Although oil prices eased overnight, fuel costs and supply risks remain a concern for many ASX mining stocks.
That's because fuel is both a major cost and key input for mining operations across the country.
Bell Potter has been looking at this and has earmarked a number of ASX mining stocks that are better placed than others in the current environment.
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What is the broker saying?
Bell Potter highlights that diesel prices have been rising in response to the conflict in the Middle East. It said:
The Middle East conflict and associated rally in oil prices, flows almost directly through to higher costs for much of the mining sector. The sector may also have to manage scarcity of diesel supply, which could impact production volumes. These risks are particularly apparent for large-scale open pit operations relying heavily on diesel powered trucking fleets. Many mining and exploration projects are also reliant on diesel gensets to power plant and associated infrastructure.
Which ASX mining stocks should you buy?
There are a number of stocks under the broker's research coverage which are less exposed to these diesel price and supply risks.
The first is uranium producer Boss Energy Ltd (ASX: BOE), which has been named as a buy with a $1.95 price target. It said:
The Honeymoon project draws power directly from the grid (connected to Broken Hill). In-situ-recovery operations by nature do not require high-diesel consuming truck and shovel fleet typically seen in open-pit operations. The only exposure is via 3rd party site deliveries for reagents.
Another ASX mining stock to get the thumbs up is Liontown Ltd (ASX: LTR). Bell Potter has a buy rating and $2.42 price target on the lithium miner's shares. It commented:
The Kathleen Valley underground lithium operation achieved 82% renewable energy penetration in 1H FY26. Lithium is likely to benefit from the increased incentive to Electric Vehicle take-up and Battery Energy Storage Systems emerging role in providing grid stability.
Nickel Industries Ltd (ASX: NIC) could be another stock to consider. Bell Potter has a buy rating and $1.45 price target on its shares. It said:
Insulated from oil price shock and security of supply issues due to Indonesia's near-self-sufficient diesel supply and a subsidised domestic fuel market. Process plant power supply secure, via on-site coal-fired power utilising abundant domestic coal. NIC is exposed to cost and supply risks of elemental sulphur, which is used to produce acid for High-Pressure-Acid-Leaching (HPAL) of nickel – a key growth area for NIC in CY26. NIC is highly leveraged to the nickel price, a first derivative beneficiary of higher EV demand.
Lastly, it notes that Vulcan Energy Resources Ltd (ASX: VUL) is well-positioned due to its geothermal electricity generation. It has a speculative buy rating and $6.10 price target on its shares. It said:
Phase One Lionheart lithium brine project (first production 2028) is vertically integrated from geothermal electricity generation and heat supply through to electrolysis production of lithium hydroxide. Like LTR, we expect VUL will benefit from stronger lithium markets.
