South Australian Treasurer Kevin Foley said the strategy behind the federal government's proposed mining tax showed some defects.

Mr. Foley, who met with South Australian mining industry executives, said he will relay the concerns raised by the industry players. While he supports the resources rent tax, the super profits mining tax is still incomprehensible.

“I think the rate's fine at 40 per cent, I think that's a sensible rate. It works on the offshore oil and gas industry,” he said.

“But I think the issue is: what is the definition of a super profit, particularly for new mines, new investments and start-up projects.”

Mr. Foley told local media that there is a need for the federal government's plan for super-profits mining tax to redesign or revise so mining companies may receive “appropriate returns for the risks they confront.”

"Some other treatments and adjustments as we move into the new system would be fair," he said.

Mr. Foley believes the federal government and the mining sector can still do something to better the situation. He also suggests that both parties should lower down the “temperature,” particularly from the mining industry.

Mr. Foley consulted with mining giants, including BHP Billiton, which owns the Olympic Dam mine in the far north of Australia, regarding the proposed mining tax.

He confirmed he will travel to Canberra to discuss alterations of the resources tax that may appease the mining companies.