A mining analyst says the Northern Territory Government's opposition to the development of a uranium mine near Alice Springs may be politically motivated.

With a by-election to be held in the city in two weeks, the government announced it would oppose a mine at the Angela Pamela site, which has been under exploration for the past two years.

The site is within ten kilometres of Aboriginal town camps, and the mine is also opposed by the tourism industry.

Director of Iizen Equities, Matthew Baker, says the NT Government is trying to show it's listened to local voters' concerns.

"The Territory Government has a fantastic record of being open to mining in the Territory," he says.

"This is, I think, one specific little case, which it's probably blown itself out of proportion because...of a bit of media play.

"This has been a hornets' nest from the day it started."

But uranium explorer Toro Energy has slammed the Territory Government's decision to withdraw support for the project.

Managing director Greg Hall says all explorers will be now be re-evaluating their prospective mines.

"There is a process that mines go through, whether they are uranium or not, that process hadn't been initiated, there was no reason for a decision," he says.

"This is essentially a political reason and it didn't need to be made."

The Federal Government has the final decision on whether the mine proceeds.