The purpose of this report is to provide is to provide information on the possible economic and environmental impacts that are expected if this project is approved. From the BHP standpoint, three vital features of the development implementation are likely to emerge after the scheme is commissioned. In this case, the report will represent the economic costs and benefits that the project will have after the project is implemented.
Secondly, this report provides the regional economic impacts that the project will have. From the non-market value approximations, the local community is expected to benefit direct or indirectly from the project either by provision of jobs and infrastructural developments. The importance of covering this information is to make the public aware of the benefit they are likely to have and hence help them evaluate the worthiness of the project in this community.
Lastly, this report provides the distribution of impacts between stake holder groups. From this perspective, the BHP Billiton provides the assessment of the social impacts of the project to the main stake holders that include the government and the local communities. Moreover, the environmental impact of this project to land, water swamps and the natural environment are assessed in this report.
Benefit Cost Analysis
Benefit cost analysis
Benefit Cost Analysis is a superior procedure that seeks to evaluate the costs and the returns of a project and to make a decision on the worthiness of a project based on its results. According to Brent (2007, p. 5), cost benefit analysis is an evaluative tool that seeks to weigh the benefits and the costs of implementing one project and avoiding to risk in another. This author recognizes that any project has its own advantages and disadvantages and that the best project is one whose benefits far much outweigh its demerits. Economic costs The implementation of this project comes along with numerous opportunity costs. First, the opportunity cost of land at the site of production is approximated at $3.1 million at East and Appin, while land at West cliff is assumed to have less market value as this land has not been utilized by the community for any economic activity. The opportunity cost