Australia agrees to reduce new mining tax

Former Prime Minister Kevin Rudd had announced plans for a 40% tax on miners' profits. But a compromise agreement negotiated by his successor, Julia Gillard, has now reduced the rate to 30% for coal and iron ore miners. The deal was struck just a week after Gillard had swept to office and the mining tax had become highly political.

Several of the mining giants had threatened to halt or cancel projects because of  Rudd's proposal, which they said seriously risked Australia's international competitiveness.The agreement means such threats look set to be withdrawn.