At a press conference this morning, Gillard said she would begin to "negotiate" with the mining industry over the proposed new tax.
She said her government would immediately cancel its advertising campaign over the tax, and called on the mining industry to do the same as a show of good faith.
"What I am saying, and it's a genuine offer, is the door of this government is open. I am opening that door, and I am asking the mining industry to open its mind," she said.
The news saw major mining stocks gain ground in morning trade, with BHP Billiton hitting an intraday high of $A40 before closing at $39.65, up 51c, while Rio Tinto shot to a high of $72.48 before cooling to close at $71.73, up $1.19.
BHP said it was encouraged by Gillard’s comments and would cease its advertising campaign against the tax.
Meanwhile, Fortescue Metals Group chief executive Andrew Forrest welcomed Gillard’s appointment, saying it reflected concern the Australian community had with elements of the Rudd government’s handling of the proposed tax.
He added that FMG appreciated Gillard's commitment to "open the government's doors" to negotiate with industry over the tax.
“As we had previously declared, the initial structure of the proposed RSPT is dead and buried,” he said.
FMG closed the day 11c higher at $4.54 after hitting an intraday high of $4.63. Other iron ore plays including Atlas Iron, up 10c to $2.24, and Mount Gibson Iron, up 6.5c to $1.705, also made solid gains in today’s trade.
Meanwhile, Riversdale Mining is close to landing $US800 million ($A920 million) worth of funding for its $2 billion Zambeze coal project in Mozambique after stitching up key agreements with Chinese joint venture partners.
The news saw its shares close A81c higher at $11.35.
On the broader market, the S&P-ASX 200 index closed slightly lower at 4481.8 points, down 0.1%, while the All Ordinaries also dipped 0.1% to 4505.8 points.
Base metals on the London Metal Exchange lost ground overnight, except for zinc which gained 2% to $US1829.50 per tonne. Nickel took the biggest hit, slipping 1.9% to $19,275/t while copper shed 1.4% to $6515/t.
Spot gold was trading at $1236.27 an ounce this afternoon, down 33c. Newcrest Mining gained A27c to $35.65, Lihir Gold added 4c to $4.37 while AngloGold Ashanti shed 22c to $9.92.
In other news, federal Finance Minister Lindsay Tanner announced today that he would not be contesting the next election.
Tanner said his resignation wasn't linked to Rudd’s dumping as prime minister, or to Gillard’s appointment to the role.
