Using simulation analysis for mining project risk management

As a result of the current economic crisis, which led to metal prices fall, mining company managers have been encouraged to cut costs. Thus, improvement projects to reduce cost has become major interest in the Mongolian mining industry. Mining projects are subject to high risk because of their size, uncertainty, complexity and high cost. This paper focuses on the development of a simulation method which provides an engineering tool for managing risks associated with the development of open mining improvement projects. The study will demonstrate the advantages of using simulation analysis for mining project management and how it reduces associated risks. The research was based on a case study of an optimization project of a mining plant based in Mongolia.