Environment Minister Tony Burke says the closure of a BHP mine in Queensland isn't a sign the federal government is bleeding too much money from miners.
The closure of the mine at Bowen Basin has put 1400 jobs at risk.
Mr Burke on Friday denied the government's mining tax was too tough on the strongly performing industry.
'This is the sector of the economy where yeah, we've got a problem with this particular project but this is a sector of the economy that's been going really strongly,' he told the Seven Network on Friday.
He said the mining sector was largely responsible for pushing the Australian dollar higher and putting pressure on manufacturing.
Shadow Treasurer Joe Hockey said it was hazardous for the government to rely on the mining industry to raise revenue.
'All booms end in a bust... if all the revenue growth and tax growth is coming out of the mining industry what happens when the boom goes to bust,' he said.
'Even getting to a surplus is a temporary solution if it's based on mining revenue.'
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