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Melbourne - Mining giant BHP Billiton [JSE:BIL] Thursday axed TV advertisements against Australia's planned resources tax after a plea from new Prime Minister Julia Gillard, raising hopes of progress in the row.
"In response to the new prime minister's request, we have immediately asked our agencies to suspend all advertising as a sign of good faith," the company said.
Gillard, appointed Australia's first female prime minister Thursday in a Labour party coup, called for a fresh start to negotiations with the mining industry on the 40% levy in her first speech as leader.
"Today I am throwing open the government's door to the mining industry, and I ask that in return the mining industry throws open its mind," she said.
"Today I will ensure that the mining advertisements paid for by the government are cancelled, and in return for this I ask the mining industry to cease their advertising campaign as a show of good faith and mutual respect."
BHP said it was "encouraged" by Gillard's commitment to seek consensus with the powerful industry, a key driver of Australia's strong recovery from the global slowdown.
"The industry has consistently been calling for the government to take the time to properly engage on all aspects of the tax, and we welcome the opportunity to do so," said BHP.
"We look forward to working with the government in this new way to find a solution that is in the national interest," the mining giant added.
Deposed former leader Kevin Rudd slumped in opinion polls after launching the Resource Super Profits Tax, which will leverage 40% of mining firms' profits above 6% of investment from July 2012.
Rudd's failure to dampen the key industry's furious public backlash was seen as one of the chief reasons he lost public support and the confidence of his party.
- AFP
