Prime Minister Julia Gillard has confirmed the Government has reached a deal with the miners over its new tax, but it comes at the cost of a reduced cut to company tax.
VIDEO REPORT: Gillard announces revamped mining tax
The Government has made several key concessions demanded by the mining sector, including on the rate, threshold at which the tax applies and the resources it covers.
The Resource Super Profits Tax has even been renamed the Minerals Resource Rent Tax.
The deal has already prompted mining giant Xstrata to announce it will resume a project that it had suspended because of the resources super profits tax.
The $400 million Ernest Henry mine expansion in Queensland will go ahead, and it is reviewing its plans to suspend the Wandoan coal project.
Xstrata Copper chief executive Charlie Sartain said the decision to retain existing taxation and royalty structures for copper had given the company "sufficient confidence to recommence with immediate effect these significant projects that form an important part of our business strategy in north west Queensland.
It also helped the stockmarket open higher this morning.
The benchmark S&P/ASX200 index was up 27.2 to 4264.7 points and the broader All Ordinaries index rose 27 points to 4289.7, as of 10.15am.
The deal will mean the Government gets $1.5 billion