A uranium industry analyst says the sector's share market performance will only improve if the new Labor Government allows it to flourish.

Warwick Grigor, from Far East Capital, has just completed a review of the industry after a year of heavy stock market losses by most uranium explorers.

Some companies have lost up to half of their market value.

Mr Grigor says there is a strong view in the market that new Environment Minister Peter Garrett will frustrate new uranium projects despite Labor dropping its "no new uranium mines" policy last year.

"We get the feeling that there's a bit of hesitancy, there's uncertainty as to whether what the Labor Party said in 2007 - about allowing new uranium mines - whether they're actually going to allow the regulation and the legislation to actually make that happen in practice," he said.

Mr Garrett says he will follow the letter of the law in scrutinising uranium mining applications.

"To scrupulously adhere to the legislation, to the regulations that are in place for the Environment Minister and I would consider that the same thing would apply to uranium mining as it would to any other activity," Mr Garrett said.