Prime Minister Tony Abbott says nuclear power may be a future source of energy for Australia.
But coal and gas should remain the focus of generators for now, he says.
Mr Abbott was asked about his position on nuclear power during an Australian Industry Group lunch in Sydney on Friday.
He said he would like Australia to be the world's "affordable energy capital", making the most of its natural advantage in terms of coal and gas.
"But who knows one day what our energy mix might be," he said.
"Who knows one day where the market might go and what other forms of energy might come into their own.
"But right now we have massive reserves of coal, massive reserves of gas - let's make the most of them."
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