Debt Collection and the Mining Industry

What are the specific challenges of debt collection in the mining industry?

THe mining industry has a number of specific issues which can make it difficult to collect debt. Because mining companies often deal in debts which are accross national borders, the issue of debts accross foreign borders and the need to possibly enforce debts in a foreign jurisdiction can be aspects of the debt collection process which are specific to the debt collection process in the mininng industry.

In Australia, because of the relative strength of the mining industry the debt collection problems have not been as difficult as first thought. However, but falling commodity prices of late and the increasing foreign ownership of the mining industry in Australia have in some cases lead to the situation of debt collection beuing necessary accross foreign borders.

Also, the debt collection matters in relation to mining are usually in rleation to very large contracts because the mining industry generally conducts transactions on a very large scale. This means that where there is a dispute in relation to a contract, there is a very large amount of money involved. Usually this means that the legal aspects of debt recovery are dealth with in higher courts for mining contracts. The matter may be so large intially that it will go the Supreme Court of New South Wales instantly which means that it is over $750,000.00 ALso, because the debtors are often overseas it may be necessary to file in a foreign juridiction to recover debt like this. This means that there will be a whole new level of complication involved in the collection of a debt as you will be dealing with the laws of a foreign jurisdiction.

If you have any questions in relation to any of this, you can post to one of our lawyers below or you can also aks for a free initial assessment of your debt collection matter by filing out the form to the right.

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