at bank 6A 5,192 5,192 7,547 7,547 Cash on hand 6A 225 5 Fixed term investments 6C 53,083 53,083 17,953 17,953 Foreign exchange holdings 6A 232 232 26,971 26,971 Receivables for goods and services 6B 7,094 7,094 9,665 9,665 Interest accrued 6B 178 178 69 69 Other 6B 77,909 77,909 77 77 Total financial assets 143,690 143,690 62,287 62,287 Financial liabilities (recognised) Trade creditors 8E 14,707 14,707 8,178 8,178 Grant received in advance 8F 57 57 76 76 Interest bearing liabilities 8A 2,326 2,326 2,194 2,194 Other 8G 14,210 14,210 228 228 Total financial liabilities 31,300 31,300 10,676 10,676 Financial assets The net fair values of cash, deposits on call and non-interest-bearing monetary financial assets are in accord with their carrying amounts. Loans receivable are carried at cost, which is above their net fair value, because it is intended to hold them to maturity. Financial liabilities The net fair values for trade creditors and revenue received in advance, all of which are short-term in nature, are in accord with their carrying amounts. (d) Credit risk exposures ANSTO's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Statement of Financial Position. ANSTO has no significant exposure to any concentrations of credit risk other than those disclosed in Note 6. ANSTO Annual Report 2002-03 155 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 2002 2003 21 Financial Instruments (cont.) (b) Interest rate risk ? consolidated Financial Notes Floating Fixed Interest Rate Non? T otal W e ighted Instruments Interest Rate 1 year or less 2-5 years Interest Bearing A verage Ef fective Interest Rate 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 $?000 $?000 $?000 $?000 $?000 $?000 $?000 $?000 $?000 $?000 $?000 $?000 Financial assets (recognised) Cash at bank 6A 5,192 7,547 5,192 7,547 3.50% 3.50% Cash on hand 6A 2 5 2 5 n/a n/a Fixed term investment 6C 53,083 17,953 53,083 17,953 4.30% 4.72% For eign exchange holdings 6A 232 26,971 232 26,971 2.25% 2.25% Receivables for goods and services 6B 7,094 9,645 7,094 9,645 n/a n/a Loans 6B 20 20 n/a n/a Inter est accrued 6B 178 69 178 69 n/a n/a Unr ealised for eign exchange gain 6B n/a n/a Other 6B 77,909 77 77,909 77 n/a n/a T otal financial assets (recognised) 58,507 52,471 85,183 9,816 143,690 62,287 T otal assets 712,482 530,623 T o tal financial liabilities (recognised) T rade cr editors 8E 14,707 8,178 14,707 8,178 n/a n/a Grant r eceived in advance 8F 57 76 57 76 n/a n/a Inter est bearing liablities 8A 2,326 2,194 2,326 2,194 6.00% 6.00% Other 8G 14,210 228 14,210 228 n/a n/a T o tal financial liabilities (recognised) 2,383 2,270 28,917 8,406 31,300 10,676 T o tal liabilities 60,682 41,183 Australian Nuclear Science & Technology Organisation154 Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003 Australian Nuclear Science & Technology Organisation156 Appendices ANSTO Annual Report 2002-03 159 Appendix 1 Equal Employment Opportunity Appendix 2 Freedom of Information Australian Nuclear Science & Technology Organisation158 In compliance with Section 8 of the Freedom of Information (FOI) Act 1982, the following is the annual statement on consultative arrangements, categories of documents maintained, and facilities and procedures for access to documents relating to ANSTO. Details of the functions of the organisation, membership of the Board and decision-making powers of the Board and the Executive are provided elsewhere in the annual report. Arrangements for external participation Liaison groups A technical advisory committee advises the Board on the appropriateness of ANSTO?s scientific research program, ANSTO?s ability to achieve the scientific goals of that program and how the results of the research can best be presented and implemented. Members are drawn from Australia and overseas. The Local Liaison Working Party, established in 1967, comprises representatives from the NSW Police, Ambulance, Fire Brigades, Rural Fire Service, Environment Protection Authority and Department of Health, the Australian Protective Service, the St George-Sutherland District Emergency Management Officer, Sutherland Shire Council and ANSTO, as well as observers from the State Emergency Management Committee, the State Emergency Service and the Australian Radiation Protection and Nuclear Safety Agency. The LLWP reviews procedures applicable to a potential accident at the Lucas Heights Science and Technology Centre (where ANSTO is located) that could have implications for the public. The ANSTO Health, Safety and Environment Committee provides an overview of the safety and environmental arrangements for ANSTO activities and the compliance with the ARPANS regulations. It is chaired by an external member with extensive safety experience who works with Airservices Australia and has one other external member with wide experience in safety and environmental management experience who is also Chairman of Queensland Mines Rescue Service. ANSTO State government arrangements As it is located in New South Wales, ANSTO liaises with a range of NSW departments and authorities responsible for safety, environmental planning and related matters. Associated organisations The Australian Institute of Nuclear Science and Engineering, an association of ANSTO and 37 universities, arranges access by staff and students of Australasian universities to the major facilities at ANSTO. Other arrangements Less formal arrangements exist for discussions, the exchange of views and/or collaboration with organisations outside the ANSTO actively seeks to implement Equal Employment Opportunity (EEO) and diversity principles in its management practices. All new employees are introduced to the principles of EEO as part of their induction program. Whilst there is a predominance of male employees in ANSTO, females are relatively well represented in key executive and research scientist roles. ANSTO has sought to accommodate employees seeking part-time employment wherever feasible, and it is noted that this has been utilised by both male and female employees. All employees and their families continue to have access to the services of counsellors through the Employee Assistance Program, provided as an employee benefit through an external provider. Number employed % of total staff Average salary 2003 2002 2003 2002 2003 2002 Female 195 208 23% 24% $49,316 $46,688 Male 641 643 77% 76% $59,671 $57,317 Number employed % of total staff Average salary 2003 2002 2003 2002 2003 2002 People with disabilities 18 20 2.2% 2.3% $53,979 $51,281 Aboriginal and Torres Strait Islanders 15 16 1.8% 1.9% $53,453 $51,412 Non-English speaking background 21 13 2.5% 1.5% $49,605 $53,632 Staff in specific employment categories This information is based on data obtained from 836 staff. Note: Staff had the option of choosing not to provide information when answering questions. ANSTO Annual Report 2002-03 161Australian Nuclear Science & Technology Organisation160 Appendix 2 be made by contacting the FOI Coordinator, ANSTO, Private Mail Bag 1, Menai, NSW 2234, Australia (email smi@ansto.gov.au). Information about ANSTO is available on the internet through the organisation?s homepage at http://www.ansto.gov.au. The Director, Government and Public Affairs, and the Director, Corporate Services, have been appointed as authorised officers under Section 23 of the FOI Act. Freedom of Information Commonwealth administration. These organisations include local government authorities, universities, standards bodies, professional societies, unions and staff associations, industrial groups and international nuclear agencies. Categories of documents held Computer software packages, computer printouts, technical books and reports, and International Nuclear Information System documents are available for purchase. Single copies of the annual report, the Lucas Heights News, the program of research, strategic plans, ANSTO emergency plans, environmental monitoring reports, general information literature and videos (under loan arrangements) are available on request. Documents relating to decision-making processes include Cabinet documents about matters in which ANSTO has an interest, ministerial correspondence and directions, ANSTO Board agenda, memoranda and decisions, deeds, legal contracts and formal agreements, minutes and submissions, employment, delegations, security, finance and accounting handbooks and manuals. General correspondence includes ministerial briefs, speeches, conference papers for national and international meetings, parliamentary questions and answers, cables, telexes and facsimiles, and general records files. Technical documents held include scientific and technical reports and laboratory notes comprising patents and inventions; computer tapes and printouts; plant and equipment operating manuals; maintenance, quality assurance and safety manuals; reactor operating authorisations, records and log books; radioisotope quality control procedures manuals; radioisotope catalogues and price lists; engineering service general records; nuclear material movement vouchers and accounting records; photographs; and radiographs. Health and safety documents include staff medical records; safety-related survey records; film badge and radiological records; accident reports; and emergency response procedures. Administration documents held include personnel records such as staff promotion files; organisation and establishment reports; compensation files; computer systems for administrative instructions and information storage; staff lists and classifications; accounting records; pay-roll, flexitime and overtime records; tender and contract documents; building plans, specifications and instructions; directives; orders; memoranda; bulletins; notices; and information. Other documents held include drawing office records such as plans, microfilm, drawings, maps, and photographs. Facilities for access By arrangement, FOI inquirers can peruse information in the Reception and Information Centre at the entrance to the Lucas Heights Science and Technology Centre. Other arrangements for access may Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03162 163 Appendix 3 Functions and powers of the Organisation under the ANSTO Act (ic) in connection with the application and use of nuclear science and nuclear technology; or (ii) otherwise in connection with matters related to its activities; and (d) to act as a means of liaison between Australia and other countries in matters related to its activities; and (e) to provide advice on aspects of: (i) nuclear science and nuclear technology; (ii) the application and use of nuclear science and nuclear technology; and (iii) other matters related to its activities; and (ea) to make available to other persons, on a commercial basis, the knowledge, expertise, equipment, facilities, resources and property of the Organisation by: (i) providing training and management expertise; (ii) selling or leasing equipment; (iii) leasing land, buildings and facilities; or (iv) taking any other action that the Organisation thinks appropriate; and (f) to co-operate with appropriate authorities of the Commonwealth, the States and the Territories, and with other organisations and institutions in Australia or elsewhere, in matters related to its activities; and (g) to publish scientific and technical reports, periodicals and papers on matters related to its activities; and (h) to collect and sell or distribute, as appropriate, information and advice on matters related to its activities; and (j) to arrange for training, and the establishment and award of scientific research studentships and fellowships, in matters related to its activities; and (k) to make grants in aid of research into matters related to its activities; and (l) to make arrangements with universities and other educational research institutions, professional bodies and other persons for the conduct of research or of other activities in matters related to its activities. (1A)A regulation made for the purposes of subparagraph (1) (ba) (iv) must not have the effect of authorising the premises on which the Lucas Heights Research Laboratories are situated to become a national nuclear waste repository. This appendix describes the functions and general powers of the organisation under the Australian Nuclear Science and Technology Organisation Act 1987 (the ANSTO Act). In the text below, ?Organisation? means the Australian Nuclear Science and Technology Organisation. Functions of the Organisation under the ANSTO Act Section 5 of the ANSTO Act provides that: (1) The functions of the Organisation are: (a) to undertake research and development in relation to: (i) nuclear science and nuclear technology; and (ia) the application and use of nuclear science and nuclear technology; and (ii) the production and use of radioisotopes, and the use of isotopic techniques and nuclear radiation, for medicine, science, industry, commerce and agriculture; and (iii) such other matters as the Minister directs; and (b) to encourage and facilitate the application and use of the results of such research and development; and (ba) to condition, manage and store radioactive materials and radioactive waste, arising from: (i) the Organisation?s activities (including the production of radioactive materials for other persons); or (ii) the activities of companies in which the Organisation holds a controlling interest (including the production of radioactive materials for other persons); or (iii) the use by other persons of radioactive materials produced by the Organisation or such companies; or (iv) the activities of other persons who are specified in the regulations; and (c) to produce, acquire, provide and sell goods, and to provide services, that are: (i) in connection with the production and use of radioisotopes, and the use of isotopic techniques and nuclear radiation, for medicine, science, industry, commerce and agriculture; or (ia) in connection with the conditioning, management and storage of radioactive materials or radioactive waste; or (ib) in connection with nuclear science and nuclear technology; or Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03164 165 Appendix 3 Functions and powers of the Organisation under the ANSTO Act premises is taken to be radioactive material and radioactive waste arising from the Organisation?s activities. General powers of the Organisation under the ANSTO Act Section 6 of the ANSTO Act provides that: (1) Subject to this Act, the Organisation has power to do all things necessary or convenient to be done for or in connection with the performance of its functions and, in particular, has power: (a) to enter into contracts; (b) to acquire, hold and dispose of real or personal property; (c) to occupy, use and control any land or building owned or held under lease by the Commonwealth and made available for the purposes of the Organisation; (d) to erect buildings and structures and carry out works; (e) to form, or participate in the formation of, a company or partnership; (f) to appoint agents and attorneys, and to act as an agent for other persons; (g) to engage persons to perform services for the Organisation; (h) to design, produce, construct and operate equipment and facilities; and (j) to do anything incidental to any of its powers. (2) The powers of the Organisation may be exercised within or outside Australia. (3) To avoid doubt, the Organisation has the power to construct buildings and facilities for the sole purpose of performing the function referred to in paragraph 5 (1) (ea). (1B) In subsection (1A): national nuclear waste repository means a site chosen by the Commonwealth, after the commencement of this subsection, for the storage of nuclear waste with a view to it never being moved to another site. (2) The Organisation shall not undertake research or development into the design or production of nuclear weapons or other nuclear explosive devices. (3) In undertaking its functions, the Organisation is to have regard to: (a) the Commonwealth Government?s national science, technology and energy policy objectives; and (b) the Commonwealth Government?s commercialisation objectives for public research institutions. (4) The Minister shall not give a direction under subparagraph (1) (a) (iii) to the Organisation to undertake research or development in relation to a matter unless the Minister is satisfied that research or development by the Organisation in relation to that matter would be an effective use of the staff of the Organisation, and would not duplicate unnecessarily any activity being carried on, or proposed to be carried on, by any other agency or authority of the Commonwealth. (5) The Organisation may perform its functions to the extent only that they are not in excess of the functions that may be conferred on it by virtue of any of the legislative powers of the Parliament, and, in particular, may perform its functions: (a) in so far as it is appropriate for those functions to be performed by the Organisation on behalf of the Government of the Commonwealth as the national Government of Australia; (b) for purposes for which it is appropriate for the Parliament as the national Parliament of Australia to authorise the Organisation to perform functions; (c) by way of expenditure of money that is available for the purposes of the Organisation in accordance with an appropriation made by the Parliament; (d) in the course of, or in relation to, trade and commerce with other countries, among the States, between Territories or between a Territory and a State; (e) for purposes related to external affairs; and (f) for purposes in or in relation to a Territory. Subsection 4 (2) of the Australian Nuclear Science and Technology Organisation Amendment Act 1992 (the ANSTO Amendment Act) provides that subject to subsection 4 (3), for the purposes of paragraph 5 (1) (ba) of the ANSTO Act, any radioactive material or radioactive waste that is stored on the Organisation?s Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03166 167 Appendix 4 Status report on the implementation of the conditions arising from the Environmental Impact Assessment of the Replacement Research Reactor 1. The construction and operation of the proposed reactor at the Lucas Heights Science and Technology Centre (LHSTC) must be in accordance with the undertakings and commitments provided by the Australian Nuclear Science and Technology Organisation (ANSTO) in the Final Environmental Impact Statement (Replacement Nuclear Research Reactor, 1997/98, Volumes 1, 2 and 3), and as summarised in Chapter 18 of Volume 3. If there is conflict between the ANSTO undertakings and the recommendations below, the recommendations will take precedence. Compliance with all undertakings and commitments given by ANSTO within the EIS was a mandatory component of the tender process. INVAP demonstrated that it would comply with those EIS undertakings and commitments through all phases of the replacement reactor project, and compliance with those EIS undertakings and commitments is now part of the contractual arrangements. Construction commitments, as documented in Chapter 18 of the EIS Volume 3, were included in the Construction Environmental Management Plan (CEMP) (see Condition 2) in the form of a checklist. This checklist provided a direct reference between the EIS commitments and the actions that will be taken during construction to ensure compliance. The contractor prepares Specific Inspection and Test Plans for each environmental control activity, and compliance with those plans is reported on. The contractor also prepares and submits to ANSTO quarterly Environmental Performance Reports, which detail compliance with the requirements of the CEMP and related documents. The reports summarise performance with respect to Storm and Surface Water, Noise and Vibration, Erosion Control, Soils and Groundwater, Traffic Impact, Fire Prevention, Air Quality, Waste, and Visual and Landscape. 2. ANSTO must prepare a construction environmental management plan (EMP), to the satisfaction of the Minister for the Environment and Heritage, prior to construction commencing. The EMP will address all commitments and undertakings made by the proponent for environmental management during construction, and as summarised in Chapter 18 (Volume 3) of the Final Environmental Impact Statement. The following associated recommendations must also be addressed: ? an Erosion and Sedimentation Control Plan must be prepared as part of the EMP. Measures proposed to be implemented must be referred to the NSW Environment Protection Authority (EPA) and the NSW Department of Land and Water Conservation for comment prior to their adoption in the EMP. The Plan shall conform with the principles and objectives of the following NSW EPA handbooks: ? Managing Urban Stormwater: Treatment Techniques 1997; Sixth status report on the implementation of the conditions arising from the environmental impact assessment of the replacement research reactor at Lucas Heights. Submitted to the Minister for the Environment and Heritage by the Australian Nuclear Science and Technology Organisation March 2003 Introduction The then Minister for the Environment and Heritage indicated in a Media Release on 30 March 1999 that he had decided that there were no environmental reasons, including on safety, health, hazard or risk grounds, to prevent construction of the replacement research reactor at Lucas Heights, subject to a number of conditions. On 3 May 1999, the then Minister for Industry, Science and Resources announced that he had accepted the Minister for the Environment?s recommendations, and noted that their implementation will ensure that the replacement reactor at Lucas Heights is built and operated in accordance with best international practice. This is the sixth report to the Minister for the Environment and Heritage on the status of ANSTO?s implementation of the 29 conditions arising from the environmental approval for the replacement research reactor at Lucas Heights. This report is required by Condition 29. Subsequent reports will be completed on a six-monthly basis until such time that the Minister is satisfied that all conditions have been satisfied. As previously reported, the Chief Executive Officer of ARPANSA issued ANSTO with a licence to construct the replacement research reactor on 4 April 2002. In mid- June 2002, excavations disclosed the existence of a geological fault crossing the site. On 12 September, ANSTO provided to ARPANSA information confirming that the geological and seismological basis of the design described in the Preliminary Safety Analysis Report submitted in May 2001 for the Replacement Research Reactor remained valid. ARPANSA subjected the results to an independent review by Geoscience Australia and by an international expert in seismic analysis nominated by the International Atomic Energy Agency. After considering the information provided by ANSTO and the reports of those experts, the Chief Executive Officer of ARPANSA concluded that the faulting on the site of the RRR is not capable of resulting in surface displacement, and that it therefore does not alter the seismic design basis on which the construction licence was issued. Construction at the site recommenced in October 2002, and concrete was first poured in December 2002. Individual conditions The 29 approval conditions are given below, and the current status of implementation of each condition is discussed. Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03168 169 Appendix 4 Status report on the implementation of the conditions arising from the Environmental Impact Assessment of the Replacement Research Reactor Construction Environmental Management Plan (CEMP) in April 2002. See response to Condition 11 for discussion of groundwater monitoring. 3. ANSTO must consult with the NSW Roads and Traffic Authority to determine if upgrading of the intersection between New Illawarra Road and the LHSTC entrance is needed, in particular extension of the southbound deceleration lane. Any works required will be completed prior to construction commencing and at ANSTO?s expense. The Department of the Environment and Heritage advised on 27 March 2002 that they regarded this condition as having been satisfied. 4. Monitoring of water quality must continue into the operational phase until sufficient data has been collected to indicate that the site, and stormwater run-off, has stabilised. This condition flows on from Condition 2. The water quality monitoring program will continue into the operational phase until sufficient data has been collected to indicate that the site, and stormwater run-off, has stabilised. 5. A Stormwater Control Plan must be developed during the design stage to ensure that the site system is constructed to current best practice and in accordance with NSW EPA guidelines. The plan will also consider options for containment of one-off larger volume spills, such as fire fighting foams. The plan must be prepared to the satisfaction of the Department of the Environment and Heritage. As advised in the fourth report, the Department of the Environment and Heritage has advised that they are satisfied that the site Stormwater Control Plan fulfils the requirements of this condition. 6. ANSTO must review the Lucas Heights Buffer Zone Plan of Management (1986), in consultation with relevant stakeholders, to ensure measures required for the protection of the environment during the construction and operation of the proposed replacement reactor are implemented, and to ensure that the biological and conservation values of the buffer zone are maintained. The revised plan must be prepared to the satisfaction of the Department of the Environment and Heritage. As advised in the fourth report, the Department of the Environment and Heritage has advised that they are satisfied that the revised Buffer Zone Plan of Management fulfils the requirements of this condition. 7. Radioactive gaseous emissions discharged via stacks from buildings associated with radiopharmaceutical production (primarily Buildings 23 and 54) must not increase above existing levels regardless of any future ? Managing Urban Stormwater: Soils and Construction 1998; and ? Managing Urban Stormwater: Source Control (draft release 1998); ? a Remedial Action Plan must be developed, as part of the EMP, in accordance with NSW EPA guidelines for the treatment of hydrocarbon- impacted soil. Any requirements for off-site disposal of contaminated soils must be to the satisfaction of the NSW EPA; ? an Air Quality Management Plan must be prepared, as part of the EMP, in consultation with the NSW EPA and the NSW Department of Land and Water Conservation. A primary objective of the Plan will be to ensure that particulate levels at the nearest residence are below 50 ?g m-3 (PM10) during construction works; ? appropriate works must be installed to protect the identified Aboriginal shelter site (PAD 1) from construction water run-off and sediment. Provision will be made in the EMP for liaison between the proposed ANSTO EMP Environmental Officer and the NSW National Parks and Wildlife Service concerning environmental management in the vicinity of the site, if required; ? a Noise Management Control Plan must be prepared, as part of the EMP, with the objective of ensuring that noise impacts to the public are minimised. The Plan must be prepared to meet NSW EPA requirements; ? the EMP must include a comprehensive monitoring program to ensure that run-off and discharges from the construction site meet nutrient, sediment and other surface water quality criteria for protection of the environment. At least 12 months baseline data must be collected prior to construction works commencing. The program will include measures to be implemented should acceptability criteria be exceeded; and ? a program of groundwater monitoring must commence at least twelve months prior to construction commencing. This program will be detailed in the EMP. Prior to construction commencing, an independent report reviewing the results of the program and requirements for further monitoring during construction and operation of the reactor must be prepared (see also Recommendation 11 below). This report must be submitted to the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) and the Department of the Environment and Heritage for agreement. As noted above, the Minister for the Environment and Heritage approved the Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03170 171 Appendix 4 Status report on the implementation of the conditions arising from the Environmental Impact Assessment of the Replacement Research Reactor future events at the Cronulla Sewage Treatment Plant are taken into account. Monitoring and assessment of individual discharges within the LHSTC is also desirable, to enable understanding of the various sources and their relative contributions. This assessment must be prepared to the satisfaction of ARPANSA and prior to reactor operations commencing. ANSTO?s Trade Waste Agreement requires that, by the time discharges from Lucas Heights reach the Sewage Treatment Plant at Cronulla, the levels of radioactivity in the sewage arriving at the plant comply with the World Health Organisation?s derived concentration limits for drinking water. The Trade Waste Agreement is reviewed periodically to ensure that it takes into account any changes in operations, both within the LHSTC and within the sewage handling system. In March 2002, ANSTO submitted a study of the radiological health risk associated with ANSTO effluent release, including the reuse of tertiary treated sewer water and sludge and the impact of effluent entering local waterways with sewer surcharge, to ARPANSA. The general conclusion of the study was that there are no radiological health effects associated with ANSTO operations, overflows from sewer surcharges or with recycling of sewage water or sludge. 11. As part of the groundwater monitoring program (see Recommendation 2 above), ANSTO must establish bores at appropriate locations in the LHSTC and the buffer zone to ensure coverage of contaminants from the site overall and aquifer flows downstream of the proposed reactor. The locations and monitoring regimes must be agreed with ARPANSA. The collection of baseline groundwater commenced during the year 2000. A report on 12 months? monitoring was submitted to ARPANSA in February 2002. This report was independently reviewed by PPK, and the PPK review provided to ARPANSA in March 2002. Additional groundwater monitoring boreholes were drilled in March/April 2002, as recommended by PPK. Groundwater monitoring using these boreholes is now part of the ANSTO routine monitoring program. 12. ANSTO must consult with ARPANSA with a view to establishing a radiological site characterisation, or ?footprint? for the reactor site and LHSTC/buffer zone in general. The objective of this characterisation is to provide a fundamental basis for ongoing radiological monitoring programs and the detection of radiological trends over time. The current radiological monitoring should be reviewed on the basis of the site characterisation. The characterisation and monitoring review must be completed prior to commissioning of the proposed reactor. production increases. This requirement should be recognised by ARPANSA as part of its licensing of emissions from radiopharmaceutical facilities at the LHSTC. The objective of this approach is to ensure implementation of existing and emergent technologies to further contain or reduce such emissions. In June 2001, ARPANSA issued an airborne radioactive discharge authorisation for ANSTO?s operations, which sets out a range of Notification Levels relating to emissions from stacks. The discharge authorisation directly refers to this condition, and states that the values which have been used to demonstrate compliance are the levels foreshadowed in the EIS. 8. ANSTO, in consultation with ARPANSA, should re-examine the issue of coordination and timing of processes which give rise to gaseous emissions from stacks with a view to minimising the impacts of radioactive gaseous discharges, to the extent practicable. ANSTO has an ongoing program to characterise airborne emissions from the LHSTC. As indicated in previous reports, the work on timing of process steps in Building 54 resulted in a reduction in emissions of almost an order of magnitude. As part of the ISO14001 process, ANSTO is continuing to characterise other emission sources. 9. A review of the method of molybdenum-99 production process must be undertaken by ANSTO, in consultation with ARPANSA, to investigate means whereby the isotope can be produced and isolated with decreased releases of subsidiary radioactive waste products. This should be completed to the satisfaction of ARPANSA. Since the last report, the project team has briefed ARPANSA (October 2002) on the scope of the proposed new method of Mo-99 production. In brief, the new Mo-99 process will keep the same chemical separation process, however changes will be made in target enrichment and design, plant design and gaseous and liquid waste management systems. The project includes a new fission gas trapping system, detail design of which will commence in the near future. The design basis for that trapping system is for up to four times the current production level, and will therefore result in reduced emissions. The project team is also considering possible improvements to the management of liquid wastes containing uranium which arise from Mo-99 production. The Stage 1 concept submission for the proposed modifications in the Mo-99 production facility will be submitted to ARPANSA in the coming months. 10. A high priority must be given to the review and licensing of radioactive waste discharges to sewer by ANSTO. As part of this, ANSTO should be required to undertake further assessment and analysis to ensure that all possible exposure pathways and Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03172 173 Appendix 4 Status report on the implementation of the conditions arising from the Environmental Impact Assessment of the Replacement Research Reactor be examined as part of the PSAR. If risks are significant, on-site power provisions for water pumps should be provided to the satisfaction of ARPANSA. This matter was addressed in the PSAR. ARPANSA considered this issue as part of consideration of the PSAR and the application for a construction licence. 17. The safety implications of an inter- linked store for spent fuel elements must be assessed in detail in the PSAR, to the satisfaction of ARPANSA. This matter was addressed in the PSAR. ARPANSA considered this issue as part of its consideration of the PSAR and the application for a construction licence. 18. The final design of the reactor should include a fixed and possibly automatic fire suppression system within the containment building, to the satisfaction of ARPANSA. The PSAR should also examine the need for a drencher system for the cooling towers. An analysis and design of the fire suppression system was undertaken during the detailed design phase. The proposed systems were described in the PSAR. ARPANSA considered this issue as part of its consideration of the PSAR and the application for a construction licence. 19. The risk of a common mode failure involving both HIFAR and the replacement reactor during the commissioning period, and resourcing requirements to ensure adequate infrastructure and staffing safety, must be addressed as part of the PSAR to the satisfaction of ARPANSA. The results of the PSAR analysis should also be reflected in emergency plans. This matter was addressed in the PSAR. ARPANSA considered this issue as part of its consideration of the PSAR and the application for a construction licence. 20. In the event of dual operation occurring for a longer period than six months, ANSTO must obtain separate approval and authorisation from ARPANSA. This authorisation should specify safety, infrastructure and occupational requirements to ensure that doses are minimised during any extended commissioning period. ANSTO does not expect the period of dual operation to be longer than six months. If required, it will be subject to authorisation by ARPANSA. However, the requirement for any such extension is unlikely to be apparent before 2005. 21. The Safety Analysis Report for the reactor must include provision for ongoing monitoring and audit of the frequency and severity of external events to ensure that assessed risks to the replacement reactor remain valid and acceptable, taking into account new developments in the vicinity of the reactor over time. External events were analysed in the PSAR, and will be further analysed in the Final Safety Analysis Report and at regular An airborne gamma radiation survey was undertaken in July 2002 to provide a radiological characterisation of the site and the buffer zone. The survey was undertaken using a helicopter to carry the detector system at a height of 60 metres, with flight line spacing of 40 metres. Local residents and other stakeholders were advised of the low-flying helicopter before the survey was undertaken. Data from the airborne survey detected man-made radioactivity in some facilities at LHSTC but no man-made radioactivity in the buffer zone beyond the LHSTC boundary fence. The data provides a radiological characterisation of the buffer zone and the reactor site. A report on the results of the airborne survey will be submitted to ARPANSA and Environment Australia in the near future. 13. The Preliminary Safety Analysis Report (PSAR), to be prepared at the detailed design stage, must be subject to independent peer review to the satisfaction of ARPANSA. As noted in the fourth report, the then Minister for the Environment advised ANSTO in August 2001 that this condition has been satisfied. 14. The assumptions used in deriving the Reference Accident effectively constitute design parameters for the proposed reactor and must be incorporated in the final design to the satisfaction of ARPANSA. In the event of changes, such that the Reference Accident examined may no longer be valid, agreement to any major design changes must be sought from the Minister for the Environment and Heritage prior to design finalisation. The PSAR demonstrated that the assumptions used in deriving the Reference Accident were incorporated in the final design. The accident analysis in the PSAR was accepted by ARPANSA as suitable for the issue of a construction licence. 15. The PSAR must demonstrate that the design of reactor components (eg reactor pool, beam tube penetrations) effectively excludes the failure of these components for earthquakes of lower frequency than the design basis earthquake, to rule out a fast loss of coolant accident as a credible incident. This will need to be demonstrated to the satisfaction of ARPANSA. This matter was specifically addressed in the PSAR and was examined by ARPANSA as part of its consideration of the PSAR and the application for a construction licence. As noted in the introduction to this report, after considering the information provided by ANSTO and the reports of those experts, the Chief Executive Officer of ARPANSA concluded that the faulting on the site of the RRR is not capable of resulting in surface displacement, and that it therefore does not alter the seismic design basis on which the construction licence was issued. 16. The consequences resulting from loss of off-site electricity for water supply and fire fighting purposes must Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03174 175 Appendix 4 Status report on the implementation of the conditions arising from the Environmental Impact Assessment of the Replacement Research Reactor As previously reported, in July 2001 the then Minister for the Environment and Heritage advised that he was satisfied with the community information program. As a result of the program?s implementation, particularly with regard to the significant promotion of tours through the ANSTO site, visitor numbers through the site have increased by 40%. Away from site, information has been disseminated to the public by ANSTO?s participation in the Sydney Royal Easter Show (winning First Prize in the exhibitors? awards for 2002), the Export Awards, the Science Festival Wollongong, Science Week Canberra, Sutherland Home Show and the Gray?s Point Festival, as well as technical and trade shows and conference exhibitions. Before shows such as the Easter Show, ANSTO provides training to its staff in the communication skills required to effectively communicate issues that are often complex and involve community concerns. Feedback from visitors and attendees is encouraged. As previously reported, ANSTO developed and launched an innovative series of Media Lunches, hosted by the respected author and journalist Professor Ben Selinger of the Australian National University. The first three sessions attracted around 35 working journalists, with the presentation focusing on nuclear and radiation issues in general, applications of the technology and some practical demonstrations. A contract has been signed for continuous filming of RRR construction progress. 25. A high priority must be given by ANSTO to finalising a ?Community Right to Know Charter? between ANSTO and the community. This charter, as a minimum, must establish principles for information exchange, the obligations of parties in providing and using information, timely mechanisms for dispute resolution, and a process for periodic review and update. The use of a recognised mediator to facilitate completion of the charter should be considered. If a charter has not been agreed within 12 months of the date of these recommendations, the outstanding issues of dispute should be referred to the Minister for the Environment and Heritage for resolution, in consultation with the Minister for Industry, Science and Resources and the Minister for Health. On 3 September 2001, the then Minister for the Environment wrote to ANSTO?s Executive Director and to the Mayor of Sutherland Shire advising of his decision on the one issue outstanding from the negotiations on the Charter. The Minister went on to: ?...urge both ANSTO and representatives of the community in the vicinity of the reactor to enter into negotiations to finalise the text of the Community Right to Know Charter, in the light of the terms already agreed upon ... and my determination.? Later that same month, the Executive Director of ANSTO wrote to the then intervals during operation. The results of these analyses have been, and will be, subject to review by ARPANSA. 22. Existing emergency plans and arrangements must be updated and subject to independent review at the detailed design stage and prior to the proposed reactor becoming operational. This must be completed to the satisfaction of ARPANSA. The independent review of the plans should include opportunities for input by relevant State emergency agencies and the general public. The contract for the replacement reactor has made review by the Local Liaison Working Party (which incorporates representatives of all State emergency service organisations and the local Council), and approval by ARPANSA, of emergency plans a contractual condition. The proposed emergency arrangements were described in the PSAR. The ARPANSA review of these proposed emergency arrangements found them to be adequate. At an appropriate time before any licence to operate is sought, the emergency plans and arrangements will be updated, and, consistent with previous commitments, an independent review by Emergency Management Australia will be undertaken in accordance with this condition. Subsequently, periodic review of emergency management plans will continue throughout the life of the replacement reactor. 23. The emergency management plan must also include a specific plan aimed at facilitating community understanding of credible hazards and risks from the reactor, mitigation measures, emergency arrangements and implications for the community. The plan should consider the best combination of media to achieve the above objectives. The plan must be prepared to the satisfaction of the Minister for the Environment and Heritage, in consultation with the Minister for Industry, Science and Resources and the Minister for Health, prior to the reactor being commissioned. ANSTO distributes information to the local community on credible hazards and emergency planning arrangements. This information is available in local libraries. The Local Emergency Management Committee, which has the responsibility for communication on the emergency plans, has recently completed a new public information pamphlet on hazards and risks from the existing HIFAR reactor. This information will be reviewed when the application is made for an operating licence during 2004. 24. ANSTO must develop a specific program for ongoing community consultation and dissemination of information during the design, construction and commissioning phases of the reactor, to the satisfaction of the Minister for the Environment and Heritage. Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03176 177 Appendix 4 Status report on the implementation of the conditions arising from the Environmental Impact Assessment of the Replacement Research Reactor is being implemented for all facilities within ANSTO. The process, which utilises a custom-made computer-based data entry and analysis system, allows staff to analyse the potential impacts of those activities and services. All ANSTO activities have been reviewed and a draft list of environmental aspects of potential significance without controls is being reviewed. The next stage is to prepare environmental management plans for the different environmental categories. An accredited independent body will certify the EMS prior to commissioning of the replacement reactor. 29. ANSTO must report to the Minister for the Environment and Heritage on measures taken, or to be taken, to implement the above recommendations, including the undertakings and commitments referred to at Recommendation 1. This is to be done by way of an initial written report to the Minister prior to construction commencing and thereafter at six monthly intervals until all recommendations have been addressed to the satisfaction of the Minister for the Environment and Heritage. These reports must be made publicly available by ANSTO, following their acceptance by the Minister. This report constitutes the sixth report to the Minister for Environment and Heritage as provided by this condition. Previous reports have been published on the ANSTO web site following their acceptance by the Minister. Mayor of Sutherland Shire requesting an indication of Council?s availability for a discussion to finalise the text of the Charter. ANSTO has received no reply to that letter. ANSTO wrote to Council again in March 2002, reiterating our availability for such a discussion. Again, no reply has been received. 26. Reactor construction should not be authorised until arrangements for the management of spent fuel rods from the replacement reactor have been demonstrated to the satisfaction of ARPANSA and the Minister for the Environment and Heritage. This matter formed part of the Application for a Construction Licence submitted to ARPANSA (see condition 13), and was addressed in the decision of the Chief Executive Officer of ARPANSA. As indicated in the previous report, the Minister for the Environment and Heritage advised in April 2002 that he was satisfied with the spent fuel management strategy that was appended to ANSTO?s application for a construction licence. 27. The Minister for Industry, Science and Resources and the Minister for Health should give timely consideration to strategies for the long term management and eventual permanent disposal of Australia?s long-term intermediate-level nuclear wastes, and associated issues. This is not a matter for which ANSTO is responsible. However, as noted in previous reports the Minister for Industry, Science and Resources announced on 8 February 2001 that the Federal Government will establish a safe purpose built facility on Commonwealth land for the storage of national intermediate-level radioactive waste produced by Commonwealth agencies. On 16 July 2001, a discussion paper entitled ?Safe Storage of Radioactive Waste ? The National Store Project: Methods for Choosing the Right Site?, prepared by the National Store Advisory Committee and the then Department of Industry, Science and Resources, was released for public comment. The paper looks at the range of criteria that could be used to decide a site for the store. The release of the document is a significant step in the process to select a site for the facility. A paper responding to public comment was released in April 2002. The suitability of Commonwealth land for the national store will be assessed against the selection criteria, and we are advised that shortlisting of potential sites is proceeding. 28. ANSTO must continue, as a high priority, to review and upgrade its environmental management systems (EMS) to achieve ISO 14000 standards. The EMS should be certified by a suitably accredited independent body and be in place prior to the replacement reactor being commissioned. The process of achieving certification to ISO 14001 prior to commissioning continues. A process for determining environmental aspects of operational activities and services Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03178 179 Appendix 5 ANSTO Technology Park Tenants JHEDI joint venture JHEDI is a 60/40 joint venture company formed between John Holland and Evans Deakin Industries. The company was formed specifically to undertake the replacement research reactor project. During the tender for this project, Ralph M Lee (RML) was engaged as part of the INVAP and John Holland team to undertake the electrical and instrumentation parts of the tender. Evans Deakin Industries ? the parent company of RML ? subsequently became a joint venture partner with John Holland. Since then, Evans Deakin Industries has been bought by Downer and the new entity is known as Downer RML. Shire of Sutherland Credit Union ABN: 89 087 650 708 The Sutherland Shire Credit Union operates an automatic teller machine in ANSTO?s Reception Centre, and has an office on site where staff can see a Credit Union staff member by appointment. Commonwealth Scientific and Industrial Research Organisation (CSIRO) ? Division of Minerals and Division of Energy Technology ABN: 41 687 119 230 Both CSIRO Energy Technology and CSIRO Minerals Divisions are represented at the Lucas Heights site. CSIRO Energy Technology undertakes research and development on clean coal utilisation, gas utilisation, hybrid solar-fossil energy technologies and greenhouse gas mitigation. CSIRO Energy Technology also contributes to CSIRO?s broader environmental capability through expertise in advanced analytical and biological chemistry applied to water quality through the Centre for Advanced Analytical Chemistry. The Centre is a world leader in ultratrace analysis of environmental samples and the environmental chemistry of natural water systems. CSIRO Minerals has established a reputation as a world leader in the development, implementation and commercialisation of on-line analysis systems in the mineral and coal industries. The current emphasis of the CSIRO Minerals Lucas Heights Group is on meeting the needs of Australian industry for on-line analysis systems by applying nuclear, microwave, ultrasonic and optical techniques to on-line determination of composition, mineralogy, flow and particle size for ore sorting. Optus Mobile Pty Limited Optus Mobile ? a division of integrated communications company SingTel Optus ? is a leading provider of mobile telecommunications services in Australia. With more than 4.7 million customers, the company has around one third of the total Australian GSM mobile market and provides mobile coverage to 94% of the Australian population. Optus Mobile is recognised for bringing innovative ideas, technologies and solutions to Australian mobile users. Australian Communications Authority ABN: 78 334 953 951 The Australian Communications Authority (ACA) is responsible for regulating telecommunications and radio- communications. This includes radio- communications and telecommunications licensing, spectrum management, compliance with codes and standards, performance monitoring and consumer safeguards. The ACA also administers legislative provisions relating to powers and immunities of carriers in installing communications facilities. The ACA site at Lucas Heights is used for remote monitoring of the radio spectrum. Lucas Heights was chosen for its relatively quiet radio environment. ATA Scientific Pty Limited ABN: 85 003 951 737 ATA Scientific Pty Ltd supplies and services analytical instruments. The product range covers the following application areas: ? particle size and powder technology; ? spectroscopy ? ultraviolet, Fourier transform infra red (FTIR), Raman FTIR, and near infra red; and ? polarimetry ? digital and CD spectropolarimetry. Australian Institute of Nuclear Science and Engineering ABN: 42 975 449 183 AINSE provides a mechanism through which universities can access the special facilities at Lucas Heights. It also provides a focus for cooperative research in the nuclear scientific and engineering fields. For more information on AINSE please refer to page 110 or go to http://www.ansto.gov.au/ainse/index.html. Becquerel Laboratories Pty Ltd ABN: 28 003 271 832 Becquerel Laboratories is a specialist in neutron activation analysis, providing multi- element analysis of samples, particularly for Australian and overseas researchers in the geosciences, environmental and archeological fields, and for mineral exploration and mining groups. Bilyara Aviation Services Pty Ltd ABN: 96 003 908 414 Bilyara Advanced Technologies Pty Ltd ABN: 67 095 469 113 Bilyara Aviation Services Pty Ltd is a privately owned Australian company providing high technology goods and services to the aviation industry in Australia, China and the Pacific Rim. Bilyara Advanced Technologies, formed in 1992, specialises in support services for the non ferrous metals industry, particularly alumina refineries and aluminium smelters, in Australia and China. The Bilyara Group is now a successful international company, providing marketing and project management services to Australian and international companies seeking to do business in Australia, China and the Pacific Rim. Australian Nuclear Science & Technology Organisation ANSTO Annual Report 2002-03180 181 Appendix 5 ANSTO Technology Park Tenants Silex Systems Limited ABN: 69 003 372 067 Silex Systems is an Australian technology company listed on the Australian Stock Exchange. The principal business activity is the development of laser isotope separation technology known as ?SILEX?. The main applications for this technology are: ? uranium enrichment for nuclear power fuel; and ? silicon and carbon enrichment for advanced semiconductor materials such as enriched silicon wafers. Silex Systems Ltd also has extensive interest in several advanced semiconductor technologies, with activities in the photonics/fibre optic arena as well as in the conventional silicon semiconductor industry. Vita Life Sciences Ltd Vita Life Sciences is a successful healthcare company servicing clients in two market segments: ? Vita Medical ? research and development, innovation and distribution of proprietary medical equipment in the niche but large market of nuclear medicine, specialising in the area of lung diagnostics and cardiac stress testing; and ? Vita Health ? development, manufacture and distribution of vitamins as well as complementary and alternative medicines, dietary supplements and health foods under well known brand names. Tru-Tec Australasia (Koch Australia Pty Ltd) ABN: 70 080 357 366 The Process Diagnostic Division of Tru-Tec Services Inc. specialises in unique diagnostic techniques used to evaluate the integrity and performance of distillation columns, reactors, heat exchangers and other critical process systems. Tru-Tec has become a world leader in industrial process diagnostics, helping to solve practical on- line problems that relate to plant operation and maintenance. Waste Service NSW ABN: 93 524 709 106 Waste Service NSW provides putrescible and non-putrescible waste disposal facilities for the community and encourages waste recycling and processing. The organisation operates regional solid and liquid waste management facilities, including landfill sites, transfer stations and recycling and processing centres in the Sydney metropolitan area. It offers consultancy services based on 25 years of experience to local and overseas projects whether private, public sector or joint private/public sector. A major consultancy project was the remediation of Homebush Bay in Sydney. Appendix 6 Ecologically sustainable development and environmental performance This appendix constitutes ANSTO's report on its performance in relation to ecologically sustainable development and environmental matters as required under section 516A of the Environment Protection and Biodiversity Conservation Act 1999. The Health, Safety and Environment Policy of the organisation places the ?protection of human health and safety and the environment? as ANSTO's highest priority. The commitment involves ?the implementation of an ISO 14001 compliant Environmental Management System?, which is a recognised framework for continuous improvement in environmental performance. The ISO Standard will be fully implemented before the commissioning of the replacement research reactor. An Environmental Principles Plan is being implemented to ensure incorporation of ecologically sustainable development principles through all stages of the design and construction of the replacement reactor. A specific construction environmental management plan has been prepared for the construction stage. Under its Health, Safety and Environment Policy, ANSTO ?provides verifiable evidence of the fulfilment of this policy through a program of monitoring and audit, and regular public reporting of results?. The scope of the monitoring program and the results are published in a series of annual reports: Environmental and Effluent Monitoring at ANSTO Sites. The monitoring program covers not only the Lucas Heights Science and Technology Centre but also the 1.6 km buffer zone and other locations that could be affected by ANSTO activities, such as the Cronulla Sewage Treatment Plant and the sea surrounding the effluent release point at Potter Point. Further details are provided in the publication, Protecting People and the Environment: ANSTO Report Card, Environment and Safety. Copies are available through ANSTO's Communications Unit on 02 9717 3168. Commitment to ecologically sustainable development includes the handling of ANSTO's historical wastes and the management of the current waste stream in a manner that protects human health now and in the future. Emphasis is being placed on waste minimisation measures. It also includes the management of engineering services on site in a manner that leads to savings in electricity and water consumption. Finally, ANSTO is regulated under the Australian Radiation Protection and Nuclear Safety (ARPANS) Act 1998, which includes specific reference to the protection of the environment from the harmful effects of radiation. ANSTO Annual Report 2002-03 183 ANSTO?s primary role under the Commonwealth Disability Strategy is as an employer. As such, ANSTO is committed to equity and fairness in the workplace and in its recruitment practices. All job advertisements state that ANSTO is an equal opportunity employer. All new employees are made aware of our practices during induction. During 2003-04, we plan to enhance the delivery of information about ANSTO?s human resources policies, which includes the approach to employees with disabilities. No complaints were made or grievances raised by people with disabilities in relation to ANSTO?s employment practices during the year. We have formal complaints and grievance processes set out in the 2002 Enterprise Agreement through which any such complaints may be directed. We maintain a network of internal contact officers with whom difficulties may be discussed. Staff also have access to an independent employee assistance program, which is publicised throughout the organisation. ANSTO may have secondary roles as a policy adviser and as a regulator. As a policy adviser, we consider the impact of our products and services on people with disabilities and provide appropriate information where required. As a regulator, we ensure that internal policy and procedures comply with relevant legislation, and that staff are kept informed of requirements under organisational policy. Australian Nuclear Science & Technology Organisation182 Appendix 7 Commonwealth Disability Strategy Appendix 8 Performance reporting In accordance with the Commonwealth Authorities and Companies (Report of Operations) Orders 2002 under the Commonwealth Authorities and Companies Act 1997 (As amended), ANSTO is required to report against the key performance indicators set out in its Portfolio Budget Statements (PBS) for the 2002-03 financial year. The table below sets out where performance against these indicators is addressed in this annual report. Legend: Page Highlights 15 Key performance indicators 17 Core business areas International Strategic Relevance of Nuclear Science and Technology 22 Core Nuclear Facilities Operation and Development 30 Nuclear Science for Environment and Sustainability 44 Treatment and Management of Man-made and Naturally Occurring Radioactive Substances 52 Sustainability and International Competitiveness of Industry 62 Organisational Development and Support 78 Associated organisations and programs Australian Institute for Nuclear Science and Engineering 110 Access to Major National Facilities Program 112 Australian Synchrotron Research Program 113 ANSTO Technology Park Tenants (Appendix 5) 178 Australian Nuclear Science & Technology Organisation184 Appendix 8 ANSTO Annual Report 2002-03 185 Performance reporting Outcome 1 Nuclear-based infrastructure effectiveness ? Overall achievement of the outcome ? (measures, indicators and targets used as appropriate) The replacement research reactor is operational and providing improved core nuclear facilities for medical, industrial and R&D applications by 2006. Level of compliance with project plan ? achievement of specific milestones: ? On time ? Within budget Contributions of outputs to outcome ANSTO?s specific output relates directly to client supervision of the design construction and pilot testing of the outcome in the form of an operational replacement research reactor together with instrumentation. Performance information for departmental outputs Output 1.1 Effective contract management for the design and construction of the replacement research reactor. Targets ? Complete detailed engineering work packages (October 2002) ? Construct reactor building up to 17 metre level (March 2003) ? Complete auxiliary building structure (April 2003) ? Commence construction of offices and visitors centre (May 2003) CFOD PBS KEY PERFORMANCE INDICATORS ANNUAL REPORT SECTION Outcome 2 Disposition of spent fuel effectiveness ? Overall achievement of the outcome (measures, indicators and targets used as appropriate) Removal of spent fuel from the ANSTO site in line with stringent arrangements and community views. Safety procedures adhered to fully and shipments and were: ? on time ? within budget Contribution of outputs to outcome The output is directly related to the outcome. Performance information for departmental outputs Output 2.1 A program of shipments for reprocessing of all HIFAR spent fuel in place. ? Shipment effected according to schedule ? A sixth shipment of HIFAR spent fuel is currently scheduled for late 2002 CFOD PBS KEY PERFORMANCE INDICATORS ANNUAL REPORT SECTION ANSTO Annual Report 2002-03 187Australian Nuclear Science & Technology Organisation186 Performance reporting Outcome 3 Science and technology solutions effectiveness ? Overall achievement of the outcome (measures, indicators and targets used as appropriate) Timely delivery of valued nuclear related scientific and technical advice services and products to government and other stakeholders. ANSTO operates within a set of performance indicators agreed with Government to provide an insight into its overall effectiveness and success in achieving the science and technology outcome. ? Client satisfaction and user adoption of ANSTO developments ? Earnings and net contributions from external research and services contracts and from commercial operations ? Level and quality of scientific and technical publications and conference contributions ? Level of external use of ANSTO facilities ? Level of involvement in international policy developments ? Level of successfully completed research and services contracts for industry and government ANSTO reports against those indicators in its annual report. KPIs PBS KEY PERFORMANCE INDICATORS ANNUAL REPORT SECTION Appendix 8 PBS KEY PERFORMANCE INDICATORS ANNUAL REPORT SECTION Performance information for departmental outputs Output 3.1 Management of core nuclear facilities, providing Australia with nuclear capability and credibility from which socio- economic benefits flow to Australia, the R&D community and industry. ? World leading capabilities available and access provided to full customer expectations ? Excellence in service delivery ? Facilities maintained to world standard ? Expanding customer base Performance information for departmental outputs Output 3.2 Expert scientific and technical services for, and on behalf of government, in support of Australia?s national and international strategic and nuclear policy objectives. ? Response rate at target of 100% ? Accurate and relevant ? Full client satisfaction Performance information for departmental outputs Output 3.3 The acquisition of knowledge through research, and its utilisation, through innovation, to advance the beneficial applications of nuclear science and technology to problems of environmental, medical, social and industrial importance. ? Research internationally recognised ISRN Highlights, ISRN, NSES, TMRS, SICI CFOD, ORDS, SICI, ISRN, AINSE, ASRP, AMNFP ANSTO Annual Report 2002-03 189Australian Nuclear Science & Technology Organisation188 PBS KEY PERFORMANCE INDICATORS ANNUAL REPORT SECTION Performance reporting KPIs, NSES, TMRS, SICI, ISRN, AINSE ? Research projects developed addressing identified business opportunities ? Appropriate networking established ? Research results contributing to policy on environmental issues such as global climate change ? Publication of results in leading scientific journals ? New and improved technologies developed and assessed ? Collaborative arrangements in place with CRCs and other organisations Performance information for departmental outputs Output 3.4 Science and technology services to industry and the Australian research and development community, including training of students in nuclear science and technology and its applications. ? Appropriate networking established ? External funds gained as a percentage of total funds ? Publication of collaborative results in leading scientific journals ? New and improved technologies assessed ? Results delivered on time and to budget ? Radiation protection services commercially utilised by external clients ? Solutions for the mining industry Appendix 8 PBS KEY PERFORMANCE INDICATORS ANNUAL REPORT SECTION Performance information for departmental outputs Output 3.5 Regular production and sale of radiopharmaceuticals and radioisotopes for medical and industrial applications and other services, through designated business units. ? Profitable operation of radioisotope business for health and industrial applications ? Adoption of ANSTO developed technology Performance information for departmental outputs Output 3.6 The exploitation of ANSTO?s intellectual and physical assets. ? Facilities maintained to world standard ? Adoption of ANSTO developed technology, including patent and licensing arrangements ? Management of ANSTO Technology Park Highlights, CFOD, NSES, TMRS, SICI, ORDS, Appendix 5 Highlights, CFOD, SICI ANSTO Annual Report 2002-03 191 ACA Australian Communications Authority ACE-Asia Asian Regional Aerosol Characterisation Experiment AHSEC ANSTO Health, Safety and Environment Committee AINSE Australian Institute of Nuclear Science and Engineering ALCVD Atomic layer chemical vapour deposition AMRFP Access to Major Research Facilities Program AMS Accelerator mass spectrometry ANAO Australian National Audit Office ANBF Australian National Beamline Facility ANSTO Australian Nuclear Science and Technology Organisation ANTARES Australian National Tandem Accelerator for Applied Research APIA Australian Pipeline Industry Association ARC Australian Research Council ARI ANSTO Radiopharmaceuticals and Industrials ARPANSA Australian Radiation Protection and Nuclear Safety Agency ASNO Australian Safeguards and Non-proliferation Office ASRP Australian Synchrotron Research Program BIPM Bureau International des Poids et Mesures BNFL British Nuclear Fuels plc CEA French Atomic Energy Commission CEMP Construction Environmental Management Plan CFOD Core Nuclear Facilities Operation and Development COGEMA Compagnie Generale des Matieries Nucleaires CRC Cooperative Research Centre CRP Coordinated Research Project CSIRO Commonwealth Scientific and Industrial Research Organisation DCC Digital Coincidence Counting DFAT Department of Foreign Affairs and Trade DLWC Department of Land and Water Conservation (NSW) EEO Equal Employment Opportunity EMP Environmental Management Plan EPA Environment Protection Authority FOI Freedom of Information FNCA Forum for Nuclear Cooperation in Asia GST Goods and Services Tax HIFAR High Flux Australian Reactor IAEA International Atomic Energy Agency IBA Ion beam analysis Appendix 9 Index of compliance with reporting guidelines under various Acts, Regulations and Orders applicable to ANSTO Glossary ANSTO Act 1987 (As amended) Powers and functions 162 [Appendix 3] Commonwealth Authorities and Companies (Report of Operations) Orders 2002 under the Commonwealth Authorities and Companies Act 1997 (As amended) Certification of report of operations ii [Letter to Minister] Enabling legislation 4 [About ANSTO] Responsible minister 4 [About ANSTO] Board members Names and qualifications 6 [Board photo page] Responsibilities 99 [Corp Gov] Organisational structure 5 [Org chart plus AINSE] Review of operations for year and future prospects 99 [Corp Gov] Judicial decisions or decisions of administrative tribunals 99 [Corp Gov] Statement on governance 99 [Corp Gov ? whole section] Effect of ministerial directions 99 [Corp Gov] Indemnities and insurance premiums for officers 99 [Corp Gov] Commonwealth disability strategy performance 182 [Appendix 7] Requirements under other guidelines and legislation Location of major activities and facilities 2 [About ANSTO] Service charter 99 [Corp Gov] Membership and staff 158 [Appendix 1] Ecologically sustainable development and environmental performance 180 [Appendix 6] Market testing of information technology 99 [Corporate Gov] Australian Nuclear Science & Technology Organisation190 ANSTO Annual Report 2002-03 193Australian Nuclear Science & Technology Organisation192 Glossary ILLW Intermediate level liquid waste INIS International Nuclear Information System ISI Institute for Scientific Information ISO International Standards Organisation ISRN International Strategic Relevance of Nuclear Science LENS Learning Environment for New Strategies LHSTC Lucas Heights Science and Technology Centre LLWP Local Liaison Working Party MNRF Major National Research Facilities mSv millisieverts NEA Nuclear Energy Agency NMC National Medical Cyclotron NORM Naturally occurring radioactive material NPT Nuclear Non-Proliferation Treaty NPW Nuclear-powered warships NRP National Research Priority NSES Nuclear Science for Environment and Sustainability NSRRC National Synchrotron Radiation Research Centre NSW New South Wales NTD Neutron transmutation doped OECD Organisation for Economic Cooperation and Development ORDS Organisational Development and Support ORES Ores, radioactivity and environmental solutions ORMOSOLS Organically modified silicates OSRP Objective Setting and Review Process PBS Portfolio Budget Statement PMC Patent Management Committee PSAR Preliminary Safety Analysis Report RCA Regional Cooperative Agreement R&D Research and development RERTR Reduced Enrichment for Research and Test Reactors SIMS Secondary ion mass spectrometry STAR Small tandem accelerator TGA Therapeutic Goods Administration TMRS Treatment and Management of Man-made and Naturally Occurring Radioactive Substances UTS University of Technology, Sydney WAN Wide area network Australian Nuclear Science & Technology Organisation Lucas Heights Science & Technology Centre, New Illawarra Rd, Lucas Heights NSW 2234 Private Mail Bag 1, Menai NSW 2234 Telephone +61 2 9717 3111 Facsimile +61 2 9543 6907 www.ansto.gov.au