3rd UPDATE: Australia Government Won't Put Time Frame On Mine Tax Talks

30th Jun 2010 10:53

(Updates with negotiations continuing; comments from Gillard, Swan, Rio Tinto exec) By Lyndal McFarland and Rachel Pannett Of DOW JONES NEWSWIRES CANBERRA (Dow Jones)--Senior government officials said Wednesday talks continue with key mining groups over the government's controversial proposal to impose a new 40% tax on resource sector "super profits", but stressed there is no deadline on the negotiations. Prime Minister Julia Gillard said she remains committed to a quick resolution to talks with the sector but, despite speculation that a compromise is imminent, she had no update at this stage. "I have nothing to report on the content of the discussions at this point," Gillard said in a statement. Gillard, who was sworn in as prime minister last week after Kevin Rudd stepped down in the face of a leadership challenge, had called for a truce in the increasingly bitter battle between the mining industry and the government over Rudd's planned super resources profits tax. While Rudd had indicated he wouldn't bend on key aspects of the tax which had angered miners, Gillard has said she would negotiate with the miners on the planned tax, sending Resources Minister Martin Ferguson and Treasurer Wayne Swan to mediate. She said she has "been pleased by the constructive and disciplined approach that is being taken by both sides." Separately, Swan declined to put a timeline on the talks. Swan told reporters he and Ferguson are "talking to a wide range of individuals and organizations" on the tax proposal, with talks to continue through the week. "We're not into megaphone diplomacy here. We're sitting down in good faith discussing matters with a wide range of people," Swan said. "I'm not going to put any framework around timing." Rio Tinto Ltd. (RIO.AU) Iron Ore Chief Executive Sam Walsh said Wednesday he wants an assurance that any deal between miners and the Australian government over the proposed resource super profits tax will remain valid beyond a Federal election, which could be held as early as August. Walsh told Australian Broadcasting Corp. radio he is hopeful of a speedy resolution to the talks. "If a deal is put together, then we've got to have the assurance that it will carry through post the election, if the government is re-elected," Walsh said. Last week, Walsh declared that the proposed tax, as originally envisaged by Rudd, is "dead" following the appointment Gillard. -By Lyndal McFarland and Rachel Pannett, Dow Jones Newswires; 61-3-9292-2093; [email protected] (Stephen Bell in Perth contributed to this article) (END) Dow Jones Newswires June 30, 2010 05:53 ET (09:53 GMT)