Corrs in Brief: Implications of PPSA Issues Affecting Mining Services Contracts

The Personal Property Securities Act 2009 (Cth) (PPSA) commenced on 30 January 2012. The PPSA is broad in its application and will impact on the mining industry. It is important that contracts contain comprehensive provisions dealing with the PPSA to ensure that a party who may have a security interest is adequately protected.

It is common for mining services contracts to contain provisions dealing with plant and equipment. In some instances the Contractor will be responsible for the provision of plant and equipment to be used to perform the mining services, such equipment may be owned by the Contractor or leased or hired by the Contractor. The Principal will want the right to use the Contractor-supplied plant and equipment in the event the contract is terminated, so as to enable it to continue with the mining services. In other cases, the Principal may provide the plant and equipment for the Contractor's use. In either event, the parties will need to consider