The mineral exploration drilling business is a money-making one. This is why in today’s time more and more drill rigs are for sale. This is very evident in so many countries like in Australia that has realized how much money the equipment can bring in. This equipment is very critical in completing contracts, winning bids, and of course, make money. But some companies that are not completely convinced that it can make money, there’s always a question if it’s worth to invest in it.
To help you in making the right decision, below are some things you can consider when buying a drill rig.
Considerations when Buying a Drill Rig
Along with the market that is constantly improving, it is expected that lead times will be longer whether you are buying a new one or just rebuilding. When there is a decline in the market, the inventory tends to be higher and plants are not so busy building new drill rigs. This leads to a reduced lead time. On the other hand, when the market improves and contracts increase, the inventory is lower and plants get busy building rigs. This increased the lead time.
2. New Technology
If you used to have an old drill rig, purchasing drill rigs for sale in Australia will give you the chance to drill productively. Newer ones are always more productive and offer reliable uptime. They also come with more safety features. With more safety requirements, new rigs can meet such while older ones may not.
A used drill rig is prone to breakdowns compared to new ones. Downtown is a big factor that affects drilling contracts. Cost can quickly pile up as a result of loss of productivity, repairing the rig, and rig uptime contractual obligations. A drill rig with good operating condition can help in productivity. Aside from this, it can also keep the contractor from being kicked off the site.
4. New Versus Used Drill Rigs
When there is a need for a rig, there’s a dilemma whether to purchase a new or used one. But the thing is, it’s difficult to find a gently used equipment and it’s not easy to be certain of how gentle or harsh it has been used. For example, hydraulic systems can be delicate and when mistreated or experiencing contamination, it can cost a lot to replace motors, pumps, or valves. This can be a big risk to buy a drill rig if its history and maintenance are not known.
When buying a new drill rig, you may be tempted to choose based on price, especially that there are so many low-cost options available in the market. But just like when buying other things, you need to check the total cost of the ownership. In this case, lower priced rigs may have higher ownership cost. When choosing take your time until you find one that will bring you returns not losses.
It can be a challenge to find an investment-worthy drill rig in the market today. But taking your time to make sure that you get the right one will yield great benefits and quality work.