Operating lease · Mining services
Operating lease for mining services
Mining services finance is contract-driven lending for the plant, haulage and light vehicle fleets that support mine sites, structured so repayments and asset terms line up with the length of the contract being serviced.
How a operating lease works for mining services
An operating lease keeps the asset off your balance sheet and hands the residual value risk to the financier, which is the right shape when plant is bought for a defined contract with no certainty of renewal. Payments are fully deductible as an operating expense and you return the asset at the end rather than trying to sell mine-worn gear into a soft market. It costs more over the term than owning, and that premium is essentially the price of not being stuck with equipment you cannot redeploy.
The cash-flow pattern we plan around
Large mobilisation spend up front, then monthly claims to a major mining client on 30–45 day terms for the life of the contract.
What mining services typically fund
- Mine-spec light vehicle fleets
- Loaders, water carts and support plant
- Service trucks and workshop equipment
- Mobilisation and camp establishment costs
Operating lease for mining services: the numbers
| Typical amounts | $10,000 – $2,000,000 |
|---|---|
| Term | 12–60 months |
| Indicative rates | 7.5% – 15% p.a. |
| Repayments | Monthly rental |
| Speed | 2–5 business days |
| Documents mining services usually need | ABN and contract or letter of award · 12 months of bank statements and latest financials · Fleet or plant schedule with quotes |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Mining services equipment finance
Mining services equipment finance is secured lending for the vehicles and plant used to service mine sites, where the finance term is set against the length of the client contract rather than the maximum life of the asset.
Contract-matched term
A contract-matched term is a finance term deliberately set no longer than the contract generating the income, reducing the risk of carrying repayments on idle plant after a scope ends.
What is an operating lease?
An operating lease is a rental of business equipment where the financier retains ownership and residual value risk. The business pays a fixed rental for the agreed term and returns the asset at the end, with no obligation to purchase it.
Operating lease vs finance lease
Under a finance lease the lessee guarantees the residual value and effectively carries the risk of the asset being worth less than expected. Under an operating lease the financier sets and carries that residual, so the lessee can return the asset with no further obligation.
What is fair wear and tear on a leased asset?
Fair wear and tear is the deterioration expected from normal use over the lease term, as defined in the return conditions. Damage, excess hours or kilometres and missing components fall outside it and are charged to the lessee when the asset is returned.