Time to buy Uranium stocks ~ Even UNX has signs of life

China's need for uranium could be worth billions to Australia following an announcement it will start building five extra power plants this year.

This comes on top of 24 already under construction and 11 that are in operation.

Australia offers the most obvious solution to a shortage of uranium to fulfil its nuclear power ambitions, according to a Chinese analyst.

``There are not enough uranium resources in China to support the aggressive nuclear power development plan for the next 20 to 30 years,'' Professor Liu Deshun, of China's Institute of Nuclear and Energy Technology told Fairfax Media.

``Australia has the uranium resources that could be exported and in China we have the demand.''

The fast-tracking of China's nuclear power plans stems from mounting concerns about climate change, energy security and the more immediate task of kick-starting the economy.

Minister for Resources Martin Ferguson told Fairfax he welcomed China's move to fast-track nuclear power.

``It is this government's policy to encourage the further development of the Australian uranium industry,'' he said.

The move could prove a windfall for WA, following the Liberal government's ending of a ban on uranium mining in the state shortly after their win in the September state election.