Net present value (NPV) has been the main criterion in mining project evaluation and production plan optimisation. It is a common practice in NPV calculations to take into account only the tangible cost items in the corporate accounting system. The costs incurred due to damage to the local ecosystem and environment are left out and treated as externalities. Such practice on the one hand underestimates the total cost of a mining operation and, on the other hand, ignores the difference in ecological/environmental impacts between different mine plan alternatives. This paper attempts to measure the ecological costs of mining and to incorporate such costs into the evaluation scheme in mining project evaluation and mine planning. The ecological costs of mining are estimated based on the areas and types of land (eg forest land, grazing land, crop land) damaged by mining activities and the carbon emission from fossil fuel consumption. For the land areas (and their associated ecosystems) directly damaged by mining activities, the ecological costs are measured by the prevention and restoration costs, the lost values of eco-services of the damaged land, including bio-product production, soil erosion control, water run-off control, oxygen release, air pollutant absorption and formation of soil nutrients. The ecological cost of carbon emission from the energy consumption of a mining operation is measured by the cost of cultivating the equivalent forest land required to uptake the emitted carbon. A case study on a large-scale open pit mining project is presented to demonstrate the influence of ecological costs on the mine planning outcome.