Australian Prime Minister Julia Gillard on Tuesday assuaged fears the country might face an economic growth slowdown if China continues to slump in orders of Australia's natural resources.

Speaking before a tax summit at Parliament House, Ms. Gillard said Australia should not be threatened over the notion of a boom-and-bust cycle for its mining industry, saying Australia is well capable "to sustain it for a very long period of time."

"It is a boom, it is a huge opportunity for growth in our resource sector and great opportunities for jobs and wealth creation as a result, but it is likely to be sustained for a very long period of time," Australia's chief of state said.

"We are in a different economic phase and we shouldn't let the language of 'boom' deceive us," Ms. Gillard added.

The Australian leader believed the spiraling demand of China of Australia resources will eventually even out once China has strengthened its own policies to tighten its fiscal position.

The two-day tax summit was called to allow changes in the tax system in the face of an ageing population, a long-running resources boom and incentives to increase work participation. Australia's jobless rate is 5.3 percent.

Although key tax policies will be untouched, including a plan to introduce a new tax on the growing profits of iron ore and coal miners effective July 1, 2012. It has also ruled out modifications on plans to tax Australia's largest polluters for the carbon gases they emit, also effective July 1, 2012. The present 10 percent consumption tax will likewise not be increased.

Australia is rich in natural resources, and is a major exporter of agricultural products, such as wheat and wool, minerals such as iron-ore and gold, and energy in the forms of liquefied natural gas and coal. Natural resources and agriculture comprise 5% and 3% of its GDP, respectively. Australia's largest export markets are Japan, China, South Korea, India and the USA.

One of the most significant sectoral trends experienced by Australia's economy has been the growth of the mining sector, including petroleum, in the past decade. It grew from around 4.5% in 1993-94, to almost 8% in 2006-07 in terms of contribution to GDP.