Tax 'rethink' by new Australian PM Julia Gillard cheers miners

Miners were today celebrating the decision by Australia's governing Labor Party to replace prime minister Kevin Rudd with Julia Gillard, as she immediately told parliament she was

In her first day in power, Gillard suspended an advertising campaign promoting the proposed 40% tax on miners' profits and told the country's parliament: "I have said to the mining companies of this nation that the government is opening its door, and we are asking them to open their minds."

In response, London-listed metals giant Rio Tinto pulled its own counter-advertising campaign, which flagged up the tax's potential impact on jobs and investment.

Rio said it was pleased with Gillard's first moves, claiming the tax "was a flawed policy that has already caused damage to Australia's reputation and the national economy".

The industry said the levy would threaten projects worth Aus$20 billion (£11.61 billion).
Rival Xstrata, which suspended investment worth A$586 million in two Queensland mines after claiming they would "not be viable" under the tax, said it, too, was "encouraged" by Gillard's appointment.