Australian Strategic Materials (ASM) rejects that its Toongi-based Dubbo Project may produce uranium in the future as politicians seek to lift a 33-year ban on digging it out of the ground in NSW.
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An ASM spokeswoman has told of it having "no interest in the recovery and production of uranium".
On Tuesday, Member for the Dubbo electorate Dugald Saunders said a One Nation bill aimed at lifting the ban would "probably not" succeed in the Upper House on Wednesday.
He understands a "similar bill" may be presented by NSW Deputy Premier John Barilaro at a later date.
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Asked if he supported the removal of the ban, Mr Saunders said he was "supportive of anything that helps keep regional towns alive".
"In general terms, I'm basically open to any sort of mining providing it meets all the requirements," he said before highlighting the "successful" operation of uranium mines not far from the NSW border in South Australia.
Environmentalists and unions are vocal in their opposition to the lifting of the ban.
Nature Conservation Council chief executive Chris Gambian insists uranium mining would put "even more pressure on water supply" in places like Dubbo.
"Uranium mining and milling is thirsty work, using on average about 840,000 litres of water to produce one tonne of uranium," he said.
"Millions of litres is also used in tailings dams to prevent the release of highly radioactive radon gasses."
Mr Gambian said government data suggested uranium mines were "most likely to be developed" at Toongi and several sites north of Broken Hill.
But the ASM spokeswoman has dismissed the claim.
"ASM is focused on the production of critical materials from its Dubbo Project and creating direct and indirect employment in regional NSW," she said.
Mr Saunders said uranium mining could help small towns remain viable in tough times and help keep "our exports strong" as the likes of coal production waned.
"I've had it suggested to me that if it was legal to mine uranium in NSW, suddenly we would have uranium mines popping up everywhere," he said.
"You still would have to go through a really rigorous process to get an environmental impact statement done and approved, so it's a bit of a furphy.
"If there's opportunities for mines to actually support communities, and it's something they want to be part of, then I don't think we should just say no."
