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Nuclear materials that pose a homeland security threat typically have high atomic numbers (Z > 82). It is of vital importance to develop smart, efficient, and inexpensive systems to detect such high-Z materials without opening a container. Muon Tomography (MT) provides a non-invasive channel for such investigation. We have been investigating such muon scattering with numerical simulation with GEANT4 for some time . In this article we report the development of an efficient clustering algorithm for detecting threat objects in a probed volume.