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Buying Vs. Renting Mining Equipment

ByAnthony Hendriks

Aug 27, 2014

Powerful and reliable mining equipment is needed for any mining application. But purchasing all the necessary mining machinery can be quite expensive. Furthermore, qualified and skilled operators are needed for proper operation. Teaching the operators to use mining equipment is also expensive and time consuming task. Therefore, many contractors who are in the mining sector choose to rent mining equipment and to hire qualified operators who are qualified and skilled to perform the mining tasks quickly and efficiently.

One rule in the mining sector is that if you plan to use the mining equipment less then 60% of the time, don’t spend money on purchasing mining machines and equipment. Renting mining equipment can be a much cheaper option because the costs of using rented machines are significantly lower. Before making a final decision, you need to evaluate how extensively you are planning to use the mining equipment. If your company is involved in several mining projects and you know that you will need the equipment everyday, buying mining equipment might be the right decision since the operating costs will be lower. However, if you are involved in small mining projects, renting is the best thing you can do.

One benefit of renting mining equipment is that the rental houses always try to offer the newest mining equipment and machinery. They are also well-informed about which mining machines are currently in demand on the market. As a customer, you will have the chance to use new machines and to gain more experience. This way you can complete your mining tasks quickly and with positive results.

Any heavy mining machinery that you might purchase is a capital expense, which means that it is a subject to taxation. The investment cannot be returned within one year of purchase, and as the time passes their value and functionality depreciate. If you are not using the equipment extensively, you might end up with expensive mining equipment that has low resale value. In addition, if the equipment is not maintained properly, the resale value will be even lower once you decide to sell the mining equipment.

Another factor that needs to be closely considered is the transportation cost. If you are working on a project that is far away from where you are located at the moment, transporting the mining equipment and the workers can be quite expensive and time consuming task. If this is the case, renting the equipment you need will be a better solution. Another problem is the storage and the fleet management. If you plan to purchase several mining machines, you will need enough space where you will keep and perform the regular service inspections. This can be expensive for your business. The rental houses have the needed storage space, meaning that you don’t have to bother with this issue. Furthermore, you don’t need a license when using rented equipment, and this is another big bonus.

By Anthony Hendriks

The life of the party, Anthony is always up for spending some time with family and friends, when not blogging of course! Ever since a child, his love for books of mystery, race cars and travelling keeps on growing so it's difficult for him to single out that one all-time favourite hobby. If there's one thing he hates, though, it's having pictures taken but you already guessed that from his choice of plant photo for the blog.