Treasurer Peter Costello says the states should overturn Labor's policy which limits uranium mining to three sites.
The federal government is expected to sign an agreement to export uranium to China subject to strict safeguards during Chinese Premier Wen Jiabo's visit which starts this weekend.
Mr Costello said it was time for the Labor state governments to reconsider the three-mines policy.
"The three mines policy was put in place by the Labor Party ... the Labor Party has argued about it ever since," Mr Costello told reporters.
"My own view is that subject to safeguards, subject to the nuclear non-proliferation treaty, if Australia can export uranium for peaceful and clean electricity use and we have the capacity to do it from other safe sites in Australia, we should do it."
Asked whether he would clarify the government's policy on exporting uranium to India, Mr Costello replied: "You know what the policy is in relation to India."
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