Federal Treasurer, Wayne Swan says that he admits that mining firms have some "legitimate" worries regarding the projected super profits tax.

The Government fired the latest bombardment of the propaganda battle over the tax at the weekend, with the first taxpayer-backed TV commercials being telecasted.

Mr. Swan has told the ABC that the Government will not be threatened by "brinkmanship" from the miners, but he did concede their fears.

He told ABC TVs Four Corners program, "I accept that they have concerns about the tax. Some of the concerns are legitimate, and that's why we said we'd work through the issues".

He also confessed that some developments would be shelling out 58% tax, as the Minerals Council has disputed.

He said that there would be some more profitable firms, which could touch that level.

However, he declines the assertion that the tax will make mining projects non-profitable.

He added that this tax is devised to be a tax based on profits, and the more lucrative the Company is, the more tax it will have to give.

Together with the Treasurer, Federal Resources Minister, Martin Ferguson is carrying out negotiations with the mining industry.

Mr. Ferguson told Four Corners that he knew projects would be shelved during the talks.