Miners respond to Gillard, suspend ads
The Minerals Council of Australia is pulling out advertisements against government plans for a new levy on mining after new Prime Minister Julia Gillard pledged to open the door to the industry for consultation.
BHP Billiton, the world's biggest resources company, was the first to cease its anti-mining tax ads in response to Ms Gillard's offer to seek wider industry input on the proposed tax on mining profits.
In a statement made before being sworn in as the Australia's first female prime minister, Ms Gillard pledged to cancel the government's $38 million ad campaign developed to rebut the claims of opposing miners.
''We are encouraged by the comments of new Prime Minister Julia Gillard, that her government will open the doors for negotiation with the objective of achieving consensus,'' BHP said. ''The industry has consistently been calling for the government to take the time to properly engage on all aspects of the tax, and we welcome the opportunity to do so."
''In response to the new Prime Minister's request, we have immediately asked our agencies to suspend all advertising as a sign of good faith,'' the company said.
BHP, which has led the campaign condemning the tax, said, ''We look forward to working with the government in this new way to find a solution that is in the national interest.''
Mining stocks have already went up early today amid expectations that Ms Gillard would have a softer treatment on the tax. Fortescue Metals, Rio Tinto and BHP Billiton all registered higher values.