Australia approves 30% mining tax

The Australian government has approved a new 30 per cent tax on big mining companies, a booming sector that may have prevented Australia from suffering the same plight as most nations during the global recession.



Industries outside the mining sector are struggling against a strong Australian dollar and shortages of skilled labour as big mining wages lure away workers.



The government expects the tax will raise $3.9 billion in the fiscal year starting July 1 from mining giants including BHP Billiton, Rio Tinto and Xtrata.



The tax will only apply to iron ore and coal mining — Australia's two most valuable exports.



AP