It was the compromise we had to have, with Julia Gillard announcing this morning the government’s new deal with the mining industry.

Labor’s failed Resources Super Profits Tax has been heavily watered down, with $1.5 billion chopped from expected revenues. It will now be known as the Minerals Resource Rent Tax (MRRT).

The tax will apply to iron ore and coal and will be capped  at 30%, down from the originally proposed 40%.

This morning’s announcement officially ended a rancorous two month tussle between the government and the mining industry, and marks another obstacle dodged by Labor en route to this year’s federal election.

Was it a sensibly handled compromise, a blatant cave-in or simply another back flip?

Here’s what the pundits are saying.

The Australian

Bryan Frith: Miners should get the new mining tax deal in writing

The ongoing saga of the RSPT only emphasises Gerry Harvey got it spot-on with his depiction of the federal government as “bloody amateurs”.  This has been demonstrated with the exit of Kevin Rudd and the now indecent haste to cobble together a new package in order to clear the way for the new PM, Julia Gillard.

Matthew Stevens: Don’t frown, Wayne, this is for the best

After enduring two months of public booting by the mining industry, the Deputy Prime Minister’s super tax has been vigorously pruned by his new boss, acting in concert with the trio of miners that were supposed to stump up about 80 per cent of the $9 billion or so in annual earnings it was expected to pump into commonwealth coffers.

The Punch

Tory Maguire: Compromise or capitulation? Gillard’s mining backdown

If Kevin Rudd had done this deal he would have been crucified – but last night there a call came from the cabinet room – “champagne!”.

The Age

Katherine Murphy: Deal hammered out after days at the coalface

Like, lump or loathe this deal, it will be Gillard’s circuit-breaker, not Kevin Rudd’s. Politics in the end makes everyone yesterday’s hero.

Sydney Morning Herald

Malcolm Maiden: Resource tax still Gillard’s albatross

Given the extent of the rewrite, it is difficult to see the government holding on to its commitment to balance the federal budget by 2013 without making cuts elsewhere.

Julian Lee: How a $7m advertising campaign saved a fortune

Putting aside the sheer volume, advertising experts said the miners won because their ads worked better and because they struck first.