Prime Minister Malcolm Turnbull has said he can see Australia getting more involved in the international uranium market.

The South Australian government recently launched an inquiry into the nuclear industry in the state.

Commenting on the inquiry, Mr Turnbull said he was sceptical about the use of nuclear power stations, but said the nation’s abundance of uranium made exports and waste storage conceivable.

• Why nuclear could be Australia’s energy future
• North Korea ready to use nuclear weapons ‘any time’
• Iran, major powers make nuclear deal

“We have got the uranium, we mine it, why don’t we process it, turn it into the fuel rods, lease it to people overseas, when they are done, we bring them back and we have got stable, very stable geology in remote locations and a stable political environment,” he told FIVEAA radio in Adelaide.

“That is a business you could well imagine here.

“Playing a part in the nuclear fuel cycle, I think, is something that is worth looking at closely.”

The Howard government investigated the viability of the domestic generation of nuclear power in the mid-2000s.

It commissioned the Switkowski report, which concluded it was feasible, but would need certain regulations implemented to ensure it could compete with coal power plants.

Resistance was strong. Queensland passed a law banning nuclear facilities. Tasmania’s parliament considered a similar law.

The debate ended in 2007 when the Rudd Government, which opposed nuclear energy, came to power.

Opposition Leader Bill Shorten told reporters in Sydney on Wednesday nuclear power stations in Australia were unlikely.

“The cost of setting up a nuclear industry from scratch is expensive,” he said.

But Mr Shorten said the outcome of the royal commission into a uranium sector would be “interesting” and could put some evidence on the table.

It is possible to see further investigation of nuclear energy in coming years, with a high-profile science expert describing it as a “viable alternative” earlier this week.

On Tuesday, Australia’s incoming chief scientist Alan Finkel said nuclear energy should be “absolutely considered” to achieve zero emissions in the future.

Mr Finkel will provide independent advice to the government on science, innovation and technology from early 2016.

Australia is home to the world’s largest uranium deposit, the Olympic Dam mine, located north of Adelaide.

-with AAP