The pressure from the Mining Industry may be starting to show on the government as Resources Minister Martin Ferguson mentioned that the Australian Government may change certain elements of the new mining tax for different parts of the industry.
Ever since the new Resources Super Profits Tax or RSPT was announced the federal government has been criticized by mining bosses for the unreasonable 40% blanket tax rate. The large number of people dependant on mining for employment have been worried about mining operations being shut down and being left unemployed if companies decide that the RSPT makes mining projects unprofitable.
The Prime Minister has had to defend the new law for mining just as much as he has had to force ahead with his proposed health reforms policies. With the elections looming large Prime Minister Kevin Rudd is now facing pressure from a new source, his own party.
The furious opposition by the mining industry notwithstanding, perhaps the party and the government would do well to negotiate with the industry with a somewhat modified proposal.