WhenSunday, March 3, 2013
Sponsored ByTMS Extraction & Processing Division
InstructorsMark W. Kennedy, ProVal Partners; and Phillip J. Mackey, P. J. Mackey Technology


Course Registration Fees* (Advance Rates Valid through February 1, 2013)

Advance Member: $525
Advance Nonmember: $575
Late/onsite Member: $600
Late/onsite Nonmember: $650
* Registration fee includes continental breakfast, lunch, morning and afternoon coffee breaks, and course notes.


The natural outcome of new technology Mega-Projects seems to be technological success, but financial failure. All those who have ‘failed’ before us, were just as intelligent, educated and experienced as we are. The best way to avoid sharing their fate is to study their ‘modes’ of failure and improve our project management systems accordingly.

Mega-projects are so vast that no single human mind can encompass their complexity or predict the interactions between all the ‘parts.’ The only way to successfully manage such projects is through systems (e.g. Change management, HAZOP, Technology risk reviews) and lists (e.g. Risk registers). Not only must we engage creative, intelligent and experienced people and forge integrated multi-disciplinary teams to be successful with large-scale new technology projects; we must give them the time, resources and systems they require to be successful.

Success at mega-projects and particularly those involving new technology, involve extensive Front-End-Loading (FEL), and careful systematic development and execution.

-Mark W. Kennedy, 2012

  • Review the past performance of major mining and metallurgical projects.
  • Identify the root causes of risk in mining and metallurgical projects, and particularly those with a high component of new technologies.
  • Review standard project management techniques and introduce specific methods to indentify and manage risks in new technology projects.
  • Ensure that the course participants are familiar with standard financial analysis methods for projects.
  • Introduce new mathematical methods to asses financial risk in new technology projects, whereby marginal projects can be prevented from proceeding, while sound projects can be given the additional time and resources required to achieve the optimal level of front-end-loading (the level which returns the maximum rNPV).
  • Enable the course participants to take back to their work place, a set of mathematical tools that will allow both engineers and financial professionals to establish a common level of understanding on risk, thereby leading to more accurate assessment of projects, better decision making and enhanced project financial returns.

Participants will:
  • Review previous Mega-Project mining and metallurgical early plant performance.
  • Learn the sources and types of technical and technological risks in mining and metallurgy projects.
  • Review common project and risk management tools (Front-End-Loading, Staged project management, Risk analysis, Risk registers, Mitigation strategies, Hazard identification studies, HAZOP and FMECA, Six Sigma and Design for Six Sigma).
  • Explore systematic methods of quantifying and controlling project risk in new technology projects for a more successful outcome (technology risk reviews, design and scale-up methods – DMAIC, project execution strategies, project scheduling, flow sheet modifications, and safety).
  • Review standard methods for the financial analysis of projects.
  • Learn new methods of assessing the financial impact of technical and technological risk, in the form of risk-weighted cash flow and risk weighted net present value (rNPV).
  • Start-up and Early Performance of New Mining and Metallurgical Projects: A case study analysis
  • Technical and Technology Risks Impacting Mining and Metallurgical Project Performance
  • Project Management Tools Part I: A quick review of risk registers, risk assessment, mitigation, HAZAOP, FMECA, Front-End-Loading (FEL), and staged project management systems
  • Project Management Tools Part II: Six sigma and design for six sigma, in a new technology environment
  • Special Methods to Identify and Control Risks in a New Technology Environment: Technology risk reviews, design and scale-up methods – DMAIC, project execution strategies, project scheduling, flow sheet modifications, and safety
  • Basic Project Financial Analysis Tools: How to calculate Internal Rate of Return (IRR), Discounted Cash Flow (DCF), and Net Present Value (NPV) of a project?
  • Introduction to the Theory for Risk Weighted Discounted Cash Flow and Risk Weighted Net Present Value (rNPV)

Practical Group Assignments:
  • (1): Risk identification and staged mitigation strategies.
  • (2): Overall Assessment of project risk using the new mathematical and decision making techniques.

Phillip J. Mackey

Dr. Phillip J. Mackey is President of P J Mackey Technology Inc. involved in consulting on metallurgical projects worldwide after many years associated with Xstrata working in all areas of non-ferrous metallurgy. He has over forty years of broad, in-depth experience and understanding of the non-ferrous metals business including operations and technology, in particular for nickel, copper and precious metals. He has authored or co-authored over 100 publications covering many aspects of non-ferrous metallurgy, including metallurgical history.

P.J. Mackey played a leading role in the development of the Noranda Process, the world’s first commercial continuous copper smelting and converting process and one of the important copper technologies developed in the twentieth century. His role in introducing the Noranda Converter, a new continuous converting process, was recognized by the Noranda Technology Award given in 1998. He played a key role in Copper Development Association activities and helped introduce the North American Initiative for Copper in Architecture to the copper industry in the 1990s. Dr. Mackey served as President of The Metallurgical Society of CIM from 1983 to 1985. He received a Special Medal of Honor by the CIM in 2007 for his role as co-founder of the now well-established Copper-Cobre conference series. He is a Fellow of both the CIM and TMS, and has received the Selwyn G. Blaylock Medal by CIM in 2010 for distinguished service to Canada through exceptional achievement in the field of metallurgy.

Mark W. Kennedy

Mark W. Kennedy has worked on major capital projects through every project phase from invention, lab, pilot, demonstration, feasibility, through basic, value and detailed engineering, construction, start-up, ramp-up and operations. This gives him an excellent perspective on new technology and its impact on project engineering. He is currently a partner in ProVal Partners of Lausanne Switzerland. ProVal Partners S.A. provides advisory services to the Non-Ferrous Metal Industry. Mark has more than 20 years in the metallurgical industry (nickel, ferro-nickel, zinc, copper, magnesium, aluminium and materials) in plant operations, project engineering and applied research, working with companies such as:

  • Elkem AS Research, Kristiansand, Norway, including work on the first-of-a-kind Elkem Solar silicon smelter, Carbothermic Aluminium and Spent Aluminium Potlining smelting projects.
  • Koniambo Project, Falconbridge Australia Pty. Ltd., Brisbane, Australia, as one of the owner’s representatives on this first-of-a-kind Ferro-Nickel (Fe-Ni) smelter.
  • Kidd Technology, Falconbridge Ltd., Kidd Creek Metallurgical Division, Timmins, Ontario, Canada at the first commercial Mitsubishi copper smelter.
  • Noranda Technology Centre (NTC), Pointe-Claire, Quebec, Canada, where he was one of the inventors of key technology for the Noranda Magnola magnesium process.