Key takeaways
- What it does: Funds heavy plant and specialised mining gear so you keep working capital free instead of paying the full cost upfront.
- Most common structure: A chattel mortgage, where you own the asset from settlement and the lender holds security until it is repaid.
- What gets financed: Loaders, excavators, diggers, all-terrain vehicles and highly specialised technical equipment, new or used.
- Remote-friendly: Specialist lenders work with FIFO operators and remote-site businesses, handling paperwork and liaising with the seller.
- Rate range: Secured equipment finance commonly runs from around 6.5% p.a., with heavy or specialised plant attracting a loading on top.
Why financing makes sense for mining plant
Mining and resources equipment is expensive, long-lived and often deployed far from a head office. A loader or specialised rig can decide whether you can take on a contract, but paying cash for a machine that runs into six or seven figures locks up the capital you need to actually run the site.
Asset finance is built for this. It lets you acquire the plant, match the cost to the revenue it generates, and preserve cash for fuel, labour and the rest of the operation. Demand for equipment finance is strong across the board: Australian businesses invested just over $23 billion in equipment and machinery in the three months to December 2025, a year-on-year rise of 9.4% according to ABS data cited by Money.com.au.
Most operators choose a chattel mortgage for the combination of ownership and tax benefits, but the right structure depends on how core the asset is and how long you will keep it.
The main finance structures
There is no single right answer; it depends on your tax position and whether you want ownership. The table below sets out the main options:
| Structure | Who owns it | Best for |
|---|---|---|
| Chattel mortgage | You, from day one | Core plant you intend to keep, with tax claims |
| Commercial hire purchase | Lender, until final payment | Ownership at term end with similar deductions |
| Equipment lease | Lender, you lease | High-value, long-life plant with a residual |
| Rent to own | Lender, until buyback | Short contracts or testing before committing |
Choose a chattel mortgage when you want to own the asset from settlement and claim GST, depreciation and interest. It is the structure most heavy-machinery operators default to, and sits within broader equipment finance options worth comparing.
Choose a lease or rent to own when the contract is short, the technology changes quickly, or you want the asset off your balance sheet. These structures reduce disposal risk on plant you do not intend to keep for its full working life.
What drives your rate and cost
Mining plant pricing is specialised, and a few factors do most of the work in setting your rate:
- Asset type and resale: Mainstream machinery with strong resale demand prices lower; niche or single-purpose plant attracts higher rates or lower advance limits.
- New vs used: Newer assets hold their value better as security, so they generally price below older or heavily used machines.
- Heavy-asset loading: Lenders may apply a 2 to 6% loading on heavy plant and machinery compared with mainstream vehicles.
- Documentation and history: Established operators with full financials price lower; low-doc options exist for those without complete records.
Watch the fees and exit terms, not just the headline rate. A sharp rate can hide steep early-termination costs, which matter if you sell or trade the machine before the term ends. Terms commonly run 1 to 7 years, with balloon or residual options to shape the repayment.
A realistic scenario
Consider a mining-services contractor at a remote site who wins a new haulage contract that needs an additional loader priced at $480,000. The contract starts soon, the team is FIFO, and paying cash would strip the cash buffer needed to mobilise crew and run the site.
Working with a specialist lender that supports remote operators, the contractor arranges a chattel mortgage with ownership and the GST claim from settlement. The lender handles the paperwork and liaises with the seller, so the machine is on site without the contractor leaving the job. Repayments are structured to match the contract's billing, and a modest balloon keeps monthly cash flow comfortable through the ramp-up.
Is mining equipment finance the right choice?
Mining finance suits most resources operators, but the right structure depends on your situation. Use this to sense-check yours:
- The plant produces income: A clear link between the machine and the contract it enables makes finance straightforward to arrange.
- You want ownership and tax benefits: If claiming GST, depreciation and interest matters, a chattel mortgage is usually the strongest fit.
- The contract is short or tech changes fast: If you will not keep the asset for its full life, a lease or rent to own avoids disposal risk.
- You operate remotely: Choose a lender experienced with FIFO and remote-site operators who can manage the process at a distance.
Frequently asked questions
What mining equipment can I finance?
The full range of mining plant and equipment, from heavy machinery like loaders, excavators and all-terrain vehicles through to specialised technical and scientific gear. Both new and used assets can be financed, subject to age and condition.
Can I get finance for a remote operation?
Yes, specialist lenders regularly support FIFO operators and remote-site businesses. They handle the paperwork and liaise with the equipment seller to streamline the purchase wherever you are located.
Why are mining equipment rates sometimes higher?
Heavy and specialised plant can attract a loading of around 2 to 6% over mainstream vehicle rates, reflecting thinner resale markets. Newer, mainstream machinery with strong resale demand prices at the lower end.
Can I finance used machinery?
Yes, used plant is commonly financed, though the rate, term and advance depend on the machine's age and condition. Lenders assess resale value carefully on second-hand specialised equipment.
Should I include a balloon payment?
A balloon lowers your regular repayments but increases total interest and leaves a lump sum to settle or refinance at the end. It suits operators prioritising monthly cash flow over total cost.
What matters most
Mining equipment finance lets you put revenue-earning plant to work without draining the cash your operation runs on. The decisions that matter are choosing the structure that fits your tax position and how long you will keep the asset, working with a lender who understands remote and FIFO operations, and weighing the genuine cost (rate, loading, fees and any balloon) against the contract the machine unlocks. Get those right and the plant earns its keep from the first shift.
Need funding for mining equipment? Get a free quote today.
