Managing Technology Risk

To meet the business objectives of a metallurgical project, there is often a need for new and untried technology or equipment, whose very novelty can present serious risks to meeting those objectives. The key risk management approach is a rigorous stepwise progression from theoretical evaluations and laboratory tests to pilot plant trials. These must be followed by demonstration-scale trials before final construction of a commercial scale plant, paying particular attention to the magnitude of the scale-up between phases. Success depends on following a well-defined program, not eliminating any steps, and ensuring adequate resources are available to the development team. Chapter 6 discusses the nature of technology risks to metallurgical plant projects, and the rigorous management practices needed to identify, analyze, evaluate, and avoid or mitigate them.