Australia softens mining tax hit

Former Prime Minister Kevin Rudd announced plans for a 40% tax on miners' profits. However, a compromise agreement negotiated by his successor, Julia Gillard, has reduced the rate to 30% for coal and iron ore miners. Petroleum and gas operations will still pay a pre-existing 40% tax rate, the government said. Companies including BHP Billiton and Rio Tinto had launched an aggressive lobbying campaign against Rudd's tax plan, warning it could harm economic growth. BHP Billiton said it is encouraged by the new deal which it says is  "competitive".