Metal producers welcomed the possibility that they may be exempted from the Gillard government's modified resource super-profits tax, arguing that they deserved to be treated differently to bulk commodities coal and iron ore.
In what would be a major triumph for the lower-margin metals sector, the federal government is likely to exclude miners of nickel, gold, copper and uranium from falling under the tax, according to reports.
Minara Resources chief executive Peter Johnston said he had told the government during recent talks on the levy that nickel should be approached differently than other commodities because of the complex and expensive processing involved.
Mr Johnston said the effective tax rate imposed on Minara would have ascended from 33 per cent to 57 per cent under the tax as it was proposed.
"We weren't going to shut Minara but it would have been a serious imposition on our growth," he said.
"It would have made us uncompetitive on the world market.
"We are exploiting medium to low grade ores and (using) extremely difficult technology. We are not a dig and ship."
In a KPMG report commissioned by the Minerals Council of Australia last month, it was found that the tax would give gold, copper and nickel miners the hardest blow. Based on the report, it could result in $7 billion worth of nickel projects hatched during the previous mining boom remaining on the shelf.
Mincor Resources chief executive David Moore said independent modelling had indicated the RSPT would have elevated his company's effective tax rate from 42 per cent to 57 per cent.
He said, "The severe rate of the tax would have led to our demise."