TONY EASTLEY: Like the rest of the world, China is hurting from the global financial crisis. 

But Australia's second-largest trading partner is still keen to buy Australian resources, according to Martin Ferguson who's on a ministerial visit to Beijing.

The Resources Minister says China is preparing to expand its nuclear energy program and that it will open up more opportunities for Australia's mining industry.

China correspondent Stephen McDonnell reports.

STEPHEN MCDONNELL: The push is on from the Resources Minister to increase significantly Australian uranium sales to China.

Last November the first shipment from the Northern Territory arrived here but Martin Ferguson says that after discussions he's had with local Chinese companies they are going to want plenty more.

MARTIN FERGUSON: The expansion of the nuclear industry here in China opens up new resource opportunities in Australia from the point of view of uranium mining.

STEPHEN MCDONNELL: How much more uranium do you think we could sell to China?

MARTIN FERGUSON: We are as a nation a leading nation in terms of uranium mining. We should be actually mining more than we are at the moment. 

There has been considerable exploration across Australia in terms of the uranium industry over recent years. It will expand and it also will expand at a time at which we expect an increased demand for uranium internationally because the secondary sources of old nuclear warheads are now starting to decline in number, hence market opportunities such as in China will open up for Australia.

STEPHEN MCDONNELL: So on the one hand, the Government says that Chinese companies cannot be trusted to own a mine near the Woomera military zone but on the other we can trust China not to use our uranium to make weapons.

MARTIN FERGUSON: Our uranium is only sold on the basis that it will be used for civil nuclear energy purposes. It's not intended to be stockpiled. 

STEPHEN MCDONNELL: Obviously though if we sell uranium to China, it frees up China's other stocks to be turned into weapons, doesn't it?

MARTIN FERGUSON: I just say that in terms of our responsibilities, to mine our uranium with safe hands and guarantee that it's used only for peaceful purposes, I actually think that is a well-founded policy that has served Australia well in the past. I think it's also appropriate to the future. 

STEPHEN MCDONNELL: The Minister was asked about a report that the real reason that a Chinese takeover of a mine in the outback was blocked was not because of Woomera, but its proximity to the spying base at Pine Gap.

MARTIN FERGUSON: Those matters are of a confidential nature. Neither this nor any previous government would seek to discuss those matters publicly. 

STEPHEN MCDONNELL: And here's one for the people who are nervous about China and its role in Australia's security. 

Martin Ferguson was asked if Chinese state-owned companies like Sinosteel already have exploration rights for uranium in Australia and what this might lead to.

MARTIN FERGUSON: There are current Chinese holdings in uranium companies in Australia. 

STEPHEN MCDONNELL: That are actively mining?

MARTIN FERGUSON: Not actively mining at the moment. There's nothing to prevent that company moving forward to a mining operation.

TONY EASTLEY: The Resources Minister Martin Ferguson in Beijing, ending that report from our China correspondent Stephen McDonnell.