Xtrata declared suspension on its $30 million copper exploration in central Queensland a week after the federal government released the proposed resource super profits tax.

According to chief operating officer Steve de Kruijff of Xtrata Copper North Queensland, the 3-year exploration project plan situated in Mt. Isa and Cloncurry districts is now being shelved for the meantime.

“We have decided to suspend exploration activities in North Queensland until there is greater certainty on the fiscal regime for future mining developments,” Mr. de Kruijff said.

Xtrata's chief operator mentioned that the government's super profit tax added more problems aside from the high risk involved in operations in the area.

Mr. de Kruijff added that Xtrata Copper operations and exploration programs include several parts of the world. He said economics will definitely change once the proposed plan takes effect in July 2012.

“Our copper mining, smelting and refining operations in north Queensland play a vital role as an economic driver in the region, last year contributing more that $1.3 billion to the Queensland economy and employing over 3,500 people,” he said.

What worries Xstrata Copper is the sustainability of its business activities and discourage re-investments needed to sustain existing programs, new project developments, and ensure the economic well-being of the regional area.

Xtrata chief executive Mick Davis already said the proposed tax is “disappointing” and would put Australia in the map as the highest in taxing the mineral industry.