The Conversation (0)
Mar. 20, 2014 04:30AM PST
Move over, uranium. China is fast-tracking development of thorium-fueled nuclear power plants.
Initially given a 25-year time frame for the project, Professor Li Zhong, a scientist working on the project, explained to South China Morning Post that “[i]n the past the government was interested in nuclear power because of the energy shortage. Now they are more interested because of smog.”
And of course, pollution is a pressing problem for the country.
“The problem of coal has become clear,” Li told SCMP, adding, “[i]f the average energy consumption per person doubles, this country will be choked to death by polluted air.”
In response to China’s pollution concerns, Premier Li Keqiang declared a “war on pollution” to the national legislature in early March, promising to take significant measures to tackle the problem. Those measures include turning away from coal-fired power stations, which in 2013 accounted for roughly 70 percent of China’s electricity.
Nuclear power, on the other hand, currently accounts for roughly 1 percent of China’s electricity demand and offers a “solution for massive coal replacement and thorium carries much hope,” Li said.
Why thorium?
According to figures from the World Nuclear Association, China currently has 20 operating nuclear power plants and another 28 under construction — that amounts to nearly 40 percent of the world’s total. In 2013 alone, China is expecting to add 8.6 gigawatts of nuclear power capability to its electric grid. However, even with that addition, uranium-fueled nuclear power still accounts for a measly 2 percent of China’s electricity.
Beyond this year, the country has a extremely ambitious nuclear program lined up, with plans to generate almost 60 gigawatts of nuclear energy by 2020 and up to 150 gigawatts by 2030.
In a recent interview with StreetWise, Gold Stocks Trader Jeb Handwerger highlighted that despite headlines regarding a Chinese economic slowdown, the country has been fairly busy scooping up any available commodities, including, of course, uranium. That raises the question: why the country is suddenly turning to thorium for power?
It stands to reason that China is trying to stay one step ahead of the crowd. It is a well-understood fact that in the coming years, the uranium market will be facing a supply shortage, with not nearly enough of the matieral to meet the growing nuclear energy needs of the world. So with the threat of scarce supply on the horizon, the country is looking for alternative to meet its growing energy needs.
By comparison, thorium is extremely abundant. And given that it is found in rare earth deposits, which China is no stranger to owning, the country is sitting on a mother lode of thorium. With that in mind, perhaps China is making the right choice by turning to a more abundant thorium to feed its energy needs.
After all, supporters of thorium say the metal promises a safer, cleaner and cheaper alternative to uranium.
The technology
Using thorium as a nuclear fuel is not a new subject of discussion. The theory just hasn’t been put into practice much.
According to the SCMP, “[w]estern countries such as the United States have experimented with thorium reactors but gave up on the technology because of the engineering difficulties.”
Chinese scientists, however, are not being offered the same opportunity. The SCMP writes that researchers on the project are reportedly under considerable pressure to succeed with such a daunting task.
The WNA notes that there are seven different reactors that are able to handle thorium as a fuel. Of those seven, China appears to be looking at Molten Salt Reactors (MSR) to bring its thorium nuclear plans to life.
MSR technology involves burning thorium in a salty “soup” with the intention of releasing heat many times higher than current nuclear reactors. New York Times columnist Ambrose Evans-Prichard writes that MSR is arguable the best adapted for thorium; however, it does come with its own slew of problems.
However, given the limited “working” knowledge of thorium as a nuclear fuel, problems are to be expected.
“We are still in the dark about the physical and chemical nature of thorium in many ways,” said Li. “There are so many problems to deal with but so little time.”
What does this mean?
Recently, thorium has been gaining more and more interest from the energy sector as we look for more solutions to safely and economically power our lives. With yet another option on the table, perhaps we will see some added competition to uranium and a possible solution to coal-fired plants.
Featured Energy Investing Stocks
Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
