More mining jobs would be available in Australia should the country's proposed carbon tax go ahead, prime minister Julia Gillard has suggested.

The leader was forced to defend the plans for jobs in industry after a report on behalf of the Australian Coal Association (ACA) claimed 4,700 positions would be lost immediately if a AU$20 per tonne price on CO2 was given the green light.

''Yes there are going to be a few gaseous mines challenged," Ms Gillard explained. "But there is also going to be a huge expansion in this industry that's actually going to create jobs over time."

The government also countered the ACA survey, according to the Age newspaper, noting that it failed to include confirmed compensation packages for the sector and ignored the rising price of coal from 2016 onwards.

Recent figures from the Australian Bureau of Statistics revealed the number of people in employment jumped by 7,800 in May this year.

Posted by Sarah Dixon