Aluminium smelter, a legacy of "Think Big", to be sold as part of major restructure of Australian resource giant.

Mining giant Rio Tinto has come out swinging against the carbon tax proposed by the Australian government.

The Major Electricity Users Group (MEUG) is up in arms about high electricity spot prices which it says will force exporters to make drastic cuts to production.

Rio Tinto's Tiwai Aluminium Smelter today announced a 5% production cut, reported to result in a reduction of 30MW of power demand and a decrease of about 1500 tonnes of aluminium per month.

MEUG chairman Terrence Curie said in a release yesterday that other energy-intensive companies have also cut production in response to high power prices.

Australian mining stocks recovered ground this afternoon after tumbling early on the back of planned new profit tax hikes.

Craigs Investment Partners broker Nigel Scott said the market had anticipated negative news in the sector and some of the downside could have already been priced in over the last week or so.

BHP, for example, had been up at $44 two weeks ago.