A remote sensing based land cover change assessment methodology is presented and applied to a case study of the Oil Sands Mining Development in Athabasca, Alta., Canada. The primary impact was assessed using an information extraction method applied to two LANDSAT scenes. The analysis based on derived land cover maps shows a decrease of natural vegetation in the study area (715,094 ha) for 2001 approximately 8.64% relative to 1992. Secondary assessment based on a key resources indicator (KRI), calculated using normalized difference vegetation index (NDVI measurements acquired by NOAA–AVHRR satellites), air temperature and global radiation was performed for a time period from 1990 to 2002. KRI trend analysis indicates a slightly decreasing trend in vegetation greenness in close proximity to the mining development. A good agreement between the time series of inter-annual variations in NDVI and air temperature is observed increasing the confidence of NDVI as an indicator for assessing vegetation productivity and its sensitivity to changes in local conditions.