Australian Prime Minister Kevin Rudd has stressed that a resource exploration company operating out of West Australia is acting "prematurely" by canceling all its plans and activities mainly because of the Federal Government's planned super profits tax.

Cape Lambert Resources has officially announced that it will be pulling out explorations across Australia on the back of all the uncertainty that has been created by the Government's proposal to impose a whopping 40% tax on mining company profits which are considered "abnormally high" by it.

Mr. Rudd, however, has kept his cool and said that it was inevitable that some companies would threaten to pull out in the face of the proposed tax.

"I would have thought it would have been useful for any company making those sorts of announcements to check with the Australian Government first, work through the detail of how our proposal works through with the circumstances for their particular venture", he said.

As per its newly shared plans, Cape Lambert, which had been looking to undertake some serious drilling activities later during the year, will now be halting all work at its Cape Lambert South iron ore project.

The mining firm is now looking to shift all its exploration activities to projects which are located outside of Australia.