The mining industry entered an uneasy truce with new Prime Minister Julia Gillard by agreeing to suspend campaigns against the super profits tax but has called for a complete overhaul of the proposal.

Ms Gillard attempted to broker peace with the sector by announcing an end to the Government's $38 million advertising blitz to sell the tax and called on miners to stop their public campaign as well.

Mining stocks jumped with Ms Gillard's appointment and moves to re-open negotiations, along with her calls for the mining industry to approach the issue with an "open mind".

"To reach a consensus we need to do more than consultation, we need to negotiate and end this uncertainty, which is not good for the nation," she said.

But she would not dump the tax altogether, claiming Australians were entitled to a "fairer share" of the country's mineral wealth.

The Australian Mines and Metals Association, the Minerals Council of Australia, the Chamber of Minerals and Energy and BHP Billiton welcomed the circuit-breaker and agreed to suspend the adverts.

But the extent to which the industry is open-minded is yet to be seen, with the AMMA remaining wary and refusing to say whether the industry was prepared to pay more tax.

"AMMA and some others will go into a hiatus while it is assessed as to whether or not the new PM is genuine about meaningful negotiations, or as to whether it is another wicked olive branch put out for political purposes," chief executive Steve Knott said.

"We hope it is the former."

The Chamber of Minerals and Energy welcomed new negotiations and called for every single element to be put back on the table.

CME president Kim Horne refused to rule out another advertising campaign if the industry did not succeed in renewed negotiations, and he expected Ms Gillard would also maintain that option.

Mining magnate Andrew Forrest welcomed negotiations but refused to say whether the industry was prepared to pay more in a new form of tax.

Mr Forrest said he was not concerned that Ms Gillard's commitment to bring the Budget back into surplus would have to be financed with a hefty tax, claiming there were many other ways to boost revenue.

He welcomed the appointment of Ms Gillard to the role, but said he was personally saddened for his friend, Kevin Rudd.

He blamed some of Mr Rudd's demise on tax advisor Ken Henry for giving him bad advice which led to the resources tax.

"If anyone has blood on his hands over Kevin Rudd's demise, it's Ken Henry," he said.

The West Australian

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