Australia Government Deal Struck With Miners On Resource Tax

1st Jul 2010 23:01

CANBERRA (Dow Jones)--The Australian government announced Friday a reworked version of its planned new mining tax, featuring major concessions to the mining industry including a reduction in the headline rate of the tax to 30% from 40%. The government has also excluded all commodities from the tax apart from iron ore and coal, easing industry fears about the potential impact on base metals projects. While the deal marks a major backdown from the original proposal launched in May, the resolution of the heated dispute with the mining industry over the tax is a big win for new prime minister Julia Gillard and may pave the way for her to call a quick election. Under the revised deal, onshore oil and gas projects including the booming coal seam gas sector in Queensland state will be covered by the existing Petroleum Resource Rent tax, levied at 40%. -By Alex Wilson, Dow Jones Newswires: 613-9292-2094; [email protected] (END) Dow Jones Newswires July 01, 2010 18:01 ET (22:01 GMT)