Energy Resources of Australia Ltd (ERA) says the outlook for the uranium industry remains positive, with comparatively robust market conditions and strong signals that China is likely to boost its orders for the Australian mineral commodity.

At ERA's annual general meeting (AGM), chairman David Klingner said constrained supply and projections for substantial increases in uranium demand pointed to sustained higher prices in the future.

"ERA is well positioned to take advantage of the positive outlook for uranium, and ensure the ongoing growth in value for its shareholders. 2008 has seem significant milestones reached with record profits, major exploration success and award-winning export performance," Mr Klingner said.

ERA, the world's third largest uranium producer, reported a record $222 million profit for 2008, and recently concluded the first sale of Australian uranium to China.

New chief executive Rob Atkinson told the meeting it was "clear that Chinese plans to increase generation capacity are unaffected by the economic turbulence.

"Indeed, the fiscal stimulus measures being put in placed by the Chinese government will support new reactors with a combined capacity of 70 GW being built by 2020."

China recently announced it will start building five extra power plants this year, on top of 24 already under construction and 11 in operation.

A Chinese analyst says Australian offers the most obvious solution to China's shortage of uranium to fulfil its nuclear ambitious.

Minister for Resources Martin Ferguson said it was the government's policy to encourage the further development of the Australian uranium industry.

ERA chief Rob Atkinson said ERA was in 'growth mode', with several projects completed or near-completion by the end of 2008.

Mr Atkinson replaced Chris Salisbury, who will remain a director of ERA.

Long term uranium prices fell to around $US70 a pound this year, down from an average of $US90 a pound in 2007, ERA said.

Long term prices, more relevant to ERA, were higher than spot prices, which slumped to around $US42 a pound this year from the 2007 average of $US100.

Shares in ERA closed down 1.69 per cent, or 36 cents, to $20.88 in Wednesday's trade.