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"They will simply get a far better return and in fact struggle to reach their basic hurdle rate in future projects in Australia."
Transportation magnate Lindsay Fox said the government " probably" has gone the wrong way on its proposed tax.
"It's very difficult to put special taxes on anybody," Fox told ABC television.
There had to be a compromise between the government and the mining industry, Fox said, adding common sense must prevail in the interest of all Australians."There is nothing worse than conflict over money ... big money, big problems.
"You can't just go in for a big bite of money and not have consultation."
Up to 3000 jobs reportedly at risk on projects suspended by mining giant Xstrata have not even started yet, Deputy Prime Minister Julia Gillard said.
"There is a process of consultation with the miners and we'll keep working through it," Gillard told the Nine Network.
The Swiss mining giant has blamed the federal government's proposed resources super-profits tax on its decision to suspend projects including the 6 billion Australian dollars (5.1 billion U. S. dollars) Wandoan thermal coal project in the Surat Basin and a 600 million dollars (506 million U.S. dollars) extension of the Ernest Henry copper mine at Cloncurry, both in state Queensland.
Australian federal government has wanted to implement a 40 percent tax on mining super profits to pay for business tax cuts and new infrastructure.