Julia Gillard will can the Government's mining tax ads as one of her first acts as prime minister, and has called on the mining lobby to do the same.

Mining giant BHP Billiton, which is among the companies leading the campaign against the tax, has responded by suspending its ads.

The second biggest, Rio Tinto, followed later in the day.

Rio Tinto said it was "cautiously encouraged by the Prime Minister's invitation to begin full and open engagement on all aspects of tax reform".

"It is a positive first step," the miner said.

Sky News is reporting that the mining industry's main lobby group, the Minerals Council of Australia, is also suspending its advertising campaign. The ABC has contacted the MCA for confirmation, but has had no reply at this stage.

Ms Gillard says reaching an agreement on the Resource Super Profits Tax is one of her first priorities after being elevated to the top job by the Federal Parliamentary Labor Party, although she has reiterated that the Government will not abandon the RSPT.

"Australians are entitled to a fairer share of our inheritance, the mineral wealth that lies in our grounds, they are entitled to that fairer share," she said in her first press conference as Labor leader.

"But to reach a consensus, we need to do more than consult, we need to negotiate, and we must end this uncertainty which is not good for this nation."

However, she has emphasised that the mining industry must play its part and be willing to give some ground to reach a compromise on the tax.

"Today, I am throwing open the Government's door to the mining industry and I ask that, in return, the mining industry throws open its mind," she added.

Ms Gillard says she will act today to stop further Government advertisements on the RSPT as a sign of good faith, and has called on the mining industry to do the same with their ads.

"Today, I will ensure that the mining advertisements paid for by the Government are cancelled and, in return for this, I ask the mining industry to cease their advertising campaign as a sign of good faith and mutual respect."

Miners respond in kind

BHP Billiton has responded to that request, announcing in a press release that it has asked its advertising agencies to immediately suspend all ads "as a sign of good faith."

"We are encouraged by the comments of new Prime Minister Julia Gillard, that her Government will open the doors for negotiation with the objective of achieving consensus," the company said in its statement.

Fortescue Metals chief executive Andrew Forrest says he is also heartened by the change in leadership and the change in tone.

"Ms Gillard and her new Government have realised that Government policy is best effected through open and honest consultations with the Australian people and industry. This will avoid the potential of the previous strategy that may have derailed the strength of our economy," he said in a statement.

However, he has not backed away from his assertion that the RSPT, in its original form, is dead and buried, despite Ms Gillard's comments that miners need to pay a "fairer share."

"As we had previously declared, the initial structure of the proposed RSPT is dead and buried," Mr Forrest reiterated.

"We look forward to working with the Government and the mining industry to establish a fairer taxation framework that will encourage continued investment in Australian mining and promote the long term sustainability and international integrity of our world class mining projects."

Ms Gillard says the negotiations with the mining industry will continue to be led by the Treasurer (and new Deputy Prime Minister) Wayne Swan and Resources Minister Martin Ferguson.

Opposition Leader Tony Abbott says nothing has changed in regard to the RSPT with Ms Gillard's ascension to the leadership.

"Julia Gillard, along with Kevin Rudd and along with the new Deputy Prime Minister [Wayne Swan], co-authored the great big new tax on mining," said Mr Abbott.

"Until she pulls the revenue [from the budget] and not just the ads, she is just as committed to the mining tax as her predecessor."

Warm response

While news of Ms Gillard's elevation caused a surge in mining stocks in early trade on the ASX, those companies have given up some of that ground since her press conference comments.

Fortescue Metals had jumped more than 4 per cent in early in the trading day, but was only 1.6 per cent higher by 1:07pm (AEST).

BHP Billiton had risen 2 per cent, but was only up 1.1 per cent after Ms Gillard's press conference, while Rio Tinto went from being more than 2 per cent higher to be up 1.6 per cent.

Some traders had obviously been expecting a more substantial and immediate change in the Government's position on the mining tax after the change of Prime Minister.

However, RBC Capital Markets senior economist Su-Lin Ong is confident there will be some changes to the RSPT proposal by the new leadership team.

"Given the backlash from the business community and limited public support, the new leadership team is a good excuse to change the RSPT in its current form," she wrote in a note.

"We expect new PM Gillard to announce a watered down version of the RSPT in the coming weeks."

The overall market had a more subdued response, with the All Ordinaries up 0.2 per cent at 4,518 by 1:13pm.

The Australian dollar has also been relatively steady, hovering around 87.5 US cents.