Managing international mining — a case study in the application of system dynamics to complex, multiple ownership systems

Abstract

The paper describes the use of System Dynamics in the understanding and analysis of large, complex and multiple ownership systems. The setting chosen is that of an international minerals industry, characterised by the interactions between individual, autonomous groups of systems actors, involved in the functions of production, fabrication and consumption; each having their own objectives and related operating policies. A review is presented of some of the major problems associated with such industries. This is followed by a description of the model and the way it has been applied to examine various supply responses, in the light of changing consumption patterns. Demonstration results deal with model validation and with analysis of international buffer stocks and conflicting supply policies on the historic situation in the copper industry.