rudd realizes his mistake...

http://www.miningweekly.com/article/australia-minister-says-govt-may-budge-on-mine-tax-2010-05-11

Australia Minister says govt may budge on mine tax

SYDNEY Australia is willing to negotiate on the details of its "super profits" tax on mining firms, a government minister said on Tuesday, after complaints from miners that the tax could stop billions of dollars in investments.

Australian Prime Minister Kevin Rudd has so far resisted making concessions over the 40% levy on profits to help fund social programmes that some miners have compared to a near-nationalisation of the sector.

"In every reform proposal, there's actually room for negotiation around the details," Resources Minister Martin Ferguson told parliament.

The nation's biggest miners have threatened to cancel expansion plans in everything from iron-ore, copper and uranium mining to gas and gold unless the government rethinks its plan to introduce the tax in 2012.

Rio Tinto earlier on Tuesday said it was reviewing its plans to expand iron-ore mining and port operations in west Australia estimated to cost $10-billion if the tax is implemented.

Rudd has so far labeled the actions by miners as scare-mongering, saying Australians deserved to benefit more from the global recovery in commodities markets powering the national economy.

"In every reform proposal, there's actually room for negotiation around the details," Ferguson told parliament during a matter of public importance debate.

BHP Billiton this week warned it will rethink work to dig deeper for copper and uranium, while Xstrata has already halted A$30-million in copper exploration work.

"Take the time, do the modelling and sit down with the tax consultation committee," Ferguson said.

"Run the ruler over the new proposal, project by project."

Ferguson said the tax, aimed at raising A$12-million in its first two years, was better than the existing regime where mining companies pay royalties directly to the states they operate in.