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In all nations and in all periods of history, intellectual exploits were the work of a few men and were appreciated only by a small elite. The many looked upon these feats with hatred and disdain, at best with indifference.

April, 2011

The True Renaissance

The Renaissance of Thorium-Based Nuclear Energy


China Emerges as the Global Energy Leader

Lost in the babble and deliberate confusion of international news; a new war in the Middle-East that is not really a war (?); a badly damaged uranium-powered reactor in Japan that continues to defy solution; the growing debate about an anti-industrial American president who has successfully made blurred and confused dithering into an art form, we almost missed the Financial Times recently reporting that China has officially surpassed the U.S. as the global manufacturing leader, thus ending America’s 110-year reign.

Receiving even less press; China emerges as the global energy leader with Thorium!

Turning away from the dated and dangerous uranium-based nuclear power system, China’s Academy of Science has wisely moved toward the safety of a thorium-based, molten salt reactor system.


Removing Thorium From a Forced and Dismal Seclusion

Worth a note:

• The reason we are not placing more emphasis on thorium as a safe energy source is entirely political.  

• Thorium is more abundant than uranium. 

• There is enough known thorium to supply our energy needs for the next 1,000 years. 

• Thorium cannot be used to produce the raw material for nuclear weaponry. 

• Thorium reactors cannot meltdown under any circumstances. 

• Thorium can be used to ‘burn’ up existing stockpiles of weapons grade plutonium.

Ignoring the Distracted Babble; What is Thorium?

Thorium (Th) is a naturally-occurring metal that is only slightly radioactive. It was first discovered in 1882 by the Swedish chemist, Jons Jakob Berzelius. In its pure form, thorium is a silvery-white metal that over time slowly tarnishes in air.

Thorium boasts having one of the highest melting points of all oxides (3300° Celsius). When heated, thorium ignites and burns with a brilliant white light. Current uses include light bulb elements, lantern mantles, powerful arc-light lamps, heat-resistant ceramics and welding electrodes. Glass containing thorium oxide has a high refractive index and is used in top quality lenses for cameras and scientific equipment.

The most common source of thorium is the phosphate mineral, monazite; which can contain up to 12% thorium phosphate.

The world's known monazite resources are estimated to be approximately 1.2 million tonnes; two thirds of which are in the heavy mineral sands deposits on the south and east coasts of India.

Worth a note: Monazite also contains economically extractable rare-earth metals such as cerium, lanthanum, neodymium, yttrium and iridium. An immediate benefit of producing thorium would be the creation of additional supplies of strategic metals.

Earnestly Espoused as a Viable Energy Option? 

Before that question can be answered, we must lightly tap the history of nuclear power. It is important to remember that capable and efficient nuclear pioneers such as Alvin Weinberg, Eugene Wigner and other esteemed men of science connected to the Manhattan Project believed thorium trumped uranium as a more certain and verifiable way of generating electricity through nuclear energy. The only downside to thorium? It was useless for their immediate goal – the building of a nuclear bomb! 

Two detonated war-time bombs later and a glut of global destruction buried in secret silo’s, we are still relying upon uranium; albeit now allegedly for peaceful purposes. Case in point: There are roughly 450 uranium based nuclear power plants on earth, with another 32 under construction; and approximately 150 planned to be constructed over the next decade. Together, these nuclear power plants produce over 15% of the world’s total energy use. With numbers like this, one would assume that uranium is the answer, has always been the answer, and will continue to be the answer; not so!

The Thorium Renaissance

….is not a misnomer; but yet another cogent and conclusive example of American Exceptionalism – a cherished ideal the current regime in Washington goes to great pains to discredit. One has to only research President Dwight Eisenhower’s “Atoms for Peace”.  Despite the fact that conventional fuel prices were low in 1957, and there were plentiful supplies of coal, oil and natural gas, America constructed its first thorium nuclear power generating plant at Shippingport, Pennsylvania.

Even though the experimental Shippingport plant proved beyond a doubt that the thorium-based breeder technology worked both safely and efficiently in a commercial scale reactor; the combination of low-priced fossil fuels and the abundance of (military generated) stockpiles of existing and enriched uranium meant the thorium-based breeder technology was not an economically viable option. The plant was decommissioned in 1982, and the concept of using thorium as a safe, efficient and abundant energy source almost faded into obscurity.

Thorium is Not an Economic Absurdity

Strange Days...Instead of consciously and purposely embracing the gift of thorium, we now find ourselves living in a kool-aid moment where a large segment of the world population actually believes that the forced, and heavily subsidized use of a forest of windmills and acres of plated mirrors can be ramped up to provide sufficient and sustainable energy to supply future energy requirements; ignoring the embellished truth that green energy supplies less than 2% of our current energy needs!

Notwithstanding the inevitable demise of the world’s bird population thanks to windmills, let us review what it takes to construct just one of these inefficient "green" power generators: 260 tonnes of steel that is made from burning 170 tonnes of coal and 300 tonnes of iron ore; all mined and transported by hydrocarbon-based products. The average life-cycle of a windmill? Two decades, give or take a year or two.

Whereas one tonne of thorium can produce as much energy as 200 tonnes of uranium or over 3,000,000 tonnes of coal. To put this all in human terms; less than ten tablespoons of thorium could provide the total energy needs for a single person during their entire lifetime.

Note: The International Energy Agency states the world must invest $25 trillion over the next two decades to avert an energy shock. You can already see the negative results of countries fighting each other for control of fossil-based energy. Thus far, after a promising start, America has turned away from thorium and Europe has dropped the ball. Fortunately, China has the vision to understand the importance of thorium-generated energy.

Along with China, the world’s premier manufacturing giant, India is also aggressively investing in research to build thorium-based reactors. The government of India has made it clear their long-term objective is to become totally energy-independent by taking advantage of its vast reserves of thorium.

Setting aside President Obama’s curious and inexpressible ‘sputnik moment’, if Americans do not get back on the ball they could find themselves importing technology originally developed over sixty years ago at Shippingport, Pennsylvania. Not to be an uber-alarmist, but if Americans enjoyed the dubious political alliances based on foreign-oil dependency, they are really going to love foreign-nuclear dependency!

At this point I am researching only two publicly-traded Canadian junior exploration companies that appear to understand the importance of thorium. I have been told by investment specialists that I may be way early in the game for the market to appreciate investing in thorium. I would have to disagree, as monazite, which as previously stated contains up to 12% thorium oxide also contains economically extractable rare-earth metals such as cerium, lanthanum, neodymium, yttrium and iridium. An immediate benefit of producing thorium would be the creation of additional supplies of strategic metals.  Definitely worth both current and near-future consideration!

As far as current energy related opportunities are concerned, there is yet no substitute for our most basic and reliable fuel source: coal. With the prices of coal continuing to appreciate, we must remain true to our reality-based investment stratagem and invest in what is right in front of us – coal companies with strong management and assets in the ground.  
 

 
Larry Myles
Larry Myles Reports
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Larry Myles is neither a geologist nor a financial analyst. I do not purport to offer personal investment advice nor recommendations. While all statements of fact are derived from reliable sources, an d are believed to be accurate, I make no warrant that they are so. You must do your own research and check statements of fact for yourself. My opinions are precisely that, my opinions. I do not accept any responsibility for any gains or losses you may experience resulting from actions taken based on my opinions. If not otherwise qualified, you should consult with your own personal financial advisor before engaging in any investment activities. Larry Myles Reports does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Larry Myles may actively trade in the investments discussed in this publication. Larry Myles may have a substantial position in the securities recommended and may increase or decrease such positions without notice. I do not know your personal financial circumstances. I am not your personal financial advisor. You must do your own due diligence. By entering this web site, or reading LMR reports, you acknowledge and accept the foregoing.