BHP Billiton chairman Don Argus says Australia could be supplying 70 per cent of China's power needs from uranium in the future.

Mr Argus told a business conference in Canberra that China is Australia's most important trading partner.

Australia and China signed a uranium supply agreement in 2006, but the Rudd Government has ruled out the sale of nuclear material to India.

Mr Argus says there is no reason BHP Billiton can not supply uranium to China from its Olympic Dam mine in South Australia.

But he says Australia needs to have a debate about supplying uranium to Asia, including China.

"In fact 70 per cent of this uranium could come out of Olympic Dam, there's other uranium miners here in Australia to take advantage of this opportunity if we are brave enough to go down the path of the alternate route," he said.