Queensland Premier Anna Bligh expressed her concerns and worries after mining giant Xtrata announced it will shelve its two projects in Queensland.

“This is no longer a war of words,” Ms. Bligh told reporters yesterday.

“This is causing real pain to Queensland families.”

Xtrata confirmed yesterday it will suspend its two investment projects worth $568 million at the Wandoan thermal coal project and the Earnest Henry copper mine. Shelving these projects will threatens 3,250 jobs.

Prime Minister Kevin Rudd has warned the public to treat Xtrata's motivation for suspension with a grain of salt.

“All I can say is you should take what big mining companies, very big mining companies have to say in this big debate about them paying more tax with a bit of a grain of salt sometimes,” Mr Rudd said through an interview with a media program.

Mr. Rudd will address his proposed resources super profit tax to the Queensland Media Club today and will also meet Ms. Bligh who was calling both the government and the miners to end their hostilities of media backlash.

Media reports stated that Mr. Rudd will continue its fight with the tax and will enlighten the Premier when they meet today.

On the other hand, Opposition Leader Tony Abbot said its fears of mining job losses because of the tax are now being realized.

“Jobs are being lost. Investment's evaporating,” he said.

“It happened yesterday. Anna Bligh knows it. Why don't you?”

Paul Howers of the National Secretary of the Australian Workers Union, however, criticised Xtrata's move as a “joke.”

“How can you make a commercial decision impacting on the jobs of miners based on a government proposal which hasn't been legislated, in fact draft legislation hasn't even been released, which hasn't been put into parliament which hasn't even been finally negotiated? It's a joke,” he said.

“And it's showing how far some of these mining companies are willing to go to play with the lives of their members simply on the basis that they don't want to pay more tax.”