Should I Buy or Hire Mining Equipment in Australia?

If you are in the market for mining equipment in Australia, you need to decide whether to hire or buy the equipment for your mining plant. This is a big decision and making the wrong decision at this point can have ongoing repercussions. So let’s look at the pros and cons of buying mining equipment versus hiring the same equipment.

Pros and cons of buying mining plant equipment

The decision to buy your mining equipment is really going to be based on the state of the resources market at the moment and whether you want to sink your hard earned capital into equipment.

CONS: When you buy mining equipment, you are tying up capital that could be put to better use expanding your business or taking advantage of other opportunities that come your way. This is because this type of equipment requires a large monetary investment and you have to register, insure, repair and maintain these massive vehicles.

PROS: The advantage of purchasing your mining equipment in Australia is that you can have it customised to your specific needs. You can also buy the equipment whenever your business demands increase, because you don’t have to wait in line for to hire equipment that is limited in number.

Pros and cons of hiring mining plant equipment

With the resources market at a low point, you might be better off financially in hiring your equipment, so let’s look at the pros and cons of hiring versus buying.
 
CONS: When you hire equipment, you can’t always find what you need at the right time, which means that your contracts run late and you lose money. Sometimes, particularly in busy periods, the right equipment simply isn’t available for hire, so your profits take a beating and you have to lay people off.

PROS: When you hire your mining plant equipment, you can forecast your budget much easier because you simply add the monthly hire costs to your budget. You also save your capital, so if another opportunity comes along you can hop on board and expand your business, taking advantage of other revenue streams.

Regardless of whether you decide to hire or buy, always be sure to contact a company with a reputation for designing and manufacturing robust and reliable mining equipment in Australia.

Mining equipment hire is a hot topic right now, because of the continued downturn in the resources market. With the price of iron ore continuing to plummet, mining maintenance contractors are trying to squeeze every dollar out of their business. So you can see why many people might think that hiring equipment is a much better deal right now, than buying.

There are however, some very good reasons why purchasing might be a better financial decision for mining maintenance contractors. So let’s take a look at the advantages and disadvantages of hiring versus buying.

Mining equipment hire versus purchasing

 
The problem with buying mining equipment is that you have to invest a large amount of your capital into these assets, which depreciate over time and need repairing and maintaining as well. Of course, if you sell your business in the future, then all of your equipment will be considered assets and will increase the value of your business, but you have to spend your capital to buy them in the first place.

When you purchase mining equipment however, you not only have additional assets for your business, but you can also have them customised to your exact specifications. You also don’t have to wait in line for hire equipment to become available, but you can be on top of any job that comes along immediately. This means that you can outbid other contractors and increase your revenue with new contracts, because you have the ability to fulfil these contracts today.

In the current financial climate however, many mining maintenance contractors are holding onto their capital, and waiting for other opportunities to come along, so they expand their business. With money in the bank, it is easier to invest in other opportunities or even branch out into a sideline business to increase your overall revenue.

This is why mining equipment hire has increased in popularity, but there are also some downsides to hiring instead of buying your equipment. The big problem is that you might not be able to hire the equipment when you need it, so you might lose contracts because you just can’t service them on time.

Whichever decision you make, mining maintenance contractors always make sure that they only deal with a reliable Australian company.

AUSSIE TRAILBLAZER

Ausroad pioneers world-first radio-control Contour Loader

Challenge: A large mining client had been conducting a company-wide safety risk assessment. The results highlighted the inordinate risk of stemming holes on contoured, or hilly, terrain. Drill and blasting on contoured terrain is a necessary part of the site development process to level it for production. The client asked Ausroad to develop a machine to improve the safety of this high-risk task that had often involved the use of front-end loaders over unstable ground and even the manual use of shovels and buckets.

Solution: In collaboration with the client, Ausroad innovated a world-first radio-control, purpose-built, track-based, “Stemming Contour Loader”. The rubber track-based unit allows for maximum stability and all-terrain agility, while the radio-control allows the operator to keep at a safe distance.

Result: Not only has this world-first, Australian innovation immensely improved the operator’s safety, it has also increased the operator’s job satisfaction, with Ausroad’s radio-control Stemming Contour Loader being described as a “serious toy for serious work”. On top of this, the overall efficiency has significantly increased with production rates also becoming more predictable as a result from fewer stoppages.

OTHER CASE STUDIES

If you are in the market for mining equipment in Australia, you need to decide whether to hire or buy the equipment for your mining plant. This is a big decision and making the wrong decision at this point can have ongoing repercussions. So let’s look at the pros and cons of buying mining equipment ... READ THE SOLUTION >

Mining equipment hire is a hot topic right now, because of the continued downturn in the resources market. With the price of iron ore continuing to plummet, mining maintenance contractors are trying to squeeze every dollar out of their business. So you can see why many people might think that hiring equipment is a much ... READ THE SOLUTION >

MORE THAN TWICE THE SPEED

Ausroad offers a better stemming solution
 
Challenge: A large mining and resources company was seeking to improve efficiency and safety by reducing manual handling during their stemming process. Their system involved much room for error. The previously used front-end loaders required multiple trips back and forth to stem holes. With explosives already loaded in holes awaiting stemming, and denotation cords extending from the collar of those holes, the excessive vehicle movements were increasing the risk of dangerous and expensive misfires. They needed a better way to get the job done. READ THE SOLUTION >

MORE THAN TWICE THE SPEED

Ausroad offers a better stemming solution

Challenge: A large mining and resources company was seeking to improve efficiency and safety by reducing manual handling during their stemming process. Their system involved much room for error. The previously used front-end loaders required multiple trips back and forth to stem holes. With explosives already loaded in holes awaiting stemming, and denotation cords extending from the collar of those holes, the excessive vehicle movements were increasing the risk of dangerous and expensive misfires. They needed a better way to get the job done.

Solution: We designed a purpose-built Stemming Truck to specifically meet the carrying capacity of the trucks this client already used. The truck significantly reduced the risk of misfire, as there were far fewer vehicle movements, more accurate control in stemming placement and consequently less chance of running over the detonating cords.

Result: According to statistics provided by this client, they can now successfully stem more than 40 holes with 26 tonnes of stemming within 15 minutes. Overall, this has resulted in 60 per cent less time spent completing each production area. Additionally, with fewer vehicle movements and manual handling, the safety of the process has vastly improved. Following the successful delivery of this client’s first, purpose-built Ausroad Stemming Truck, the client has since ordered an additional four trucks.

OTHER CASE STUDIES

If you are in the market for mining equipment in Australia, you need to decide whether to hire or buy the equipment for your mining plant. This is a big decision and making the wrong decision at this point can have ongoing repercussions. So let’s look at the pros and cons of buying mining equipment ... READ THE SOLUTION >

Mining equipment hire is a hot topic right now, because of the continued downturn in the resources market. With the price of iron ore continuing to plummet, mining maintenance contractors are trying to squeeze every dollar out of their business. So you can see why many people might think that hiring equipment is a much ... READ THE SOLUTION >

AUSSIE TRAILBLAZER

Ausroad pioneers world-first radio-control Contour Loader
 
Challenge: A large mining client had been conducting a company-wide safety risk assessment. The results highlighted the inordinate risk of stemming holes on contoured, or hilly, terrain. Drill and blasting on contoured terrain is a necessary part of the site development process to level it for production. The client asked Ausroad to develop a machine to improve the safety of this high-risk task that had often involved the use of front-end loaders over unstable ground and even the manual use of shovels and buckets. READ THE SOLUTION >

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Phone
+61 7 3216 7058
Email
toni@ausroad.com.au