In October 2024, a private consortium backed by global venture capital secured exploratory drilling permits for the £8.4 billion 'Tamar Valley Lithium Extraction & Refining Facility' in Cornwall. This major mining project is projected to supply up to 35% of the UK's domestic demand for electric vehicle battery manufacturing over the next 45 years.
Evaluate the likely private costs and external costs associated with major industrial resource extraction projects of this scale. Use an appropriate externalities diagram in your answer.
