Title: A simulation based capability assessment of advanced mining technology

Authors: Hulya Yazici

Addresses: UW-L, CBA, 418G Wimberly Hall, 1725 State Str, La Crosse, WI 54601, USA

Abstract: Capabilities enable a firm|s successful positioning and sustained profitability. Advanced technology, if adequately selected, enhances capabilities. However, the role of advanced technology on business competitiveness and growth is conflicting. This study presents a simulation approach to assess the role of technology choice in formulating mining strategies for a leading mine organisation in North America. Mining operations are mostly described uncertain, inconsistent, capital intensive and resource dependent. System simulation is a powerful decision-making tool allowing the visualization and quantification of outcomes resulting from technological as well as operational changes. Mine projections vary from one to thirty years strategic plans specifying which ore zones are going to be extracted for highest profitability. The study demonstrates that advanced technology choice alone is not sufficient for assessing capability and formulating strategies, rather the combination of mining method and technology choice decisions affects how competitive strategies are formed. Furthermore, advanced mining technology promotes a value generating growth strategy measured by shortened mine life with an increased throughput and high resource utilisation which results in an increased net present value of the technology investment.

Keywords: simulation; advanced technology; capabilities; strategy formulation; resource allocation; technology assessment; mining.

DOI: 10.1504/IJCAT.2003.002119

International Journal of Computer Applications in Technology, 2003 Vol.17 No.4, pp.220-232

Available online: 20 Jul 2003 *

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