Solmere Capital is considering investing in an open-cut coal mine close to a regional town with a population of 1200 people. The mine will create up to 1500 new jobs in the region and will facilitate improved education, medical services and shopping facilities. Additional housing will be required so the local building industry is also likely to benefit. The mine has an expected life of 30 years. Beyond that it will be decommissioned with many of the 1500 workers expected to leave the town in the five years leading up to closure. Five years after the mine is closed, the population of the town is expected to stabilise at 900 people. This will result in a loss of facilities over the 10 -year transition period. In addition to this, up to 7500 hectares of high quality agricultural land will be lost for the mine. Even with rehabilitation, after mine closure this land will not be suitable for growing crops, which is the current land use. There is also a significant risk that the town's underground water supply may be contaminated by mine activities, meaning water would have to be piped in from over 100 kilometres away at high cost. The coal exports will add to global carbon emissions, and there will be increased traffic on local roads designed for low traffic volumes.

Required:

a Use a qualitative benefit cost matrix to weigh up the cost and benefits of the proposed project.

b What are five other possible benefits and five other potential costs not mentioned above?

c What could Impact Investments do to improve the project's social cost benefit ratio?