The Australian mining industry and authorities are again headed for a fresh round of serious debate if taxes and royalties issues are not resolved immediately.

This is after Australian Resources and Energy Minister Martin Ferguson said future increases in state royalties could not be offset by cuts to the planned 30 percent mining tax on iron ore and coal.

"The government's position on this issue is clear - royalty rates that applied or changes to royalty rates that were scheduled to apply in the future, as at May 2, 2010, will be credited," Ferguson said in an e-mailed statement today and reported on Bloomberg.

This would put into question Prime Minister Julia Gillard's mining tax compromise negotiated in July with mining industry firms led by global players BHP Billiton, XStrata Plc., Rio Tinto, among others.

The agreement, considered a breakthrough and one of the first achievements of the Gillard administration, however, does not specify a date, saying: ''All state and territory royalties will be creditable against the resources tax liability but not transferable or refundable.''

The Sydney Morning Herald reported that in previous discussions with the industry in recent weeks, Mr. Ferguson had left mining industry shareholders gaping for answers after saying that "mining firms would not receive tax credits for unscheduled increases in royalties after May 2 this year."