Australia's new PM to negotiate with miners on tax

Australia's new prime minister says she will immediately open negotiations with the booming mining industry about a proposed new profits tax.

Australia's new prime minister says she will immediately open negotiations with the booming mining industry about a proposed new profits tax.

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Bitter disagreement between the industry and the government in recent weeks contributed to the downfall of Prime Minister Kevin Rudd, who was ousted on Thursday by his party.

New Prime Minister Julia Gillard said on Thursday in her first news conference that she was opening the government's door to the industry and asked in return "that the mining industry open its mind."

Rudd refused to negotiate on his proposed 40 per cent tax to make greater revenue from the booming mining industry, fueled by China need for the resources.

Mining companies claimed jobs and investment would be lost.