Modelling policies and decisions: A case study in mineral extraction

This paper describes the application of the tools and techniques of the system dynamics method within the context of factors which impact the flow of international mineral investment funds. Emphasis is placed on methodology rather than context. The simulation model, which provides the theoretical underpinning for the paper, is developed in the system dynamics tradition and provides a means of examining the effectiveness of varied environmental, fiscal, and corporate policies on the operating decisions of international mining firms and the flow of investment funds. The model acts as an integrated decision support tool through the projection of future changes in a mining firms key performance indicators.