The Commonwealth has signed off on a $140 million deal to allow a Territory company to provide uranium to Chinese nuclear power plants.

The Foreign Investment Review Board decided to allow the China Guangdong Nuclear Power Group to purchase a 70 per cent stake in Energy Metals, which is exploring the Bigrlyi uranium deposit near Alice Springs.

The company already has four power stations in China and a further 18 under construction. And the potential uranium from this deposit could be used to power these stations.

The Bigrlyi deposit has 12,000 tonnes of uranium oxide, compared with the Ranger uranium mine, which produces 5700 tonnes a year.

The Northern Territory News reported this week that CGNPC chairman Xiong Jiang was very concerned about the approval process.

He said there was a perception that the Foreign Investment Review Board was hostile to Chinese companies.

Similar concerns were aired by the Shandong Dongjia Group and the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters.

Resources Minister Kon Vatskalis responded to these concerns by writing to the Commonwealth to warn that this perception was hurting foreign investment in Australia.

He said the Commonwealth needed a communications strategy to let foreign investors know than 80 per cent of proposals were accepted.

Environment Centre NT spokesman Justin Tutty warned against allowing Chinese investment into uranium operations.

"Chinese participation in uranium mining may bypass commitments to improved environmental standards and risks jeopardising international efforts to control weapons proliferation and achieve nuclear disarmament," he said.