Declaring that negotiations with the mining industry members are "good," Australian Prime Minister Julia Gillard will likely unveil a compromise with the sector on its planned tax measures.

"We are having good discussions," Gillard told Brisbane radio 4BC today. "We needed a more respectful debate."

The mining industry issued a warning to Ms Gillard and her team that if there is no improvement with discussions, industry members which include the world' biggest mining companies: BHP Billiton Ltd and Rio Tinto, will resume their advertising campaign against the government's proposed tax measures.

In a related report by the Australian Financial Review issued oday that the government's compromise will reduce the impact of the tax on existing projects while raising the base levy from the current 6 percent. It, however, did not disclose where it obtained the information.

Fortescue Metals Group Ltd. Chief Executive Officer Andrew Forrest yesterday said in a statement: "We had reached a set of points which I think the prime minister was happy with, the mining industry would have been prepared to discuss and that was all taken off the table before it could be announced."