Mining company Rio Tinto expressed its worries on the Federal Government's move for a new resource tax stating that it would make the mineral industry as the highest taxed in the world.

In a statement released on Wednesday, David Peever, managing director for Rio Australia said the company is highly troubled over the new resource tax which is 40 per cent "above normal" profit tax.

"Taxing 40 per cent of profits over the long-term bond rate, together with corporation tax, would make the Australian minerals sector the highest taxed in the world, seriously eroding competitiveness," Mr. Peever said through the statement.

Over the weekend, the federal government delivered its response over the Henry tax review, including a 40 per cent tax on mining profits from non-renewable resources. The tax will be effective on July 1, 2012.

The mining company is concerned that the tax could wear away Australia's competitiveness, slow down investments, and limit job growth.

"Altering the rules for existing multi-billion dollar projects in mid stream - after large amounts of capital have already been put at risk over many years - would be the worst possible message Australia could send to investors," he said.

Rio also clarified that it does not oppose a tax reform as it protects sovereignty, improves competitiveness in the resource sector, and promotes economic growth.

Mr. Peever said the company will play a crucial role in the consultation process with the federal government.