Minerals bosses are scheduled to begin meetings this morning in Canberra with the Prime Minister and her senior ministers and it is believed the government is ready to back down on its resources super profits tax.
How the tax row could be resolved
In what insiders are describing as a make or break day in the mining tax saga, a meeting is due to start involving Marius Kloppers of BHP, David Peever of Rio Tinto, Peter Freyberg, from Xstrata, Ms Gillard, the Treasurer, Wayne Swan, and the Resources Minister, Martin Ferguson.
The miners are refusing to back away from their key demands that the tax does not apply to existing projects and that the 40 per cent headline rate not apply to all commodities.
Under former Prime Minister Kevin Rudd, these conditions were non-negotiable, but Ms Gillard is keen to shut down the issue to clear a path to call an election and is prepared to give ground on both.
One source said the Labor government was prepared to cede "pretty much everything" to end the saga.
Ms Gillard must return to Brisbane tonight for a party fundraiser and then will be in Cairns tomorrow for the funeral of one of the soldiers killed last week in Afghanistan.
Today, the cameras will be invited along to witness her moving into Mr Rudd's office.
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