Economic advantages of dynamic analysis in the early stages of mining projects

Abstract The use of dynamic simulation is technically advantageous for the project as shown by various authors. However, is it economically advantageous in the early stages of the project (FEL1 and FEL2)? The methodology to economically evaluate the use of dynamic simulation considers the time and development cost compared with the time and cost spent to change the project in the next phase, considering changes that could be avoided with the use of dynamic simulation. Five process plant projects were evaluated, each one with an estimated CAPEX of US$ 300 million. The saved average is US$ 44,200.00 and US$ 182,400.00 for FEL 1 and FEL 2 respectively. The percentage cost savings for FEL2 (2.0%) and FEL3 (3.1%) are significant. The estimated delay avoided for FEL2 (3 weeks) and FEL3 (8 weeks) is directly related to the implementation delay, whose cost is expressively greater than the savings shown. The study concludes that the use of dynamic simulation is economically advantageous for the project.