Even after the last week’s acknowledgement, Julia Gillard is expected to confront a heavy political resistance to the mining tax plan of the Government.

Yesterday, it was announced that Government predicts a banking of $10.5 billion from the proposed arrangements in the coming next four years, which is less from $12 billion. Also it was cited that the new arrangements in the tax structure will be entirely different from the Kevin Rudd’s proposal.

The deal has been accepted by major miners including BHP Billiton, Rio Tinto and Xstrata but in spite of this, Tony Abbott, the Opposition Leader affirmed that the election campaign will rest on and will be fought on the proposal of intensifying the tax on the resources firms.

The new tax is a replacement of the initial proposal of the Government, which was earlier appreciated for an elegant theoretical base by Treasury.

The local coal and iron ore mining Companies will be charged with the tax and will be only confined to the projects that will be earning $50 million or more annually.

Other Companies which will be mining other minerals except the two will be under the Company tax regime and coal and gas projects will be covered by the expanded petroleum resource rent tax.