When Purchasing A New Drill Rig: 4 Factors To Take Into Consideration

To succeed in the mineral exploration drilling business, having high-quality drill rigs and equipment is essential to completing contracts, winning bids, and making money. The purchase of new drilling rigs is a significant choice that is influenced by a wide variety of circumstances and variables. Or cost more to purchase than some choice that can get the same results while charging less?

As a result of the recent slump in the industry, many drilling rigs had been sitting idle, which made it simpler to cannibalize components and parts from other drilling rigs to keep active drilling rigs operating. Most drillers were maintaining the drilling rigs they already had by making necessary repairs to continue drilling rather than investing money in new drilling rigs and technologies. 

Resources: Whether or not the drilling business has the time, expertise, and capabilities to perform an overhaul on a drill rig that has been inactive and needs work are other considerations to consider in addition to the expenditures involved. To get drill rigs ready to mobilize for drilling contracts, an overhaul can take anywhere from three and a half to four months and requires facilities, tooling, and a labor pool of mechanics at the time. The knowledge to get drill rigs ready.

Availability:  As a result of the strengthening of the market, everyone should prepare for lengthier lead times, regardless of whether they are renovating or purchasing new. When the market slumps or is extremely low, there is a more excellent supply of goods available, manufacturing facilities are not as busy producing new rigs, and lead times are cut significantly. As the market continues to strengthen and more contracts are won, there is less inventory available, manufacturing plants are busier constructing more rigs, and lead times tend to lengthen. 

Emerging technologies: If you now operate with an older fleet of drill rigs, purchasing a new drilling rig machine gives you the potential to drill more productively for a more significant number of meters. In general, newer rigs are more productive, offer more reliable uptime, and significantly increase the number of built-in safety features compared to previous rigs. An older drilling rig may not be up to the task of meeting the enhanced mine site safety criteria, which could result in the loss of a contract for the drilling contractor. 

The cost of the rod handling equipment is eventually recouped

Drill rigs equipped with rod handling technology typically have personnel that experience less overall stress and strain, as well as fewer hand and back injuries. A single crew member can physically handle rods, which is unnecessary when using rod operating machinery, so labor expenses and staffing requirements are reduced. In addition, gaining a reputation in the industry as a drilling service provider who uses modern equipment equipped with rod handling capabilities will likely result in additional invitations to submit bids. 

Conclusion:

If all the benefits of buying a new rig make financial sense for you, then you should consult with an expert to find out what options are available to satisfy your requirements both now and shortly.