Gulf growing between govt and miners

The gulf between the federal government and the mining sector is growing, with BHP Billiton and Rio Tinto hardening their attack against the resource super-profits tax.

BHP Billiton wants the tax substantially redesigned or abandoned, while Rio Tinto hinted it may invest elsewhere if the government isn't willing to look at changes to the proposed regime.

And the industry's biggest players are accusing the government of paying lip service to its commitment to work with the industry.

Efforts this week by the government to show it is listening to the miners have done little to appease the sector.

Prime Minister Kevin Rudd acknowledged there was a long way to go before common ground was found, rejecting reports the government was about to release a compromise deal.

"I think we've got weeks and probably months of consultation yet with the major mining companies," he told the Seven Network.

Resources Minister Martin Ferguson called BHP Billiton, Rio Tinto and Swiss mining giant Xstrata to a meeting in Canberra on Friday but the participants appeared unimpressed.

"Very little came out of the meeting," a source told AAP. "There is no genuine consultation going on."

They are increasingly angry the government is refusing to negotiate on the proposed tax - which would claw back 40 per cent of so-called super-profits - despite Labor giving the impression it is working with miners.

Mr Rudd held a meeting with the bosses of BHP Billiton and Fortescue Metals this week, and took his cabinet to Western Australia, where opposition to the tax is fiercest. But industry sources suggest this is more about picture opportunities for the prime minister than a real effort to cut a deal.

In a letter to shareholders, BHP Billiton chairman Jac Nasser responded to their concerns that the company was not engaging with the government.

"We are very disappointed that consultation has not been possible," he said.

"Unfortunately (and despite our best efforts) there has been no acknowledgement by the government of the major flaws of the proposed tax and the significant impact on the industry."

Mr Nasser accused the government of "not accurately" representing the amount of tax miners paid, and warned any suggestion of modelling the super-profits tax on a similar petroleum regime would be a mistake.

"Substantive redesign of this proposed tax is necessary and, if this can't address its fundamental failings, it should be abandoned," he said.

Rio Tinto said it wanted to make it clear that it was the government that was refusing to engage with the industry, despite the Anglo-Australian miner wanting to work with authorities on tax reform.

"Prior to the government's announcement there were no negotiations on the proposed mining tax," a spokesman said.

"There have been no negotiations since the announcement.

There are no negotiations being undertaken now."

And in London, Rio Tinto told investors that if the tax went through unchanged, the company may look at taking its investment elsewhere.

"We have many other growth projects outside Australia," chief financial officer Guy Elliott told a conference.

Despite increasing frustration from the industry, Treasurer Wayne Swan says he believes there is still room to get it right.

"The most important thing is that we will continue our consultations and we'll get it right, and we'll take the time that we need to do that," he told reporters.

Opposition Leader Tony Abbott does not agree there is any compromise position.

"It can't be reformed. It can't be adjusted. It just has to be scrapped," he told ABC radio.