Mining tax talks hailed as 'constructive'

Day long talks have been held on ending a row over the proposed resources tax, with Prime Minister Julia Gillard claiming they were 'constructive.'

Deputy PM and Treasurer Wayne Swan has been in the talks along with Resources Minister Martin Ferguson, with the PM not directly involved at this point.

The two ministers spent all day locked away with the powerful representatives of the big companies BHP Billiton, Rio Tinto and Xstrata, who were seeking to force their hand following the fall of Kevin Rudd.

Despite talk of a big compromise, Gillard made no mention of a watered-down proposal making key concessions to the powerful mining companies, including reducing the profit tax's impact on existing projects, reported by the Australian Financial Review.

"I have nothing to report on the content of the discussions at this point," Gillard said in a statement late Wednesday.

"I have been pleased by the constructive and disciplined approach that is being taken by both sides."

Rio Tinto 'hopeful'

But mining giant Rio Tinto said the government was taking its concerns seriously, with the company's iron ore chief executive Sam Walsh indicating that a resolution could be imminent.

"Serious consultations, serious negotiations are underway. We are very hopeful of a quick resolution," Walsh told reporters.

"If a deal is put together, we've got to have the assurance that it will carry through post the election if the government is re-elected."

Treasurer Wayne Swan, who met Wednesday with executives from Rio, BHP Billiton and other firms, also refused to divulge details of the talks with the mining industry, except to say they were proceeding "in good faith".

"We are not into megaphone diplomacy here, we are sitting down in good faith discussing matters with a wide range of people," he told reporters in Canberra.

Swan said the government, which is expected to call an election soon, wanted to resolve the row "as soon as we can".

"And that's what we'll do," he said.

Gillard has made the tax row her top priority after last week ousting Kevin Rudd, whose once record popularity was fatally sapped in the public dust-up with the mining companies.

Fortescue's Forrest talking big

Fortescue Metals' billionaire chief Andrew Forrest earlier raised pressure on Gillard by saying Rudd was just 24 hours from announcing a deal before he was sensationally unseated in last Thursday's quickfire leadership challenge.

"The previous prime minister was cut off bringing a solution onto the table," he told a conference in Perth on Tuesday, according to public broadcaster ABC.

"I would suggest that the new prime minister brings that solution to the table for a discussion with the whole mining industry as soon as possible."

Gillard had called for "a bit more light and bit less heat" in the debate over the tax, which envisaged a 40 percent levy on mining profits over six percent.

"Actually, there's a bit of agreement here: a bit of agreement that Australians are entitled to a fairer share, a bit of agreement that the mining industry can pay more tax, so let's build on that," she told commercial radio.