Palmer said Australia will face “massive unemployment” if the RSPT legislation is passed because the tax would severely damage long and short-term growth.

“The effects of this tax will not be limited to just the mining industry,” he said.

“Unemployment in the resources sector will lead to unemployment in the service industries that operate in mining towns like Mackay or Kalgoorlie.

“Many of these towns rely on the mining community to fuel their own income and now they face massive uncertainty.

“Increased tax does not equate to increased expansion and that is a critical element the federal government has conveniently glossed over since the tax was proposed.”

Palmer said the biggest loser of all would be Australian workers.

“The Australian mining industry has the potential to provide secure long-term employment for thousands of workers at home, not in Canada or South Africa,” he said.

Palmer said he has been forced to shelve two major mining projects that would each have created in excess of 3000 jobs and billions of dollars in revenue because of the federal government's proposed tax.

Earlier this year, Palmer’s private company Resourcehouse announced a deal with China Power International Development to supply 30 million tonnes of coal per annum from its upcoming China First project in Queensland’s Galilee Basin for $3 billion a year over 20 years.