China has received an assurance from Trade Minister Simon Crean that the Federal Government's proposed resource super profits tax will not hurt steelmakers when purchasing iron ore.

"It was very clear that this tax would not impact on price; it's a tax on profits and not on consumption and that it is a competitive global market," Mr. Crean told local media.

Mr. Crean said there were discussions with China's top economic ministry and the National Development and Reform Commission on Monday regarding the controversial mining tax.

"Importantly in price they acknowledged upfront, for the first time, that it was the market that had to determine the prices," he said. "I think that is an important acceptance, whereas previously they kept urging the government to intervene."

Mr. Crean told China representatives that its country is recognized as a market economy and should act like one.

Mr. Crean also said that NDRC never mentioned investment as a big concern with the tax, although several Chinese companies were cautious when several projects were shelved or put on hold.

"(The NDRC) were very interested in my argument that it would be a tax that would increase production by increasing supply by encouraging investment."

Minister Crean said he is willing to invite several China company executives for a consultation with the government's panel to ease their concerns on the tax.

"I have invited them, just like we have invited any other company that has concerns, or is associated with, the tax -- that is what the panel exists for," Mr. Crean said.

“There were worries about implementation and transition and if there were issues that they wanted to raise in that context, they should feel free to avail themselves of the process."