Mr. Clive Palmer, who owns one of the largest deposits of iron ore in the world, has moved away from his former claim to scrap the mining projects because of the Federal Government's proposed resource super profits tax. He is a fierce opponent of the new 40% tax on mining profits.

Mr. Palmer has carved out five separate projects and the asset for the first development was secured before the super profits tax was proclaimed. Because of the tax, Mr. Palmer had canned two projects in Western Australia's Pilbara region.

About $2 billion profit can be generated from one of these projects and it can also employ about 3,000 people but now he feels that he was perhaps was exaggerating. Yet, Mr. Palmer strongly opposes the tax. On the other hand, Federal Small Business Minister, Craig Emerson says Mr. Palmer has revealed that he is part of a scare campaign against the plan for a resources tax.

Federal Treasurer, Wayne Swan said that some of the concerned mining Companies' favor the tax and want it to be legal. But Mr. Palmer believes that Australia doesn't have anything more in terms of commodities than any other countries, so investment will just go to those other countries.