This paper demonstrates an application of a recently developed Risk-Cost-Benefit (RCB) Framework to environmental risk management in the mining industry. The environmental application of the RCB Framework as part of an ACARP project (Kizil, Bye and Joy, 2012) involved a thorough selection process with site visits and in-depth discussions with the case study site's environmental management team. Under their guidance, the highest risk of environmental impact at the case study site was identified as road subsidence' at the time when the project work was undertaken. This paper presents the unique application of the RCB Framework to examine the risk of mining-induced subsidence and its impact on one of Australia's busiest highways, with a traffic volume of 38 000 vehicles per day (NSW RTA AADT, 2008). The RCB Framework was employed to assess the optimum group of controls for road subsidence risk management to ensure highway availability while mining occurs. Whilst this paper focuses on road subsidence, the methodology employed can be directly applied to other environmental concerns including preparation for mine closure, rehabilitation planning and waste management. The RCB Framework incorporates mathematical modules which were developed to enable complex yet tightly integrated RCB calculations. The process integrates the risk-control effectiveness assessment to determine that the selected safety initiative is financially beneficial to the mine site and company. This concept has been applied to a number of high-risk mining areas targeting safety, productivity and environmental issues. This paper introduces the five-staged RCB Framework, incorporating the RCB tools RCBGEN (Risk-Cost-Benefit Generator) and RCEMETHOD (Risk-Control-Effectiveness Method), and demonstrates its practical application to the risk management of a road subsidence case study. The case study looks at potential pavement damages, in particular, the occurrence of pavement stepping on the surface of the highway as a result of vertical subsidence. This type of road damage was previously experienced at another major inter-city route while underground mining occurred in the region where the case study site is located. The RCB Framework has been successfully applied to the analysis of the road subsidence case study and determined the risk reduction and financial benefits of implementing a range of risk-controls. User-friendly RCB Charts to provide an aid for decision-making were produced. The value of using the RCB charts to achieve balance between risk, cost and productivity in the decision-making process for risk management has been explained. The case study determined that pavement slots and fibre-optic cable monitoring were relatively low-cost and effective controls applied in the mining industry for the first time at a global level.This paper supports the industry's ongoing efforts to manage risk to ALARP (as low as reasonably practicable) and achieve zero harm' by providing a new Framework to more effectively establish the adequacy of controls.CITATION:Kizil, G V, Bye, A and Joy, J, 2012. Application of risk-cost-benefit analysis to highway subsidence due to mining, in Proceedings Life-of-Mine 2012 , pp 197-206 (The Australasian Institute of Mining and Metallurgy: Melbourne).