Swiss mining giant Xstrata announced it has suspended $586 million expenditures on its Wandoan Coal and Ernest Henry underground copper projects in Queensland due to the planned resources super profits tax (RSPT).

Xstrata said it would suspend $400 million of expenditure on a shaft underground mine project at the Ernest Henry site.

The expenditure cuts also included $91 million in early works and design of the Wandoan project, $82 million in exploration and $13 million of drilling and expansion projects for the Wandoan Coal project.

Xstrata said the decision to suspend these actions came after Xstrata's review of planned investment since the RSPT's announcement early last month

"The RSPT has created significant uncertainty for the future of mining investment into Australia and would impair the value of previously approved projects and exploration to the point that continued investment can no longer be justified," Xstrata chief executive Mick Davis said.

Davis said the suspension of these investments makes the Wandoan Coal and Ernest Henry project less likely to proceed, as neither projects will be viable if the RSPT is imposed.

Xstrata said the decision to cut its expenditures placed the potential creation of 3250 jobs at risk. Approximately 60 contractor jobs would be immediately cut at the Ernest Henry project due to the expenditure cut.

Xstrata said it continues to seek meaningful consultations with the federal government regarding its concerns with the RSPT.

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