Australian Mining Tax Reduced

The new Australian government has reached agreement with mining companies on the Mineral Resources Rent Tax,which had generated controversy and ultimately brought down the government of former Prime Minister Kevin Rudd.New Prime Minister Julia Gillard said the agreement will maintain Australia's standing as an attractive and competitive business destination.She believes they've struck the right balance between corporate and public interests.The tax on iron ore and coal was reduced from 40 to 30%,and the threshold levels were raised,bringing the number of companies subject to the tax down to 320 from 2500.
The Australian dollar rose 0.25 when the agreement was reached.Shares of the two biggest mining firms in the country,BHP Billiton and Rio Tinto,also rose on the news.The dispute had lasted for two months.Peter McGuire,Managing Director of CWA Global Markets,said Ms.Gillard acted very decisively and quickly to turn this thing around.The reality is that Australia is resource-based,and mining is the number one headline,Mr.McGuire explained.
Rio Tinto(RTP),BHP Billiton(BHP)