Deputy Prime Minister Julia Gillard said On Friday the Federal Government is committed to the mining tax and will not impose any significant changes.

Several mining companies and several state government officials were dismayed and expressed concerns on the effects of the resource super profits tax on the mining sector.

Ms. Gillard said during a television interview the Government will remain committed to the tax in its present form.

“We are absolutely comitted to the mining tax. We are absolutely committed to what we say on day one – we would consult with miners about the implementatiion arrangements that's happening right now,” she said.

She also warned miners that the mining tax will not take any responsibility for the decline in the value of the Australian dollar.

"The euro is falling dramatically, we are seeing instability in Greece and what we know from the global financial crisis is when you get instability somewhere it feeds around the world," she said.
"We are seeing a flight to the US currency. Whenever there are problems around the world people flow to the US dollar because it's viewed to be the world's strongest currency."

Meanwhile, mining companies who have sought consultation already with the government expressed disappointment on the results, stating that it was “a waste of time.”

David Peever, Rio Tinto's managing director for Australia, advised the government to approach the consultation with a constructive and cooperative mindset which the industry has adopted for past months in relation to the tax form.

''The panel's hands are tied because we are unable to discuss many of the substantive issues that have prompted concerns right across the sector,'' Mr Peever said.

Andrew Forrest of Fortescue Metals told participants during the Mines and Metals Association conference yesterday that consultations were useless.

“They said to us we can't change the tax, the 40 per cent rate, the 6 per cent, the retrospectivity, we can't change it,'' Mr. Forrest said.
“They said 'if you want to get rid of this tax, you have to change the government'.”