Thorium Power Ltd, formerly Novastar Resources Ltd., has recently caught my attention as an investment opportunity. In an story reported by Wired Magazine in July of 2005 titled Thorium Fuels Safe Reactor Hopes Thorium Power (Novastar at the time) Director of Strategic Planning Seth Shaw stated
We feel that it's inevitable that the U.S. and other countries in the world -- India of course -- will exclusively use thorium in the future.For those uninformed the U.S. is currently in legislative bickering and foreign negotiations to extend our knowledge to the construction of civilian nuclear power plants in India. Although the plan is riddled with significant risks, especially politically in the form of the would-be tainted NPT, it seems as though if it does go through this small D.C. based firm is poised to exploit such an event. Additionally, giants such the Council on Foreign Relations have put their muscle behind such a pact (see Indias Energy Crunch).
Besides the politically motivated preference for Thorium in India it has solid economic foundations as well. India has enormous, economically extractable Thorium reserves second only to Australia. I believe that the U.S. has decided to forge the above mentioned pact out of necessity. India is going to move forward with a Thorium research program regardless of U.S. action. If a deal is struck between the two countries then U.S. firms, such as Thorium Power, should take home large gains. The U.S. has typically had great success, at least from their perspective, with similar deals in developing countries. I believe this is a continuation of a historically successful play albeit with more advanced technology.
Finally, it is worth noting that Thorium Power is not only involved in Indian maneuverings. Mr Grae has his firm involved in the audacious plan to sanitize loosely guarded Russian plutonium stockpiles while producing electrical power in existing Uranium based reactors (CNN Money). As Grae's influence in the Beltway seems to be increasing as of late it is possible that both plans may move forward netting Thorium Power handsome rewards.