Treasurer Wayne Swan told mining industry to calm down and explained that the Labor's proposed resources tax will provide new benefits.

He also urged the mining sector to support the mining tax or pursue a negotiation with the Labor instead of complaining endlessly.

Several mining executives, especially Queensland miner Clive Palmer exclaimed that the government's proposed tax is comparable to “those of despotic and communist regimes.”

Nevertheless, Mr. Swan confirmed that some miners agree to negotiate on the transitional arrangements .

He added the said negotiation will lessen the tension between the companies and the government.

Meanwhile, Queensland Premier Anna Bligh and representatives of the Queensland Resources Council continue to fight for the super-profits mining tax by the federal government.

Ms. Bligh told media last Friday she is seeking for revisions of the tax to help new industries. She also urged mining companies to pressure the government against the mining tax.

Michael Roche of QRC said several projects in Queensland, such as the gas projects in Gladstone may be discontinued and are currently evaluated.

Fiona Simpson, an opposition transport spokesperson said the proposed mining tax could hinder growth in mining operations and transport in Queensland's north-west, adding that costs of transport in Queensland is higher compared to the global competitors.