China has expressed keen interest to buy more of Australian uranium as the Communist nation prepares to expand its nuclear energy programme.

According to Australia's resource minister Martin Ferguson, who was quoted by ABC report, on his ministerial visit to Beijing, his discussions with Chinese companies revealed they wanted more Australian uranium.

"The expansion of the nuclear industry here in China opens up new resource opportunities for Australia from the point of view of uranium mining," he said.

"We should be mining more than we are at the moment. There has been considerable exploration across Australia in terms of the uranium industry in recent years and it will expand ... at a time at which we expect an increased demand for uranium internationally," he said.

However, Ferguson said uranium could not be used by China to build weapons. It was sold on the basis it could only be used for "civil industry purposes" and not stockpiled.

The resources minister also acknowledged Chinese companies had holdings in uranium companies in Australia.

"They're not actively mining at the moment but there's nothing to prevent that company moving forward" for mining.

Last November, the first shipment from the Northern Territory arrived in the Chinese capital but Ferguson said that after discussions he has had with local Chinese companies, they are going to want plenty more.

"Clearly the intention of the community in China is to actually expand its nuclear activity over time," he said.

"Because the secondary sources of old nuclear warheads are now starting to decline in number, hence market opportunities, such as in China, will open up for Australia."

... contd.