The paper "Project Scope, Time, and Cost Management" is a perfect example of a case study on management. The management of projects requires the utilization of several skills to ensure successful implementation within the set goals and scope. This analysis tracks the implementation of the Kitsault Molybdenum Project which is a mining project located in North Western, British Columbia in Canada. The project got approval from the Canadian Environmental Agency Assessment and the project construction will begin in 2015. The project is intended to produce 45,500 tonnes of Molybdenum ore per day from the year 2017 when operations will commence.
The analysis will look into the construction phase of the project, the company structure, stakeholders, and roles of the project team. Project Background The Kitsault Molybdenum Project was initiated by Avanti Mining Company which took over the project from Kennecott and Amax which ceased mining operations in 1982. The mine was closed due to low prices of Molybdenum at the time and now Avanti intends to operate the mine for a period of 14 years. The mine location is 140 km from Prince Rupert in British Columbia and it has proven to be among the top 5 Molybdenum assets in the World.
Due to the quality and supplier agreements that Avanti has with other suppliers, the resource will fetch good prices at an assumed rate of US$20.00/lb of Molybdenum. Project Context The Kitsault Molybdenum Project is expected to take 2 years of construction before the commencement of mining can begin. The project’ s construction cost is estimated at $ 812 million which will be wholly financed by Avanti Mining through its partners. The project is expected to employ over 700 people in the construction phase and 300 full-time employees during the mining phase.
The expected deliverable of the mining phase is a fully functional mining operation and the company expects to get full backing from all its stakeholders. The project major phases are; test drilling, permitting, personnel acquisition, financing, and construction. Issues in the project include labor agreements and project financing. Stakeholders Stakeholders in a project are defined as people or groups upon which will be affected in the process of a project’ s implementation. The stakeholders in a project are not supposed to gain directly from the project although they will be affected by the project (McDowell 2001, p.
32). In the implementation of the Kitsault Molybdenum Project, there are a different set of stakeholders involved in the project as outlined; Partners: Avanti Mining Company has agreements with different stakeholders and partners such as ThyssenKrupp Metallurgical Products which has committed for 50% take off on all Molybdenum mined from the Kitsault Mine. Other partners in the project include the Chilean-based Molibdenos y Metales (Molymet) which has agreed to establish a Molybdenum concentrate processing plan with Avanti Mining. Government of Canada: The Kitsault Molybdenum Project is expected to generate good revenues and thus, the project will net the Canadian government taxes and other incentives that are beneficial to the citizens of the country.
The Kitsault Molybdenum mining project is a huge undertaking and therefore, it will assist in developing the Kitsault area which has been greatly affected upon the closure of the Kitsault Molybdenum mine in the year 1982 (Cleland 1998, pp. 61-62). Kitsault Community: The Kitsault community and region will benefit from the project since a lot of people will get employment from the company.
Moreover, people living in the area will benefit from an economic boost since the project will bring a lot of employees and people who will need goods and services sourced from the community (Gardiner 2005). Labour Unions: The implementation of the Kitsault Molybdenum mining project will involve approximately 700 workers in the construction phase of the project. A further 300 will be employed when the mining process will commence. Therefore, labor unions who will be involved in the labor negotiations and other staffing arrangements will meet and decide on an appropriate method of undertaking this process.
As a result, these unions are stakeholders in the implementation of the project (Cleland 1998, pp. 57-63). Local Kitsault Government: The Kitsault local community and government will be involved attractively in the project since it will act as a liaison between the company and the residents of the region. Moreover, development in the area as a result of the Kitsault Molybdenum project will be huge and thus it will boost the economy of the region in terms of infrastructure development and other amenities. Business Community: The business community in the Kitsault area will greatly benefit from the project since the potential of the project will spur trade and commerce (Cleland 1998, pp.
65-67). Organizational Structure
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