The member for Batman had been serving since being elected into federal Parliament in March 1996, having previously served as president of the Australian Council of Trade Unions.

He became federal minister for resources and tourism following the installation of Labor into power following the 2007 federal election.

Ferguson drew praise from the resources industry during his tenure of minister for his deep understanding of the industry and attitude towards development.

He was dumped from the front bench following an extraordinary leadership challenge launched by Simon Crean against incumbent Julia Gillard.

Crean was attempting to force leadership tensions between Kevin Rudd and Gillard to a head but Rudd elected not to challenge, saying he did not have the numbers to do so.

The aborted challenge cost Ferguson dearly, as he was outed as a Rudd supporter.

Both the Australian Petroleum Production and Exploration Association and Minerals Council of Australia expressed their thanks to Ferguson after he was banished to the backbenches.

"He has been a valued and effective advocate for policy that has seen our industry invest hundreds of billions of dollars and bring Australia's largest resource projects to fruition," APPEA said at the time.

"His vocal support for project investment outcomes has always clearly been driven by his appreciation of the jobs, wealth and training opportunities that flow from them."

Minerals Council of Australia acting chief executive officer John Kunkel said Ferguson had a deep understanding of the mining industry and a strong commitment to consult with the industry on policy challenges.

"He understood the need for Australia's mining industry to remain competitive in global markets," Kunkel said.

"He recognised that Australia's status as a premier mining country is not preordained by our resource endowment.

In a parting speech to the House of Representatives today, Ferguson said the resources industry should not be demonised and the sector was vital to growing Australian prosperity.

"Creating opportunities by working with business is not the same thing as pointless class rhetoric. In essence, we need to grow the pie to share it," he said.

"On my watch as minister for resources I am proud to have helped facilitate the biggest pipeline investment in our resources sector this country has ever seen."