Why Mines Buy Used Equipment
Why Mines Buy Used Equipment
With millions of dollars invested into developing a successful mining operation, mine operators must be careful where they invest their money? When we sat down on The Crownsmen Podcast they wanted to understand why customers often choose used over new equipment. Jordan Downey, our International Sales Manager, discussed the benefits of used equipment and where Savona Equipment comes into play. There are four main reasons why someone will buy used over new equipment.
Reason 1: Used mining equipment and processing equipment often costs less than new.
Mining & Milling equipment is built heavy duty and often designed to withstand some of the harshest conditions. It is also very expensive to manufacture. Once it has been manufactured and put into commission it can last for years and years. If a mine shuts down, often the equipment is still functional and only needs to be refurbished before it can be used at another operation. The cost of removing, reconditioning, and shipping mining and milling equipment is often far less than purchasing brand new equipment that will possibly not outperform the used. Equipment such as conveyor systems or hoppers & feeders might only need rollers, electric motors, and guards replaced while an LHD Vehicle or underground rock truck may simply require new tires or a new engine or even just a general reconditioning.
Reason 2: Lead Times for Used Equipment is often less than ordering newly manufactured equipment.
Manufacturing Ball Mills or Cone Crushers is not like a car assembly line. Designing, engineering, casting, and assembly is highly technical and costly. It can take weeks or even months to produce a single machine and often a manufacturer has back orders and a mine operator simply cannot afford to wait, so used equipment becomes a perfect option. With entire Complete Recovery Plants for sale, a mine operator can get a fully engineered plant delivered in a fraction of the time it would take to manufacture all new equipment. This can also be extremely important if equipment breaks suddenly and the mine needs a quick replacement.
Reason 3: If an existing Ore Processing Plant or Mining Operation needs a specific make or model that is no longer manufactured, used is a great option.
Because mining equipment can have such a long life, often a manufacturer will stop manufacturing the products or will get bought out while the equipment is still fully operational. In these cases finding a new piece of equipment that integrates into the mine’s current operation can be challenging or even impossible. Used equipment can often be easily swapped into an existing mining operation.
Reason 4: Used equipment can be bought to replace parts in existing mining equipment.
If a mine is fully operational and one part of one piece of equipment breaks the entire mine can shut down. Examples of this are electrical equipment when one section of a Motor Control Center (MCC) needs to be replaced or one cell of a flotation machine, the parts from used equipment can quickly be replaced or used as backup without having to invest in new replacement parts or replacing the entire units.
Used equipment is a way to save costs and operate more efficiently around the world. Companies like Savona Equipment provide a unique option for projects in the exploration stages that need a refurbished diamond drill or a mobile trommel wash plant, or for a small mine that is about start operations and needs fully functional equipment quickly, or even a full scale mining operation that can’t afford downtime. Some projects specifically require new equipment but more and more used is becoming the better option for the mine operators and for investors.
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