Aug. 22 (Bloomberg) -- Western Australia's uranium mining industry is set for a boost should a swing against the Labor state government convert into a win for the pro-uranium Liberal party, analysts including Resource Capital Research Pty said.

``There are a lot of projects there that would get a bit of a kick along'' with any overturn of the state bar on uranium mining, John Wilson at Sydney-based Resource Capital said today. Until now, there hasn't been much sign the ban may be scrapped, he said.

The West Australian Labor party, which won't allow mining of the radioactive metal in the state, leaked internal polling of key marginal seats that it claims shows a 7 percent swing against the government, enough to see the Liberals win power in the Sept. 6 election, Australian Broadcasting Corp. reported today. State Liberal Party leader Colin Barnett has voiced support for uranium mining.

``If there is a change, suddenly a lot of ground that's in no-man's land in Western Australia becomes worthwhile for companies to continue exploring and spending money on and advancing to possible production stage,'' said Warwick Grigor, chairman of Sydney-based Far East Capital Ltd.

Australia would add A$3.2 billion ($2.8 billion) to its gross domestic product and help cut carbon emissions should the states of Western Australia and Queensland end their prohibition on uranium mining, the Australian Uranium Association said last month. Australia, the world's second-largest uranium producer, gives its states control on whether to mine the metal.

`Burgeoning Industry'

``We would welcome either party opening up the field for uranium exploration and development,'' said Ian Richer, executive director of Perth-based explorer Top End Uranium Ltd. ``Uranium is in demand, it is a burgeoning industry, so if we don't supply it in Australia, somebody else will.''

Opposition Treasurer Troy Buswell, who was replaced by Barnett as party leader a day before the election was called, told a conference in Perth last month the Liberals would support uranium mining.

Barnett, who is yet to state lifting the ban as an official policy, has said he would consider such a move.

Opinion polls and bookmakers show that a Liberal win is still an outside chance.

Sportingbet, an Australian bookmaker, today quoted the Labor Party at 1.25 to 1 to win the election, with the Liberal Party 3.8 to 1 outsiders. In the latest opinion poll by Newspoll, carried out on Aug. 10-14, 51 percent preferred a Labor government on a two-party preferred basis, while 49 percent preferred a Liberal/National government. That compares with 54 percent preferring Labor and 46 percent preferring Liberal/National in April-June.

Cameco, BHP

While Australia has almost 40 percent of the world's known low-cost uranium reserves, it has less than a quarter of world supplies because of the mining bans. Cameco Corp., the world's largest uranium producer, last month agreed to pay about $346.5 million to buy a majority stake in the Kintyre exploration project in Western Australia from Rio Tinto Group.

In addition to Kintyre, Toro Energy Ltd.'s Lake Way/Centipede project and BHP Billiton Ltd.'s Yeelirrie resource are probably the most advanced in Western Australia, Wilson said. Uranex NL and Energy & Minerals Australia Ltd. have earlier- stage projects in the state, he said.

Australia's federal ruling Labor Party last year dropped its 25-year-old ban on new uranium mines, while allowing state governments to retain the power to reject proposals for new mines under the policy.

Michael Angwin, executive director of the Australian Uranium Association, and Reg Howard-Smith, chief executive of the Western Australian Chamber of Minerals & Energy, declined to comment.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net

Last Updated: August 22, 2008 03:28 EDT