The Minerals Council of Australia says the Northern Territory Government's decision to oppose a mine near Alice Springs will deter the industry from investing.

During Parliamentary sittings in Alice Springs, a motion carried 13 votes to 12 endorsed the Government's opposition to the establishment of the Angela Pamela uranium mine.

The executive director of the Minerals Council of Australia's Northern Territory division, Peter Stewart, says the mine is being used as a political football.

"The Government is acting outside of its own processes and interfering within a process that should be at arm's length of political decisions," he said.

"It send a very bad message to the industry and paints the NT in a very poor light."