Executives of Rio Tinto said on Tuesday the Federal Government's proposed resources super profits tax has already been damaging the nation's reputation as an investment destination, which threatens the Australian economic stability.

The mining giant reiterated it will review all its investments, projects, and proposals in Australia following the announcement of the new tax.

The RSPT, released by Treasury Wayne Swan weeks ago, is seeking to tax mining companies for 40 per cent on its profits. The said tax is scheduled to take effect on July 2012.

Chief executive Tom Albanese said Rio Tinto managers are currently reviewing their options once a worse case tax scenario happens.

Mr. Albanese said a similar taxation experiment was also practiced in Alberta and British Columbia in Canada, but it failed.

Aside from Rio Tinto, several mining companies, State leaders and union groups have expressed dismay over the tax. Many conclude that investments will go elsewhere if the tax is pushed for implementation while others said the new tax should have been imposed on new or incoming projects, and not for existing ones.

Last week, the federal government has launched a consultation panel where miners presented their arguments on the tax.

Prime Minister Kevin Rudd said last week that several miners privately admit it can pay more tax, however, did not disclose any information on the miners.

On the other hand, State leaders and opposition leaders were disappointed on the consultation panel, stating that “consultation is a waste of time” if the panelists do not listen to the miners' plight.