The Federal Government and key mining leaders sat down today to compromise over Canberra's resource super profits tax and stop trading insults through media that have hurt local markets and investors.

One mining leader suggested during the conference that miners and Canberra could resolve their arguments over the proposed 40 per cent tax on mining profits.

"Our differences are not insurmountable," said Ian Smith, chief of Newcrest Mining, Australia's biggest gold miner, and chairman of the mining industry's main lobby group.

Resources Minister Martin Ferguson agreed with Mr. Smith, stating that two sides can reach an agreement.

"The government wants to continue to work with you in a constructive manner," Mr Ferguson said. "We are looking at a way to address your concerns, for example through generous transition arrangements."

For the past weeks, both sides have exchanged words, with miners threatening to pull their billion-dollar investments and government accusing about campaign ads over mining tax, turning off foreign investors and shaming both local currency and share market.

The Australian dollar has dipped to 10 per cent in a month not only due to the global fallout from Europe's debt crisis, but also because of the concerns raised over the proposed tax.

Prime Minister Kevin Rudd said yesterday he will personally talk with mining leaders to discuss the tax and vows to push for the implementation.

Mr. Ferguson today said the 40 per cent tax may not be negotiated, but will offer generous concessions in negotiating some details on the tax, simply known as transitional arrangements.

Existing mines with new projects may get big offset tax breaks that would reduce tax rate below 40 per cent.

Mr. Smith said both sides can still negotiate.

“We are willing to sit down and engage constructively with the government, but all key designed elements must be on the table. We have a responsibility and determination to get this tax right.”