If you’re running an underground mining project in Australia, sooner or later, you’ll face the same question:
Is it smarter to hire underground drilling equipment, or buy it outright?
In most Australian underground mining projects, hiring drilling equipment is the lower-risk and more flexible option, particularly for contractors, short-term projects and variable production environments. Buying can make sense for long-life, stable operations, but only when utilisation is guaranteed.
As underground mining equipment hire specialists, HDD Solutions delves into the details so you can make a decision that’s right for your operation.
Looking for the right underground production drill hire? We’ve got it sorted. Speak with the HDD Solutions team on
The Pros and Cons of Hiring vs Buying Underground Mining Drills
Before we go into more detail, let’s take a quick look at the broad arguments for and against owning vs hiring.
| Aspect | Hiring Underground Drilling Equipment | Buying Underground Drilling Equipment |
|---|---|---|
| Upfront Cost | Low upfront cost. No major capital outlay. | High capital expenditure required. |
| Cash Flow | Preserves working capital for operations and expansion. | Ties up capital that could be used elsewhere. |
| Financial Risk | Lower financial exposure if projects slow down or stop. | Higher risk if utilisation drops or contracts end. |
| Flexibility | Scale fleet up or down depending on project demand. | Fixed asset – difficult to adjust quickly. |
| Project Duration | Ideal for short-term, trial or variable projects. | Better suited to long-life, stable operations. |
| Maintenance Responsibility | Maintenance typically supported by a hire provider. | Full responsibility for servicing, parts and downtime. |
| Technology Access | Access to modern, well-maintained equipment without long-term commitment. | Risk of owning outdated equipment over time. |
| Utilisation Risk | Pay for equipment when you need it. | Idle equipment continues to cost money. |
| Balance Sheet Impact | Keeps large assets off the balance sheet. | Increases asset base and depreciation obligations. |
| Long-Term Cost | Potentially higher if used continuously over many years. | Can be cost-effective if utilisation is consistently high. |
Now let’s consider some of these in more detail.
What’s the Real Cost of Buying an Underground Drill Rig?
Buying an underground drill rig is a major capital decision. A new development or long-hole production rig represents a multi-million-dollar investment once you factor in:
- Purchase price
- Freight and commissioning
- Operator training
- Maintenance infrastructure
- Spare parts inventory
- Depreciation
- Downtime risk
On paper, ownership can look attractive over a long mine life. But the reality in Australia is that few operations run without interruptions, scope changes or production fluctuations.
When Does Buying a Drill Rig in Australia Make Sense?
Buying can make sense if:
- You have a long-life mine (10+ years).
- Production demand is consistent and predictable.
- Capital funding is strong and approved.
- You have in-house maintenance capability.
If those boxes aren’t all ticked, ownership risk increases.
Why Hiring Underground Drilling Equipment Often Makes More Sense in Australia
Hiring shifts capital expenditure (CAPEX) into operating expenditure (OPEX), which matters.
For Australian mining contractors and project managers, preserving capital is often more valuable than owning assets.
Hiring allows you to:
- Deploy equipment quickly
- Scale up or down based on project demand
- Avoid long-term debt exposure
- Reduce idle asset risk
- Access well-maintained, ready-to-work machines
In a cyclical market like Australia’s, where projects can ramp up or stall depending on commodity prices, flexibility is power.
Ownership should be a strategic decision made once production stability is proven, not at the start of uncertainty. Because the most expensive rig isn’t the one you hire; it’s the one you own and can’t use.
Is Drill Equipment Hire in Australia More Expensive in the Long Run?
Not necessarily.
If your rig sits idle between contracts or during production delays, ownership becomes far more expensive than expected. Hiring ensures you only pay for productive time.
Contractors: The Hidden Risk of Ownership
If you run an underground drilling contracting business in Australia, utilisation is everything.
A purchased rig sitting idle between contracts doesn’t just cost money, it erodes margins.
Hiring gives contractors:
- Fleet flexibility
- Reduced financial exposure
- The ability to tender aggressively without long-term asset risk
For short-term contracts, trial projects or remote operations, hiring is often the safer commercial move.
Project Managers: Managing Capital vs Managing Output
Australian mining project managers are increasingly under pressure to deliver output without blowing budgets.
Hiring underground drilling equipment allows you to:
- Avoid tying up capital early in a project lifecycle
- Preserve funding for infrastructure or expansion
- Adjust equipment strategy if geological conditions change
A Practical Look at Two Proven Underground Drill Rigs
Let’s look at the types of reliable and high-quality machines available for hire at HDD Solutions:
Sandvik DD321-40
The Sandvik DD321-40 is a compact two-boom electro-hydraulic development drill rig designed for face drilling and cross-cut operations.
Key strengths include:
- Compact design for small-to-medium drifts
- Dual boom coverage
- Reliable hydraulic rock drills
- Strong performance in development applications
For long-term development work in a stable underground operation, owning Sandvik underground drills like this may make sense.
But if your development schedule fluctuates, hiring a DD321-40 allows you to access proven performance without the capital burden.
Sandvik DL431-8C
The Sandvik DL431-8C is a compact, electro-hydraulic long-hole drill designed for precision production drilling in underground mining operations. Built for accuracy and reliability, it is well-suited to ring drilling in medium-sized drifts.
Key features include:
- Compact carrier design for manoeuvrability underground
- Automated drilling controls for improved accuracy and repeatability
- High-performance top-hammer rock drill
- Reliable long-hole production capability
For established underground operations with consistent long-term production demand, owning a long-hole production drill like the DL431-8C can deliver strong returns when utilisation remains high.
However, in projects where ore bodies vary, production schedules fluctuate, or contract durations are uncertain, hiring a Sandvik DL431-8C through HDD Solutions offers great flexibility. It allows operations to maintain production capability without tying up capital in a specialised long-hole unit that may not be required year-round.
Atlas Copco Simba S7C
The Atlas Copco Simba S7C is a long-hole production drill rig designed for precision ring drilling in underground mining.
It’s known for:
- Compact manoeuvrability
- Automation capability
- Efficient long-hole drilling performance
- Suitability for confined underground environments
Production drilling is highly sensitive to ore body variability and production planning changes.
Hiring an Atlas Copco drill allows operations to maintain output flexibility without locking in capital to a single production configuration.
Find out more about our underground mining fleet for rent.
Why Hire Your Underground Drills Through HDD Solutions?
When you decide hiring makes sense for your project, who you hire from matters just as much as whether you hire. At HDD Solutions, we’re not just another equipment supplier; we’re specialist underground mining partners who understand what makes drill rigs perform reliably in tough Australian conditions.
Trusted Mining Expertise Australia-Wide
HDD Solutions has deep industry experience in heavy-duty equipment hire and maintenance specific to underground mining. Our team knows each machine in our fleet inside out, so you get reliable performance with minimal fuss and fewer surprises on site.
Flexible Short- and Long-Term Hire Options
Whether your project needs a drill rig for a few weeks or a major production phase, we tailor hire terms to suit your schedule and budget, not the other way around. You won’t be locked into unnecessary equipment costs when project demands change.
Well-Maintained, Ready-to-Work Fleet
We offer both new and reconditioned machinery, all maintained to high standards to keep your operations running shift after shift. That means less downtime, fewer reliability headaches, and more focus on your operational goals rather than equipment logistics.
Reduced Operational Burden
Hiring through HDD Solutions helps you avoid the cost and complexity of owning and servicing heavy underground gear. You don’t need to build maintenance capacity, manage depreciating assets, or store hard-to-move equipment; we take responsibility for that side of things, letting you concentrate on productivity.
Access to Modern Equipment and Technology
The market rarely stands still. By hiring, you tap into modern, well-equipped rigs without the stress of outdated ownership. This lets you stay competitive in a tight Australian mining labour and production environment, and pivot quickly between different project requirements.
In short, hiring through HDD Solutions gives you practical flexibility, strong support, and peace of mind without tying up capital you could better invest in other critical parts of your operation.
Ready to Make the Right Call for Your Mining Operation?
If you’re planning underground development or production drilling in Australia and want to explore flexible equipment options, speak with a team that understands mining conditions on the ground.
Request an Underground Drill Quote and assess whether hiring is the smarter move for your next project.
