Australia is on the cusp of a uranium boom that would see the country ride a massive spike in demand for the resource, according to Federal Minister for Resources Gary Gray.

In addressing the Australian Uranium Association, Mr Gray said that the world’s 435 nuclear power generators will need 20 per cent more uranium than is currently being provided.

"This year these power generators will need more than 66,000 tonnes of uranium but current global mine production is at only 55,000 tonnes," Mr Gray said. "The shortfall is largely being met from secondary sources, such as re-processing highly enriched weapons-grade uranium from the former Soviet Republic."

Australia has the world's largest uranium reserves, with 33 per cent of the world's reasonably recoverable uranium resources, with more than one million tonnes more uranium than second-placed Kazakhstan. In 2012, production from Australian mines rose more than 17 per cent to top 8000 tonnes. However, the level is well below the period between 2003 and 2009 when it was 9000 to 11,000 tonnes.

Mr Gray said 66 nuclear power generators were under construction – two-thirds in Asia. Many more were planned or proposed over the next 15 years and China and India had a total 226 in that category.

"The significance of China and India cannot be overlooked," Mr Gray said.

"As an example, by 2034 demand for power in China will have growth by more than the current demand of the United States and Japan combined."