It is reported that Australian miners will face billions of dollars in new taxes that threaten to slash productivity and put at risk billions of dollars in new investment.

Mr Ken Henry Treasury chief has recommended scrapping state royalty taxes on mining projects and replacing them with a uniform national resource rent tax, injecting billions of extra dollars into government coffers.

Mr Darren Brown national manager of policy and government relations for the Association of Mining and Exploration Companies Inc said "This will have a detrimental impact on the ability of the mining sector to attract investment and expand at a time when it is most needed."

The so called rent tax could be introduced as early as May if approved by Prime Minister Mr Kevin Rudd, placing levies of up to 40% on iron ore, coal, copper zinc and other minerals mined in Australia each year.
The Minerals Council of Australia has said the tax is equivalent to killing the goose that lays the golden egg at a time when commodities markets are recovering from the global financial crisis.

Details of the Mr Henry tax review have not been disclosed publicly, though Rudd has promised to make them available before the next national budget in May.