The government on Sunday said that Australian mining companies fell sharply Monday as investors factored in lower earnings for the companies as it plans to introduce a 4- percent tax on the industry’s profits. BHP Billion Ltd and Rio Tinto PLC, back to the negotiating table on their proposed 116 billion Australian dollar joint venture to combine their iron ore assets in Western Australia Pilbara region said Credit Suisse analysts who also added that the proposals could force the country’s two largest miners. BHP spokesman said, "We are still committed to the joint venture. We are assessing the impact but it is a bit early to say, adding there is “still a great deal that is unclear" about the detail of the tax changes”.

A 4- percent tax on resource profits will start from 2012 and raise a $12 billion in its first two years, as BHP with 51 percent of its assets in Australia. BHP’S executive Officer Marius Kloppers said in an email, “These proposals seriously threaten Australia’s competitiveness, jeopardize future investments and will adversely impact the future wealth and standard of living of all Australians”. Swan said here yesterday , regarding the growing population , “The government will use the resource tax revenue to create a A$5.6 billion infrastructure fund, cut company taxes to 28 percent from the current 30 percent and boost retirement funds, now worth A$1.3 trillion. It will also give a tax concession for resource exploration, including geothermal power, affecting 4,300 companies”. It may be noted that the government may decrease the rate further with 720,000 small businesses getting a one year head start while the corporate tax rate is reduced to 30 percent from 36 percent by the previous Liberal National Government.

Minerals Council of Australia Chief Executive Mitch Hooke said in an a emailed statement, ““Australia will have the highest taxed mining industry in the world, Australia’s hard-earned reputation as a stable investment environment will be dramatically undermined”.