Incoming prime minister Julia Gillard has cancelled the taxpayer-funded advertising campaign promoting the government's proposed resource super profits tax.
Ms Gillard has asked the mining industry to cancel its advertisements as a show of "mutual respect".
The overture has delivered immediate results, with mining giant BHP Billiton announcing it would be suspending its campaign against the controversial tax.
"In response to the new prime minister's request, we have immediately asked our agencies to suspend all advertising as a sign of good faith," the world's biggest resources company said in a statement.
"We look forward to working with the government in this new way to find a solution that is in the national interest," it said.
By lunchtime, shares in the company had increased 1.5 per cent on the Australian Securities Exchange, while the rest of the Australian market was flat.
The Association of Mining and Exploration Companies confirmed it was also stopping its advertisements on the issue.
The new prime minister said she was "throwing open the government's door", and in turn hoped the mining industry would open its mind.
Negotiations with the mining industry over the tax would be led by her new deputy and Treasurer Wayne Swan - one of the architects of the tax - and Resources Minister Martin Ferguson, she said
The minerals exploration industry earlier called for Ms Gillard to take a "fresh new look" at the controversial resources tax.
Ms Gillard declined to comment on the scope of negotiations, including whether she was alter Mr Rudd’s approach of not altering the 40 per cent rate at which the tax was proposed.
"The only entry point, I believe, is that people need to understand the government is determined to make sure Australians get a fairer share of the mineral wealth in their grounds."
The 40 per cent resources super profits tax was considered a factor in the declining popularity of outgoing prime minister Kevin Rudd, who stepped down from the leadership this morning.
"I think it's an opportunity for the government and the new PM to come back to the table and start again from fresh and really take a fresh, new look at tax reform as it applies to the mining industry," said Simon Bennison, chief executive of the Association of Mining and Exploration Companies.
However, Queensland mining magnate Clive Palmer, a generous donor to the Liberal National Party appeared unmoved by the new leader’s call.
Mr Palmer’s spokesman said the mining boss would keep the issue ‘‘at the forefront of public debate’’, as he wanted the proposed tax to be completely scrapped.
‘‘The [former] prime minister talked about negotiating with the miners,’’ the spokesman said.
‘‘This tax is only bad for the country - there’s no negotiation, there should be no tax.’’
Mr Palmer also questioned why treasurer Wayne Swan had been elevated to the role of deputy prime minister.
‘‘He [Clive Palmer] finds it difficult to believe Swan has been promoted when he was on the exact same page as Rudd, he stood right behind Rudd.’’
Ms Gillard has not previously differentiated herself from Mr Rudd's position on the mining tax.
Comment is being sought from the Minerals Council of Australia, which has been running ads warning about the proposed tax’s effect on the mining industry and the wider economy.
Speaking a fortnight ago in a television interview, Ms Gillard defended the resources tax.
"These minerals, you can only dig them up once, you can only sell them once, we've got to make sure the nation gets a fair share," she said.
"The mining companies are saying, 'yeah, we can pay more tax' so let's work on it and get it right so the nation gets a fair share. Mining companies still get good profits."
Mr Bennison, whose group represents exploration companies, said he did not have any clues from Ms Gillard's past that she would take a different stance to that of her predecessor.
"We honestly don't know," he said.
"We're just going to sit and wait until we hear from her exactly what her position's going to be."
The Minerals Council of Australia refused to comment on the change of leadership.
- Megan Levy, Ari Sharp and Daniel Hurst
Source: theage.com.au
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