Chief advisor on major building projects of Prime Minister Kevin Rudd has advised the government to restart its resource tax from scratch and provide proper consultations with the mining industry.

Rod Eddington, the head of Infrastructure Australia and also a board member of Rio Tinto, told media Wednesday night the new tax lacks good policy process.

Mr. Eddington commented the need for the negotiation process, particularly with the mining leaders, since good policy follows proper process. He adds that an absence of consultation will lead to "serious divisions in the community".

He also called on the Government during a Minerals Council Australia annual dinner in Canberra to comprehensively consult the mining industry to achieve good policy process on the tax.

Comments from Mr. Eddington follows as mining magnate Andrew Forrest claimed Treasury Secretary Ken Henry had private conversations with him, stating the proposed tax is pointless if the government gets rid of a refund of 40 per cent on failed projects.

Analyst Chris Richardson of Access Economics also disapproved of the resource super profits tax, advising the Treasury “it got it badly wrong.”

Opposition Leader Tony Abbot discouraged the mining industry from listening to “honeyed words” by the Prime Minister about consultations and compromise and called on to lobby against the $12 billion impost.

Chinese investor Chang Zhenming of Citic Pacific expressed his concern on the impact of the tax on his $US5 billion iron ore project in the Pilbara region of Western Australia.

Mr. Forrest, chief executive of the Fortescue Metals Group, will walk away from the Australian mining sector if its planned multi-billion dollar iron ore expansion in the Pilbara region has little or no value at all.