Mining operations fuel the needs of industrialization not just by supplying raw materials but also by pumping investments in the mining equipment manufacturing industry as well. In this scenario with increased emphasis on profitability, mine operators have to make the tough decision of either investing in new equipment while incurring heavy costs or save money by investing in used equipment but running the risk of being stuck with outdated machinery.
Crownsmen Partners President Jerrod Downey and Director of Management and Training Gaudy Molina interview industry experts to find out what is the best direction for mine operators while choosing the right equipment.
According to Jan Petzold, CEO of German mining equipment provider GHH-Fahrzeuge (GHH) “Even personally, something new has a greater value than something used, even if you have the same type of warranty on it. Benefit of new is that you have state of the art equipment with lesser worries about maintenance. With used there is always a worry of using an equipment which has an older emission class engine. So for this we offer our customers, retrofit and rebuild services where we take the machine back (not buy it) and rebuild it so that up 70.0% of its original life is restored. The benefit for the client here is that a big a portion of the capital investment he made years ago can be restored”
On the contrary Jordan Downey, International Sales Manager at Savona Equipment feels “new equipment costs much more and has much more lead time. It can take up to 6 weeks or more to deliver so, if the need is immediate, it makes more sense to invest in used equipment and not jeopardize operations.”
Read full industry report – New vs. Used Mining Equipment
Listen to the podcast – Episode 7. New vs. Used Mining Equipment