THE first thing to know about Australia's thorium industry is that there isn't one. But don't be surprised if that changes in the decades ahead.

Australia is home to the biggest known reserves of the radioactive mineral, ahead of the US, Turkey, India and Brazil, and would naturally stand to benefit if a global market for thorium were to emerge.

 

What's more, a host of Australian miners are already digging the stuff out of the ground, but currently consider it little more than waste.

 

''Anyone that is involved in mining mineral sands or rare earths in Australia would have the potential to produce thorium,'' said Mike Harrowell, senior resources analyst at investment bank BBY.

 

''Currently, the thorium is not separated, and is returned to the mine, but it would be relatively easy for any of these companies to extract a thorium concentrate, if there were market demand.''

 

Arafura Resources is one such Australian company that could benefit if a strong global demand for thorium emerged.

 

Arafura managing director Stephen Ward said the company's Nolan's Bore mine in the Northern Territory contained about 0.2 per cent thorium.

 

''We have a modest amount in our resource but it's not a thorium mine, it's a rare-earths mine,'' he said.

 

While there were no immediate plans, Dr Ward said his company might one day look to capitalise on its holdings of thorium.

 

''We see this as a medium to long-term opportunity for us … thorium is being looked at as an alternative power source and we have been contacted by one or two people working in that space already,'' he said.

 

Similar opportunities would exist for ASX-listed Lynas Corporation and Iluka Resources.

 

Iluka is a mineral sands miner that ranks as the world's biggest producer of zircon, and many industry pundits believe its tenements hold more thorium than any other Australian company.

 

While a future powered by thorium may seem a long way off, the mineral's potential has not escaped the attention of those who walk the corridors of power.

 

Later this month, mining industry types from around the world will gather in Canberra to attend a conference entirely devoted to thorium. Participants at the conference will debate the mineral's potential as a future source of ''baseload power'' and the  opening speaker will be Australian Resources Minister Martin Ferguson.

 

While Mr Ferguson's attendance is no guarantee of support, many in the industry say it speaks volumes.