Toro Energy Managing Director Greg Hall, has spoken with Sky News Sunday Business about the decision to join forces with Perth based company Nova to become one of Australia's newest uranium players.

'The market now is ready for consolidation of players who have some resources and a potential to grow,' said Mr Hall.

'To be a company that is able to start a new uranium enterprise in Australia you need to have a certain financial strength and market strength, so that's a big part of it.'

However, Mr Hall also conceded that the move was somewhat defensive, shielding the company from possible takeover attempts.

Mr Hall said that as soon as the deal was announced to merge Toro and Nova, both companies share prices rose, indicating that the market recognised it was a strong merger.

He also pointed out that Oxiana's 46 per cent holding will give the merged group development credibility.

Mr Hall said the company is now working to build up its exploration and development strengths.

'We wish to take the company forward in a strong manner. We want to look at new projects and we've got a lot of in-house organic potential in our exploration ground both in Australia and Africa and we're going to work hard on that.'

Mr Hall believes that in the future Australia will have a strong opportunity for a viable uranium industry.