Lex: Australia's resource tax

The Australian government’s swift move to scrap a proposed resource super profits tax and replace it with a new-look tax on iron ore and coal is a huge win for the mining industry and should go a long way to removing the cloud of uncertainty hanging over the country’s most profitable sector. Julia Gillard, the new prime minister, on Friday caved in to the ruthless opposition from the mining industry which shelved up to A$220bn ($186bn) worth of investment projects in Australia since her predecessor announced the so-called “super tax”. Richard Stovin-Bradford analyses the implications for miners.