Federal Treasurer Wayne Swan said he is listening to several “legitimate” concerns about the proposed resources super profit tax from the miners.

The Federal Government released its latest propaganda advertisement on the tax over the weekend.

The TV advertisement was funded by a tax payer for the first time.

In an interview with local media, Mr. Swan said the Government will not back down from the “brinkmanship” of the miners. However, he acknowledges their concerns.

"I accept that they have concerns about the tax," he told ABC TVs Four Corners program.

"Some of the concerns are legitimate, and that's why we said we'd work through the issues."

He did not deny statements from the Minerals Council that some mining projects may be taxed for 58 per cent, and stated that more profitable companies could reach that stage.

Mr. Swan brushed off statements that a 40 per cent tax will make mining projects unprofitable.

On the other hand, Federal Resources Minister Martin Ferguson, who also held consultations with mining companies, said he already knew that projects are expected to be put on hold during negotiations.

"I acknowledged on day one that whilst we go through this tax debate a number of investment decisions are put on ice, because they are part of a range of factors that are considered in making the investment decisions," he said.

Mr. Ferguson said he is confident that Australia will continue to rake in investments from mining projects.

Queensland mining billionaire and Liberal National Party donor Clive Palmer said he may have overreacted on the implications of the tax on his projects in Western Australia's Pilbara region.

Mr. Palmer confirmed that investments for the project development was assured before the Federal Government announced the super profit tax.

He admitted phrasing the tax too strongly.

"It should have been ... slowing them down, waiting to see what happens," he said.

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