国际英语新闻：Australian PM confident mining tax is right policy

CANBERRA, June 4 (Xinhua) -- Australian Prime Minister Kevin Rudd on Friday remained confident his government's proposed super- profits tax on mining companies has been the right policy despite a mining giant shelving expansion of two projects.

The Anglo-Swiss mining giant Xstrata indicated on Thursday it would suspend expansion worth about 586 million dollars (494 million U.S. dollars) because of uncertainty created by the tax.

"The government is confident of its argument (for the tax)," Rudd told the Seven Network.

"You should take what very big mining companies have to say in this big debate ... with a bit of a grain of salt."

Rudd described as "remarkable" an assertion by Xstrata boss Mick Davis that his company was paying too much tax.

"I don't know anyone in Australia who would accept that," Rudd said, adding Xstrata campaigned "vigorously" for the retention of Work Choices and Australian Workplace Agreements.

The opposition said capital was fleeing because mining company confidence in future investments has been "shattered".

Opposition resources spokesman Ian Macfarlane used a decision by global fund manager JP Morgan Chase and Co to sell a quarter of its holding in BHP Billiton and Rio Tinto, because of concerns about the tax, to back his claim about "a flight of capital" out of Australia.

"These are people who have to make impartial decision about the future investment prospects of their investment fund holders," Macfarlane told ABC Radio.

"The confidence in establishing future mining operations in Australia is shattered."