An Australian-based uranium explorer says its proposed takeover by a Chinese company would open Australia up to the growing Chinese nuclear power market.

Energy Metals is searching for uranium in nine places across the Northern Territory and Western Australia, with the Bigrlyi Project, 350 kilometres north-west of Alice Springs, flagged as the richest deposit.

The state-owned China Guangdong Nuclear Power Company is proposing to take over 70 per cent of Energy Metals.

Executive director Lindsay Dudfield says the takeover shows China wants in on Australia's rich uranium stocks.

"They currently produce less than 2 per cent of their electricity from nuclear and the Chinese Government is keen to see 8 per cent."

The directors of Energy Metals are urging shareholders to accept the bid which would see exploration plans fast-tracked.

The Nationals Leader in the Senate, Barnaby Joyce, has compared Chinese interest in Australia's mining industry to the British settlement of Australia.

He says he's not against companies seeking offshore investment capital but he is worried when the capital is coming from another nation's government and the diplomacy issues that could follow.

"The best example of what happens when the government is fundamentally involved in the assets of a nation, well, I suppose you could ask the Indigenous people what happened when the British government became fundamentally involved with Australia.

"You ended up with the Union Jack in the corner of the flag and that's the history of our nation.

"So don't think for one moment that involvement by another nation's government doesn't have huge implications on the sovereignty of your own nation."