The exploration licence for a uranium mine outside Alice Springs has been granted.

The Northern Territory Government has granted the licence to the joint venture of Cameco Australia and Paladin Energy to exlpore for uranium at Angela and Pamela site, 25 kilometres from Alice Springs.

The licence includes the condition that Cameco obtain further regulatory authorisation under mining laws.

Approval of the Aboriginal Areas Protection Authority is also required before ground work goes ahead.

An Alice Springs environment group says its disappointed but not surprised by the granting of the licence.

Natalie Wasley from the Arid Lands Environment Centre says that process will involve risks to the area's ecosystem.

"It means there will be activity, a uranium project occurring 25 kilometres down the road.

"At exploration stage there is still potential for contamination because we are dealing with a radioactive substance."