Prime Minister Gillard has given an election campaign sweetener to miners, promising to cap the minerals tax to iron ore and coal only, if re-elected.
Following a spate of meetings with junior and mid cap miners, Gillard is continuing to try and defuse residual anger within the mining community over the former Resources Super Profit Tax and newly proposed Minerals Resources Rent Tax.
While the Government had reached consensus with the big three miners, Rio Tinto, BHP and Xstrata, smaller miners feel as though their views have been completely ignored.
Many of these juniors believe that the tax on iron ore and coal is the initial step towards a wider tax on the industry.
Gillard moved to calm these fears by announcing she would guarantee the Government would not expand the tax.
“If re-elected, we will move to legislate the tax as it has been described, arising from the breakthrough agreement I entered eight days into being Prime Minister,” she said.