This is a fairly tough problem. I'm not familiar enough with Simulation to know if it can handle it, but I suspect not. I am more familiar with ANSYS Workbench and wouldn't tackle the problem there, although I might try it for a round hole, where I could run a 2D axisymmetric model. As the Aluminum yields, you will have to remesh a number of times. If Simulation doesn't allow you to remesh, then you are probably out of luck.