Mine Site Digital Fuel Management an Emerging African Disruptor

Written by Jim Regan

Now is the time for mining companies across Africa to embrace the power of positive disruption fuelled by digital technology and artificial intelligence, a key theme and single most-talked about topic during this year’s Mining Indaba conference.

In other parts of the world, digital fuel management technology is making the mining industry less carbon-intensive and more profitable, while minimising losses due to theft and fraud. There’s no reason why African miners cannot reap the same benefits.

Leading African legal firm Cliffe Dekker Hofmeyr identified Indaba as a unique platform for the industry to collaborate, share strategic perspectives, identify challenges, and workshop solutions

A key takeaway from Indaba 2024 was that digital fuel management providers are saving mining companies millions of dollars by streamlining fuel supply chains while allowing for unprecedented 24/7 transparency and monitoring – whether at the mine site or anywhere in the world.

The results are greatly mitigated risks of fuel theft and fraud, elimination of unproductive and outdated paperwork and more accurate reconciliation.

It should come as no surprise then that the data generated by digital fuel management systems, such as VERIDAPT’s Adapt FMS, deployed by BHP, Rio Tinto, Glencore, Syncrude Operated by Suncor and other majors committed to maximising fuel procurement dollars and minimising carbon footprints, is more precise and granular than ever before.

A recent Organisation for Economic Cooperation and Development (OECD) report said, “Advances in digital technology have drastically changed the quality and quantity of data that mining companies can access.”

Adds the Brookings Institution: “To unlock mineral-rich African countries’ full potential, mining companies and African governments must embrace Fourth Industrial Revolution (4IR) technologies. Artificial intelligence (AI), automation, and big data can help mining firms limit damage to the environment, improve working conditions, reduce operating costs and boost productivity.”

The most successful outcomes require deploying reliable hardware and software to mine sites to measure fuel consumption, reconcile storage inventories, and, importantly, accurately calculate and benchmark emissions.

Digital fuel management systems use onboard sensors to automatically collect the data required for fuel reconciliation and reporting.

This means, for example, that personnel no longer have to take the time to enter data manually. As a result, errors are mostly non-existent.

The rate of digital adoption by resource companies is forecasted to remain on its upward trajectory as the financial and environmental benefits of automated fuel management continue to far outweigh installation and maintenance costs.

“Good data leads to good decisions,”

said Wayne Arthur, VP of Mining, VERIDAPT, a commodity management group whose digital platform monitors, controls and authorises the use of over 30 billion litres of fuel annually, across 80+ large global mining, rail and terminal operations.

By digitally tracking an entire fuel and lubricant chain from delivery to consumption, businesses are generating highly accurate emissions tracking data, alongside real-time reconciliation, greater productivity/cost savings and optimal safeguards against theft and fraud, according to Arthur.

Like all successful innovators, VERIDAPT simplifies the complex: Its hydrocarbon management system aggregates data from field devices, such as tank level gauges, PLCs, flow meters, etc., and presents the data in an accurate, meaningful format for statuary reporting and internal analysis and improvement.

The AdaptFMS solution provides complete visibility of fuel and lubricant usage down to each fuel-consuming asset and operating site or location.

Multiple fuel authorisation options – tracking of product, field user ID, equipment item, flow rates, time, duration, burn rates, queuing and internal product movement from tank-to-tank, are just several of the ways AdaptFMS is setting the benchmark in fuel management.

VERIDAPT understands cost optimisation can be achieved by a data-driven platform that reduces fuel service contract costs by improving service truck productivity and maximising efficient fleet strategies.

Key to these goals is minimising fuel service stoppage time by ensuring pumps are delivering the expected flow rates and cutting fuel consumption by identifying assets with abnormal fuel burn rate.

Moreover, Arthur said, “A number of VERIDAPT clients approached us wanting a more effective way to track their fuel delivery across their supply chains,” explains Arthur.

Despite deliveries consisting of millions of litres of fuel, many clients were largely in the dark regarding how effectively the fuel was being transported, and where it was at any point in time, according to the executive.

Typically, fuel has a long journey before it makes its way onto an individual mining site. It usually starts at a coastal depot, where it is transferred into large tanks. It is then moved to an inland depot via a rail fuel train, and is then transported to site storage via road fuel trucks. Once on site, the fuel still needs to be moved from the main fuel farm to input tank transfers via more fuel tanks before it can finally be consumed.

“To tackle this lack of visibility, VERIDAPT developed a Load Plan and Gantry Solution that provides clients with the means to track and monitor all hydrocarbon use throughout their supply chains”

, Arthur said.

“At all stages of the supply chain, tank storage levels are monitored live (with temperature compensation as well as water level), and final consumption point metering is also installed.”

African mining’s trajectory into the future needs to manage the risks of today while embracing positive disruption and continuing to build sustainable responses to the demands and obligations of tomorrow, according to Andrew van Zyl, Managing Director, SRK Consulting (South Africa).