MELBOURNE (Reuters) - Australian Prime Minister Julia Gillard faces a Friday deadline to work out a compromise with the mining industry on the government's proposed mining tax, Australian media said on Tuesday.
Industry groups suspended a hostile advertising campaign against the tax last week after Gillard ousted Kevin Rudd and vowed to negotiate with the industry over the 40 percent tax, designed to raise A$12 billion ($10.5 billion).
The Association of Mining and Exploration Companies said at the time that it would suspend the ads for up to two weeks.
"The ads could start up earlier if required," the association's chief executive, Simon Bennison, was quoted saying in The Age newspaper.
"I have really serious doubts about the government's commitment to finding a workable solution. They have had four days to get something to us," he said.
Talks between Treasurer Wayne Swan, Resources Minister Martin Ferguson and senior mining executives are set for Wednesday, The Australian newspaper said, marking the first full negotiations since Gillard made her promise five days ago.
She has said she wants to resolve the issue as soon as possible but gave no timing and has not made clear whether she would be willing to lower the 40 percent tax rate or raise the threshold at which it applies.
The Minerals Council of Australia said the tax needs to be resolved before an election, which is expected between August and year-end.
(Reporting by Sonali Paul; editing by Balazs Koranyi)
