A few months ago, I wrote a piece called: ‘Thorium: One Step Closer to China’s Energy Fortress.’
Given the feedback, I thought I’d follow up and determine whether this idea offers an investment angle.
But before we do that, a recap on why thorium is a potential game-changer in future energy generation:
As I pointed out, nuclear scientists have been trying to crack the code on this technology for decades.
US scientists began their research way back in the 1950s and 1960s.
A time when both uranium and thorium were being explored as fuel sources for nuclear energy.
Ultimately, America SELECTED uranium.
Not surprisingly, the Cold War and a growing arms race against Russia pushed nuclear scientists in the direction of uranium…
The fuel that held BOTH energy and weapons potential.
But in recent years, the Chinese have re-ignited the idea of using thorium as the primary fuel source in nuclear reactors.
As I pointed out in my original coverage, this hasn’t yet captured much attention.
Western commentators have shot down China’s ability to make thorium-reactor technology work.
But there’s an underlying history to all of this…
Over numerous decades, thorium reactor trials have been abandoned.
That started in the US during the Cold War era.
France has also explored the idea, using thorium mined in Australia to develop the research.
But so far, no one has been able to crack the code on thorium reactor technology.
But with China now leading in the global technology and manufacturing arms race, I suspect we could see some major breakthroughs soon.
Next Generation Nuclear is Coming
Thorium-fuelled reactors are essentially nuclear power on steroids.
It can generate up to 200 times more energy than conventional uranium-based reactors!
For the same capital outlay, utility companies can generate exponentially more energy.
Thorium-fuelled reactors are also considered safer, especially when combined with molten salt cooling technology, which dramatically reduces ‘meltdown’ risks.
Another key advantage is far less radioactive waste than conventional uranium-powered reactors.
Overall, it could revolutionise energy generation. Hence, the reason China is so devoted to developing commercial-scale thorium reactors.
I’ve previously detailed the pilot plant project underway in China’s remote Gobi Desert and its breakthroughs toward commercial-scale reactors.
China’s End Game: Energy Independence
China’s ultimate goal is clear: develop cheap and dependable energy.
It’s all about removing reliance on other countries and ensuring energy independence.
For the moment, China still depends on the Middle East for oil…
Kazakhstan for uranium…
Russia for its natural gas…
And coal from Australia!
That leaves the country geopolitically vulnerable, which is why I think energy is the most crucial sticking point for Chinese leadership.
Energy dependency is the final kink in the country’s otherwise impenetrable economy and path to becoming an outright superpower.
A manufacturing, engineering, technological powerhouse looking for one final thing: Energy!
If it can crack the code on thorium technology and achieve energy independence, it truly will restore its position as the ‘Middle Kingdom.’
So, is there an investment angle?
I think there is.
I’ll explore this in more depth next week, but if you want a head start, you can get all the details in my free presentation here.
Until then,
Regards,
James Cooper,
Mining: Phase One and Diggers and Drillers
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