Swiss mining giant Xstrata has halted two projects in Queensland due to the federal government's Resources Super Profit Tax (RSPT).
In a statement the company says it scrapping $A585 million worth of development of the Wandoan thermal coal project, and is also shelving its plans to extend the life of one of its copper mines.
Together the projects have created 3,250 new jobs, which Xstrata says "are now at risk".
"The decisions represent the initial findings from Xstrata's ongoing review of planned investment into its Australian operations and growth projects as a result of the Australian Government's proposed RSPT," the statement says.
"The review includes growth projects comprising a total investment of $A22 billion and the potential to create 14,725 jobs."
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Relations between the federal government and the mining industry hit an all-time low after Prime Minister Kevin Rudd's decision to attend an ALP dinner last night, rather than dine with Mineral Resources Australia.
Opposition Leader Tony Abbott, a vocal opponent of the mining tax, attended the industry dinner and took away a tshirt bearing the logo "Keep Mining Strong".
Mr Abbott and his deputy Julie Bishop sported the shirts during a run around Parliament House this morning.
