Open-pit and Underground Mining Burns More Fuel Than Any Other Operation. Most of It Can't Be Accounted For.
According to peer-reviewed research on open-pit mining fuel costs, fuel consumption accounts for approximately 22% of total operating costs at a surface mine. Underground operations carry additional fuel loads in ventilation, compressed air, and shaft logistics that surface operations do not. Across both environments, a fleet running on manual dip readings and paper-based shaft logs has no reliable way to measure where fuel goes between the delivery tanker and the engine. VERIDAPT closes that gap, from the moment fuel arrives on site to the moment it is consumed.
The Numbers That Don't Add Up
ICMM data on global mining diesel consumption puts the number of large mine haul trucks in global operation at approximately 28,000, collectively burning around 25 billion litres of diesel annually. For individual operations, diesel routinely sits among the top three cost lines on the P&L.
A large haul truck burns approximately 280 litres per hour under load. Across a 50-truck fleet running 600 hours per month, that is roughly 8.4 million litres per year on haul trucks alone, before ancillary equipment, light vehicles, and service trucks. At current diesel prices, that is a fuel spend most open pit operations measure in the tens of millions of dollars annually.
Industry sources report that mining operations relying on manual dip readings commonly experience fuel discrepancies of 3-6% percent of total volume. They cannot explain the gap to auditors, cannot claim it accurately for fuel tax credits, and cannot identify where in the chain it disappeared. They also have no way to know which trucks are burning abnormally, which crews are stopping for fuel unnecessarily, or which pumps are slowing trucks down.
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Underground operations carry an additional layer of fuel complexity that surface data alone does not capture. Ventilation fans, compressed air systems, winders, and ancillary underground equipment run continuously and consume fuel volumes that are rarely measured with the same rigour as haul equipment. Shaft logistics create structural blind spots , fuel delivered underground is often recorded manually with no automated verification against the delivery tanker's meter. Discrepancies typically surface only at month-end reconciliation, when they can no longer be traced to a specific delivery or dispense event. Confined-space fuelling events require documented authorisation trails that paper-based workflows cannot reliably produce.
VERIDAPT has monitored over 30 billion litres of fuel across more than 200 mine sites operated by BHP, Rio Tinto, Glencore, Teck, and others. We observe similar cost leakage points on every mining operation we monitor, surface or underground, that comes to us without a digital fuel management system in place.
The Cost Leakage Points in Open Pit and Underground Operations
PwC's Mine 2025 report notes that rising input costs , with diesel prominent among them , are squeezing margins across the industry's top operators. The leakage points below are where operations consistently lose fuel spend, and what each one costs in real terms.
1. Delivery Discrepancies You Cannot Currently Prove
Bulk fuel deliveries measured by dip readings carry an inherent margin of error. On a large storage tank, a dip reading error of one to two percent is routine depending on tank geometry, temperature, ground level, and operator technique. On a delivery of 100,000 litres, that is a potential 1,000 to 2,000 litres per delivery you are paying for with no automated record to dispute. Across a year of deliveries to multiple tanks at multiple sites, unverified discrepancies compound into material losses.
The VERIDAPT platform automatically meters every delivery, records inflow volumes in real time, and flags discrepancies at the point of delivery, providing verified data for reconciliation with supplier invoices.
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For underground operations, shaft fuel deliveries present the same verification gap with higher operational stakes. Fuel lowered into a shaft on a cage or transported via underground road train has no automated custody transfer point in most operations. VERIDAPT's technology extends delivery verification to underground fuelling points, recording measured volumes at the point of receipt against the Bill of Lading and flagging discrepancies before payment is processed.
2. Trucks Burning Far More Than They Should
Based on VERIDAPT case study data, approximately 1 percent of any large haul truck fleet is consuming fuel at around 20 percent above the expected burn rate for that equipment model at any given time. On a 50-truck fleet, that is likely one truck right now that you cannot identify, because you have no per-vehicle consumption data.
In a documented case study, VERIDAPT's technology identified four haul trucks operating consistently above expected burn rates at a large mine site. Targeted maintenance returned those trucks to normal consumption, saving over 1.6 million litres and approximately $1.07 million USD per year on that site. Scaled to a 50-truck operation, the equivalent saving is approximately $85,000 USD per year, from maintenance you were already planning to do, scheduled on the right assets at the right time.
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Underground equipment, including LHDs, underground haul trucks, and boggers,operate in conditions that accelerate fuel consumption beyond manufacturer specifications: constant gradient changes, high ambient heat from poor ventilation, and continuous stop-start cycles in confined drives. Without per-vehicle consumption data, above-normal burn in underground equipment is typically only identified during scheduled service intervals, by which point the equipment has been operating inefficiently for weeks. VERIDAPT's AdaptSMU vehicle tag works in underground environments with the same function as on surface, tracking per-vehicle consumption against expected burn rates in real time.
3. Crews Stopping for Fuel Before They Need To
Refueling behaviour varies significantly between crews on the same site. Crews that refuel at 63 percent of tank capacity stop far more often than crews that refuel at 75 percent, the industry benchmark. Each unnecessary stop takes a loaded haul truck off the road for approximately 30 minutes, at an operating cost of $500 or more per hour.
Without data, you cannot see which crews are underperforming, and you cannot act on it. The VERIDAPT platform tracks every refueling event by vehicle and crew, surfacing the disparity and enabling targeted coaching. In documented case study data, eliminating unnecessary refueling stops for a single crew recovered 261 truck hours and up to $522,000 USD per year in production value.
4. Fuel Pump Performance Costing You Truck Time
Underperforming refueling pumps mean trucks spend longer at the bowser than they need to. The difference between a pump running at 400 litres per minute and one running at 600 litres per minute is approximately 1.3 minutes per dispense event. Across 300 monthly dispenses at one location, that is 400 minutes per month, nearly 80 hours per year, of truck time lost at a single pump, worth approximately $160,000 USD in recovered operating value.
VERIDAPT monitors flow rate performance by location in real time, identifying degrading pumps before they become operational bottlenecks.
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Underground fuelling bays and service points are harder to inspect and maintain than surface installations. Pump degradation in an underground environment can go undetected for longer, because visual inspection requires a dedicated site visit and the consequences of a bowser failure underground are more disruptive than on surface. VERIDAPT's real-time flow rate monitoring applies to underground fuelling points with the same alert thresholds as surface installations.
Beyond the Leakage Points: Fuel Tax Credits
Accurate Records Unlock Legitimate Claims
In Australia, mining operations can claim Fuel Tax Credits (FTC) on diesel used in off-road equipment under the Australian Tax Office scheme. In the United States, a federal excise tax refund applies to off-road diesel use. Both schemes require accurate, auditable records of where and how fuel is consumed to support eligible tax credit claims. Operations running on manual dip readings typically cannot produce those records at the required level of granularity, and under-claim as a result.
VERIDAPT generates a complete, auditable record of every litre dispensed to every asset, by vehicle, by operator, by location, by time, providing the foundation for maximising legitimate FTC or excise tax refund claims in both jurisdictions. We recommend working with your tax advisor to confirm applicable rates and claim processes for your specific operation.
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Underground mining equipment operating on diesel, including LHDs, underground trucks, and service equipment, is eligible for FTC claims under the Australian scheme in the same way as surface equipment. The documentation requirement is identical: auditable per-asset dispensing records. VERIDAPT's underground authorisation workflow generates compliant records automatically, covering equipment that manual underground fuel logs typically cannot document at the required granularity.
Built for the Harshest Mining Environments on Earth
Hardware That Takes It
VERIDAPT's AdaptNX hardware is deployable at every refueling point on site and built to operate in temperatures between -40°C and +70°C. The AdaptSMU tag attaches to each vehicle, identifying it at the bowser and capturing engine hours to calculate per-vehicle burn rates. Every dispense event is authorised by both vehicle and operator, eliminating unauthorised fuel use and creating a complete chain of custody for every litre on site.
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AdaptNX hardware is rated to IP66 water ingress protection and designed for operation in underground environments including restricted ventilation, high humidity, and vibration from blasting activity. AdaptSMU vehicle tags operate on underground equipment with the same functionality as surface installations, tracking per-vehicle consumption and enabling operator-level authorisation at underground fuelling points and service bays.
FLAG: Confirm exact IP rating for underground-specific deployments and any underground certification standard (e.g. ATEX, IECEx, or equivalent) with VERIDAPT's hardware team before publishing. If no formal underground certification applies, adjust wording to remove the implied compliance claim.
Software That Delivers
AdaptIQ is VERIDAPT's secure, cloud-based software platform. It reconciles your entire fuel supply chain,deliveries, transfers, and dispenses,, in real time, and surfaces the data as actionable operational insights. Your team sees which trucks to prioritize for refueling, which crews to coach, which pumps to service, and whether your last delivery matched what you paid for.
VERIDAPT is proven to achieve up to 99% fuel reconciliation rates providing the foundation for accurate ESG reporting as well as operational savings.
Deployment on a site of your scale is typically measured in weeks. VERIDAPT's Partner and Delivery team manages installation and commissioning, while Customer Success engages throughout the system's operational life to ensure continued value as your site evolves.
Trusted by the World's Largest Open Pit and Underground Operators
[CLIENT LOGOS , BHP, Rio Tinto, Glencore, Teck, others. Source from existing site assets.]
VERIDAPT is trusted by six of the world's ten largest mining companies. Our platform is active across more than 200 mine sites in Australia, North America, Africa, and South America, including some of the highest-volume open pit coal and iron ore operations on earth.
"Because diesel is one of our greatest costs, every dollar in savings counts. VERIDAPT is helping us manage our fleets more efficiently and economically, while ensuring every litre we consume can be reconciled.", Head of Fuel Management & Infrastructure, Major Canadian Mine Site
NOTE: Underground-specific testimonial: no confirmed underground testimonial is available in existing materials. If VERIDAPT can provide one, insert here. An operations director or mine manager from an underground deployment would strengthen this section significantly for the underground buyer.
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Calculate Your Open Pit and Underground Fuel Management ROI
Every mining operation loses fuel spend in different proportions across these leakage points. Our ROI calculator uses your site inputs, fleet size, fuel cost per litre, monthly dispenses, and operating hours, to model the specific savings available to your operation.
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Direct link: https://www.veridapt.com/fuel-savings-calculator-calculate-fuel-management-roi
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Frequently Asked Questions
How much fuel do open pit mining operations typically lose?
Operations running on manual dip readings often cannot accurately account for a meaningful percentage of their total fuel volume. This includes unverified delivery discrepancies, unauthorised use, and losses that manual records cannot detect. On a site spending millions annually on diesel, this represents a material unrecovered cost.
What are the biggest causes of high fuel costs in open pit mining?
The four primary causes are: delivery discrepancies that manual dip readings cannot verify; haul trucks burning fuel at above-normal rates due to maintenance issues not yet identifiable without per-vehicle data; crews refueling before tanks are adequately empty; and underperforming fuel pumps that slow trucks at the bowser. See the detailed breakdown above or use the ROI calculator to quantify each.
[UNDERGROUND ADDITION] What fuel management challenges are specific to underground mining operations?
Underground operations carry fuel complexity that surface operations do not.. Shaft logistics create blind spots, fuel delivered underground is often recorded manually, and discrepancies are only discovered at month-end when they cannot be traced. Confined-space fuelling also requires documented authorisation trails that paper-based systems cannot reliably provide.
What is a fuel management system for open pit mining?
A fuel management system for open pit mining is an IoT-based platform that automatically meters every fuel delivery, transfer, and dispense event on site, linked to specific vehicles and operators. It replaces manual dip readings with real-time data, reconciles fuel inflows and outflows to within a verified error limit, and generates operational insights that identify where fuel is being lost or wasted.
How long does it take to deploy a fuel management system at a mine site?
Deployment of VERIDAPT's solution on a mid-size open pit operation is typically measured in weeks. VERIDAPT's Partner and Delivery team manages installation and commissioning, and most sites begin seeing measurable reconciliation data within the first 30 days of operation.
Can a fuel management system help with Australian Fuel Tax Credits?
Yes. The Australian Fuel Tax Credit scheme allows mining operations to claim credits on diesel used in off-road equipment, including underground equipment. Accurate, auditable dispensing records,, generated automatically by VERIDAPT's solution for both surface and underground assets, are the foundation for supporting eligible claims. Operations relying on manual records typically cannot produce the granularity required for optimal claims.
Does VERIDAPT work with both US and Australian open pit operations?
Yes. VERIDAPT operates across both jurisdictions and is familiar with the specific compliance, tax, and operational requirements of each. Regional specialists are available for both markets.