A Tasmanian mining firm disclosed on Thursday that talks with the Government over the 40 per cent mining profit tax were productive.

A representative of Grange Resources said that the two-hour talk with Federal Braddon Electorate Peter “Sid” Sidebottom was a fruitful one. He said the company should be treated as a special case since it also processes the minerals it digs up.

Wayne Bould, the chief executive of Grange Resources, told a local radio the meeting was productive.

“I understand quite pragmatically that Sid's part of the Labor machine and he can't and I don't expect him to, make any personal commitment that he can do anything,” he said.

“But it gives us a lot more comfort that somebody is prepared to take our case, to argue it and support it when its being discussed in the decision making process.”

Grange Resources also disclosed earlier this week that its $75 million investment project in Savage river was shelved due to the tax plan.

Meanwhile, a massive protest rally was organized yesterday in Perth because of the tax reform by Prime Minister Kevin Rudd.

David Flanagan of Atlas Iron, the protest organizer, said the tax reform will hurt dozens of employees and families, and will drive investors away.

However, Kevin Rudd remains unmoved and said that consultations for both Government and the miners will continue despite having differences.