mining shovels

What is a Hydraulic Mining Shovel & How To Finance One

Hydraulic mining shovels are heavy-duty pieces of machinery used in the earthmoving and construction industries. They’re built to move large amounts of material, such as rocks and soil, quickly with minimal effort. In addition to being practical, hydraulic mining shovels can be an invaluable asset for any company that works in excavation and earthmoving.

In this article, we’ll discuss the purpose of a hydraulic mining shovel and its benefits, as well as the cost and financing options available for purchasing one. We’ll also look at renting vs. buying mining shovels and what to keep in mind when searching for financing options that work best for you.

What Are Hydraulic Mining Shovels Used For?

Hydraulic mining shovels are large, powerful machines used in the mining industry to dig up earth and other materials. They are typically equipped with a boom, bucket, and a cab where the operator sits. The boom is a long arm used to reach out and grab materials, while the bucket is a large scoop used to scoop up and move the materials. The cab is where the operator sits and controls the movement of the machine.

Hydraulic mining shovels are used in a variety of mining operations, including:

  • Surface Mining: Mining shovels are used to dig up large amounts of earth and rock, which are then transported to a processing facility.
  • Underground Mining: Mining shovels are used to dig tunnels and move materials through the tunnels.
  • Quarrying: Mining shovels are used to dig up and move large amounts of rock.

The Cost of Hydraulic Mining Shovels 

There are several top brands of hydraulic mining shovels on the market, each with unique features and benefits. Some of the top brands include Caterpillar, Komatsu, and Hitachi. These brands are known for their durability, reliability, and performance and are trusted by many mining companies worldwide.

Pricing for a hydraulic shovel depends on several factors:

  • Size: The size will affect the price of mining shovels. For example, a power shovel is smaller than a backhoe and will cost less.
  • Brand: Different brands offer various price points. 
  • Type: There are many types of hydraulic shovels, including long-reach, amphibious, crawler, dragline, mini, and electric shovels.

The pricing for hydraulic mining shovels varies depending on the brand, size, and features. Caterpillar, for example, offers a range of hydraulic mining shovels, with prices starting at around $1 million for smaller models and going up to $10 million or more for larger models. 

Komatsu also offers a range of hydraulic mining shovels, with prices starting at around $500,000 for smaller models and going up to $5 million or more for larger models. Hitachi offers a range of hydraulic mining shovels with prices starting at around $700,000 for smaller models and going up to $6 million or more for larger models.

How To Finance Hydraulic Mining Shovels

There are several ways to finance hydraulic mining shovels. Some companies opt to pay in full with cash or savings. However, many businesses prefer to use financing. Financing allows them to make regular payments over time, which helps to spread out the costs.

There are a few different financing options available for hydraulic or electric mining shovels. 

Bank Loans or Manufacturer Financing

You can finance the purchase through the manufacturer or a bank loan. These loans often have lower interest rates, but they require a good credit score and plenty of paperwork.


Another option is to lease the shovel, which can be a great option for businesses that don’t want to own the equipment outright. There are both short and long-term leasing options available, depending on your needs.

Renting vs. Buying Mining Shovels

When deciding whether to rent or buy a hydraulic mining shovel, it is important to weigh the pros and cons of each option.

When you rent a hydraulic mining shovel, there are no upfront costs, and the monthly payments can be lower than financing or buying outright. However, renting does not provide any ownership rights to the equipment, and the rental agreement will likely include restrictions on how the machine is used.

On the other hand, when you purchase a hydraulic mining shovel, you own the equipment outright. This allows for more flexibility in how it is used and maintained. You will need to take into account maintenance costs. Additionally, when you purchase the machine upfront, you don’t have to worry about long-term rental agreements or payments.

Advantages of Financing Hydraulic Mining Shovels

Regardless of whether you decide to lease or buy, financing your hydraulic mining shovel can be beneficial. 


Financing through a professional financial broker such as Charter Capital allows you to get the shovel unit that you need without having to come up with all of the money upfront.


Financing also allows you to structure payments in a way that works best for you. For example, you can opt for monthly payments over a set period or arrange for longer terms if necessary. This flexibility makes financing ideal for businesses that need to manage cash flow during times of growth and expansion.

Experienced Professionals

Financing your hydraulic mining shovel through Charter Capital also offers access to experienced professionals who have the knowledge and expertise to structure a deal that works best for you. Our team will take into account your business goals and objectives while making sure to get you the most competitive rates in the market.

We are a family-run business that has been helping business owners find industry solutions for over 40 years. We’d love to help you too. Contact us today, and our team will be happy to answer any questions that you may have about financing hydraulic mining shovels.