The Northern Territory government said on Tuesday that it would block any plans of establishing a uranium mine site in the area following revelations that Cameco Corporation is mulling an exploration project on the Angela Pamela deposit near Alice Springs.

The planned uranium project attracted criticisms from many environmentalists, who argued that uranium mining activities near the springs could potentially contaminate the area's underground water reservoir.

The Labor-led NT government added that a mining site too close to the area's town proper would hurt its tourism potential and its local economy as Labor leader Adam Findlay, who is running for the Araluen seat on the October 9 by-election, said that his party is only heeding the growing sentiments of his constituents.

NT Chief Minister Paul Henderson said that Alice Springs community has voiced out a strong opposition to the mine and the government must address such concerns though he clarified that the stance does not necessarily mean that further uranium explorations elsewhere in the territory would not be welcomed.

Mr Henderson, however, pointed to the federal government as the approving authority on any mining activities in the Northern Territory.

On his part, Greens Senator Scott Ludlam expressed concerns that the NT government's position on the planned uranium mining site could eventually be overturned by its counterpart in the federal government.

Senator Ludlam said that the ball is now in the hands of Prime Minister Julia Gillard as everyone is watching if she would make the same commitment as he stressed that "it would be very strange if she wouldn't, but we need to keep in mind federal Labor can override the Northern Territory as we see happening over and over again."