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The Mining Drill is an electric mining tool. It has the capabilities of an Iron Pickaxe, but faster. It can mine through stone, ores, dirt and sand. It can be charged by a BatPack and a LapPack, or by using a charged RE Battery. It cannot mine obsidian.
You can also turn the Mining Drill into a Diamond Drill which can mine through obsidian.
Crafting the Mining Drill gives you the "Meet the Dentist" achievement.