The tracking and monitoring system for opencast mines of the present invention enables continuously tracking and monitoring vehicles and moveable equipment in opencast mines using ZigBee-enabled active RFID devices forming a dynamic wireless network among them and other static and mobile ZigBee devices placed at strategic locations. The present invention provides a tracking and monitoring system for opencast mines comprises in combination of ZigBee-compliant devices (programmable to operate as end devices, routers and coordinators by hardware specific embedded software) and wireless sensor network software having various application modules for opencast mines. Use of the system of the present invention would help in maintaining computerized record and analysing the performance of costly shovels and dumpers deployed in opencast mines. This would help in optimising the placement of dumpers with each shovel depending on the change in working and dumping places. This would also help in maintaining computerise attendance of dumper operators and other personnel working in an opencast mine. This would further help in providing warning to the signal man and dumper operator, while dumper approaching close proximity to the signal man. This would help in establishing two-way message communication among the personnel engaged in an opencast mine. This would ultimately help in improving production, productivity and safety in opencast mine.