This paper discusses the use of simulation in the mine planning process. A case study on the Newcrest Cadia East project is presented, and the challenges and possibilities for using simulation as a tool for mine planning and scheduling is discussed.The simulation study presented in this paper was performed during the project's prefeasibility stage, and focused on the planning and scheduling of the development of panels in the future mine. The Cadia East project will be the largest underground operation in Australia and the first using panel caving. Simulation was used in order to optimise the development of panels; it was mainly used in order to verify the plans for the development process and allocate resources in an optimal way. The work was performed as an iterative process and adjustments to the plans were made according to simulation results. Bottlenecks were identified and different scenarios were tested.The results from the simulation study shows how different operational constraints affect the planned development process and how changes in priorities can be necessary in order to maintain a high development speed. Furthermore the study shows how changes in planned mine layout requires changed strategies, and how this was solved using the simulation tool.In this paper the authors critically discusses the use of simulation in mining operations: what are the limitations and challenges of using simulation as a tool for mine planning and scheduling, what are the benefits, and what do we aim for in the future? FORMAL CITATION:Greberg, J and Sundqvist, F, 2011. Simulation as a tool for mine planning, in Proceedings Second International Future Mining Conference 2011, pp 273-278 (The Australasian Institute of Mining and Metallurgy: Melbourne).