Prime Minister Julia Gillard has vowed to scrap the mining tax ad campaign.
Gillard will scrap the $38 million advertising campaign in return for co-operation in discussions with the mining industry.
In reaction to her comments, BHP Billiton has stated that it will immediately cease its ad campaign.
“In response to the new prime minister’s request, we have immediately asked our agencies to suspend all advertising as a sign of good faith,” BHP said in a statement earlier today.
It went on to say that it is encouraged by Gillard’s comments, adding that the industry has consistently been calling for the Government to take the time to properly engage on all aspects of the tax, and it looks forward to working with the Gillard Government to find a the best solution
The ASX responded favourably to the installment of the new Prime Minister, with the All Ords skyrocketing on the optimism of a new Government before her official swearing in.