Analysis of eddy currents in magnetically nonlinear media is presented for
the case when dynamical magnetic material properties are described by the L
andau-Lifshitz equation. A novel finite difference scheme that preserves (c
onserves) the magnitude of magnetization vector is developed. This scheme i
s linear and has a second-order truncation error. The scheme is applied to
the analysis of eddy currents and numerical testing of its accuracy is repo
rted for the case of circularly polarized driving magnetic fields.