“This is the biggest assault on the mining industry I have witnessed in my now long involvement in the sector,” Davis told the Bank of America Merrill Lynch Global Metals and Mining Conference in Miami.

He was troubled by not only the magnitude of the tax, but the lack of consultation in the lead-up to its unveiling.

“This is much more reminiscent of countries perennially trapped in a spiral of mercurial populist actions, followed inevitably by dwindling foreign investment and ever-poorer populations – not of a country like Australia,” Davis said.

He added that the proposed tax ignored the significant contribution the resources industry had made to Australia and its people over the last few decades.

“Certainly it is not helpful to use populist rhetoric which can be interpreted as characterising mining companies as greedy enterprises siphoning rents from Australia’s natural resources to faceless foreign shareholders.”

Xstrata has been operating in Australia since its takeover of MIM Holdings in 2003.

Since then, its operations have generated revenue of $US44 billion ($A49.1 billion).

Davis said in that time, Xstrata had paid expenses of $22 billion, incurred taxes of $5 billion and invested $18 billion.

“Now if you check the math you will see that this has required us to inject a further net $1 billion into Australia from cash generated in other regions,” he said.

“In other words, there has been no leakage of profits from Australia – rather the other way round.”

While many companies have warned that future investment in Australia is at risk, Xstrata has gone one further, suspending an exploration program worth $A30 million over the next three years.

Xstrata employs more than 3500 people in Queensland alone.

“Xstrata and companies like us with access to multiple growth options across the globe will always find value-adding opportunities, but if this tax stands in its current form and impact, it will retard the development of resources in Australia,” Davis said.