Environmental life cycle assessments (LCA) are a part of today’s environmental management techniques. Lifecycle thinking and environmental focus have increased the need to understand and to communicate the environmental performance of products. Environmental performance can also be used as a competitive advantage as consumers and businesses are becoming more environmentally aware. The objective of this project work was to study the environmental impacts during an underground drill rig lifecycle and to identify how the impacts could be decreased. The project work was started as a literature research on LCA methodology and previous studies to gain an understanding of the process. The life cycle of the drill rig was constructed and the inputs and outputs of each phase were determined in order to define the information required for the analysis. An LCA contain four stages: goal and scope definition, inventory analysis, impact assessment and interpretation. The project work doesn’t contain the full LCA because impact assessment is left outside the scope. The main environmental impacts are caused during use phase of the life cycle. Therefore the way the machine is designed to be working and the material and component selection made together with operational procedures and correct use are the main influencing factors to the environmental impact. In the longer term the environmental impacts can be influenced as design improvements which enable the use of new technologies with less emissions and improved operational efficiency. With current design and basic functioning, there can be done improvements mainly in the use phase through operational procedures which enable more efficient use and less waste creation. The principles of sustainable development and environmental impacts should be taken better into account in the new product development as well as improving the environmental impact of current products.