Kolhapur district seems to be favorable place in regard to the availability of some of the important minerals. Manganese and Iron ores are found in the southern area of Kolhapur district. Another important mineral found in this district is bauxite. The present research paper deals with the assessment of possible environmental impacts due to the proposed bauxite mining in the area of Shahuwadi of Kolhapur district of Maharashtra. Exploitation of minerals from the earth surfaces through mining activities causes ecological and environmental instability. Impact Assessment Studies are used to quantify impacts of mining activities within the zone of impact. To prevent adverse impacts of mining, environmental management plan is prepared through the findings of Impact Assessment studies. Though mining initially provided employment opportunities for few inhabitants and generated some revenue to Government, it would last only for a small period. However, the damages caused to the regional biodiversity as a result of the changed land use would remain permanent.